One to Watch
REDHALL is an engineering support service company operating in the energy, defence and process sectors.
Its energy division represented about half of last year's revenue of 130 million. The company's involvement in the nuclear power industry has proved particularly successful as it is involved in decommissioning and processing, and construction of plants.
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Hide AdIn the oil and gas sector, its power division has won an important contract for Vivergo Fuels worth about 30m to assist in the construction of a bio-ethanol plant. There are some concerns that the group's defence division, which generated 25m of revenue last year, will be affected by any cuts in spending.
The company has a strong balance sheet, with net cash of about 8m and a robust order book. The shares have been ignored by the market, current levels comparing with those of around 230p in July last year. This seems a harsh judgment for a group that is well-managed and is well-regarded in its core areas of expertise; the shares also yield about 3 per cent.
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.
Hiscox
342.1p +7.9p
Broker says BUY
FOLLOWING yesterday's interim management statement, Execution Noble rates insurance firm Hiscox as a "buy". Analyst Rakshit Ranjan said: "Hiscox's IMS highlights the defensive nature of its investment portfolio with low levels of exposure to large-loss events this year. It has no exposure to PIGS (Portugal, Italy, Greece, Spain] related sovereign risk."
BT
120.5p +1.6p
Broker says BUY
AHEAD of BT's fourth-quarter results today, RBS Equities has reiterated its "buy" recommendation on the telecoms giant, with a target price of 160p. RBS added: "At the current price, we believe the market is overly discounting BT's pension deficit, despite good cash-generation."