In some ways, namely owning power plants and having high levels of debt, ContourGlobal (GLO) is like a conventional utility. In others, such as management’s growth ambitions, it is less so. Then again, it isn't encumbered by regulatory constraints to the same degree as other listed entities.
However, there were echoes of its 'proxy-bond' peer group in its full-year results, as it beefed up the dividend 12.5 per cent above previous guidance, giving rise to a yield of around 5 per cent. Combined with guidance for 10 per cent annual growth in the payout, this was enough to bring some investors around to this idiosyncratic entity. The share price rose 6 per cent on results day.
Acquisitions pushed adjusted profits from the renewable portfolio up 47 per cent, keeping the group on track for its target of doubling overall cash profits in the five years to 2022. A slew of deals pushed the adjusted net debt to cash profits ratio to 4.4 times – eye-watering, but still below the 4.5 times limit management has outlined.
Consensus forecasts from S&P Capital IQ put cash profits at $727m (£557m) and adjusted EPS at 23¢ in 2019, up from $610m and 10¢ in 2018.
| CONTOURGLOBAL (GLO) | ||||
| ORD PRICE: | 193p | MARKET VALUE: | £1.29bn | |
| TOUCH: | 192-193p | 12-MONTH HIGH: | 266p | LOW: 143p |
| DIVIDEND YIELD: | 5.3% | PE RATIO: | na | |
| NET ASSET VALUE: | 74¢* | NET DEBT: | $2.9bn | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2014** | 0.80 | -128 | na | nil |
| 2015** | 0.84 | -31.5 | na | nil |
| 2016** | 0.91 | 42.9 | 6.00 | nil |
| 2017 | 1.02 | 40.6 | 3.00 | 2.6 |
| 2018 | 1.25 | 27.8 | 2.00 | 13.4 |
| % change | +23 | -32 | -33 | +415 |
| Ex-div: | 02 May | |||
| Payment: | 30 May | |||
| *Includes intangible assets of $117m, or 18¢ a share **Pre-IPO figures £1=$1.31 | ||||
