Overview
VSVS is a pure
value stock pick: superb financials, a long history of
success (over 100 years in fact), a generous dividend and a very strong annual report. The core focus of Vesuvius PLC is on delivering high-quality and
innovative products and services to its customers in the steel and foundry industries. Its product portfolio includes ceramic products, refractory materials, and other industrial solutions, which are used in a
wide range of applications, including steelmaking, aluminum production, and industrial manufacturing processes.
The company has a strong commitment to
sustainability, and it strives to minimise its environmental impact while also contributing to the communities where it operates. The company has set
ambitious targets to reduce its carbon footprint, improve energy efficiency, and increase the use of renewable energy sources in its operations.
Over the long term, the financial performance of VSVS has been
impressive, and it has consistently delivered
strong results. It has also been recognised for its
excellence in corporate governance and sustainability practices. In 2020, the company was awarded the
highest rating in the FTSE4Good Index for its environmental, social, and governance (ESG) performance, and it was also included in the Dow Jones Sustainability Index.
Overall, Vesuvius plc is a leading engineering company that has demonstrated its ability to deliver
innovative solutions and services to the steel and foundry industries while also prioritising sustainability and corporate responsibility. The company's
strong financial performance, commitment to sustainability, and focus on innovation make it an
attractive investment opportunity for investors looking for exposure to the industrial sector.
Vesuvius PLC reported an
increase in annual payout in March, as profit and revenue
jumped during 2022, mainly due to technological differentiation and its pricing strategy. - Pretax profit increased 62% in 2022 to £207 million from £128 million in 2021.
- Revenue climbed 25% to £2.05 billion from £1.64 billion.
- The company also upped its dividend to 22.25p, up 5.0% from 21.2p the previous year.
Chief Executive Officer Patrick Andre said: ‘This performance was made possible by the technological differentiation of our products and solutions, which enabled us to simultaneously compensate for all cost inflation with price increases and gain market share. These record results are higher than those ever achieved pre-pandemic, despite materially lower volumes, in both the Steel and Foundry divisions, as our end markets have not fully recovered since that period.’
Looking ahead, Vesuvius expects 2023 results to be in line with internal expectations. Beyond 2023, the company expects positive impact on its investment in research & development,
long-term growth
initiatives and development of its capacity in
fast
growing regions, which it said ‘will result in accelerated growth and profitability’.
- Pretax profit increased 62% in 2022 to £207 million from £128 million in 2021.
- Revenue climbed 25% to £2.05 billion from £1.64 billion.
- The company also upped its dividend to 22.25p, up 5.0% from 21.2p the previous year.
Conclusion
Vesuvius is well-positioned to
capitalise on the growing demand for sustainable solutions in the steel and foundry industries. The company's focus on
innovation and
customer-centricity, combined with its
strong financial position and commitment to sustainability, makes it a
compelling investment opportunity for investors seeking exposure to the industrial sector. They are currently looking
undervalued after a
stellar financial year in 2022, so we will be adding it to our investment tomorrow morning.
Conclusion
