Lighting specialist FW Thorpe (TFW) appears to have blown a fuse after its half-year figures revealed a big slide in both and profits and sales during the period. That follows on from a weak second half in the six months to end-June, too, and that group's shares slipped 5 per cent on the day these figures appeared. Chairman Andrew Thorpe described the performance as a "step back."
The problem was that Thorpe suffered a weak backlog of orders in April, May and June of last year and prior to the Olympics. Normally the monthly order backlog is around £5m-£6m but, in that quarter, it was only £3m-£4m - which dented sales and profits. The group's main business, LED specialist Thorlux, was hit especially hard and - it generates over 80 per cent of group revenues and 95 per cent of operating profit. But, despite the gloom, there was some good news. Orders recovered well in the three months to end-December and are well ahead of 2011's comparable figures. In addition the half-year dividend payout has more than doubled - thanks to the combination of a large cash pile, little likelihood of big acquisitions and lower capital spending in 2012-13.
FW THORPE (TFW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,075p | MARKET VALUE: | £126.0m | |
| TOUCH: | 1,050-1,100p | 12-MONTH HIGH: | 1,220p | LOW: 810p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 588p* | NET CASH: | £32.7m† | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 29.9 | 5.67 | 36.6 | 4.80 |
| 2012 | 27.1 | 5.08 | 33.1 | 10.0 |
| % change | -9 | -10 | -10 | +108 |
Ex-div: 10 Apr Payment: 7 May †Includes £17.2m short-term financial assets | ||||
