News

Hamworthy snaps up Polish design firm

03 November 2008 11:17:00

Hamworthy, a designer of marine fluid-handling systems for shipping and offshore oil and gas facilities, has paid £500,000 in cash for 79% of Polish ship design company Baltic Design Centre (BDC).

The acquisition is part of the UK group's strategy of cutting costs and moving design work out of Norway to Poland.

Gdynia-based BDC is a privately owned ship design business providing concept, system and full ship design services to European ship yards.

The purchase of BDC, which boasted turnover of around £400,000 in 2007, is immediately earnings enhancing.

"I am delighted to announce the addition of BDC to the group which will both increase the cost competitiveness of our gas systems business and augment the group's wider design capabilities," said chief executive Joe Oatley.

Collins Stewart analyst Michael O'Brien said: "We suggest Hamworthy exhibits less cyclicality and financial risk than a number of its peers, yet has been de-rated alongside them by the market."

"Hamworthy's order books remain robust and the end user base across Hamworthy's markets are effectively well capitalised global multi-nationals."

O'Brien has the shares, on a current year P/E of about 7 times, a safe prospective yield of almost 4% and forecast double-digit percentage dividend growth, as a 'buy'.

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