Bottom Line: Hunting prospects
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HUNTING, the aviation, defence and oil services group, held its 1993 dividend at 10p but the market showed little gratitude yesterday, knocking 14p off the share price to 215p.
The shares yield 5.8 per cent - a 50 per cent premium to the market average - which suggests suspicions that the payout could be cut.
It is certainly hard to think of three less fashionable sectors than those in which Hunting operates, and this is enough to explain the market's nerves.
Hunting's pre-tax profits for the year to 30 December rose to pounds 31.7m against pounds 29.2m. The figures were hit by pounds 5.8m of reorganisation costs - mostly incurred in making 200 redundant - but were offset by a pounds 5.8m profit on selling Hammerite paint to Williams Holdings.
While underlying profits were flat, the contributions from Hunting's three operating divisions were anything but.
Operating profits from defence rose 56 per cent, Hunting's oil- related business managed a 12 per cent advance, but the profit contribution from aviation slumped by 58 per cent.
Given such volatility, it is easy to see why the market is edgy. Hunting's less than promising prospects are in the rating - a high yield and a lowly price/earnings ratio of 14.5.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments