Companies: EKT   

The future, both immediate and long-term, looks bright for Bulgin, according to brokers Teather & Greenwood. With earnings growth expected to be significantly above general expectations over the next few years, T&G believe that Bulgin is considerably undervalued. Over the last few years the company has undergone dramatic change, with sales declining from over £19m in 1998 to £13.5m this year, and three new board members being appointed, taking Bulgin away from its former status as a family business. It has also suffered from the strength of sterling. But with its difficulties seemingly behind it, Bulgin is now expanding. In the market, demand for its services in power electronics, electromechanical components and electronic component trading is buoyant. The recent purchase of Milmega has also increased the company's exposure to high growth and higher margins electronics markets - further acquisitions are expected too. With pre-tax profits up on last year (from £0.2m to £0.9m) and expected to grow further, Bulgin doesn't look a bad bet at all.