Vislink (37.75pand 4.8% of JIC): Results for the 6 months ended 30thJune 2013 look excellent. Adjusted earnings per share have doubled from 0.9p to 1.8p and operating margins have improved from 5.0% to 7.2%. Encouragingly order intake is up 32.3% to £33.6m.
It has all also announced the acquisition of Amplifer Technology, a leading design and manufacturer of amplifiers and jammers for the defence and surveillance market for a total consideration, including earn out, of £4.0m and a global strategic partnership with C-Com Satellite Systems Inc. which will include cross selling of their respective satellite products, R&D cooperation and enable Vislink to extend its product range and open new market sectors.
Conclusion: John Hawkins, Executive Chairman is delivering on his strategy of improving sales and margins at Vislink and building up the Defence and Surveillance division. He reaffirms that they are on track to deliver on their plan to grow the business to £80m turnover and £8.0m of operating profit by the end of next year. Market forecasts for 2015 are for turnover of only £67m so there remains considerable scope for upgrades over the coming year. On only 11.5x 2014 forecasts for 15% earnings growth and with a prospective 2013 yield of 3.4% the shares in my view can make much further progress. Very Happy Holder!
About the Author
Johnrosier
I manage my subscription website www.JohnsInvestmentChronicle.com in which I show my portfolio and all transactions. I blog within an hour of trading, with an explanation, and send an alert email to all my subscribers. I do not pretend to have all the answers but I hope my portfolio, and the trades, provides food for thought as well as helping those who are new to managing their own portfolios.I think what I do is unique. There are plenty of tipsters out there who will remind you of the good ones and quietly forget the duffers; I do not have that luxury as the portfolio is there for all to see. I have to confront my mistakes and deal with them. A tipster also does not show how a tip fits into the context of an overall portfolio. My portfolio of up to 30 holdings has different holding sizes based on my conviction behind the stock and its risk. I set up www.JohnsInvestmentChronicle.com in January 2012. Prior to that :In September 1984, I left university with a degree in Zoology and started work in the City of London. Over the next twenty five years most of my time was spent managing UK equity portfolios with Fleming Investment Management and Henderson Global Investors, for company and local authority pension schemes as well as the reserve fund for a well known charity. During 2009 I left full time employment and decided to take time out to consider the next stage of my career. In the meantime I have been putting my years of experience to good use investing the family savings. I have thoroughly enjoyed the freedom of investing from home and despite some tricky periods during 2011 it has been a rewarding experience. more »
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