Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Crabtree shares rise with news of dividend

Robert Cole
Thursday 06 January 1994 00:02 GMT
Comments

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.

SHARES in Crabtree, the North-east heavy engineer, jumped 13p yesterday to 284p on news that it intends to pay a 2p dividend, writes Robert Cole.

The company published results yesterday for the first time since it came to the stock market last June.

It made pounds 1.1m, up from pounds 35,000. However, the figures are for nine months to 30 September and include a contribution from Crabtree for the last three months only. Comparable figures are for a company that was almost dormant.

Underlying operating profit from Crabtree for the year to September rose 46 per cent to pounds 3m. Karl Watkin, the chairman, added that the 2p dividend was paid from the three months of earnings while Crabtree was a listed company. Its own stockbroker, Credit Lyonnais Laing, forecasts a dividend of 6p this year. Mr Watkin also reiterated his intention to make a substantial acquisition.

The company makes machines that print on metal. It came to the stock market last June by taking over a shell vehicle called Somerset. Since a placing and rights issue held at the same time, shares have nearly doubled in value.

The float increased the number of shares in issue from 1 million to 6.1 million but earnings per share still increased from 1.1p to 10.7p.

Vinay Bedi, an analyst with the Newcastle-based stockbroker Wise Speke, predicts the company will make pre-tax profits of pounds 3.8m this year.

Bottom Line, page 34

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in