Investment Column: Staveley still has a lot to do
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.IT HAS been a grim year for investors in Staveley Industries, the troubled engineering and minerals group. After a profits warning in March which led to angry noises from 12 per cent shareholder Guinness Peat and the departure of chief executive Roy Hitchens, the shares slumped from almost 200p to 118p.
There was a small 8.5p jump in the shares to 119p yesterday as the City got to meet new chief executive Chris Woodmark for the first time since he joined from Rolls-Royce Motors. After the year's pounds 74m loss he is undertaking a strategic review but insists no further disposals are planned following the pounds 44m sale of Weigh-Tronix and Cronos Richardson.
He is concentrating on cost-cutting and improving the appalling performance of Staveley's businesses. Only the salt business makes decent money and profits there collapsed last year. The other three divisions contributed just pounds 100,000 between them last year on sales of pounds 250m. The Integra services division made a loss. Mr Woodwark plans to cut costs, flatten the management structure, merge branches and concentrate on more profitable contracts. But much still needs to be done.
On Deutsche Kleinwort Benson's current year forecast of pounds 16.5m the shares trade on a lowly forward p/e ratio of 11. The downside now seems limited so the shares may be worth a punt.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments