McAlpine has a fat order book worth £3
McAlpine has a fat order book worth £3.3bn, giving visibility of future earnings. This higher-growth business has enjoyed good contract wins, while the capital projects division is not considered a growth business. For a sector that is likely to blossom over the long term, its shares are not expensive. Buy.MCALPINEThe world of outsourced property services is the most exciting part of Alfred McAlpine, once a humble housebuilding and construction group. Like-for-like sales fell 2.2 per cent in the nine weeks to 1 January. Total sales, including new and refurbished stores, rose 10.7 per cent. The company’s shares have benefited recently from speculation that Dobbies could be the next bid target following approaches for its rival Wyevale.
Buy.DOBBIES GARDEN CENTRESDobbies Garden Centres put in a disappointing performance over Christmas, blaming it on consumers spending less. Although the recent share price rally has certainly taken some of the shine off the potential upside, Amlin’s shares still look good value. Insurance stocks are not for the faint-hearted, but Amlin remains the best of the bunch. In the months since, Amlin has successfully raised £224m through a rights issue and set up a new Bermuda operation to take advantage of the soaring rates in the US. The shares, at 310.75p, are still expensive, but the stock is worth holding.AMLINSince the worst hurricane season in history hit the US last autumn, shares in underwriters such as Amlin have soared in anticipation of premium rises. With retailers showing more strength over Christmas than some feared, analysts feel there is less risk of a nasty surprise this year than previously thought.
The rest is from commercial and public landscaping projects, where demand is robust. The company did suffer a 1 per cent decline in retail sales, but only half of Marshalls’ business is generated from home improvements. Buy.MARSHALLSMonday’s trading update from Marshalls, the paving slabs group, was better than expected. Its shares have risen by more than 150 per cent since the start of 2004, but their high valuation looks justified given the rapid growth. But its focus on health foods and resonant brands makes Premier a tasty morsel. At 313.5p, it’s a buy.
DATACASHDatacash told investors on Monday that 2005 pre-tax profits would be in line with expectations, and that transaction volumes had increased by almost 50 per cent over the past year. Premier is expecting underlying sales growth of 2 per cent when it reports for 2005.
