The management team at Acal (ACL) have their eyes on acquisitions. Since 2009 the supplier of customised electronics has bought 13 businesses, 10 of which have been in the design and manufacturing division, which contributed three-quarters of group revenue growth during the period. Reported profits were held in check by £6.9m in exceptional items, including a £4.8m restructuring charge for Acal BFi, but underlying pre-tax profit was up 19 per cent to £17.2m.
Those acquisitions have not only broadened Acal's commercial offering, but have resulted in a significant increase in cross-selling revenues, a process augmented by the group's latest acquisition Variohm Group, a maker of braking sensors. Meanwhile, the group’s efficiency plan, which saw a layer of management stripped out and some manufacturing moved to cheaper countries like Poland and Sri Lanka, is expected to save £4m annually at a one-off cost of £6.4m.
Analysts at Peel Hunt expect pre-tax profits of £20.7m in the year to March 2018 giving an EPS of 21.3, compared to £17.1m and 18.7p in FY2016.
| ACAL (ACL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 282p | MARKET VALUE: | £ 199m | |
| TOUCH: | 282-288p | 12-MONTH HIGH: | 305p | LOW: 204 |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 53 | |
| NET ASSET VALUE: | 175p* | NET DEBT: | 24% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 177 | 0.7 | 5.37** | 6.1** |
| 2014 | 212 | 4.2 | 3.0** | 6.80** |
| 2015 | 271 | 4.3 | 5.0 | 7.60 |
| 2016 | 288 | 9.4 | 11.4 | 8.05 |
| 2017 | 338 | 4.8 | 5.3 | 8.50 |
| % change | +18 | -49 | -54 | +6 |
Ex-div:15 Jun Payment:28 Jul * Includes 100.7m of intangible assets or 142p per share ** Restated to reflect £55m rights issue | ||||
