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Widney

Companies: WDNY   
20/12/2004

Under chairman Joe Grimmond, this re-shaped maker of vehicle cabs and metal press tools continues to improve and should offer shareholders another year of strong growth. Figures for the year to September showed a jump in pre-tax profits to £2.4m (£1.2m), on £39.6m (£16.9m) turnover, as underlying operating profits rocketed 111% higher to £2.6m. Widney UK, which makes window systems for off-road vehicles and metal slides for ATMs, and Belcot, a manufacturer of metal press tools for the car industry, contributed £18.7m of that top line growth. The rest of the sales hike came from Widney Cabs, the maker of cab assemblies for agricultural and construction vehicles acquired in May that trades as Airflow Streamlines. Widney cherry picked certain assets of Airflow Streamlines' production division for £5.25m in early summer. Encouragingly, Widney Cabs contributed almost £1.5m to full year operating profits in only a few months under its new owners, and growth prospects are good with a full year's contribution to come. Punters on the register in February will receive total dividends of 2.5p, double last time's 1.25p, and offering a decent 2.8% yield. Last year's underlying earnings rose to 6.97p (3.3p), placing Widney on an undemanding 'historic' p/e of 12.7. Recently appointed broker Insinger de Beaufort has yet to produce forecasts, but we like the way Widney is developing. Speculative buy.

Market cap: £16.44m
PE Forecast: n/a
PE Historic: 12.7
Share price: 88.5p

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