Molins PLC, the international engineering and services company, today announces its interim management statement covering the period from 1 July 2012 to 24 October 2012. The Company's Half-Year results to 30 June 2012 were announced on 31 August 2012.
Sales in the third quarter were at similar levels to those in the first two quarters of the year and, as in recent years, sales are expected to be heavily weighted to the last quarter. Order intake in each of the Group's three divisions remains ahead of the same period last year and in line with expectations, and each division has a strong order book for delivery in the fourth quarter. Performance in the period was broadly as expected.
The board's expectation of Group performance for the year as a whole remains unchanged.
There has been no significant change in the financial position of the Group since 30 June 2012.
Valuation: Undervalued The prospective rating of 6.7x current year earnings compares with a weighted average of 14.5x for a group of international engineering groups. While there are major differences in size and the relative trading records, the big gap between the ratings demonstrates considerable upwards potential if medium-term objectives can be delivered.
Molins, which produces cigarette making equipment and packaging machinery, has reported a steep fall in pre-tax profits but insists its performance will improve in the second half.
Group sales in the six months to June 30th were £39.9m, down only slightly on the £38.8m the year before. However, underlying operating profit was just £0.8m compared to the £1.7m seen at the same point last year.
Underlying earnings per share came in at 3.6p (2011: 6.3p) while net funds at June 30th were £5.7m down from the £7.1m reported at the end of 2011.
On a brighter note, Molins says orders are 14% up on the prior year.
Chief Executive Dick Hunter commented: "As indicated previously, group trading performance will be strongly second half weighted and the board's expectation of performance for the full year remains unchanged.
Valuation: Opportunity remains The prospective rating for Molins is still around half that of the leading UK-based international engineering groups. While size and the past trading record are reflected in the differential, there is significant appreciation potential if immediate ambitions in the Scientific Services division can be realised.
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