ABDRN is poised to rejoin the FTSE 100 index after a sharp rally in its share price. The performance of the household tool maker in recent weeks, up 57% since 1 February, has been enough to push it into the hotly contested index.
The Financial Times‘ indices editor Rupert Foster said: “The current economic picture is still less than perfect, but when investors consider companies with a global footprint, there are not many on either side of the Atlantic that can rival ABDRN. “The company has made great strides over the last few years and has a consistent record of beating expectations.
There are some reassuring factors: chief executive Jim Gifford, who came from a rival company and owned about 14.1% of the company before taking on a senior role in 1998, has been rewarded for his efforts during the turnaround period by a 1 million share bonus. The company is also looking to sell off some non-core businesses. It has confirmed that it is working with a significant market research firm on a new shortlist of potential takeover targets.
Its shares are up 9.3% today to 59 7/8p – up from 58 7/8p at their peak earlier this week – after strong sales growth in US stores and customer demand for good quality tools at home and abroad.
ABDRN’s shares have traded more than 25 times earnings since the start of 2000, compared with a FTSE 100 average of 17 times. The float price is half the level at which institutional investors have bought out many companies in recent months, but it is still one of the highest on public markets in the UK and Europe. The company is valued at £300m. See more details here: https://www.ft.com/content/bd93f573-e5ce-408b-8d05-2e2bdfda9f88