The Investment Column: BICC
Tuesday 14 December 1999
Yesterday's statement was pretty unexciting stuff, concluding that "trading conditions for the on-going businesses remain generally healthy". Full- year results are expected to be in line with market expectations, which points to pre-tax profits of pounds 56m.
On the down side, rail maintenance margins remain under pressure and there is a shortage of major project work in most areas. Also, the pounds 50m that BICC was expecting from the cable disposals will not now be received until the next financial year.
Even so, the market likes BICC's new focus and the shares have nearly doubled over the last year.
At 98.5p, down 1.5p yesterday, this leaves the company trading at a chunky rating of 14-times full- year earnings, which is starting to look well up with events.
Analysts point to the many cheaper stocks in a largely bombed out sector. The rise in interest rates has left many housebuilders on absurdly low ratings, for example.
It has to be remembered that BICC's 1999 figures are distorted by the disposals. Looking ahead to the year 2000, when the results will not be dragged down by old businesses, Seymour Pierce, the broker, is forecasting pre-tax profit of pounds 90m. That leaves the shares a lot more attractively priced. Hold.
- 1 Windows 10: man updates PC, wakes up to find porn slideshow on repeat
- 2 The 'world's most beautiful vagina' has been debunked by science
- 3 John Green schools morning show hosts after awkward interview with Cara Delevingne
- 4 Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
- 5 Doctors declare war on Jeremy Hunt over weekend working 'myths' amid plan for seven day NHS
Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
John Green schools morning show hosts after awkward interview with Cara Delevingne
Jack the Ripper's final victim set to be exhumed following new theory on the killer's identity
Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...