I think the company got out a lot of bad news 2 weeks ago. They must have done pretty well in July hence there cautiously optimistic bit at the end despite saying trading had been disappointing. Last winter was amazingly mild. I gauge it by my fish pond! Despite a few 'white grass' frost mornings, the fish pond didn't freeze over once all winter and there was no snow, just wind and rain. That, and the middle east, has hit them hard. This company is very weather dependent despite what they say.
However, they do generate cash and still have healthy net funds and a healthy pension fund. Unfortunately, they need to keep enough staff and equipment to service the high demand periods, so they suffer when the demand isn't there. A small increase/decrease in revenue has a big impact on profits as we've seen. However, it can work the other way. I would think 250p would be getting very cheap for such a high quality company.
Historical EV/EBIT is 9.2-9.5. Forward looking EV/EBIT must be even better. P/E ratio of 13 is low against its peers Generates tons of cash every year (look at those margins!) 78/100 Stockopedia stock rank at present One of Paul Scott's fav shares Loves paying dividends (8.4% year just gone!)
Bad point - Company has bought a large number of its own stock in years past. Now Management own 90% of the stock so PIs will be at their mercy. However this hasn't happened yet and that probably also explains the high dividend payments too
Conclusion This is a really good company to invest into. Adding it to the watch list now.
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