23 October 2020
By Maynard Paton
Results summary for FW Thorpe (TFW):
- “Creditable” figures that revealed second-half profit sliding 17% due to the lockdown.
- A 2% final dividend lift, cash reserves of £63m plus the commendable funding of furloughed staff did not imply imminent financial difficulties.
- The SmartScan light-monitoring system provides exciting potential, with sales up 18% to represent 23% of total revenue.
- Talk of a “global recession” and a “downturn in orders” suggests trading during 2021 will be challenging.
- A P/E of 21-25 seems generous but may reflect the ‘pandemic-proof’ balance sheet, SmartScan growth and/or resilient profit history. I continue to hold.