Shares in PWR race upwards following speculation

SHARES in Ormeau-based PWR Holdings surged almost five per cent yesterday to a near 52-week high after a competitor decided to stop supplying the motorsports industry.

The company, led by former motor mechanic Kees Weel, said in a statement that it understood a competitor would not be supplying cooling products to the motorsports’ industry after the end of this year.

“Although PWH has not been advised directly of this development, it appears to be known in the motorsport industry and has resulted in PWH receiving questions from investors on the opportunities this may present to PWH,” the statement reads.

“PWH advises that the sales profile and profitability of the cooling components the competitor provides to the motorsports’ industry is not known to PWH and any potential opportunity this may present to PWH is not able to be quantified, and is speculative at this stage.”

PWR Holdings CFO Stuart Smith said the release was to dampen speculation that developments by the Europebased competitor, which he would not name, would boost PWR’s bottom line.

However, the release may have had the opposite effect, with investors sending the shares 4.16 per cent, or 11¢ higher, to close at $2.75 — close to its year-long high of $2.80.

PWR, which makes cooling systems for the fastest vehicles on Earth, including Formula One and NASCAR, reported net profit for 1H18 of $2.059 million — up 13.6 per cent on the previous period.

Revenue was $20.37 million, and it declared, an interim dividend of $1.10c a share.