Albemarle & Bond – 221.63p

12 February 2013 – interim results

As anticipated, performance was down year-on-year versus strong comparatives.  Profit before tax fell by a third to £8.1m (2012: £12.1m) and earnings per share came in at 11.20p (2012: 16.27p).  Nevertheless, this represents a solid performance given the size of the business and the company points out that demand for its offering remains strong, albeit in a competitive environment.  The interim dividend was held at 3.0p.

Although net debt rose by £6.8m to £50.3m over the six month period there are facilities in place until November 2016 with plenty of headroom.  It is important to look at the long term picture and prospects for Albemarle & Bond continue to look strong.  The downturn in performance was fully expected and in our view has seen the share price move too low.  We continue to rate the shares as a BUY.

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