A possible takeover last week, a rare profit upgrade this week.
Suddenly things are on the up for paint maker, Wattyl, after several lean years.
The company yesterday told the market that it now expects earnings before tax and interest to be up more than 15% for the June 30 year.
Wattyl said it expected earnings before interest and tax (EBIT) of between $14 million and $15 million for the 12 months to June 30, 2010.
This was up from the $12 million to $13 million range forecast at the time of the company’s half-year results presentation in February.
Shares ended up 2.8%, or 3.5c, at $1.285.
"Despite the architectural and decorative paint market remaining subdued, Wattyl has been successful in achieving revenue and margin growth as well as continuing to benefit from the cost management program undertaken," the company said in yesterday’s short statement to the exchange.
The company reported EBIT of just $830,000 in 2008-09.
On May 25, Wattyl said that it had received a takeover proposal at $1.30 per share.
While the company did not name the potential buyer, media reports have said that the offer came from US-based Valspar.
At $1.30 a share the company is worth around $106 million.
Judging by the trading update, the mystery bidder will have to offer more than $1.30 a share after yesterday’s share price rise.
