Hepworth Plc. has announced its preliminary results for the year ended 31 December 1995.
Turnover was up 10.1% to UK 765.9 million (UK 695.9 million in 1994). However, operating profit fell 4% to UK …
Hepworth Plc. has announced its preliminary results for the year ended 31 December 1995. Turnover was up 10.1% to UK 765.9 million (UK 695.9 million in 1994). However, operating profit fell 4% to UK 73.6 million (UK 76.7 million) and profit before tax decreased by 1.3% to UK 74.5 million (UK 75.5 million). Earnings per share were down 3.7% to 20.8 pence (21.6 pence) and the gearing ratio has increased to 22.3% (8.4%), although interest cover remained high at 25 times. The dividend remained at 14.85 pence as in 1994. Hepworth explained that UK market conditions were generally more difficult in the second half of the year, with major European markets also coming under pressure. However, export sales from the UK rose, again, from UK 83.9 million to UK 113.5 million in 1995. The Hepworth Refractories division“s sales increased to UK 162.9 million (UK 136.5 million), with operating profit increasing to UK 7.6 million (UK 4.3 million). Global market demand was considerably better than in 1994 with the cement, glass and aluminium industries increasing their demand for refractories. In the UK, demand improved, but sellingprices were constrained by competitive pressures. Better market conditions enabled the division“s continental operations in Belgium and France to improve their profitability. Considerable effort was made to reduce the impact of rising raw material prices in the latter part of 1995, with the division seeking new sources of supply. Sales to markets outside Europe grew by 50% where the division exploited its strengths in major project work. Notable successes were achieved in the Far East and Latin America. Hepworth Minerals and Chemicals“ sales amounted to UK 90.6 million (UK 76.9 million) and operating profit UK 11.9 million (UK 10.4million). 1995 was characterised by relative buoyancy in most of the division“s markets. UK glass sand volumes increased by 20%, with the division winning new container glass sand contracts. Revenues for uncoated and resin coated foundry sands reflected increased automotive casting production in the UK and overseas markets. Sales of ceramic sands suffered with the downturn in the construction industry. However, building grade sands benefitted from the acquisition of the business of Arnold Sands in June 1995 for UK 7.8 million in cash and the launch of a range of speciality sports sands under the name Pro-Sport. The division“s continental operations also performed well and sales outside Europe were up almost 60% due to greater penetration of the developing Asia-Pacific markets.