The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares


The Admirable Creighton Posts Some Admirable Numbers and Still the Shares Seem Cheap

By Malcolm Stacey | Thursday 22 July 2021


Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Hello, Share Passers. One of my all-time favourite companies, Creightons (CRL) which makes cosmetic fripperies and, in these times, more importantly antiseptic hand-washes, has just posted some happy full-year numbers. The share price nipped up by 10% but I don’t think that’s the last of it.


The numbers show revenue jumped by 28.9% to £61.6 million. Ok, sales are vanity and profit is king. Well, operating profit increased by 43.7% to £5.4 million. Profit after tax for the year has soared by £1.1 million to £4.3 million, with diluted earnings per share up to 5.89p, from 4.34p.


Net cash on hand is £6.2 million (2020: £2.8 million), though disappointingly the final dividend of 0.50p per share is the same as last year. This is though an honest, up front, company and a few negatives were included near the top of the RNS. Sales of retailer own label products decreased by 6%, contract sales dipped by 7.6% and overseas sales reduced by 3.9% to £6.9 million.


However, the cash strengthened despite a lot of investment in product development and new plant and equipment to support this company’s impressive overall growth despite some stores being unable to sell Creightons stuff during lockdowns. The company also had to fork out £1.6 million for hygienic gear to keep its factories safe from the virus, though it benefitted in some respects from the pandemic as sales of its hand-washes increased.


This old punter has also noticed that Creightons products are being given more prominence in supermarkets and the report talks about a wider retail distribution. The P/E by the way is around a modest 15.


And now let’s see what’s happening at the Punter’s Return.



Never miss a story.




This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


More on CRL


Comments

Comments are turned off for this article.


Site by Everywhen