Full-year results from the Human Screen

Ensor is a largely family-owned mini-conglomorate, that has weathered recession profitably albeit with the dividend reset in 2009.

Highlights

• Adjusted operating profit up 68%
• Return on tangible assets: 7%
• Adjusted net profit of ''914,00 compared to net cash flow of -''795,000 (-''1m after net capital expenditure)
• Net cash down 17% at ''3.8m, (Net debt of -''900,000 after pension deficit of ''3.2m and approximate capitalised operating lease commitments of ''1.5m)
• Per-share dividend up 51%

The Human Screen comments:

Ensor owns a number owns the eponymous building products supplier and two door and component manufacturers also located in the North West. It also owns SRC, which recycles tyres into rubber crumb and shred, a recycling company in Derbyshire, Woods Packaging in West Yorkshire and newly-acquired Powys based Technocover, which makes high security access ways, cabinets, and modular buildings for utility companies.

It looks as though Technocover was distressed when Ensor bought it, which explains the negative cash flows. Ensor repaid Technocover’s invoice discounting facility and paid off creditors, who had been ‘extended’, which the Human Screen thinks is a euphemism for "not been paid".

It’s a largely family-owned mini-conglomorate, that has weathered recession profitably albeit with the dividend reset in 2009.

The Human Screen thinks Ensor is a cyclical company, so this year’s earnings may not be a particularly good guide to the future. The share price has more than doubled since last December’s interim results when Ensor reported a sharp recovery, and they are now trading at 3 times tangible book value.

Since that’s not obviously cheap, the investigation into Ensor is over for now.

More on Ensor

LON:ESR

HS+ (worth watching for improvement in fundamentals/price)