01 August 2022
By Maynard Paton
Results summary for FW Thorpe (TFW):
- A record H1 performance bolstered by the acquisition of Spanish firm Zemper and complemented by another special dividend.
- Progress at Thorlux continues to be modest, but a new MD, an order book up 25% alongside growing demand for energy-efficient lighting support future optimism.
- Dutch profit was assisted by the absence of earn-out provisions, with new manufacturing facilities at Famostar underpinning “continued rapid sales growth“.
- Net cash remained significant at £37m after extra stock investment suggested component shortages were no longer as severe as they once were.
- A P/E of 27 seems generous, but could reflect significant ‘ESG’ attractions as TFW showcases its environmental credentials to quoted companies scrambling for LED lighting. I continue to hold.