23 March 2021
By Maynard Paton
Results summary for FW Thorpe (TFW):
- “Resilient” figures that showed both profit and dividend up 2% despite the pandemic, Brexit and a factory fire.
- Management’s previously gloomy tone has improved and the second half is now expected to witness a “steady” performance.
- Expectations seem pinned on TFW’s Dutch divisions, where profit gained a remarkable 15% and progress generally within the group has been positive.
- The cash hoard improved further to a record £65m, but the group margin still languishes below the healthy 18%-plus level of the past.
- A P/E of 22-29 feels generous, although might reflect TFW’s operational reliability, opportunities for market-share gains and/or potential growth beyond lighting systems. I continue to hold.