City File: Plant blooms

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The Independent Online
NOW is the time for all good men to bail out of contracting shares. As Howard Proctor of Panmure Gordon points out: 'The results due soon are not the end of the story. There's just as bad to come, since they've all been taking on contracts at or below cost, hoping, wrongly, that they can squeeze more out of their suppliers.'

Proctor points to one exception: Vibroplant, big in plant hire here and in the US. A slowdown in capital expenditure means its cash flow, and thus its net debt position, is rapidly improving. With the shares at 60p, well below their 1992 high of 106p, the market has not appreciated just how well Vibroplant is placed to exploit recovery in the US economy - and the dollar.

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