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Highlights
- Dowlais Group’s FY23 adjusted revenue grew by 4.6% and operating margin grew by 3.2%
- The company’s adjusted profit before tax fell by 11.1% in FY23
- The company anticipates revenue stabilization and further expansion of operating margins in H2FY24
Dowlais Group PLC (LSE:DWL) is an engineering group operating in the automotive and powder metallurgy industries. The company has a market capitalization of 902.52mn. It is listed on the FTSE 250 index.
In FY23, the company’s adjusted revenue grew around 4.6% year on year (YoY). Similarly, the adjusted operating margin grew by around 3.2%. It was fueled by enhanced operational efficiencies, improved commercial terms with customers, and increased volume. However, the company’s adjusted profit before tax declined by around 11.1% in FY23. The company paid a final dividend of 2.80 pence per share on 30 May 2024.
Recent business update
According to the company’s trading update for the four months ending 30 April 2024, the group experienced revenue growth in its Powder Metallurgy and Driveline segments. Powder Metallurgy surpassed market expectations with a 4% increase, while Driveline exceeded growth forecasts.
Company outlook
As per the company, it has effectively executed its strategic priorities, increasing adjusted operating margins by 30 basis points to 6.1% during the first four months of FY24. This improvement was driven by successful cost management and performance initiatives. Despite facing challenges in the ePowertrain segment and market volatility, Dowlais demonstrated overall resilience and adaptability across its business units as stated by the company. Looking ahead, the company remains optimistic for the second half of FY24, anticipating revenue stabilization and further expansion of operating margins.
Top 10 shareholders
DWL’s top ten shareholders collectively form around 37.38% of the total shareholdings in the company. Fidelity International holds the largest shareholding, with approximately 5.08% of the shares. It is followed by Select Equity Group, L.P. with around 5.01% shareholding, as depicted in the chart below:
Stock performance
Over the past month, DWL's stock price has fallen by approximately 5.82%, and it has decreased by around 28.17% over the past six months. The stock's 52-week low is GBX 58.00, while its 52-week high is GBX 128.20. Currently, it is trading below the average of these 52-week high and low values.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 26 July 2024. The reference data in this report has been partly sourced from EODHD/Others.
