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[March 2007]
Foseco Final Results
On releasing its final results for 2006, Foseco plc (Tamworth, Staffs,
England) pointed up the following highlights:* Turnover increased by 8% to £408.8 million (2005: £376.8 million).
* Operating profit before exceptional items rose by 16% to £46.1 million
(2005: £39.9 million). After exceptional items, operating profit was £46.1 million (2005: £36.1 million).* Basic EPS (before exceptional items) was 17% higher at 14.2p (2005:12.1p). After adjusting for exceptional items, basic EPS for continuing operations was 14.2p (2005: 7.6p).
* Cash flow from operating activities (before exceptional items) of £32.4 million was 4% higher (2005: £31.3 million).
* Cash flow from operating activities after exceptionals was £31.9 million
(2005: £21.0 million).* Final dividend of 3.41p making a full year distribution of 4.95p.
Commentating on the results, Danny Rosenkranz, Chairman of Foseco plc, said: "I am pleased to report a positive set of full year results for Foseco plc in our second year since flotation in May 2005.
"The Foundry business achieved another record performance. The underlying markets have remained buoyant, though at a more sustainable level than in 2005. We have maintained the momentum of our organic growth strategies, which have been focussed on exploiting market opportunities in both developed and emerging markets. Operating margins improved to a very pleasing 14.6% and reflect both the benefit of marketing initiatives and the success of the business in recovering the significant cost increases experienced in late 2004/early 2005.
"The Steel business, which represents 20% of the Group, had a better year but remains in transition. The growth in turnover is encouraging and the more modest margin improvement reflects the continuing investment in terms of both its product offering and its geographic footprint."
Considering the outlook for the future, he said: "Looking forward, the Group is in a healthy state with a good balance of investment, new products and market opportunities. Although it is early in the year, the prospects for 2007 are encouraging.
"Growth in the Foundry business has continued and steady progress is expected with margins maintained. Steel has also started well but remains subject to fluctuations in overall steel production.
"For the Group as a whole, we remain optimistic of achieving above market turnover growth with maintained margins. However, the current strength of sterling, if maintained, is likely to have a detrimental impact on the translation of the results for 2007.
"In summary, following a second set of strong full year results, the Company continues to progress and, assuming stability in world economies, we remain confident of being able to report further progress for 2007."
www.foseco.com
ENDS