LONDON (ShareCast) - Consumer confidence registered a big jump last summer and has continued improving ever since. That is what the latest results from Howden Joinery seem to show. This is because consumers need to be quite confident before splashing out on an investment such as a kitchen. Furthermore, the company continues to invest in new depots, as it did throughout the downturn, adding about 30 per year. This is standing it in good stead as each new establishment typically takes about seven years to reach its full potential.

Hence, they are now contributing more strongly to earnings. As well, the firm’s sales increased at a 8.5% clip in like-for-like terms during the first 14 weeks of this year. New entrants into the kitchen market may pressure prices. However, Howden’s value proposition is offering ready-made solutions to builders rather than competing on price. At 17 times’ earnings the stock looks expensive, “but there seems to be no reason why growth should slacken; buy for the long term,” says The Times’s Tempus.

Stock in James Fisher and Sons has had a strong run of late. That comes as little surprise given the boost to its revenues afforded by strong demand in the offshore oil industry during the first quarter of its financial year. As well, the outfit continues to carry out bolt-on acquisitions funded through internal cash instead of debt. Its excellent cash generation abilities and the £25.5m disposal of its railway engineering business saw net debt falling to £76m from £99m, leaving a strong balance sheet in its wake.

Marine Support did have a slower start to the year, but is expected to recover in the second half. At 17.7 times forward earnings the shares are not so cheap. Even so, "the strong balance sheet may fund a bigger acquisition over the coming year and push the shares higher." Buy, says The Daily Telegraph’s Questor team.


AB

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE