Family-owned lighting group FW Thorpe has returned to being a pure lighting fittings and systems company during the period – that's following the sale of its emergency lighting components unit, Mackwell. Add that renewed focus to a solid operational performance and the shares look too cheaply rated – despite having risen over 20 per cent since the start of the year.
Indeed, adjust for the £1.4m gain from selling the Mackwell unit and group operating profit rose 19 per cent year-on-year to £5.4m – not bad at all given that wider market conditions were described by chairman Andrew Thorpe as "hard". That market-beating performance largely reflects the fact that the group continues to benefit from the shift towards energy efficiency, with government initiatives – such as the Salix scheme to encourage energy efficiency in the public sector – also set to provide a boost for the group. Moreover, FW Thorpe reported a 19 per cent rise in export orders during the period, while the group's net cash pile grew 16 per cent in half – after the company generated net cash flow of £1.83m.
| FW THORPE (TFW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 973p | MARKET VALUE: | £114m | |
| TOUCH: | 960-985p | 12-MONTH HIGH: | 973p | LOW: 743p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 534p | NET CASH: | £30m* | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 26.7 | 4.67 | 30.9 | 4.3 |
| 2011 | 29.9 | 7.04 | 36.6 | 4.8 |
| % change | +12 | +51 | +56 | +12 |
Ex-div: 11 Apr Payment: 8 May *Includes £14m of short-term financial assets | ||||
