Companies: HMY   

Marine fluid-handling specialist Hamworthy has increased annual profits 57 per cent and orders are up 30 per cent.

AIM-quoted Hamworthy, which supplies deep-water pumps to liquefied natural gas carriers and desalination equipment for cruise ships among its varied range of operations, lifted pre-tax profits from £8.7 million to £13.6 million in the year to March on turnover up 40 per cent to £191 million. Gordon Page, chairman of the Poole-based company, says year-end orders were 30 per cent higher at £268.2 million, partly thanks to developing the company’s sales infrastructure in Korea and China, now respectively the first and second largest shipbuilding countries in the world.

Since March, Hamworthy, which bought desalination specialist Serck Como last August for £5.3 million and took on net debt of £1 million in the process, has set up a new aftermarket service to exploit strong demand for spares and services. The company, which showed cash of £32 million at the end of its finacial year, increased earnings 33 per cent to 22.8p a share and proposes a 4.6p final dividend, taking the full-year payout from 6p to 6.9p a share.

Kelvyn Derrick is to retire as chief executive in August after 13 years with the company. His successor will be Joe Oatley, currently head of Weir Group subsidiary Weir Strachan & Henshaw.

At 530p, up 5p this morning and valuing the company at £228.5 million, Hamworthy shares have risen from 233p in May 2005, when Growth Company Investor recommended them, and from 424p last November, when GCI said there was more growth to come. There should be more mileage yet, though partial profit-taking might be prudent.