Companies: BATS    CAR    JSG   

Charles Stanley’s Peter Ashworth is bullish regarding fully listed engineer Carclo, on both a 12-month and a longer-term view. The company, which is set to post final results to March on 13 June (the numbers should hit forecasts) is also selling its ECC Card Clothing arm for up to £8.6 million in cash to NV Bekaert.

Carclo’s recent trading update referred to strong trading in the final quarter. Its technical plastics business has benefited from strong automotive volumes and a recovery in operating profits. The Chinese technical plastics operations are now in profit, whilst the Indian joint venture should become operational in the current year.

Fully listed support service outfit Johnson Service also caught the eye of Ashworth. He says the company is enjoying satisfactory trading with recent acquisitions integrating to plan. Trends within the textile rental market remain encouraging, the corporate wear division has expanded through acquisition since the year-end and its facilities management operations continue to do well.

Finally, Clive Roberts is bullish on British American Tobacco, (BATS), the FTSE 100 behemoth now the world’s second largest quoted tobacco group, serving one in seven of the world’s puffers.

Roberts said recent first quarter results were ‘complicated but well received’, with earnings rising 26 per cent thanks to the buy-back of four million shares. He argues the stock is good value given BATS’ ‘defensive attractions’, namely strong cash generation, solid brand portfolio and broad geographic spread.