It could well be worth taking a closer look at this £349m capitalised aerospace and defence sector group ahead of its AGM, due on Tuesday 24th September.
I have been following this specialist company for some years, and I am delighted to see that at the current 865p, its shares are riding at their highest for almost the last two decades.
Undoubtedly, they have been reflecting global conflict, certainly the total of its Order Book, some £518.7m as at the end of April this year has shown major gains, having risen 58% year-on-year.
Moreover, the group had some £23.1m of cash in the bank at the end of its last trading year to end April 2024.
On the morning of its AGM in two weeks, the company will issue its AGM Statement and First Quarter Trading Update – which I believe could be quite positive.
Analysts are expecting the current year to show a revenue increase to £220.0m (£205.0m), while lifting its adjusted pre-tax profits to £22.1m (£19.8m).
Its earnings could come in at 41.8p (42.7p) per share, with a 15.5p (14.8p) dividend.
For the year to end April 2026 estimates are for £240.0m sales, £25.0m profits, 47.4p earnings and a 16.3p per share dividend.
In due course, I expect to see analysts increasing their Price Objectives to around 1,000p a share, compared to the current price of 865p.
Despite the magnificent rise over the last year, doubling in price, I feel that the shares are a Hold.
(Profile 06.08.19 @ 446p set a Target Price of 607p*)
(Profile 14.04.23 @ 445p set a Target Price of 489.50p*)
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