Hazardous waste specialist Silverdell (SID) is still digesting last year's acquisition of the EDS decommissioning and consulting company, which contributed to exceptional charges of £3.5m during the year practically wiping out reported profits. However, with underlying profits growth of 43 per cent to £4.3m, and investors receiving a maiden dividend, the company looks in good shape for 2013 as the pace of hazardous waste disposal, particularly from rapidly ageing nuclear power plants, accelerates.
Acquisitions had a clear effect on the balance of Silverdell's revenues, particularly in consultancy where sales increased by 74 per cent to £14.3m. However, the remediation business, which consults on property upgrades, is still the core part of Silverdell and sales were down slightly at £49.4m (2011: £51.5m). Just under half of these generated by the public sector so austerity is a risk. However, the growth of the industrials business within the remediation segment to 29 per cent of divisional revenues offset this, somewhat.
The year-end order book more than doubled to £219m, with £97m of work slated for 2013. Chief executive Sean Nutley said the acquisition of EDS had taken Silverdell away from being an asbestos removal specialist to a full-range business across several hazardous waste sectors and that the business should now be less seasonal as a result.
House broker Finncap forecasts pre-tax profits for 2013 £9.3m, giving EPS of 2.1p, (2012:£4.3m/1.3p)
SILVERDELL (SID) | ||||
---|---|---|---|---|
ORD PRICE: | 13.38p | MARKET VALUE: | £41.9m | |
TOUCH: | 13.25-13.50p | 12-MONTH HIGH: | 15.25p | LOW: 8.25p |
DIVIDEND YIELD: | 1.3% | PE RATIO: | na | |
NET ASSET VALUE: | 12p* | NET DEBT: | 29% |
Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2008 | 61.4 | -16.8 | -37.2 | nil |
2009 | 59.5 | -6.87 | -7.30 | nil |
2010 | 56.7 | 1.83 | 0.50 | nil |
2011 | 59.7 | 2.46 | 1.10 | nil |
2012 | 82.5 | 0.53 | 0.00 | 0.18 |
% change | +38 | -78 | - | - |
Ex-div: 11 Mar Payment: 22 Mar *Includes intangible assets of £33.6m, or 11p a share |