One to Watch: MSS could heat up

MANAGED Support Services maintains and installs heating and cooling equipment for the retail and leisure sectors.

In a previous life, Worthington Nicholls very nearly fell into administration after a disastrous trading period. However, since it changed its name to Managed Support Services in April 2008, a new board has been drafted in to address the accounting "mishaps" that were the principal architect of the group's near destruction.

Under chief executive Simon Beart, who arrived two years ago, the company has restructured its business model and now "will maintain areas with complex engineering, rather than low-margin cleaning or basic social housing work".

The group has, as a result, moved down the acquisition trail, recently acquiring Work Place Engineering, a subsidiary of the Johnson Service Group, which is involved in contracted maintenance revenue; it recently also acquired Status, another building service company.

The recession has obviously taken its toll upon the leisure sector in particular but MSS is broadening its trading brief whilst strengthening its board; Jamie Reynolds arrived recently as chief operating officer from GSH, where he was head of the company's US Facilities Management operations.

MSS is still viewed by the market with suspicion and scepticism and the shares are unlikely to make much immediate progress. However, getting aboard now for investors who aren't risk averse should mean participating in the developing rehabilitation of this company. Its recent acquisitions take MSS down the road to its aim, providing a complete range of services to buildings on all matters relating to heating, ventilation and plumbing, a one-stop solution that may appeal.

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.

Rank

90p +0.45p

Broker says BUY

KBC Peel Hunt has upgraded Rank – the owner of Mecca Bingo – from "hold" to "buy".

The broker said it still had concerns about Mecca, but added: "The strength of the casino business has surprised us and in particular the growth in attendance. This has led us to upgrade our forecasts and recommendation."

Stobart

133.6p +7.8p

Broker says BUY

KILLIK & Co has initiated its coverage of Stobart with a "buy" recommendation.

The owner of the Eddie Stobart haulage business is on the firm's list of "high-yielding equities".

"In addition to the potential for capital growth, a 4.8 per cent dividend yield provides further support," Killik added.