Robust demand for lighting solutions and an "exceptional" performance from Lightronics saw FW Thorpe (TFW) deliver operating growth of 18 per cent in the six months to December. Investors responded to these encouraging results, and news of a special dividend, by sending the shares up 7 per cent.
The shining star was Dutch company Lightronics. FW Thorpe forked out an initial €7.8m (£5.7m) on the manufacturer of impact-resistant outdoor lighting in April 2015, mindful of its wide portfolio of products dedicated to the energy-efficient lighting market. Judging by its contribution here, management's faith in the business has immediately paid off.
Like-for-like operating profit growth of 5.1 per cent wasn't too shabby, either. Chairman Andrew Thorpe credited this "solid rather than outstanding" outcome mainly on the steady progress made at road tunnel and street lighting systems manufacturer TRT.
While business in Europe was heartening, Mr Thorpe concluded that the global economic slowdown made it difficult to conquer newer markets such as the United Arab Emirates. With that in mind, FW went back to the continent, spending €1.2m on a 40 per cent stake in Spain-based Luxintec. Aside from offering access to lucrative Spanish-speaking regions, Luxintec's luminaire and specialist lenses also promise to complement the group's existing product range.
| FW THORPE (TFW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 230p | MARKET VALUE: | £266m | |
| TOUCH: | 226-236p | 12-MONTH HIGH: | 245p | LOW: 148p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 74p | NET CASH: | £21.6m* | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)† |
|---|---|---|---|---|
| 2014 | 32.6 | 5.8 | 3.9 | 1.10 |
| 2015 | 41.4 | 6.6 | 4.5 | 1.20 |
| % change | +27 | +14 | +14 | +9 |
Ex-div: 24 Mar Payment: 5 Apr *Excludes short-term deposits of £12.6m †Excludes special dividend of 2p a share in 2015 | ||||
