Date: Thursday 02 Jun 2011
LONDON (ShareCast) - The good times keep on rolling at Galliford Try, the housebuilder and construction company. The 103-year-old firm yesterday boasted that it had been selected as a partner on three affordable housing contracts worth a total of £584m in London, the South-east and eastern regions of England. The fact that its shares trade on multiples of around 9 times forward earnings only serves to seal the bull case, in our view, says the Independent, which has a buy recommendation.
Wolseley was playing a very straight bat yesterday on the potential disposal of three UK builder’s merchants businesses. The story broke at the weekend and was responsible for a 3%-plus rise in the shares when the market opened on Tuesday. The shares have flattened off lately and sell on 12 times next financial year’s earnings. Hold for further signs of recovery, the Times says.
Cloud computing can cover a range of services, but in general terms, it means putting a client's data on third party servers with the information accessible through the internet. This takes out the costs of running data centres and much of the IT support for the customer. Iomart believes it has the kit to walk the walk, and yesterday's full-year results backed that up with a seven-fold rise in pre-tax profits. Iomart's shares trade on multiples of about 16 times forward earnings, making them well worthwhile given the growth prospects. Buy, says the Independent.
Trifast, which manufactures and distributes industrial fastenings and other components, issued better than expected full-year results. No payout was proposed, but the company hopes to "address" the yield this year. We would wade in now, before the company makes a firmer announcement on the matter, says the Independent.
May Gurney, the outsourcer that sees two thirds of its revenues from the public sector, is cautious. The company expects a fall of 10% in revenues this year for its core highways division — which represents 40% of its total revenue — as the cuts begin to bite. The shares still only yield about 3 per cent and sell on about ten times earnings. Hold for now; up with events, says the Times.
ICG has a growing fund management side, but its core business has always been the provision of mezzanine debt, a complex form of financing. ICG managed to invest £1 billion and exited from 13 existing investments, generating an impressive 18% real rate of return. Continue to hold, says the Times.
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