The week's results: HWDN, TLPR, TNI

Saturday, Nov 10 2012 by
4

3 sets of figures out this week for companies in the portfolio - Howden Joinery, Tullett Prebon and Trinity Mirror. My most recent discussions of the three companies can be found at the following links:

Howden Joinery

Howden Joinery (LON:HWDN) have appreciated further versus a pretty flat market since my last post, having added about 10%. They dropped about 6 of those percentage points since the results, which came on Thursday morning, though in reality it's just a blip in what has been a rather smooth upward trajectory since the start of the year.  Given the evident quality of the business, though this is very easy to say in hindsight, I think this was certainly one of my safer shares.

The results were wholly uninteresting, though seem to indicate some slowing momentum - revenue is up 4.3% for the year so far, though only 2.2% in the second half. The remaining two 4-week periods account for about 10% of their remaining revenues, and so we can fairly easily see how that figure for the year will pan out, but a slowdown in growth makes another unexciting year likely. Not that any fireworks were particularly expected. On the physical growth front, the company reckons it'll finish the year with 20 more depots than it started with - 4% more - which is a positive given the minimal up front cost (they lease the depots and estimate the fit-out cost at £170,000 - seems extremely cheap to me!) and good returns on capital. The company says they break even at, usually, about 2-3 years, though maturation is much longer given the lack of advertising and the organic way they grow. There's plenty of scope for continuing locational growth - they think room for about 150-200 more - and there's a good deal of free growth built in to the way these depots do take time to mature.

Revenue per depot peaked at about £2.2m in 2007, and now sits at about £1.7m; even though openings has slowed, meaning a maturer profile of stores.

Depot growth, locational growth, unit growth, cohesive business model. A slowdown for this IMS doesn't really concern me - times aren't fantastic. They're not expensive against the profit of not-fantastic-times, though, and so I…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
4 thumbs up
0 thumbs down
Share this post with friends



Howden Joinery Group Plc is a supplier of kitchens. The Company is engaged in the sale of kitchens and joinery products through over 400,000 small local builders who source and install kitchens for both landlords and owner-occupiers. The Company offers approximately 50 different kitchen ranges, along with worktops, including granite, sinks and taps, domestic appliances, including ovens, hobs, refrigeration, laundry and dishwashers, and joinery products, including internal and external doors, and flooring. Along with its Lamona appliance range, it also sells appliances from AEG, Bosch and Neff. The Company operates over 600 depots. The Company has small operations in France, Belgium, Holland and Germany. more »

LSE Price
364.8p
Change
-0.3%
Mkt Cap (£m)
2,293
P/E (fwd)
13.0
Yield (fwd)
3.1

Tullett Prebon plc is a United Kingdom-based interdealer broker. The Company acts as an intermediary in the wholesale over-the-counter and exchange traded financial and commodity markets, facilitating the trading activities of its clients, in particular commercial and investment banks. It operates in the Europe and the Middle East; Americas, and Asia Pacific segments. It covers over five product groups: Fixed Income Securities and their derivatives; Interest Rate Derivatives, Treasury Products, Equities and Energy. The Company operates a hybrid voice broking business, where brokers, supported by screens displaying historical data, analytics and real-time prices, discover price and liquidity. The Company also operates an information sales business, Tullett Prebon Information, which collects, cleanses, collates and distributes real-time information to data providers, and a Risk Management Services business, which provides clients with post-trade and multi-product matching services. more »

LSE Price
447.7p
Change
1.1%
Mkt Cap (£m)
1,092
P/E (fwd)
12.1
Yield (fwd)
3.9

Trinity Mirror plc is a national and regional multimedia content publisher in the United Kingdom, producing and distributing content through newspapers and associated digital platforms. The Company operates through four segments: Publishing, which includes all of its newspapers and associated digital publishing; Printing, which provides printing services to the publishing segment and to third parties; Specialist Digital, which includes its digital recruitment classified business and its digital marketing services businesses, and Central, which includes revenue and costs not allocated to the operational divisions. The Company publishes paid-for national newspapers and paid-for and free regional newspapers, and operates a portfolio of related digital products. Its publishing brands include the Daily Mirror, the Sunday Mirror, the Sunday People, the Daily Record, the Sunday Mail and daily titles in metropolitan cities. It also publishes Metros in each of its key metropolitan markets. more »

LSE Price
81.5p
Change
0.3%
Mkt Cap (£m)
229.1
P/E (fwd)
2.3
Yield (fwd)
7.4



  Is Howden Joinery fundamentally strong or weak? Find out More »


What's your view on this article? Log In to Comment Now

You can track all @StockoChat comments via Twitter


About ExpectingValue

ExpectingValue

Private investor turned hedge fund analyst, looking predominantly at global small caps. Sector agnostic.

Follow



Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis
Foliobuilder