looking good going forward 5 Feb 2015 15:27
Carclo shareholders will be smiling, as their shares are up by 11% at the time of writing, but Wincanton investors may be concerned, as the haulier's stock is falling today.
Carclo surges ahead
Carclo announced today that full-year profits are expected to be above previous expectations.
The latest consensus forecasts suggest adjusted earnings per share of 6.7p for the current year, so I'd suggest that earnings of around 8p per share may now be more likely. This puts Carclo shares on a tentative full-year P/E ratio of 13.9, which isn't too bad.
There was more good news, too. Carclo currently offers a prospective yield of around 2.4%, but announced today that it intends to "commence a capital reorganisation process to cancel its share premium account and capital redemption reserve in order to augment its distributable reserves and enable future dividends to be paid".
Shareholders will receive more detail about this in coming weeks, but essentially this is an accounting change that will enable Carclo to pay out a greater share of future profits as dividends.
The company hasn't fleshed out its plans yet, but I reckon this change could see Carclo's payout rise from its current level of 2.65p towards 3.5-4p, which would still be twice covered by next year's forecast earnings