Arthur Shaw

Recent Stock Performance

In recent years, this stock has performed terribly. In fiscal year 1995, the stock traded as high as 19.45 p, versus 3.28 p. on 12/27/00.

The stock price has fallen precipitously recently: For the 52 weeks ending 12/27/00, the stock of this company was down 81.9% to 3.28 p. During the past 13 weeks, the stock has fallen 53.2%.

This company is currently trading at 2.50 times sales. This is at a higher ratio than all three comparable companies, which are trading between 0.34 and 2.23 times sales. Shaw (Arthur) & Company plc is trading at 67.65 times book value. At the end of 2000, this company's intangible assets were quite sizable, at £7.87 million, while the total common equity stood at £8.23 million. If these intangible assets were to be excluded, the company's price to book ratio would be significantly higher. The company's price to book ratio is significantly higher than that of all three comparable companies, which are trading between 0.63 and 7.26 times book value.

The market capitalization of this company is £19.32 million. Closely held shares (i.e., those held by officers, directors, pension and benefit plans and those shareholders who own more than 5% of the stock) amount to over 50% of the total shares outstanding: thus, it is impossible for an outsider to acquire a majority of the shares without the consent of management and other insiders. The capitalization of the floating stock (i.e., that which is not closely held) is £4.75 million. These shares are not very liquid.


Dividend Analysis

This company has paid no dividends during the last 12 months. Shaw (Arthur) & Company plc last paid a dividend during fiscal year 1996, when it paid dividends of 0.13 p per share.


Profitability Analysis

In 2000, earnings before extraordinary items at Shaw (Arthur) & Company plc were -£224,000.00 , or -2.9% of sales. This profit margin is an improvement over the level the company achieved in 1999, when the profit margin was -11.1% of sales. The company has reported losses before extraordinary items for each of the past 5 years. (1996 was the last year the company reported profits from ordinary operations, when it reported £44,000.00 in earnings).

The company's return on equity in 2000 was -49.2%. (Extraordinary items have been excluded).



Financial Position

At the end of 2000, Shaw (Arthur) & Company plc had negative working capital, as current liabilities were £5.64 million while total current assets were only £4.70 million. The fact that the company has negative working capital could indicate that the company will have problems in expanding. However, negative working capital in and of itself is not necessarily bad, and could indicate that the company is very efficient at turning over inventory, or that the company has large financial subsidiaries.

As of March 2000, the company's long term debt was £2.50 million and total liabilities (i.e., all monies owed) were £8.14 million. The long term debt to equity ratio of the company is 0.30.


Industry Overview

Britain's construction sector output growth rate slipped from an average of 2.1% in 1997 to 0.4% in 1998. While the sector has little exposure to international competition, higher real estate prices and lack of growth in the domestic economy have depressed construction demand. Housing starts fell by 12% in 1998, although total construction orders were boosted during this period by the start of large infrastructure projects associated with the millennium. The sector is also likely to benefit from Private Finance Initiative-funded construction and remedial projects in schools, hospitals and institutional buildings.

Source: US Dept of State FY2000 Country Commercial Guide

Company Description

Shaw (Arthur) & Company plc manufactures and sell builders' hardware and supplies engineering products and services. Due to the demise of the United Kingdom Foundry Industry the group offers its services in diecasting to a wide range of industries. The basic business of the group is the design, manufacture and marketing of window hardware. The group also has modern powder coating plants using the latest technology to obtain highly attractive and durable finishes. New customers include Morgan Motor Co. Limited, Unipart Group Limited, Rover Group, Vauxhall, Peugeot, English Heritage and Banks' Brewery. The company acquired Belgravia Internet Productions Limited, Morrison Internet Merchants Limited, United Media Limitedd, Haventer Limited in fis 2000 and Mike Mansfield Television Limited in fis 2001.


Competitor Analysis

Shaw (Arthur) & Company plc operates within the Construction industry, and the sub industry in which it operates is the Miscellaneous Construction sector. This analysis compares Shaw (Arthur) & Company plc with three other companies in the same sub industry in Western Europe: Boustead Plc (2000 sales of £14.61 million), Smart (J) & Co (Contractors) plc (£13.48 million), and SWP Group Plc (£13.55 million).


Sales Analysis

During the year ended March of 2000, sales at Shaw (Arthur) & Company plc were £7.73 million. This is a decrease of 12.1% versus 1999, when the company's sales were £8.78 million.


Shaw (Arthur) & Company plc manufactures and sell builders' hardware and supplies engineering products and services. Due to the demise of the United Kingdom Foundry Industry the group offers its services in diecasting to a wide range of industries. The basic business of the group is the design, manufacture and marketing of window hardware. The group also has modern powder coating plants using the latest technology to obtain highly attractive and durable finishes. New customers include Morgan Motor Co. Limited, Unipart Group Limited, Rover Group, Vauxhall, Peugeot, English Heritage and Banks' Brewery. The company acquired Belgravia Internet Productions Limited, Morrison Internet Merchants Limited, United Media Limitedd, Haventer Limited in fis 2000 and Mike Mansfield Television Limited in fis 2001

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