UK manufacturer MS International plc (LON: MSI) has seen its shares slide following a half year of financial under-performance, which the Board had predicted prior to the period starting.
The Company’s woes were evidenced first and foremost by a year-on-year revenue comparison, which showed that sales were down by little under £4.5 million, to £33.3 million, for the half year ended October 31st.
This led a narrowing in the Group’s gross profits, which fell from £10.6 million to £8.4 million, in a comparison of the same period. What really claimed the headlines though, was the fact that the Company swung from an operating profit, to an operating loss; with its bottom line switching from positive £3.2 million during the six-month period during 2018, to negative £0.5 million for 2019.
The situation was equally turgid for MS International shareholders, with the Group announcing EPS had swung from 15.2p, to a loss per share of 2.5p, on-year.
Other uninspiring news has come from; Rolls-Royce Holding PLC (LON: RR) dipping on shareholder departure, Ted Baker (LON:TED) issuing a profit warning and Santander (LON: BNC) cutting senior pension perks. On a brighter note, J D Wetherspoon plc (LON: JDW) pledges to create 10,000 jobs.
MS International comments
“We anticipated that the first half year, ended 31st October 2019, would be a challenging period and advised in September that, in the short term, we expected a substantial weakening in the Company’s results. The half year shows a loss of £0.49m before taxation (2018 – £3.19m profit), on reduced revenue of £33.32m (2018 – £37.74m). Loss per share amounted to 2.5p (2018 profit per share – 15.2p). Notwithstanding, the balance sheet remained strong with net cash at £19.37m compared to £22.89m at the last year end.”
“Clearly, although not unforeseen, the performance has been disappointing in some areas of the group but elsewhere what is being achieved is quite pleasing, albeit the benefits are yet to be demonstrated in our results. Opportunities are undoubtedly there, while fresh ones continue to arise, so we are seriously endeavouring to ensure that we are in a positive and capable position to maximise prospects as and when presented.”
“Currently, many markets that we serve have tightened considerably owing, inter alia, to the well-chronicled effects of global political and economic instability that prevail. Moreover, such widespread tough conditions have been exacerbated by some sector specific issues impacting across the Company.”
Investor notes
The Company’s sahres dipped 10.00p or 5.56, to 170.00p per share 10/12/19 09:43 GMT. The Group’s p/e ratio stands at 7.79, their dividend yield is inviting at 5.08%.