Asbestos removal and consultancy group Silverdell is starting to benefit from the strategic review by management.
Revenues fell from £61.4m to £59.5m in the year to September 2009 and there was an even bigger decline in the second half. Underlying operating profits fell from £1.6m to £1.5m but this represents an improvement in the second half.
The order book is worth £45m, with £28m of that due for delivery in 2009-10.
This is a legislation driven business with scope to expand into related areas. Margins are still coming under pressure but Silverdell accounts for around one-fifth of a £300m market so it is in a strong position.
Chief executive Sean Nutley has acquired 127,000 shares at 11.75p each, which takes his stake to 2.26%.
Net debt was £4.7m at the end of September 2009. Earlier in the year, Silverdell raised £5.5m at 5p a share and cash generation was strong.
At 11.75p a share, Silverdell is valued at £17.8m. The shares are trading on nine times forecast earnings for 2009-10.
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