The Investment Column: Aggregate Ind
Wednesday 08 September 1999
AI's stability is based on its exposure to the US construction industry. Whilst the Federal government is awash with cash earmarked for infrastructure projects there are wide variations between state spending. AI is broadening its US exposure, having spent pounds 94m in the half-year on acquisitions. It's planning to spend up to pounds 100m in the second half.
AI's aggressive and acquisitive reputation must have its UK rivals quaking. British road maintenance contracts were non-existent in the half-year and sand and gravel volumes are not rising. But there's price inflation, largely because of environmental regulations, and AI wants to lead consolidation in the sector. Analysts expect full year pre-tax profits of pounds 91m and earnings of 5.2p per share. The shares, at 80.75p, are worth a punt on AI taking the lead in a shaking up a dull sector.
TAYLOR WOODROW, the construction group, suffered a 4p decline in its shares to 188p yesterday after it failed to unveil a shake-up in its businesses.
That may seem somewhat harsh given that it posted a 58 per cent hike in US housing profits to pounds 19m, but that was the inevitable result of contracts won three years ago. While TW cannot replicate that sort of growth year on year, it nevertheless has more US, Canadian and London completions coming to boost second-half earnings.
Meanwhile the group's property arm - one-fifth of profits - is set to enjoy profit growth at a rate of at least 14 per cent as recent developments mature. Naturally, the group also sees itself as a beneficiary of rising house prices.
X Factor judge will appear in court later this month
The Google future, including microphones in every ceiling and data sent directly to your brain
Guide dog mauled while helping owner deliver Christmas cards
Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
N Korea confirms removal of Kim Jong-un’s 'depraved' uncle Jang Song Thaek
10 stone five-year-old taken into care
- 1 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 2 Council bans use of word ‘Commie’ – but ‘fascist’ and ‘Nazi’ are fine
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
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