Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

The Investment Column: Continental assets pay for McLeod

Edited Sameena Ahmad
Tuesday 27 May 1997 23:02 BST
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.

McLeod Russel, the air filtration and surface coatings group, has maintained consistent progress in the six months to the end of March. Pre-tax profits rose 13 per cent to pounds 4.2m, despite exchange rate losses on the 40 per cent of its profits earned abroad.

Turnover rose less than 2 per cent to pounds 55.9m, but its operating profits were 15 per cent up at pounds 4.8m. Net interest costs increased by a quarter to pounds 571,000 and the tax charge rose from 25 per cent to 28 per cent. Earnings per share rose by a modest 7 per cent to 5.08p.

Air filters again produced faster growth in turnover and profits, compared to surface coatings, which includes Bancrofts, the Birmingham-based industrial-paint suppliers.

The group's residual environmental engineering and industrial property sides shrank in absolute and relative terms to less than 10 per cent of the whole. Last year's filter company acquisitions in Germany and France contributed pounds 300,000 and surface coatings has begun to improve profitability in a generally static marketplace.

Turnover and profits both grew faster on the Continent than in the UK and contributed 27 per cent of sales by origin and 43 per cent of profits in the period. James Leek, McLeod's chairman, expects great things from technology transfers between operating companies and is looking at further acquisitions in the filtration side of the business.

The strength of sterling cost pounds 200,000 in the first half and is set to reduce the second half by a further pounds 300,000. But air filtration is growing 2 per cent faster than GDP, and Ben Thefaut at Albert E Sharp is keeping the company on course for pounds 11m of profits and 13.1p of earnings per share this year, rising to pounds 12.5m and 14.7p next year.

The group's shares rose 1.5p to 150p, valuing them on an undemanding 11.5 times this year's earnings and 10.2 times 1998 earnings.

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