City File: Prospect Industries

EXPECT NEWS of further substantial contract wins for power stations and other UK work from Prospect Industries, the small specialist engineer. Formed four years ago to acquire three businesses from Tace, Prospect has grown from nothing to making pre-tax profits in 1991 of pounds 3.53m. After its recent pounds 10m purchase of Davenport Holdings, a private company with big United States interests, analysts are pencilling in pre-tax profits of pounds 6m for 1993. Prospect has 1,500 shareholders, including strong representation from the Scottish institutions. Panmure Gordon has just been appointed lead broker. At 18.5p, up from 5.5p 18 months ago, the shares look cheap.