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At an April 2013 earnings multiple of a staggering 66.7 times, falling to 41.7 next year and 27.5 in 2015, Carpetright shares are defying gravity, says The Telegraph´s Questor team. Sure profits will recover – but even if they went to up their peak earnings per share of 71p achieved in 2005, the shares would still be on a multiple of 9.6 times, it quips. This would be a more appropriate earnings multiple of this stage in the cycle, but it will clearly be years before that level of profitability returns – if it materialises at all. So why are they on such a heady rating? Well the shares are tightly held, with founder and current chairman Lord Harris of Peckham and his family owning almost 30pc. It even has Bill Gates as a shareholder.
Given his relatively discreet character, when Whitbread chief executive – Andy Harrison - took the helm two years ago, there were fears that this might be to the detriment of such a high-profile British institution with household names in its portfolio including Premier Inn, Costa Coffee, Brewers Fayre and Beefeater. But yesterday’s third-quarter numbers show that there is more than one way to skin a cat. The former easyJet chief executive delivered like-for-like sales growth of 3.3% in the 13-week period to November 29, with total sales — including new openings — up 14.4%. The like-for-like growth rate was slightly below the first half but that is still, by any measure, impressive stuff — all the more so for a consumer-facing company in such dismal economic times. Buy and tuck away says the Times´s Tempus column.
On Tuesday Nick Robertson, Asos’s ebullient chief executive, revealed that UK growth was accelerating again after a wave of price cuts. The company reported a 24% increase in domestic sales, a rate of growth that compares with a 4% at its lowest point last year. That allayed concerns that it might be reaching maturity in the UK. The renewed domestic growth is a double whammy, since it implies that the prospects for international expansion are even greater than previously thought. If Asos can grow at 24% in its oldest market, then the scale of its business in the United States, where it grew 57% in the first quarter, can only be guessed at, much the same as China, where it expects to begin trading in a year’s time, writes The Times’s Tempus column. Not only that, the newspaper wonders aloud if the company’s shareholder, Danish group Bestseller, which is also present in Asia´s powerhouse, might not be interested in making a bid. Nevertheless, the company´s shares do trade at 49 times earnings currently, and the likes of Amazon.com and TMall will not just sit idly by and just watch. Take a deep breath and hold, Tempus concludes.
Outlook cont We see the coming year as one in which we will continue to grow and develop our service offerings across all of our regions. Of course different regions will develop at different paces and in varying markets. The oil and gas market is an area where we see opportunity to impact in 3 regions; and an important objective is to increase our activity across the network of hubs in Houston, UAE and Kuala Lumpur / Singapore. In June, we launched our Diales brand through which we promote our high end expert witness offering to clients involved in international arbitrations and this will continue to be an area of focused development. We are delighted by the way our current financial year has started, particularly in Africa and the Middle East which continue to outperform as the momentum in our last financial year in these regions has continued into the current year. Across the Group, our secured revenues and revenues expected to be secured and delivered in the remainder of the year are very encouraging. We have visibility of our first quarter performance and secured work beyond this period, which indicates that we have had a particularly strong start to the current year. This gives the Board a high level of confidence in the outlook for the remainder of the financial year.
Outlook Last year I said we would develop our operations in Africa, the UK Power & Process sector and Qatar whilst maintaining a stable environment in the remaining parts of our business and evidence the sustainability of the Group profits. This has been achieved whilst also out performing in the Middle East, a region where we have grown the business quicker than anticipated following the re-structuring, due to increased volume of work in the dispute market. In addition, we have completed a significant acquisition that now ensures we have a global footprint. We have successfully integrated the businesses and have returned the Trett business to profitability. Our Medium Term Plan is to establish all our key service provisions (Project Services, Dispute & Advisory, Strategic Project Management and Expert Witness & Litigation Support) across all of the regions - Africa, Americas, Asia Pacific, Mainland Europe, Middle East and UK. In large part this can be achieved organically but we are receptive to the possibilities that targeted acquisitions may be beneficial in some regions and service sectors. We will be looking to open offices in key areas of Canada, Mainland Europe and Asia Pacific. An important element of this plan is to leverage our service offerings across all markets. This provides the possibility for material growth particularly given that Trett has not previously provided project services or strategic project management services to their clients.
Alan McClue, Non-Executive Chairman of Driver, commenting on the results said: "I am pleased to report on the Group's performance for the financial year 2011 / 2012; a year in which we both materially outperformed market expectations and made a significant acquisition which has given the Group a presence in 5 global regions. We achieved all of our key objectives including further growth in revenues, profits and cash position (after accounting for the funds utilised in the acquisition of Trett). We are delighted by the way our current financial year has started, particularly in Africa and the Middle East which continue to outperform as the momentum in our last financial year in these regions has continued into the current year. The Board therefore has a high level of confidence in the outlook for the remainder of the current financial year."
Key points · Revenue up 51% · Underlying Pre Tax Profit up 220%* · Cash generated from operations £1.4m · Successful acquisition and integration of Trett Holdings Ltd (Trett) · Trett returned to profit · Established global operations · Middle East revenues up 58% · Qatar revenues up 175% · Africa Revenues up 143% · UK Power & Process Revenues up 147% · Q1 performance of 2012 / 2013 very strong
Faiz Francois Nahab PhD, CEO of Proton, commented: 'We are pleased to be participating in this pilot project as a partner of E.ON AG. It's a great success for Proton, that a major energy provider such as E.ON AG is relying on the PM Module S5 in managing their power grid and in a critical application ensuring the supply of electricity to consumers. We are ready for more projects of this kind and hope to implement them soon.'
Proton Motor Fuel Cell to be deployed by E.ON at the Bachhausen substation For the first time in Bavaria, a fuel cell is being installed to meet a power grid substation's own power needs replacing conventional batteries. Each grid substation requires a grid-independent auxiliary power supply with a minimum ten-hour runtime to ensure switching operations to restore power during a blackout. Modl GmbH from Pappenheim and network operator E.ON Bayern AG are collaborating in this pilot project to install a Proton PM Module S5 at the Bachhausen substation. The fuel cell module is based on current Proton stack technology. The module has a power output of 5 kW which can be accessed continuously over a long period depending on the hydrogen store. E.ON Bayern AG, as an innovative company in the field of energy supply, is providing the infrastructure in the substation in order to test and develop the use of fuel cells in secure auxiliary substation power systems together with Modl. The use of fuel cells reduces the space needed for auxiliary systems and extends the potential runtime during a power failure, including the possibility of refueling the hydrogen supply. The use of hydrogen as an energy carrier is largely intended to avoid the use of batteries. The substation in Bachhausen was completed in 1991 and supplies the surrounding municipalities and the pumping station of the Main-Danube canal. It was selected for the project because it has the appropriate infrastructure and is easily accessible for demonstration and testing purposes by the participating partners.
Outlook With market conditions largely as anticipated, the Board continues to expect 2012 adjusted profit before tax(1) to be in line with its previous expectations and, assuming no further deterioration in market conditions, to make further progress in 2013 and beyond. The Group intends to issue its 2012 full year results announcement on Monday 25 February 2013.
Markets and Operations In the Aerospace Division (64% of H1 2012 Group sales), visibility for build rates on existing aircraft programmes remains good and underlying market demand has consequently been largely as expected. The market for large commercial aircraft remains strong, with Boeing and Airbus increasing their aircraft build-rates broadly as planned whilst continuing to report combined orders in excess of deliveries. As anticipated, volumes on a number of the Group's military programmes have started to decline as Government budgetary restraints come into effect. The Flexonics Division (36% of H1 2012 Group sales) has seen largely unchanged conditions from those reported in the October IMS, with the Division continuing to benefit from healthy shipments of large expansion joints in the industrial sector but being impacted by weakness in the European passenger vehicle market. Demand in the North American truck market has remained satisfactory, albeit at lower levels than earlier in the year. The integration of GA is proceeding as planned with a number of synergistic customer opportunities being worked upon.
Pre-Close Period Statement Senior plc ("Senior" or "the Group"), an international manufacturer of high technology components and systems, principally for the worldwide aerospace, defence, land vehicle and energy markets, issues this trading update ahead of its financial year-end on 31 December 2012. Trading The positive trading reported in the Interim Management Statement ("IMS") on 22 October 2012 has continued, with adjusted profit before tax(1) being in line with the Board's expectations in both October and November. Cash generation has remained strong, with net debt of £87m at the end of November being below the £93m at the start of the year, despite the acquisition of GAMFG Precision LLC ("GA") for $45m (£28m) in early November 2012.
As a result of the strong sales performance, the Group expects to achieve profits in 2012 ahead of current market expectations, with an anticipated adjusted operating profit margin* of approximately 20%, versus the 15% achieved in 2011, driven by manufacturing and operating efficiencies from higher levels of production. The Group continues to accelerate its investment in R&D and marketing to support product and technology development, with headcount in these functions growing by over 50% during the year. The anticipated sales performance for 2012 will mean that Xaar will have doubled revenue in a three year period, delivering consecutive annual revenue growth in excess of 20%. Looking forward into 2013 the Board expects continued progress but anticipates more modest growth. The final results for 2012 are expected to be announced on Tuesday 19 March 2013. * Adjusted operating profit excludes share based payment charges, intra-group exchange differences and non-trading items.
TRADING UPDATE Xaar plc ("Xaar" or "the Group"), the inkjet technology group headquartered in Cambridge, announces an update on current year trading. Demand has been strong during the second half of the year, with sales in the fourth quarter growing ahead of the Board's expectations. The Group now expects to achieve revenue for the year ending 31 December 2012 in the range of £83-85 million, representing growth of over 20% compared to the £68.7 million achieved in 2011. The growth in revenue is the net result of higher product sales and a reduction in royalty income.
These trends mean that our outlook for the year as a whole remains unchanged from that stated in our October Interim Management Statement. We remain on target to meet consensus earnings per share and are on track to achieve our net debt target of approximately £450m at the year end. Our next update will be the release of our 2012 preliminary results on Wednesday 20 February 2013.
Travis Perkins plc Trading Update - Trading in Line with Expectations Travis Perkins, the largest supplier of building materials in the UK, today issues this trading update for the 11 months to the end of November 2012. Group turnover for the eleven months to the end of November was up 1.6%. This period included two more trading days in our merchanting and plumbing and heating divisions than for the comparable period in 2011. In trading conditions that remain difficult, like-for-like sales trends for the Group are similar to those reported in October, with year-to-date like-for-like sales slightly lower at -1.8%, although our specialist Merchanting division has seen a small positive impact from the closure of a competitor.