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Good First-Half Progress at Smiths Group

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By Jon Wallis, The Motley Fool

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LONDON — The share price of Smiths Group — the global technology company that specializes in the practical application of advanced technologies in contraband and threat detection, medical devices, energy, communications and engineered components — published its interim results for the six months ending Jan. 31, reporting good progress across all its businesses.

Underlying headline revenue was up 6% at 1.5 billion pounds, driven by growth across all of the group’s divisions. Revenue in emerging markets, which now account for 15% of the group’s revenue, rose 9%. Underlying operating profit was reported up 5% to 253 million pounds, with underlying pre-tax profit growing 6% to 223 million pounds.

Basic earnings per share were up, but only by 1% to 40 pence. Even so, the board has recommended that the interim dividend be increased by 6% to 12.5 pence per share to reflect the company’s strong operating cash conversion. Smiths Group now stands on a yield of just more than 3%.

Commenting on the results, chief executive Philip Bowman said:

Smiths Group has continued to make good progress with underlying revenue growth across all its businesses. Headline margins rose in all divisions except Smiths Medical where, as part of our growth strategy, we have significantly increased our investment in sales and marketing in emerging markets and new product development. We delivered improved cash conversion and return on capital against last year.

Our priority is driving operational improvements and efficiencies across our businesses while increasing our investment in high growth markets and new product development to accelerate medium-term revenue growth.

Looking to the second half, we see tough trading conditions as a result of the U.S. medical device tax, slower demand in some parts of John Crane, and the impact of further government budget cuts. However, despite these challenges, there remain significant opportunities to generate value for shareholders over the medium term. We will continue to focus on investing to drive sales growth, and delivering further operational improvements, while maintaining strong cash conversion and improved returns.

Smiths Group‘s share price has risen nearly 27% on this time last year, with practically all of that growth coming in the last six months, and the increased dividend will come as a nice bonus for shareholders.

A high-quality growth share
If you’re looking for a high-growth opportunity, you’ll want to know about “The Motley Fool’s Top Growth Share For 2013,” which is named in our latest free report, written by the Fool’s expert analysts. It’s completely free of charge but, like all special reports from TMF, will only be available for a limited period, so get your copy delivered to your inbox now!

The article Good First-Half Progress at Smiths Group originally appeared on Fool.com.


Jon Wallis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

IMI Delivers Resilient Results

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By Jon Wallis, The Motley Fool

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LONDON — IMI , the global engineering company that specializes in the precise control and movement of fluids in critical applications, rose 8% on the week following publication of its preliminary results for the full year ended Dec. 31.

The company saw organic revenue growth of 3%, to 2,190 million pounds, with adjusted pre-tax profit edging up 1%, to 366.3 million pounds, on an operating margin of 17%, which was half a point off 2011’s 17.5%.

This week’s statement said that growth from its new products and in emerging markets more than offset weaker economic conditions in H2, and margins in its fluid power and indoor climate operations both showed “pleasing resilience” in a tough market. It also described the contributions from its new acquisitions, Remosa and InterAtiva, as “encouraging” and said that both provided considerable scope for growth in future years.

Adjusted earnings per share rose 3%, to 84.3 pence, and the board has recommended an increase of 8% in the full-year dividend, bringing it to 32.5 pence per share.

IMI’s chairman, Roberto Quarta, commented:

IMI has delivered a resilient set of results in 2012. In light of this performance, and our confidence in the future prospects for the business, we are pleased to propose an increase in the full-year dividend of 8%.

While the global macroeconomic outlook remains mixed, we are confident of delivering further progress in 2013, supported by higher growth in the emerging markets and an improving contribution from recently introduced new products. In the longer term we are committed to a program of accelerating the convergence of the group’s activities around our sweet spot, through increased investment in sales and engineering, and a focused program of corporate activity, featuring both acquisitions and disposals.

IMI has certainly had a good run — up 17% so far in 2013, almost 33% on this time last year, and more than 180% over the past five years, albeit with a couple of tumbles in 2012. The icing on the cake might be IMI’s dividend — less than the FTSE 100 average, at around 2.5%, but a nice bonus on top of the hefty capital appreciation.

At a current P/E of around 14.6, IMI is at a premium to the FTSE 100 average, and the low forecasts of growth in the near term do make the shares seem rather expensive right now.

If you’re looking for a quality company with excellent growth potential, the Fool’s finest analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released.

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The article IMI Delivers Resilient Results originally appeared on Fool.com.


Jon Wallis and The Motley Fool have no position in …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Aggreko Powers Ahead on Excellent Results

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By Jon Wallis, The Motley Fool

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LONDON — Aggreko , the global power and temperature control equipment rental company, rose more than 8% on the week, following this week’s release of its final results for 2012.

Group revenue grew by 13%, to 1,583 million pounds, with trading profit also up 13%, to 388 million pounds, and pre-tax profit 11% higher at 367 million pounds.

In its “Local” business, which operates 194 rental service centers in 47 countries, the company reported a “flawless execution” of its London Olympics contract, a strong performance in its North American operations, and more than 30% growth in emerging-markets business.

Aggreko’s “Power Projects” division reported that revenues were up 15%, although trading profit was down 1%, partly because of increased debt provision. It also said there had been “strong growth” in demand for gas-powered generation.

Earnings per share put on 16%, to 104 pence, and the company is raising its dividend 15% to 23.91 pence, covered a comfortable 4.2 times.

Rupert Soames, Aggreko’s chief executive, commented:

The Local business has had a very strong start to the year, with almost 20% more power on rent than a year ago, helped in part by our acquisition of Poit Energia in April 2012. Encouragingly, growth in the Local business has been broadly spread, with most areas other than Europe showing healthy year-on-year increases in MW on hire.

In Power Projects, we have signed new contracts totalling 140 MW in the year to date, and importantly, we have secured our first large order for our new Heavy Fuel Oil engine, with a 56 MW contract in the Caribbean. We have also secured a contract for 57 MW of diesel-powered generation in Djibouti. Trading continues to be subdued and is likely to remain so in the first half; however, in recent weeks there has been some improvement in the prospect pipeline.

Our expectations for the year as a whole remain unchanged from previous guidance.

The company’s share price is still slightly down on the year to date, owing to a slump at the end of January, and is down almost 20% on this time last year, almost entirely because of a huge sell-off in December, when Aggreko’s management said 2013’s results may well be below 2012’s. Today’s results may well help restore some investor confidence in the company.

Here at the Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but like all special reports from TMF, it will be available for only a limited period, so get your copy delivered to your inbox now!

The article Aggreko Powers Ahead on Excellent Results originally appeared on Fool.com.


Jon Wallis has no position in any stocks mentioned. The Motley Fool recommends Aggreko. Try any of our Foolish newsletter services free for 30 days. We Fools …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Serco Group Surges on Excellent Results

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By Jon Wallis, The Motley Fool

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LONDON — Serco Group  — the international outsourcing and service company — is currently up more than 11% following the release of its full-year results for 2012. In that year, the company achieved a record level of contract wins, contributing to 5.8 billion pounds of awards, up almost 14% on 2011. This gives a forward order book worth 19.1 billion pounds, up almost 7% on the previous year.

The company’s strength in Africa, the Middle East, Asia, and Australia as well as the successful launch of its Business Process Outsourcing division helped to offset a downturn in U.S. federal contracts.

Total revenue saw growth of almost 6%, to just under 5 billion pounds, with an increase in adjusted operating profit of close to 10%, and earnings per share rising 7.5%, to almost 43 pence.

Serco proposes to raise its dividend 20%, to 10.1 pence per share, making its current yield around 1.5%. The board also expressed the intent to further increase the payout ratio (by reducing dividend cover, from the current 4.7 times to a still comfortable level of between 2.5 and 3 times) over the next three years.

Commenting on the results, chief executive Christopher Hyman said:

Serco improves the quality and efficiency of services that matter to millions of people around the world, helping our customers to focus their precious resources on what they do best. To continue developing our business we are providing more support to our existing customers, offering more to emerging markets and improving our ability to provide more complex services. This has resulted in a strong year for us in 2012 despite some very real challenges; we won more work than ever, we entered new markets, we built more capabilities and we established a global BPO business. 

Our unique breadth and depth leaves us strongly positioned to meet the growing demand from around the world for our skills and services. This confidence in our business prospects underpins our new dividend policy and commitment to a higher payout ratio over the coming years.

Serco is now up 7% for the year to date, and almost 10% on this time last year, but still remains over 6% on two years ago, suggesting its recovery potentially has some way yet to go.

Here at the Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released. It’s completely free of charge, but like all special reports from The Motley Fool, it will only be available for a limited period, so get your copy delivered to your inbox now!

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The article Serco Group Surges on Excellent Results originally appeared on Fool.com.


Jon Wallis doesn’t own shares in Serco, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Pace Reports 50% Increase in Profits

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By Jon Wallis, The Motley Fool

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LONDON — Pace , a leading global developer of PayTV and broadband technologies and products, revealed preliminary full-year results that were full of good news today.

The company reported that revenue had risen 4.1%, to $2,403 million, earnings (before deduction of interest, tax and amortization) were up almost 12%, at $158 million, and profit after tax was up 50.5%, at $58.4 million, perhaps reflecting the company’s new focus on improving operating efficiency.

Basic earnings per share rose 47% to $0.194, and the board proposed a final dividend of $0.0306 per share, bringing the full-year dividend to $0.045 per share, up 20% on 2011.

The company reported that it remains the sole supplier to the largest cable, satellite, and telecoms operators in North America, and remains confident about the long-term strength of the market for its products in that region.

Pace is also now providing products to eight of the 10 largest pay-TV providers in Latin America, and anticipates strong revenue and profitability from key markets and customers in the region in the future.

Europe, however, presents more of a challenge, with a far more fragmented territory, although Pace expects significant growth in the fast developing “media server” segment of the market, and has already been awarded contracts from leading operators in Belgium and Norway.

Pace blamed disruption to its supply of hard disks in the first half of 2012 for a decrease in revenue from its “rest of the world” businesses — which cover highly diverse markets from its traditionally strong Australasian region, to the Middle East, Africam and India — but anticipates “significant growth opportunities” with the continued digitization and uptake of PayTV services in “greenfield” markets.

Mike Pulli, chief executive officer, commented:

I am pleased to report that Pace has performed impressively in 2012, by delivering increased operating profits through both top-line growth and operational efficiency, with a particularly strong second half of the year. We have made good headway on executing our strategy and Pace is becoming a more profitable, cash generative company.

We have momentum, a sustainable platform to build from, and we expect to make further progress in 2013 and beyond.

Pace has performed very impressively since a new executive management team was put in place in Q1 of 2012 — the company’s share price is 20% up so far this year, and a remarkable 180% up on this time last year.

Here at The Motley Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share For 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but like all special reports from TMF, it will only be available for a limited period, so get your copy delivered to your inbox now!

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The article Pace Reports 50% Increase in Profits originally appeared on Fool.com.


Jon Wallis has no position in any stocks mentioned. The Motley Fool …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

WPP Reports on Another Record Year

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By Jon Wallis, The Motley Fool

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LONDON — WPP  — the world’s largest advertising group, whose clients encompass all of the Dow Jones companies, including Microsoft, Proctor & Gamble, and McDonald’s — published its preliminary results for 2012 this morning.

Although reported billings of 44.4 billion pounds was marginally down on 2011 (blamed on the strength of the pound), the company saw revenue growth of 3.5% — 2.9% on a like-for-like basis — with particularly strong performances in Asia Pacific, Latin America, Africa, and the Middle East.

A record-high operating margin of 14.8% helped pre-tax profit rise over 8%, to 1.1 billion pounds. Diluted earnings per share dipped 2.6%, to 62.8 pence, owing to an exceptional release of corporate tax provisions last year, but the full-year dividend rose almost 16%, to 28.51 pence.

The company said, “2012, the Group’s twenty-seventh year, was like the previous year, a record year, but it felt very different.” It also said that while targets were reached, it “got there ugly.” While WPP thinks its clients were “in better shape” than 2011, it says that a range of factors — the continuing fragility of the eurozone, instability in the Middle East, a soft-landing in the Chinese economy, the “elephant in the room” of the U.S. deficit and record debt, and the possibility of an EU-membership referendum in the U.K. — all conspired to reduce risk-taking.

Whether it “got there ugly” or not, WPP is now up almost 30% on this time last year, and almost 20% for the year to date. Its overall recovery growth over the past few years has been even more impressive — anyone lucky enough to have bought when WPP dipped to around 300 pence in late 2008 has enjoyed a gain of over 250%.

Looking ahead, WPP thinks that “the pattern for 2013 looks very similar to 2012,” and that this year will be “demanding.” But it says that 2014 looks to be “a better prospect,” with a World Cup in Brazil, and the Sochi Winter Olympics, both of which will help raise the profile of their respective regions.

Here at the Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but, like all special reports from TMF, it will only be available for a limited period, so get your copy delivered to your inbox now!

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The article WPP Reports on Another Record Year originally appeared on Fool.com.


Jon Wallis doesn’t own shares in WPP. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance