Avingtrans Plc (LON:AVG) (AVG, 42.5p, 10.83m), the designer, manufacturer and supplier of critical components to the energy, medical, industrial and global aerospace sectors, has secured contract wins for its Aerospace division valued in excess of 10m over the coming 5 years. This provides revenue visibility and highlights the winning of new contracts. We retain our HOLD recommendation to reflect the increasing percentage of precision and thus higher margin manufacture with the hope of profits next year.

Highams Systems (HSS, 3p, £2.07m) The recruitment consultancy has confirmed continued growth in the number of its contractors on clients’ sites with revenue up Q1 on Q1. The group is optimistic of an improved full year. We maintain our SPECULATIVE BUY recommendation.  

Hydro International (LON:HYD) (HYD, 88.50p, 12.64m) Interims to 30 June 2010 reported a 20% uplift in adjusted pre-tax profits to 0.6m (H109: 0.5m) despite a 22% decline in revenues to 11.1m (H109: 14.2m). Net cash stood at 0.72m. The group’s Stormwater and Waterside divisions both suffered from challenging market with contracts being delayed whilst the Grit division performed well. There are signs that the deterioration in activity in the Group's Stormwater businesses has now stabilised, but public spending cuts in the UK and US will have an adverse impact on the division. Order intake in the Wastewater businesses has been robust in the US and international markets in the current financial year. We believe there is scope for the market to downgrade current 2010 estimates of PBT of 2.35m and EPS of 11.25p to a more reasonable PBT of 1.8m and EPS of 8.1p. Based on the latter, the stock is rated on 10.9x for the current financial year. The uncertainty surrounding the impact of public spending cuts and the earnings rating encourages us to reduce our recommendation to a HOLD.  

Independent Media (IMD, 67.5p, £23.12m) interims to June 2010 saw revenues of £4.73m (£3.65m) with an adjusted PBT of £0.98m (£0.57m), 2.19p (1.35p) EPS, an interim DPS of 0.8p (0.5p) and £0.97m (£0.89m) net cash. New service introductions helped the “mature” UK markets grow 20% while the International revenues grew 73% to account for 24% of group revenues. In the UK IMD TV, which delivers adverts to broadcasters, saw revenues rise with higher volumes by 8% VS a 7% decline the previous year but was boosted by news services, such as sponsorship delivery. The UK IMD Radio…

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