Macfarlane (MACF)

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Macfarlane MACF Logo

The company is engaged in designing, manufacturing and distribution of packaging products.

16-Nov-2017 – 74p – £116.6m – PER 10.9

Interim Management Statement For The Period 30 June 2017 to 31 October 2017 – “Board remains confident that full year expectations will be met”.

Always quite fancied this around the 60p mark with a, say, 50p Stop. There’s quite a lot to like, rising Revenues, Profits, EPS, a ROCE of 15%, a decent well covered 3% Dividend. Any downside is that 20% of Mkt Cap Net Debt but the ROCE of 15% means that’s less scary to me.  Based on the fact it’s trebled in the past 5 years and it’s on a PER of 10 I wonder why I am not involved here from the 60p area (I’ve had my chances). This is still on my Watchlist at 60p but I am thinking, on a lowly PER of 10.9, it may well be worth raising the bar here.

Subsequent Note: The Pension Deficit is about £13m (10% or so of Mkt Cap) which seems manageable enough.

22-Feb-2018 – 86p – £132.6m – PER 12.2

Results For The 12 Months To End December 2017 – Another year of growth in-line with market expectations – Revenue up 9% to £196.0m, (2016: £179.8m) and PBT up 19% to £9.3m (2016: £7.8m). FY Dividend will be up 8% on last year. Debt down to £14.3m (£15.3m last time), Pension Deficit down to £11.8m (£14.5m last time). Confident of further progress in 2018.

I am long here and like these results enough to remain long.

Check Macfarlane fundamentals on Stockopedia
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