One to Watch

FIBERWEB develops, makes and supplies specialist non-woven fabrics. The materials made by the company are used in a range of everyday products, such as water filters, blood filters, industrial wipes, nappies, panty liners, fabric softener sheets, construction products and protective clothing.

Fiberweb has rather a chequered career, exemplified by the fact that the shares are trading well off their 12-month peak of more than 75p. The firm announced a loss last year of 6.1 million. Earnings were hit by restructuring costs, the effects of which are now working through.

Fiberweb seems to be rather off the analytical radar, which may explain why the dividend is nearly 8 per cent. Consensus forecasts suggest that the group should produce a pre-tax figure of around 8m for the current year, implying an earning per share of 7p, giving a modest p/e of eight.

Total return is an important dimension of any investment approach and the prospect of an 8 per cent income uplift is a fairly positive foundation although it must be said this figure is backward-looking and so far from guaranteed.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Hilton Food

255p +1.75p

Broker says BUY

NUMIS has resumed coverage of meat supplier Hilton Food with a "buy" rating.

The broker added: "We believe Hilton Food is well positioned, partnering leading retailers in established and developing markets.

"Trading on an unwarranted discount to its peer group we resume coverage with a 'buy' recommendation."

Axis-Shield

304p -6p

Broker says OUTPERFORM

FOLLOWING this week's profits warning, Seymour Pierce has initiated coverage of Dundee-based diagnostic testing kit maker Axis-Shield with an "outperform" rating.

The broker added: "Slower growth is clearly disappointing, but long-term, there is value to be had."