News blog
Clyde Process Solutions
- BY: Andrew Hore |
- POSTED: 29/11/2009 |
Clyde Process Solutions made an impressive start to its financial year.
Clyde’s pneumatic conveying and air filtration equipment is a capital spend so increasing revenue and profits in the six months to August 2009 was a good outcome in a tough environment. The period benefited from a large contract from a sugar business.
The wide range of sectors and geographies helps Clyde. Food, minerals, chemicals and industrials are the main sectors. North America currently dominates revenues but Europe, South America and Asia are also important and the mix can change.
The order book has fallen over the past year but it remains at around £23m at the end of November, against £34.5m at the end of August 2009.
First half revenues improved from £36.2m to £38.5m, while profits jumped from £2m to £3.1m. That includes £500,000 payment for a Turkish contract from more than a decade ago and around £400,000 of interest on that payment, although that is offset by a one-off facility fee of £400,000.
Cash generation was good even though the Turkish money did not come in until after August 2009. Net debt fell from £18.9m to £16m helped by exchange rates. Most of the borrowings are in dollars. New bank facilities have been renegotiated and this will add 0.75 percentage points to the interest charge. The facility lasts until 2013 and provides more headroom.
Clyde normally does better in the second half than the first half but this year will be different. Activity is increasing in the metals and mining sectors as commodity prices recover.
At 57.5p a share, Clyde is valued at £23.2m.
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