Heavy order books should buoy up contractor in 2008

Contractor Tolent has announced a 6% rise in pre-tax profit for 2007, with turnover up by 7%, following a strong performance in the second half of 2007.

Pre-tax profit for the year ended 31 December rose to 拢5.5m, from 拢5.2m a year earlier, with turnover increasing from 拢168.2m to 拢180m.

The UK construction and property company said its second-half revenues were shored up by orders and contracts delayed in the first half of the year. Its order book at the start of 2008 stands at 拢128m.

While its 鈥渟ubstantial鈥� construction workload should protect it to some extent in 2008, Tolent said that market uncertainty could have a greater impact in 2009.

Brewin Dolphin Investment Banking said the 2008 earnings-per-share forecast had been reduced by 2% 鈥渢o reflect a more prudent view of potential development profits鈥� and the 12-month price target had been brought down from 385p to 265p to reflect the de-rating of construction stocks since mid 2007.

The company still provided an attractive investment, it said, thanks to it yield of over 9%, average net cash balance during 2007 of 拢12m, 拢6.8m investment property portfolio and lack of final salary pension scheme.

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