Dewhurst – earnings, dividends and a possible valuation

PUBLISHED: Dec 05 2020 @ 02:02 | Comments (0) |

Dewhurst non-voting shares (LSE:DWHA) are in my Buffett-style portfolio. It’s earnings history is not spectacular, just one of steady progression over the years. But earnings are based on firm foundations of strong market positions, which bodes well for future growth.

Sales, earnings and dividends

	Sales, £m	Earnings per share (p)	Dividend per share (p)
2009	36	38.43	6.06
2010	37	40.97	6.36
2011	42	34.35	6.69
2012	52	44.48	7.02 + 5 special
2013	44	15.7	8.0
2014	47	43.87	9.0
2015	46	50.21	10 + 3 special
2016	47	40.75	11.0
2017	53	52.65	12.0
2018	55	47.93	12.50
2019	66 (continuing: £56.5m)	116.23p	13.0p
H1 2020	28	20.78p	3.75p (2019: 3.75p)

In the table above the 2019 earnings number is raised due to the inclusion of a capital gain on selling the Thames Valley Controls, TVC subsidiary, In the next table we remove that element as well remove the profit contribution made by operating the TVC business in the financial year.

Underlying earnings of continuing businesses only (in 2019 that means excluding capital gain on sale of TVC and the £1.1m profit after tax TVC made):

	2019 £000’s	2018 £000’s (excluding profit from TVC)
Profit from continuing operations after tax	3,095	3,543
Add back exceptional: pension female/male equalisation charge	639	0
Add back exceptional: amortisation of acquired intangibles	1667	555
Less tax on exceptionals	-461	-111
Underlying profit after tax before minority interests	4940	3,987

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