Energy and climate change consultancy AEA moved into the US last summer, with the acquisition of Project Performance Corporation - there's already a $2bn (£1.2bn) pipeline of orders there. That move looks especially well timed given the Obama administration's $40bn stimulus package, with its emphasis on increasing energy efficiency and cutting CO2 emissions - though the funding will take time to build up.
The group now plans to move the business mix away from UK public-sector work, which accounted for 59 per cent of turnover last year, and towards an emphasis on the private sector. That's already paying off, helped by the launch of Ecopath, which helps industry cut energy costs and carbon dioxide emissions. Indeed, AEA's private sector orders grew 18 per cent, against an overall rise of 7 per cent in orders, to £84.3m. The group has also finished beefing up marketing and sales; those costs helped depress profits last year. And a funding deal has been agreed to eliminate the pension deficit of £153m.
However, the pension deal, plus dilution from August 2008's rights issue, rather muddies forecasts. While Arbuthnot Securities expects operating profits to be broadly flat in 2010, pre-tax profits are likely to drop to £5.3m, with EPS of 2.1p.
| ORD PRICE: | 25p | MARKET VALUE: | £ 57.2m | |
| TOUCH: | 24-25p | 12-MONTH HIGH: | 67p | 12p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 7 | |
| NET ASSET VALUE: | * | NET DEBT: | £27.3m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 151 | -14.6 | -30.3 | 1.50 |
| 2006 | 55.8 | 8.50 | 8.00 | nil |
| 2007 | 75.2 | 8.00 | 6.80 | nil |
| 2008 | 80.9 | 8.00 | 5.80 | nil |
| 2009 | 93.7 | 7.50 | 3.50 | nil |
| % change | +16 | -6 | -40 | - |
Ex-div:- Payment:- *Negative equity shareholders' funds | ||||
