This group, which is a leading distributor and provider of specialist products and services to the UK construction industry, is due to hold its AGM in Bracknell, in Berkshire at Noon tomorrow.
Its results to end-March this year were disappointing, but reflected the downturn in the construction market.
However, there are hopes that the new Government will help to reinvigorate the sector, especially in housebuilding.
Tomorrow could well see a positive comment or two as to the current year’s trading prospects.
The group’s shares are currently trading at around the 66p level, valuing the whole business at £210m.
Analyst Price Objectives for the shares is around 90p, which offers prospects of a medium-term gain.
In the early July report from the group, Chairman John Richards stated that:
"Over the past year there have been a number of well-documented challenges impacting the housebuilding and RMI markets.
Against this macro backdrop, the Group has continued to demonstrate resilience and deliver a robust financial performance.
It is particularly pleasing to see the Group's strategic focus on diversification of products and end markets yielding benefits.
This, coupled with our capital-efficient business model and continued focus on disciplined capital allocation and cost control, has been a key driver of our resilience.”
After the AGM it will be interesting to see whether the comments are good or bad for the current year.
At just 66p the shares remain as a Hold.
(Profile 16.04.20 @ 39p set a Target Price of 55p*)
(Profile 10.02.23 @ 75p set a Target Price of 94p*)
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