IAWS set for record profits

IAWS is on course to record pre-tax profits of close to €80 million this year.

On Wednesday, the company will release its interim figures to the end of January, the first six months of its financial year.

The company is expected to announce pre-tax profits of close to €16 million for the six-month period. This puts it on target for a year-end PTP of €80 million.

When one takes into account the seasonal nature of IAWS’s business means that only 33% of earnings come through in the first half of the year.

IAWS was rated a buy by Goodbody Stockbrokers and NCB Stockbrokers in their latest notes to clients on the company.

Goodbody’s Liam Igoe sees another bumper year in prospect for IAWS.

He is predicting a 16% increase in earnings per share, and in or about this target is also forecast by NCB Stockbrokers Paul Meade, who opts for a more conservative growth of 15%

“Top-line growth will be impacted by disposals, but sales should be up in the 2-4% range. Margin growth of 30pbs-plus is expected, reflecting increased food sales and the constant change of mix within food.”

In Canada, NCB expects significant growth from its La Brea acquisition as production commenced at its new east coast manufacturing site.

“We will be looking for an update on the rollout to Tim Horton outlets. The primary driver of this venture is to remove Tim Hortons dependency on master bakers through the introduction of par-baked bread technology as well as product range extension,” he added.

NCB expects to see strong organic growth, especially in the Britain in the Cuisine area, due to new store openings and product line extensions.

“Given the group’s dominance in Ireland in the par baked sector, organic growth is more reliant on new product introductions like the recent launch of a new pizza range,” said Mr Meade.