As its name suggests Property Recycling, recommended by GCI at 57p, recycles previously developed land (brownfield sites) by acquiring and improving it, then selling to developers for fat profits. Hiking valuation through remediation and planning gain is key, so complex sites requiring demolition or treatment for contamination are sought.

Chairman Paul Rackham reported lower pre-tax profits of £400,000 (£2.3m) for the half to June, translating into earnings of 0.77p (7.99p), on turnover of £1m (£3.9m) derived from rental income and a small sale. At first glance, the financials could concern. However, the 2005 figures were boosted by the £3.5m sale of a site at Saddlebow, and during this year’s first half, there were no significant property sales, under scoring Rackham’s message that results will be affected by timing, and special dividends could feature.

Furthermore, major initiatives are underway, with a former MOD site with terrific potential acquired near Norwich, and planning permission recently granted for a 1.2m square foot distribution centre at the group’s Stanton site, which is under option to Swedish retailing behemoth Ikea. Property Recycling has been working with Ikea for the last five years on this former airfield.

Overall we still think the shares are a buy, with demand for commercial and residential development land high, significant pressure on greenfield sites (especially in the East of England), the Government committed to boosting the proportion of development land sourced from brownfield and Property Recycling possessing five freehold sites totalling 198.8 hectares.

The balance sheet was also flush with £6.4m net cash at the half-year, and investors are being treated to a 0.5p interim dividend, demonstrating unwavering confidence in prospects. Buy.