Investment Column: Havelock's balancing act
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.Havelock Europa, the Scottish shopfitting group, is struggling to get over last October's profit warning when its shares lost almost a quarter of their value overnight. After bouncing initially, they have been on the slide since the new year and yesterday three directors took the opportunity to move into the market at 288p in a public show of confidence. The price remained unimpressed, closing 1.5p off at 285p.
That was to be expected after full-year profits emerged bang in line with forecasts in February at the time of the acquisition of Hartcliffe. That business is involved in retail displays, rather than its core shelves and other display units, which Havelock hopes will help it even the cyclical shopfitting market.
Profits of pounds 5.9m were 12 per cent higher than the pounds 5.3m achieved in 1995, representing a fourth year of record returns. Earnings per share were 8 per cent better at 14.6p and the well-covered dividend of 4.3p was a 19 per cent improvement.
Havelock is building a much better balanced business, which is just as well given its exposure to non-food retail clients, whose refurbishments come in unsustainable waves, and banks, where changing technology and consolidation mean fewer and smaller branches are being kitted out.
On the basis of forecast profits of pounds 8.2m this year and up to pounds 9.9m next time, the shares trade on a prospective p/e of 15 falling to 12. That is not expensive for a fundamentally sound, growing business and last year's plunge provides a good opportunity to follow the directors' lead. Good value.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments