Don't be too impressed by the full-year growth from lighting specialist FW Thorpe (TFW). That's because first-half sales rose over 12 per cent year on year - meaning that second-half sales slipped 1.5 per cent compared with last year's second half. So, after an impressive run this year, further share price upside might be limited.
Management sounds uncertain about the causes for that second half weakness - although there was a "notable slowdown" in business affected by the Olympics. In the two months since the period ended, however, Thorpe has seen trading at those areas of the business most affected return to levels seen last year.
Meanwhile, even though operating profit at the core Thorlux industrial lighting operation rose just 3 per cent year on year to £10.7m, long-term prospects there look good. It's benefiting from the introduction of energy efficient LED lighting, which is more expensive to install than traditional fluorescent lights - LED business currently generates a quarter of sales, but the proportion is rising. Group exports grew 47 per cent as well, to £7.8m - helped by one-off contracts in the Middle East, progress in Australia and a surprisingly good performance in Ireland.
FW THORPE (TFW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,020p | MARKET VALUE: | £119m | |
| TOUCH: | 1,000-1,030p | 12-MONTH HIGH: | 1,080p | LOW: 765p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 571p* | NET CASH: | £31.2m** | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 51.8 | 11.7 | 73.3 | 16.0 |
| 2009 | 53.4 | 11.6 | 71.4 | 16.2 |
| 2010 | 47.0 | 10.7 | 66.1 | 16.7 |
| 2011 | 52.8 | 11.6 | 71.8 | 17.6 |
| 2012 | 55.6 | 12.7 | 84.8 | 19.4 |
| % change | +5 | +9 | +18 | +10 |
Ex-div: 24 Oct Payment: 22 Nov *Includes intangible assets of £5.98m, or 51p a share **Includes £17.1m of short-term financial assets | ||||
