A year ago, this group’s shares had really run out of steam – they were down at just 50p.
They have subsequently bubbled a lot higher, topping out at 93p in July.
Now they trade at around the 83.5p level, at which the group is capitalised at only £191m.
The business is the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components.
Its core product range takes in a variety of safety controls for small domestic appliances, primarily kettles.
Kettle safety controls require precision engineering and intricate knowledge of material properties to repeatedly function correctly.
Tomorrow morning, the company will declare its Interim Results for the six months to end-June, with market observers hoping for signals that expectations for the full-year will be matched, if not bettered.
Analyst Andy Hanson at Zeus Capital has current-year estimates out for revenues of £153.9m (£144.6m) and adjusted pre-tax profits of £24.2m (£21.9m), lifting earnings up to 9.2p (9.0p) and paying out a 1.9p (0.9p) per share dividend.
For 2025 he looks for £165.2m sales, £26.7m profits, 10.0p earnings and a healthier 3.2p dividend per share.
After tomorrow’s results we could well see a change in estimates.
In the meantime, the group’s shares have attractions, being moderately rated while awaiting definite signs of recovery.
(Profile 31.12.19 @ 196p set a Target Price of 250p*)
(Profile 31.03.23 @ 97p set a Target Price of 120p)
Comments