Vesuvius’s (VSVS) market value is up by more than half over the past 12 months, partly a reflection of a modest recovery in global steel production (up 4.5 per cent in the reported period), but also testament to increased efficiencies brought about by its ongoing restructuring programme. The group delivered another £7.7m in cost savings over the first half of 2017 and is on the way to achieving the initial £40m target.
The restructuring measures have been taken against a backdrop of excess capacity in global steel markets, and the molten metals engineer is successfully driving efficiencies wherever it can. Adjusted profit at constant currencies was up 26.7 per cent to £86.3m, helped by a currency tailwind. A 140 basis point improvement in the return on sales to 10.4 per cent is another sign that the business is moving in the right direction.
Numis expects adjusted profits of £150m for the December year-end, leading to EPS of 37.1p, against £120m and 30.4p in 2016.
| VESUVIUS (VSVS) | ||||
| ORD PRICE: | 616.5p | MARKET VALUE: | £ 1.67bn | |
| TOUCH: | 616.5-618p | 12-MONTH HIGH: | 633p | LOW: 331p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 390p* | NET DEBT: | 29% | |
| Half-year to | Turnover | Pre-tax | Earnings per | Dividend |
| 30 Jun | (£m) | profit (£m) | share (p) | per share (p) |
| 2016 | 668 | 38.2 | 9.1 | 5.15 |
| 2017 | 832 | 60.8 | 15.1 | 5.50 |
| % change | +24 | +59 | +66 | +7 |
| Ex-div: | 10 Aug | |||
| Payment: | 22 Sep | |||
| *Includes intangible assets of £762m, or 281p a share | ||||
