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Mears - Sharp improvement in margin

September 2002

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.

Pretax profit increased by 31% to £1.58m in the six months to 30June and earnings by 27% to 2.0p on a full tax charge. Revenue in theperiod rose by just 8% to £38.1m, largely the result of  reshapingthe nature of Haydon’s business. Turnover in the maintenance, contracting  and FM businesses wastherefore virtually the same at £30.8m but operating profit rose 22% to£1.08m. Benefiting both the bottom and top line, although not reallyshowing up in the figures, was the rapid growth in maintenance for thesocial housing sector. Within the £30.8m, this core area lifted its sales from £21.8m to£23.4m, up 7%, but the Richmond contract was included for just the lastthree months. This gives a high degree of confidenc ...

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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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