||EPS - Basic
||Market Cap (m)
|Construction & Materials
Real-Time news about Pochins (London Stock Exchange): 0 recent articles
|forensic: Unfortunately, I could not make the AGM.
The results for the year ended 31 May 2004 were a bit disappointing with regard to growth in the net asset value (+3.5%). However, I think one of the key illuminating statements in the Accounts is contained on page 5. This relates to a 5 year strategic review to 31 May 2008.
"In financial terms, the objective is defined as average annual growth of 15% in profits and shareholders' funds during this period. Although we have not met the target in this first year, principally due to adverse market conditions in the trenchless technology business, we remain committed to achieving it over the full five year period."
Ignoring compounding, a 15% annual average growth rate equates to 75% over the five year period. With compounding, this jumps to 101%.
From an investment point of view, I believe that the share price will increase in line with the percentage increase in the NAV over the long term, as it has done historically.
I would be very happy indeed if the share price increases by 75% over a five year period. Growth of 15% pa -v- 5% gross in the bank.
If their targets are met, then the current share price of 205p to buy, could look very cheap in the medium term (and hopefully in the short term as well when the next interims are announced).|
|forensic: Yes I have been a long term shareholder in Pochins and have Annual Accounts back to 1986. The shares have been a very profitable investment.
If the compound growth rate in net asset value continues at 12.3% per annum, then in 5 years time the NAV would have increased by over 78% (and the share price likewise if it goes up in line).|
Pochin's share price data is direct from the London Stock Exchange