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Chloride H1 Results
UPS and generator supplier Chloride (that is a more comprehensible description of its business than the wording used in the announcement) has performed reasonably in the first half of its year.
Sales rose 7% at CER but margins shrank and profit fell: adjusted (pre-exceptional and amortisation) operating profit fell 15% and adjusted EPS fell 16%.
Chloride has an excellent track record: sales more than doubled from 2005 to 2009, and profit (at all levels from operating profit to EPS) increased more than fivefold over the same four years.
There has been a shift in revenues (to services) which indicates a change in the business. The lower margins are a cause for concern. At 165p Chloride is trading on a trailing twelve months PE of 15.4×. Good value if it can return to the levels of growth it managed up to this year.
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