A global engineering and strategic, technical and environmental consultancy business with a value chain that includes the niche manufacture and assembly of high-performance products.
8-Nov-2017 – 837.5p – £443.2m – PER 13.8
Trading Update – LFL Order intake up £33m to £106m. The CEO is pleased with the start to the year and looks forward to continued progress.
Wondering why this recent update is not more upbeat. On a PER of 13.8, if this increase in order book translates to profit, this looks decent value here. Good ROCE, Operating Margin and a decent well covered 2.5% or so Dividend. The fly in the ointment could be the £37m Net Debt and £18m (I believe) pension deficit – Although at less than 15% of Mkt Cap, that doesn’t seem over the top.
17-Jan-2018 – 945p – £504.7m – PER 15.5
Trading Update For The 6 Months To End December 2017 – Quite a lot of waffle but the metric seems to be the Order book is strong (up over 25%) and Net Debt is down to £32m (from £38m).
If this order book translates into real Profit, there still seems to be decent value here (but there’s zero mention of Profit in this update). The ROCE, Operating Margin and a decent well covered 2.5% or so Dividend helps but I will wait until I see some actuals.