||EPS - Basic
||Market Cap (m)
|johnwise: Hydro International PLC Unaudited Final Results
01 March 2016
RNS Number : 5426Q
Ian Griffiths, Chairman of Hydro International plc, commented:
"Today's strong set of results show that the steps taken over
the past two years to strengthen our core business have
positioned us well to better serve the markets within which
we operate. As we continue to invest in our strategy for the
expansion of our business, we expect to see an acceleration,
underpinning our targets for profitable sustainable growth."
Michael Jennings, Chief Executive of Hydro International plc,
"Our strategy is working. In 2015, we delivered strong top and
bottom line growth across the business. With a good improvement
in our open order book across all regions,
we expect this to continue for full year 2016."
|rivaldo: I used to be a shareholder here, and I like the "idea" of the company, but it's underperformed for so long....
With 5.3p EPS, and today's outlook statement extremely dull for the year ahead, plus AMP5 coming to an end, plus a likely continued high tax charge with the increased percentage of overseas sales, the outlook is cloudy for some time to come.
For me the share price would have to be at around 60p-65p to be of interest - at 65p a P/E of 12.3 would still only be reasonably decent value (HYD does have a £3m cash pile which is probably necessary to give its large customers reassurance over the Balance Sheet).|
|pugugly: Results out - Very significant fall in profits £300,000 below Arden's estimate of 20th september (the last one I have). Adjusted operating margin down to 4.9%.
Also (imo) international revenues and profits going forward will be impacted by the current strength of sterling. Dividend held but not sure where the growth will come from and (imo) and will the dividend be sufficient to support the share price if (and when) interest rates go up again|
|pugugly: 18BT:> Agreed - very uninspiring - Looking back over the last 5 years the share price has been at about the same level.
Not a trading share as spread too wide to deal in volume. No real protection in ntav (refs 50.5p) so only thing going is yield which at just under 4% is not inspriring unless significant potential for growth - however I cannot see this (OK I may be wrong but putting very much on a low priority watch list)
Other views ?|
|rivaldo: Pug, sorry, I don't have any more info about the court case.
This from today's RNS sums things up I'm afraid. HYD will remain on my watchlist given its potential, but I can't see the share price going anywhere (except perhaps down) for a while now given this outlook unless a bidder comes in:
"Consequently our view is that revenue and profitability in 2013 will be materially lower than 2012 levels. In addition the anticipated timing of revenues on contracts is expected, as in previous periods, to weight results for the year significantly to the second-half."|
|rivaldo: Agreed. Broker forecasts are now 8.08p for this year (down from 11.84p EPS for 2012).
Which would imply a share price somewhere between 75p-90p is about right until HYD can signal that business is improving and it's not ex-growth any more. The divi yield will help, but I suppose that's at risk if things don't improve.
It's a real shame, as HYD is a great British business that has the makings of a global winner, but something always seems to go wrong.
There's always an outside chance that a bid might materialise, but there's no point in buying back in solely on such a punt.|
|18bt: Disappointing AGM statement which now shows the reason behind the share price weakness.|
|yoyoy: eps of 10.43p (statutory) and 11.54p adjusted.
forecast was only 9.2p for 2010 and 10.7p for 2011.
I'm looking for £1.50 share price|
|rivaldo: Hi jebenn1, hope you're well - I'm still out here! HYD remains high up the watchlist, as I do still like the company.
The broker forecast for the upcoming year is 10.7p EPS, so HYD isn't really very cheap in the current environment.
The recent orders are great, and certainly HYD's prospects appear better than in recent years. I'm just a little nervous about the spending cutbacks in the UK and USA - no-one here has mentioned the big reductions in flood defence spending for example. And how long will the hiatus before AMP5 gets fully implemented continue?
If the share price were still in the 90p's - and I had spare AIM-targeted funds, which I don't at present - I'd consider reinvesting.
But on a forecast P/E of 11.5, without recurring income and vulnerable to cutbacks, I compare HYD to something like GNG, on an ex-cash P/E of around 3, with say £6m+ forecast net cash and £2m post-tax profits against a £12.9m m/cap, and with high recurring income and 200 blue chip clients, and HYD loses out I'm afraid.|
|cheap: The value of a share like Hydro is in its dividend - provided it goes on earning. Then you mitigate the short term market led share price fluctuations. The Hydro dividend is a major part of my income.|
Hydro Intl share price data is direct from the London Stock Exchange