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Scott Wilson - Two thirds of business already booked

August 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SWG
  • Price:
  • 209p
Scott Wilson's maiden finals came in ahead of expectation helped by faster than expected top line growth and improvements in previously underperforming parts of the UK business. Sales lifted 16% to £186m (against strategic objectives of 10% growth). The group had a pretty different capital structure pre-IPO and consequently, the pretax profits and eps were distorted by this and are a bit meaningless. That said, operating profit increased by 34% to £10.4m and operating margin increased from 4.2% to 5.6%, nicely ahead of expectations. Brokers have left forecasts unchanged and have a rather pedestrian expectation of margins hitting 6% by 2009, even though it is very likely to be achieved well before that date. Of the fiv ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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