The manufacturer and supplier of innovative ingredient solutions for the flavour, fragrance, beverage and consumer product industries.
Trading Update For The Year Ended September 2017 – Expects to be “comfortably in-line with its expectations which were revised upward during the course of the year”.
Doubled this past 12 months it’s on a PER of 23 here. The figures look good and I guess comfortably in-line with revised upwards forecasts is pretty good news. However, I just can’t help but think (in a bull market that seems to be slowing) this is still a little expensive here (even at 10% off it’s all time highs).
28-Nov-2017 – 420.25p – £219m – PER 21.4
Final Results For The 12 Months To End September 2017 – Nice headline “Adjusted PBT up 46% and adjusted EPS up 42% as the Group delivers a strong set of results”. Revenue is up 24.5% to £109.6m. Impressive and seems to be in-line and the Board expects trading to continue in-line.
Doubled this past 12 months on a PER of 21.4 it’s starting to look a little more attractive. It’s going on my Watchlist.
Subsequently decided to go Neutral here, just couldn’t justify paying a PER of 20+ for this.
5-Apr-2018 – 406p – £233.6m – PER 23.2
Trading Update For The 6 Months To End March 2018 – LFL Revenue up 11% expecting FY PBT and exceptional items to be in-line.
Still a lot to like here but I am going to switch to Neutral for now. On a PER of 20+ I would just be expecting updates to be more upbeat.
8-May-2018 – 465p – £267.7m – PER 25.7
Interim Results For The 6 Months To End March 2018 – Revenue up 14% to £53.6m (2017 H1: £47.1m), Adjusted PBT of £5.8m (up 20% from £4.8m. Following the reduction in US corporate taxes, Basic Adjusted EPS up 30% from 6.58p (2017 H1) to 8.58p (2018 H1). Interim Dividend up 10%. Warns on exchange rates and raw material costs but believes the FY will meet expectations.
I like this but as I think I said last time – On a PER of 20+ I would just be expecting a little more here (EPS is inflated by US tax change).
2-Oct-2018 – 482p – £281.4m – PER 25.3
Based on forecasts I still can’t see the justification for a PER of 25 here – I remain Neutral.
5-Apr-2019 – 388p – £228m – PER 20.7
Trading Update For The 12 Months To End March 2019 – Revenue up 5% (CC), expecting a -£0.6m FX hit but FY PBT (before exceptional items) to be in-line.
Down from 480p or so since my last comment, I still can’t see the justification for a PER of 20+ here.
7-May-2019 – 410p – £241m – PER 22
Interim Results For The 6 Months To End March 2019 – Reasonable all round growth circa the 5% – 7% area here. Confident of meeting FY expectations.
I still see no justification for a PER in excess of 20 here (I must be missing something!).