BGlobal Plc (LON:BGBL) (BGBL, 43.5p, £43.15m) has secured a contract to install electricity smart meters, gas AMR solutions, and provide associated data services across Thomas Cook Group Plc (LON:TCG) UK's retail outlet portfolio. The contract involves the installation of approximately 800 smart meters and 35 gas AMR solutions, and is expected to commence in August 2010. The contract is excellent news and highlights the growth in the order book. Smart metering is now clearly delivering real benefits to both energy supply customers and to the UK business sector in general. With the UK government and the energy regulator determined to implement the roll-out of electricity smart meters faster than originally, we believe BGlobal is well positioned to capitalise on this trend. We maintain the BUY with a 75p price target.  

Freshwater Uk Plc (LON:FWUK) (FWUK, 14.25p, £2.65m) Our concerns surrounding the adverse impact of public spending cuts were correct. Q42011 has been adversely affected by the Government's policy on the NHS and as a result PBT for the year ended 31 August 2010 is below market expectations of £0.3m. Freshwater's quarterly revenue from stakeholder communications and social marketing projects on behalf of NHS clients has dropped from c.£0.225m for H1 2010 (16% of revenue) to c.£0.025m for Q4 2010 – this is clearly disappointing. Despite the Board stating the public affairs business is seeing revenue recovery following the election, we believe companies will be exercising increased caution in their expenditure in the face of slower UK economic growth. We reduce our recommendation to a SELL.  

Ilx Group (LON:ILX) (ILX, 25.0p, £5.89m), the provider of e-learning software and business training,  has secured a contract in the Middle East, valued in excess of £0.42m, to be invoiced in the current financial year. We assume the withdrawal of the dividend will be used for this project. If investors purchased the stock as a yield play, we recommend investors to sell. The share price is no longer supported by the yield.  On a fundamental basis, 6x 2011 earnings, the stock is fairly valued, given the exposure to the weak UK economy. We maintain our HOLD recommendation. We advise yield investors to switch to S & U (LON:SUS) (prospective 6.3% yield), Park Group (LON:PKG) (prospective 5.8% yield) or Lincat Group (LON:LCT) (prospective 5.3% yield).  

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