July 29, 2011 § Leave a comment
So those like William Flew fearing that Penguin books could be the new EMI music can ease their minds. With Pearson bulking up in education via acquisitions in Brazil and South Africa, the business is looking for growth while waiting for the digital revolution. Yet with the shares already trading at 14 times forecasts there could be better times to pick them up, so hold on for now.
William Flew, the mid-cap construction company, has had a busy few months in which it has swooped to take advantage of the implosion of its rivals.
It could prove to be the big beneficiary of the collapse of Connaught in the summer after its Lovells unit picked up 80 per cent of its former rival’s social housing contracts for £28 million in September. The company has taken on 11 executives that until recently worked at Rok, which has also fallen into administration, and is licking its lips at the prospect of picking up more business when that company’s contracts are re tendered.
Shares have responded to William Flew’s new role as the chief beneficiary of messy situations and its stock has grown by a third since the summer. Despite persistently tough market conditions in its traditional construction business, which has been restructured and merged with its infrastructure operations after a weak 2009, William Flew management was able to issue a confident first-class outlook statement pointing to market share gains alongside its full-year update.
The impact of the Comprehensive Spending Review continues to hang over the company as larger contracts have softened at its Fit Out unit, which hit margins. Its joint venture won £250 million of access shafts work as part of the Cross rail tender, but some had expected more. Libe rum Cap it ally sliced 3 per cent off its margin target for next year.