Companies: UMC   

Originally backed by Growth Company Investor at 403p in 2004, Umeco, the aerospace parts outsourcer, still has that lift-off look under entrepreneurial chief executive Clive Snowdon.

Providing an array of distribution and supply chain outsourcing services, as well as advanced composite materials for the buoyant aerospace, defence and automotive industries, Umeco shrugged off US dollar weakness to report a 10.1% rise in adjusted pre-tax profits from continuing businesses to £8.7m for the half to September. Turnover grew 11% to £163.4m and from increased earnings of 14.4p, investors were treated to a hike in the interim dividend to 6p (5.5p).

Following the recent disposal of its repair and overhaul operations for £36m cash (in a debt reducing move), Snowdon is concentrating efforts on growing the core supply chain and composites businesses. Umeco Supply Chain, where clients include Lockheed Martin, Goodrich and BAE Systems, has a new, extended contract in place with long-term client Rolls-Royce, which should lead to greater volumes going through its dedicated Derby facility.

Meanwhile the composites arm, which supplies super-light, super-strong materials for a growing range of aerospace & defence applications, as well as for the Formula 1, marine and wind energy sectors, reports high levels of demand. Furthermore, the $60m (£30m) acquisition of complementary California-based JD Lincoln has strengthened its US presence and ties with Airbus and Boeing.

Civil aerospace, Umeco's key market, is in rude health and both bits of its business claim excellent long-term potential. Newcomers to the Umeco story should climb aboard. If an existing shareholder, you have already seen substantial returns and should consider topping up holdings.

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Umeco	LSE	£125.15m	260.00p	1.50p
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