Tuesday, March 15, 2005
Maybe it's make believe? Maybe it's Mayborn
Mayborn's final results announcement this morning had me wondering if the sensations of Sainsbury's margarine on toast were being dreamt. No pinch was required and it's unlikely I'd start to feel it anyway as the baby products manufacturer and fourth largest portfolio constituent reported record results that trounced market expectations.
Mayborn trumpeted fantastic full-year figures with diluted earnings per share coming in at a stonking 28.6p against a headline figure of 29.2p. Unless you are a brutual communist dictator the most effective way to get the crowds to cheer your announcements is to give them some good news. Mayborn kept it coming, with a 50% increase in the final dividend and encouraging futurespeak on 2005's prospects, the market responding with the strongest round of applause they've given the company in a long time.
Trading in 2005 has started strongly. Over the last few years, earnings per share have risen substantially, and the Board is confident that 2005 will be another year of good progress. Our confidence is underpinned by new product launches, new listings and earnings enhancing acquisitions.
On Friday, Mayborn had announced the £10m acquisition of Tube Plastics, a rugrat assault-course manufacturer. The market was unable to stifle the jaw-dropping excitement that Mayborn has purchased the leading UK manufacturer of Children's outdoor play equipment and the shares have risen by more than three percent in each trading session since, culminating in today's push to 335p to sell, 18% higher than my rule-breaking purchase at 282p.
I'm yet to do a full appraisal in response to all this news, but for now am pencilling a new fair value of 372p and a re-purchase price of 286p.
More analysis to follow in a later blog. I'll be back by Friday at the latest, it's Chaucer's turn to announce full results on the 18th.
The Artful Dodger
Mayborn trumpeted fantastic full-year figures with diluted earnings per share coming in at a stonking 28.6p against a headline figure of 29.2p. Unless you are a brutual communist dictator the most effective way to get the crowds to cheer your announcements is to give them some good news. Mayborn kept it coming, with a 50% increase in the final dividend and encouraging futurespeak on 2005's prospects, the market responding with the strongest round of applause they've given the company in a long time.
Trading in 2005 has started strongly. Over the last few years, earnings per share have risen substantially, and the Board is confident that 2005 will be another year of good progress. Our confidence is underpinned by new product launches, new listings and earnings enhancing acquisitions.
On Friday, Mayborn had announced the £10m acquisition of Tube Plastics, a rugrat assault-course manufacturer. The market was unable to stifle the jaw-dropping excitement that Mayborn has purchased the leading UK manufacturer of Children's outdoor play equipment and the shares have risen by more than three percent in each trading session since, culminating in today's push to 335p to sell, 18% higher than my rule-breaking purchase at 282p.
I'm yet to do a full appraisal in response to all this news, but for now am pencilling a new fair value of 372p and a re-purchase price of 286p.
More analysis to follow in a later blog. I'll be back by Friday at the latest, it's Chaucer's turn to announce full results on the 18th.
The Artful Dodger
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