II Editor
23 Feb 2015
NEW ARTICLE: Dewhurst: The company’s a buy but the report’s a sell "Dewhurst: The company’s a buy but the report’s a sellPiecing together Dewhurst’s business model is more of a challenge than it should be. It’s a good business though.Dewhurst’s annual report is a disappointment. The company isn’t, and ..."[link]
nk1999
19 Feb 2015
Moneywise articles "Our resident share expert casts his eye over the stocks to keep tabs on in the month ahead.DEWHURSTStrong progress from Dewhurst in improving markets is reflected in the company's full-year results. The component manufacturer improved revenue by the year to 30 September 2014, after a disappointing 2013. Profit was almost on a par with 2012, Dewhurst's best-ever year.The company's cash position improved too. It has no debt.Dewhurst manufactures pushbuttons and related components for lifts, railway carriages and ATMs, as well as bollards and signage for traffic management.It benefited from a resurgence in local authority spending on lifts – one beneficiary being its CMS Anywhere product, a web-based monitoring system for housing and facilities managers (who are increasingly required to report on lift performance). Sales in its recentlyacquired US subsidiaries, which the company has restructured under a single head, have improved too.Otherwise, Dewhurst focused on improving efficiency and product development in 2014. It launched a redesigned solar-powered bollard, an enhanced security ATM keypad and a remote indicator display that enables facilities managers to provide residents with service updates by texting a screen in their building.The company reports stable demand but economic uncertainty, and it warns that the strong pound may continue to reduce overseas revenue, which accounts for about 70% of total revenue. Currency fluctuations should even out over the long term, though. Its share price of 465p values the enterprise at £26 million, about six times adjusted profit. The earnings yield is 17%.The risks are mostly speculative and insufficient to undermine the attractiveness of shares on such a low valuation. Dewhurst is controlled by members of its founding family, which gives its directors the power to operate the company in their own interests rather than those of shareholders in general.However, payments to plug the defined benefit pension fund deficit will reduce cash flow in coming years, while Dewhurst's mixed results from product and geographical diversification may indicate that, although it has profitable businesses, it's not always successful in growing new enterprises.Balancing those concerns is Dewhurst's decades-long record of profitable growth and financial prudence, which indicates that the company's management has been a good steward that has enriched all shareholders, and that Dewhurst's position in established niches, particularly lift pushbutons, is entrenched.Progress may not always be smooth, but in the long term, Dewhurst should be a good investment."[link]
II Editor
18 Dec 2014
NEW ARTICLE: Five for the future "And now for something completely different. A list of shares that will not necessarily profit investors in 2015. You'd need to be more patient than that.This list is probably unlike any of the other lists you will see published as the New Year ..."[link]
II Editor
11 Dec 2014
NEW ARTICLE: Investing in illiquid shares "A wide spread and a small Exchange Market Size, doesn’t preclude long-term investment. A small free-float might. This from Dave Lawlor, on a recent article about Dewhurst, in the comments: How could any small investor get involved with this? ..."[link]
II Editor
05 Dec 2014
NEW ARTICLE: Dewhurst: Startlingly undervalued "Dewhurst: startlingly undervalued Steady progress from Dewhurst in improving markets, is reflected in the company’s full-year results. The shares appear to be startlingly undervalued.The manufacturer of pushbuttons and related components for ..."[link]
