CSLT

Leading marine safety equipment company Cosalt (CSLT) is expected to sell its schoolwear and holiday homes operations, which are no longer seen as core businesses.

Following three major acquisitions, the bulk of earnings come from the marine safety arena, while another acquisition this year in America or the Far East will further expand the number of outlets at major ports.

Last year, holiday homes trebled trading profits to £1 million while schoolwear was flat at £1.25 million, but shedding the businesses would allow it to concentrate its focus on the marine markets.

First-quarter sales at the company rose 32% overall and analysts expect EPS to double to 24p this year.

Shares says: Though management won’t talk, the recent annual report devoted ten pages to safety equipment and services while homes and school clothes were barely mentioned. Enough said!

by: Timon Day