A double-digit move up in the share price is not the usual reaction to a set of results with flat sales growth, a contraction in the cash profits margin, and operating profit that halved on the previous year. But the market reaction suggests that there’s reason to be optimistic about Global Ports (GPH) and it’s maiden set of full-year results as a listed company. Indeed, the costs associated with the said IPO were mainly responsible for the reported pre-tax loss, along with amortisation charges related to port operating rights.
Trouble in Turkey was an issue for the cruise business, where sales fell 6.3 per cent to $50.3m (£36.2m). Sales in Turkey specifically halved due to geopolitical tensions, although management is optimistic that this should stabilise in 2018 after a number of cruise lines have begun to plan to visit Turkish ports again. Strip out Turkey and cruise revenue was up 9.9 per cent. A 7.9 per cent increase in commercial revenue to $66.1m helped to compensate for the tough time in the cruise division, so sales were flat for the year at group level.
| GLOBAL PORTS (GPH) | ||||
| ORD PRICE: | 420p | MARKET VALUE: | £264m | |
| TOUCH: | 400-440p | 12-MONTH HIGH: | 762p | LOW: 390p |
| DIVIDEND YIELD: | 7.1% | PE RATIO: | na | |
| NET ASSET VALUE: | 273ȼ* | NET DEBT: | 86% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (p) |
| 2014** | 90.7 | 25.5 | na | na |
| 2015** | 105 | 13.9 | na | na |
| 2016** | 115 | 5.3 | 4.3 | na |
| 2017 | 116 | -10.5 | -26.0 | 41.7 |
| % change | +1 | - | - | - |
| Ex-div: | ||||
| Payment: | ||||
| *Includes intangible assets of $447m, or 712ȼ a share **Pre-IPO figures £1=$1.39 | ||||
