25 October 2014

Inditherm

HOLD

01/09/2004 Leslie Copeland

Prospects are warming up at Inditherm, the heating technology outfit that grabbed the headlines over the summer with its £775,000 contract installing under-pitch heating at Chelsea FC's new academy and training ground. This followed the installation of a similar system at Falkirk FC, proving Inditherm was opening up a nice niche market at sports grounds. Yet its technology, based on an innovative polymer that heats uniformly across its surface, has many other money-spinning applications, ranging from heated products for maintaining core body temperature during operations, to frost protection for pipelines, and even heated inserts for pizza delivery bags. Last year to December, Inditherm lost £802,000 (£739,000) after restructuring and exceptionals costs, on turnover of £616,000 (£683,000). But there was strong second half growth and chief executive Colin Tarry flagged up bumper enquiries from the industrial market, subsequently borne out with sports ground and other major customer wins. And following a £5m fundraising at the tail end of 2003, year-end cash was a touch over £5m. Tarry cautions that profits are still a few years away, as Inditherm spends on business development, growing the rate of sales and building critical mass. Yet he is confident there's plenty of growth to come from the industrial, medical and construction sectors, and customers are building speedily. Well worth holding at current levels, with Inditherm marked down from a 97p issue price. Interims to June are out later this month.

Sector: Chemicals

Companies: Inditherm

Market cap: £12.12m

PE Forecast: n/a

Share price: 57.5p

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