16 November 2017 – interim results
The showers, taps and bathroom accessories group has announced its interim results covering the six months to 30 September and these have revealed a 12.6% increase in revenues to £145.0m (2016: £128.8m) whilst underlying pre-tax profit has risen by 9.5% to £11.5m (2016: £10.5m). Diluted underlying earnings per share rose by 8.5% to 14.0p (2016: 12.9p) and the interim dividend per share was increased by 8.3% to 2.6p (2016: 2.4p). Net debt at the end of the period was £20.8m compared with £27.5m a year earlier. These are clearly impressive results despite challenging trading conditions and demonstrate the strength of the group’s brand and market positions. The recent acquisition of Merlyn Industries on which we reported on 2 November should help the group to make further progress. Despite all this the shares continue to languish on a modest p/e ratio and attractive dividend yield. We re-iterate our recommendation of BUY.