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Omega International

Companies: OME   
17/09/2004

Fast-growing kitchens outfit Omega, which floated in April raking in £2.25m of new money, delivered some eye-catching maiden interims showing growth in its share of a huge UK market. Pre-tax profits for the half to 2 July grew 46% to £1.6m, on turnover up 19% at a milestone £10.3m. Omega also pleased analysts with improved gross margins of 46.2% (43.8%) and a 42% jump in adjusted earnings per share to 4.4p. Steered by chief executive Francis Galvin and finance man Martin Levitt, Omega designs, makes and markets kitchen furniture through three brands - Sheraton, Omega and Chippendale - which are sold through hundreds of independent retailers. Explaining the strong numbers, Galvin pointed to first half investment in obtaining new display dealers, the refreshment and strengthening of displays at existing customers, and an increased product range. All of these factors will drive second half growth and Galvin claims orders are running ahead of the same period last year. Omega, which operates out of a 205,000 sq ft factory near Doncaster, owning the freehold, has plenty of spare capacity for the next few years. Galvin estimates the company has only 2% of a £1bn UK market, forecast to grow at 2% a year over the next three. We also like the fact all of Omega's senior management team hold shares or options in the business. This makes the shares a strong buy.

Market cap: £37.59m
PE Forecast: n/a
Share price: 133p

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