bullish
Smiths News - Stronger balance sheet leads to big dividend hike
SUMMARY
Smiths News management again delivered on its promises and produced a strong set of interim results, with PBT up 6.3% and EPS up 10.9%. The interim dividend was nearly tripled due to a combination of already announced loosened banking arrangements and considerably lower debt levels. This implies a full-year dividend of 4.2p, which could offer investors a yield of c 13%. Underlying market conditions continue to normalise and with the one-off proceeds now received, we have increased our valuation from 81.5p to 92p a share, nearly three times the current share price.
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- Smiths News - Stronger balance sheet leads to big dividend hike31 May 2022
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