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Hothschild Enjoys Boom In Mining

Hochschild Mining HOC has returned to profit and produced an exceptionally strong set of first half results, especially for a company in the beleaguered mining industry. Last yea’rs first half loss of $43.4m was turned into a profit of $60.3m after silver production of 17m ozs exceeded expectations with a rise of 31% and gold production rose by 188%. Total revenue was up from $190m to $339m. leading to a rise of 195% in like for like profit and 156% in earnings per share. It describes its environment as being constructive and is paying an interim dividend of 1.38 cents which it regards as being appropriate at “this early stage of the cycle”. More goodies to come then ?

Wood Group WG Despite the challenging conditions in oil and gas and an unchanged outlook for 2016, with EBITA expected to be down by 20%, Wood Group is raising its interim dividend by 10.2%. This reflects the determination of the company to raise its 2016’s dividends by double digits even if the results look fairly disastrous.   Like for like revenue for the half year to 30th June fell by 18.7%, profit was down by 63% and basic earnings per share by 63.2% but at least the shareholders are being well looked after.

Menzies (John) MNZS claims a positive first half to the 30th June thanks to the collapse of sterling and a rise in aviation turnover of 7%, which between them enabled the company to increase its interim dividend by 8% to 5.4p. Profit before tax fell from £5.8m to £3m and reported earnings per share of 4.7p became a loss of 2.4p. Turnover was static. Shareholders will be pleased to note that the board is determined to address historic performance shortfalls.

Mears Group MER A fall of 5% in profit before tax has not stopped the company from raising its interim dividend by 6% for the half year to 30th June as a sign of confidence in the future. Net debt soared by some 350% from £4.2m to £14.1m. and he company plans to reduce revenue by getting out of  unsustainable contracts which raises the question as to why it got into them in the first place.

 

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