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Rexam (REX) – Finals PTP: £245m (£264m) Divi: 20p (19p)

The shares of the world’s biggest beverage can maker jumped 5% on these results. Though profits were down, this had been flagged in the December trading update.

The good news is Rexam expects profits to progress this year despite a third of its sales being in the US. Analysts are pencilling a rise from 28p to around 35p earnings per share.

This will come from the shift in production to faster-growth emerging economies such as Brazil. Rexam’s acquisitions are now bedded down, with cost synergies being realised. Against this is the sharp rise in raw materials, weaker dollar and 20% higher net debt at £1.56 billion.

The US strike, new plant delays and higher costs were the prime reasons for the 15% can profit fall to £244 million, while plastics profits rose 30% to £105 million.

Shares Says: The higher dividend and capital spending show confidence. Rexam looks solid value on a PE of 15.9, falling to 13 with a 5% yield.

by: Timon Day