While your waiting for madam I have a few thoughts.
I was content with the result. The results of this business across time tend to be a bit lumpy as they either sell out or buy in to product ranges or deal with issues in the world of water pumps.
Hitting the ground running with a new range can always be a bit slow and, when you add supply chain issues into the mix it's hard to get an outstanding result and I think this result was as good as could be expected under the circumstances.
Their normalized result represented an EPS of about $0.72 which is a little better than their result in 2019 of about $0.68 although their ROIC has taken a bit of a hit due to their overall debt increase of about $300m.
Their dividend payout represents about 55% of their normalized profit which is down from their standard payout % of around 80-85% so I think they're conscious of the debt levels and will work to reign that in, something they referenced in their notes. Dividend reductions tend to be disliked by the punters so I suspect that there may be an opportunity to buy in here at a little less than the current numbers.
Their last November presentation regarding the purchase of APG referenced the fact that more than 70% of the their (APG's) revenue was linked to new car sales and this has taken a big hit across the world so the result in that area at least was not unexpected.
I'm comfortable holding particularly as their outlook suggests a good chance of a better year ahead.
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