Investment: Hanson on the right road
Friday 11 September 1998
But most crucial for Hanson is its presence in two markets where big public works are pending. In the UK, hospitals and schools are being rebuilt. Contrary to John Prescott's political posturing, roads will still be built and repaired. Roads will receive another pounds 400m of investment over the next three years while local authorities are earmarked for pounds 700m.
Even more important, the US government has guaranteed to spend $167bn (pounds 100bn) on a new highways programme over the next six years. As the owner of Cornerstone in the US, Hanson is in the perfect position to benefit.
The US market suits Hanson's strategy of buying "bolt-on" companies in the business. Hundreds of "Mom and Pop" operations are fair game for takeover. Hanson has disposed of pounds 500m of non-core businesses and now has net cash of pounds 186.6m, with ample opportunity for gearing. Meanwhile, it has insured itself against a big environmental liability in the US which was depressing its share price.
Profits to June were above expectations at pounds 78.8m compared with pounds 47.8m last time. With the shares 9p higher at 342p in a falling market yesterday and earnings per share for 1998 forecast at 33.5p, Hanson shares trade on a forward p/e of 10. This is in line with the sector but given Hanson's superior prospects that looks cheap. Buy.
- 1 UK pirates will get four warning letters a year
- 2 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 3 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Students offered grants if they tweet pro-Israeli propaganda
Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
Is Gideon Levy the most hated man in Israel or just the most heroic?
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
In pictures: Israel-Gaza conflict
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...