In a double bill of columns today, Simon Thompson has been appraising a stream of newsflow from a leading provider of consumer professional services including debt solutions and legal services. Having made a number of complimentary earnings enhancing acquisitions in recent months, Simon believes the profit growth predicted is yet to be factored into the company’s valuation. In fact, a current year forward PE ratio of 8, falling to 7 for 2015, is hardly exacting for a company nailed on to grow EPS by 10 per cent both this year and next and one still with a lowly geared balance sheet. A dividend yield of around 5 per cent adds to the attractions too.
In Simon’s second column, he believes shares in a manufacturer and distributor of industrial fastenings are worth buying ahead of a trading update at next month’s annual meeting. It should not only make for a good news story, but quite likely earnings upgrades if Simon is proved right.
In our portfolio clinic, our experts give their verdict on 49-year-old David’s investments and suggest he could make to help achieve his objectives of retiring at 60 and helping his children.
Elsewhere Julia Bradshaw assesses whether things are now looking up on the high street after a rather bumpy July.
