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.
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 iPhone 5c to be discontinued, no iPhone 6c to replace it
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
The difference between a migrant and refugee, in one sentence
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...