Informa’s resilience through the recession has driven Collins Stewart’s “buy”recommendation. “A strong entrepreneurial culture and tight focus on costs helped eliminate the effects of operational gearing in 2009, with margins set to rise to record levels,” it says. But its Achilles heel is its balance sheet, it warns.
Panmure has issued a “buy” note for Speedy Hire following a slightly better-than-expected interim management statement. Debt remains in line with expectations and existing deals with AMEC and Costain have been extended. It notes that the management looks forward with “cautious optimism,” a phrase not used by the group for some time.
Evolution Securities expects the World Cup and the new Storm machines to drive up earnings. Growing stock market appreciation of progress should drive a substantial re-rating and the investment bank reiterates its “buy” recommendation. “Longer term, online becomes the powerhouse,” it says noting the company will ramp up marketing to drive revenue.