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.
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- 2 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 London restaurant 34 creates champagne glass modelled on Kate Moss’ left breast
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
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James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Microbial life found living on the exterior of the International Space Station, say reports
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
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Isis threat: Cameron wants an alliance with Iran
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Disgusting, frustrating, but intriguing: how the country really feels about its politicians
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