GET's profits do not electrify
Article Date: Dec 04 2000Investors refused to be impressed by electrical switch company GET's 8.5 per cent full year profits increase and the London Stock Exchange marked the shares down 11p to 167.5p, writes Helena Keers.
Margins narrowed at GET in the year to August. Although turnover rose by a brisk 22 per cent to £52.4 million, pre-tax profits increased by no more than 8.5 per cent to £4.3 million. In an unfashionable sector these figures left investors cold, leaving chairman John Joseph 'disappointed' and anxious to plead that the company's products are 'uniquely designed and user friendly, simple and of a high quality'.
GET's £85,000 investment in the gardening internet venture Greenfingers.com was a write-off. GET is now offering advice while the company looks for a second round of financing.
The company is scouting for other acquisitions and hopes August's £3 million purchase of the profitable Tower Manufacturing, which makes cable clips and fixings, will pay off.
Broker Seymour Pierce predicts next year profits will hit £4.95 million, and earnings per share will be 21.1p. At 167.5p, the shares are 26p above their year's low, but still 92p down from their 2000 high.
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