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PKL

February 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:
  • PKL
  • Price:
  • 63p
First half results were worse than we were expecting despite PKL’s surprise warning on profit in November. Sales were up from £15.4m to £20.6m but profit before tax was down from £3.1m to £1m, largely due to the cost overruns on two quite large and complex contracts within the healthcare side and also one mispriced contract on the foodservices division which has had to be terminated. Even though Healthcare doubled sales to £14.5m, operating profit halved to £0.4m as additional resources were brought on board to beef up the technically more demanding business and to complete the undercosted contracts. PKL has also changed its approach to pricing and tendering for new business. The company ...

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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.

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