CITY FILE : Burton ready to fall off the peg

DON'T BE long of Burton Group shares ahead of Thursday's interim results from the troubled retail group. The share price at 76p has run far ahead of the tentative recovery in Burton's trade. The present yield of 3.5 per cent and historical 37 price-earnings ratio leave no room for error, and if the half-year results show the slightest shakiness, the shares will tumble. As it is, even the most optimistic analysts do not expect profits of more than £75m for the year to September, leaving the shares on a multiple of 19. A £72m result is more likely, lifting the prospective multiple over 20. Too high.

BUY TSB Group shares, says Richard Marshall of Investment Research. He reckons the share price's 200-day moving average is now moving up firmly behind the daily price, indicating solid support. "The chart has recently become more bullish. Resistance at the 250p level has been penetrated, signalling the start of a new advance. I anticipate a rally developing to the 275p area." Marshall sees profits rising 19 per cent this year, putting the shares on a prospective p/e ratio of only 9.4. Prospective yield: 4.8 per cent.

BEHOLD the raging share price of Transtec, a specialist engineer that has come under the wing of Richard Carr, a graduate of the uncompromising Tomkins school of management. "High enough," said some pundits when the company announced year-end results last month. Price then: 53p. Price now: 78p, after 80p. Unusually for such a turnround, at this level, the shares still carry a 3.2 per cent yield. Worth buying up to 100p as the Carr magic gets to work.

Hanson shareholders should be pleased by the group's first results since it announced the demerger of its US interests in February. At 240p, the shares are on a prospective multiple of only 12 and should be helped by the de-gearing effect of the US deal. Most of its divisions are trading well, and the dividend is sufficiently well covered to make a 6.3 per cent yield a formality. The wild card is whether Lords Hanson and White will ever pull off that long-touted mega- deal - but if they do, it will certainly be designed to enhance earnings. Buy.

IF YOU have been dazzled by the multimedia revolution, and would like to buy a piece of the action, you could do worse than get into BCE Holdings, the former Bristol Coin Equipment. The tiny group is switching from the amusement arcade trade into computer software. It has bought Rage Software and Software Creations, which in the half-year to March chipped in £1m to group profits of £713,000. Earnings for the year could hit 0.7p, giving the shares at 13p a p/e of 18. Worth a punt.

BY WAY of a taster for the Nuclear Electric flotation, on Tuesday National Power presents its results for the year to March. They come in the wake of the Government's sale of its remaining 40 per cent stake earlier this year, when the group effectively committed itself to dividend growth of a cool 20 per cent a year. That should bolster the shares, but the best way in is still through the partly paid variety issued in the recent sale, as they give a proportionately better return.

SINCE Jim Leng became chief executive at the packaging group Low & Bonar three years ago, the group has been gaining from Leng's textbook strategy of selling lossmakers and concentrating on the core. That produced a 40 per cent profits jump last year, and another 20 per cent could be on the cards this time round. That would put the shares, at 476p, on a multiple of less than 14 times earnings, which is not demanding while there is plenty of growth to be squeezed out. Buy.

ebookA unique anthology of reporting and analysis of a crucial period of history
Ray Whelan was arrested earlier this week
Arts and Entertainment
In a minor key: Keira Knightley in the lightweight 'Begin Again'
Arts and Entertainment
Celebrated children’s author Allan Ahlberg, best known for Each Peach Pear Plum
peopleIndian actress known as the 'Grand Old Lady of Bollywood' was 102
Wayne’s estate faces a claim for alleged copyright breaches
peopleJohn Wayne's heirs duke it out with university over use of the late film star's nickname
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Account Management Strategy Manager

£38000 - £42000 per annum + competitive: Real Staffing: Required skills:Previo...

Business Analyst Consultant (Financial Services)

£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...

Systems Administrator - Linux / Unix / Windows / TCP/IP / SAN

£60000 per annum: Harrington Starr: A leading provider in investment managemen...

AVS, JVS Openlink Endur Developer

£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice