At first sight, Morgan Crucible's results for the six months to the end of June 2009 don't look too good on any measure. They are complicated and flattered by the consolidation of UK-based NP Aerospace because Morgan increased its stake from 49 to 60 per cent in January. As a result, NPA contributed maiden revenues of £95m and £14m to earnings before interest and amortisation. Before net restructuring and one-off items of £7.2m (£4.9m) that total earnings figure fell from £51.3m to £45.3m.
But, in extremely difficult trading conditions, Morgan still managed to report respectable margins and NPA (the rest of which will be purchased over the next four years) looks a winner. It makes body and vehicle armour, so it's perhaps not surprising that the MOD is its biggest customer and Afghanistan a currently popular destination for its products. And, while the other businesses usually have to work off three months' order books, NPA's stretches out for nine to 10 months at the moment. The acquisition has also had a dramatic effect on end-user customers: in 2003, defence accounted for less than 1 per cent of sales, in the latest half year it was 22 per cent.
Broker Citi forecasts a fall in full-year pre-tax profits from £83m to £50m, giving EPS of 10.4p (22.2p).
MORGAN CRUCIBLE (MGCR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 118.75p | MARKET VALUE: | £321m | |
| TOUCH: | 118.25-119p | 12-MONTH HIGH: | 246.75p | LOW: 66.5p |
| DIVIDEND YIELD: | 5.9% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 73p | NET DEBT: | 147% | |
| Half-year to 5 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 401 | 39.5 | 10.8 | 2.5 |
| 2009 | 492 | 15.3 | 3.4 | 2.5 |
| % change | +23 | -61 | -69 | – |
Ex-div: 12 Jan Payment: 4 Dec | ||||
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