Best Casino Sites Not On GamstopUK Casino Not On GamstopCasinos Not On GamstopNon Gamstop CasinosNon Gamstop CasinosNon Gamstop Casinos

Omega International

Companies: OME ��
22/03/2006

Omega International, recommended by Growth Company Investor at 159p, enjoyed a strong 2005 and business this year is proving sprightly.

For calendar 2005, pre-tax profits sparked up 21% to �4.7m, meaning Omega has now delivered compound annual profits growth of 50% over the last four years. This from sales up a less-than-spectacular 9% to �23.2m, as the operational gearing of the business shone through. This was a creditable revenue result given the current sluggish market for ‘big ticket’ household goods.

Omega reported a great year for cashflow, allowing all bank borrowings to be repaid and enabling a swing from debts of �1.8m to net cash of �2.3m. Omega designs, makes and markets three brands of kitchen furniture – Sheraton, Omega and Chippendale – and its success is based on a robust route to market, selling through a network of handpicked specialist dealers, rather than direct to customers. The group continues to grow its market share by increasing its dealer network on the back of superior kitchen ranges and service, and still only has a meagre 2% of the market, meaning there is plenty of profitable growth to chase. Its industry leading operating margins of 20% could tick higher in coming years.

Omega is looking to double the size of the business over the next five years and will spend �4m this year from cashflow to increase the size of its Doncaster factory. For 2006, Evolution Securities forecasts profits rising to �5.6m, giving earnings of 14.1p and a forward multiple of 13.9. By ‘07, profits could hit �7m. We are pleased to see the shares recovering from a 135p year’s low to a new 52-week high, and remain strong buyers.


Not yet a subscriber? You can get immediate access to all the services on Growth Company Investor simply by clicking here.

James Crux

Related Articles:
16/05/2006
26/04/2006
10/04/2006
29/03/2006
17/09/2004

People who read this article also read ...
23/03/2006
22/03/2006
22/03/2006
21/03/2006
21/03/2006

AIM�63.85m 230.00p 0.00p
Other company articles:
10/04/2006
24/03/2006
22/03/2006
11/11/2005
01/06/2005

Sponsored Listings

Property Investment - Advice and Education Sourcing properties that offer significant growth potential to securing finance at preferential rates, we provide the education and opportunity to build significant wealth through investment property.

Jupiter - Investment Management Jupiter offers a wide range of award-winning products - unit and investment trusts, tax free investments, ISAs, PEPs and SIPPs for individuals and institutions.

Save up to 25% on Property Investments Register free today to get exclusive access to superb UK and overseas properties at discounted prices.

Recommendations

API

SELL

Shanks

HOLD

Intec Telecom

SPECULATIVE BUY

Teleunit

HOLD

Speedy Hire

ADD

Printing.com

HOLD

Abacus Group

SPECULATIVE BUY

Gilat Satcom

SPECULATIVE BUY

Zytronic

REDUCE

Shed Productions

HOLD
AIM