POWERSCREEN International, the Northern Ireland engineering group, should continue to record strong growth, according to NCB Stockbrokers. Sales are projected to increase from £261.3 million in 1996 to £309.2 million in 1997 and profits from £36.0 million to £41.7 million.
The group has developed a number of sustainable competitive advantages throughout its businesses and is capturing a high share of the growth in the mobile screening, crushing and materials handling equipment markets, NCB notes, in its latest review of the company. High margins and an ability to reinvest capital at high rates of return have ensured sufficient cashflows to finance internally all organic and acquisition opportunities.
This combination, the review argues, has delivered consistent and above average earnings growth irrespective of economic conditions over the years and should continue to do. On recent currency related concerns, NCB says these appear to be "overblown".
The year List ended to March 1997 "is likely to have been another year of strong growth for Powerscreen despite having had to contend with a sharp second half strengthening in sterling and weaker than expected UK agricultural and continental European construction markets".
The group has already produced strong interim figures and the second half has benefited from a number of positive trends. These included the British land fill tax and the opening up of new markets in the Far East, Australasia and emerging European markets. All of these NCB notes, will have provided new sales opportunities.
