Denmans profits surge to pounds 2m: Strict price controls and better times account for 33% improvement
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.DENMANS Electrical, the USM-quoted electrical goods group, reported bumper pre-tax profits of pounds 2.03m for the year to September, writes Diane Coyle.
It attributed the surprisingly strong 33 per cent increase, with turnover up only 7 per cent, to the beginning of the end of the recession and strict cost controls. The share price jumped 55p to close at 528p.
The health of Denmans' electrical wholesale business, accounting for most of its turnover, depends on the state of the construction industry. John Moulton, finance director, said some areas were still depressed.
However, Denmans sells mainly to smaller firms, such as private house builders, which are harvesting the fruits of recovery first.
A second sign of an improving trading climate was the fall in the level of bad debt provisions from an exceptionally high 1.5 per cent of turnover the previous year, saving nearly pounds 200,000.
Although the market is highly competitive, Denmans has been extremely successful in developing relationships with large retailers, according to Albert E Sharp, the broker, whose analyst rates Denmans good value on the current price-earnings ratio of just over 17.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments