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Williams de Broe duly delivered its reaction to the results of AIM-quoted PM Group and small cap support services play Spring Group.

Interim figures from PM, the maker of vehicle on-board weighing systems for bulk haulage and waste management, were a bit of a disappointment, as the recent warning from the company had foreshadowed.

Nevertheless, analyst Matthew Davis said reduced interim pre-tax profits were marginally ahead of his expectations – profits fell from £425,000 to £335,000 – which supports his downgraded full year estimates. Davis is forecasting a £1.01 million profit from turnover of £17.1 million, and earnings of 5.4p a share.

PM's interim turnover growth of only eight per cent reflected the higher proportion of revenues wrought from lower-margin refuse bin sales and slowing sales of high margin BinWeigh revenues. Davis insists the fundamental drivers in PM's markets remain – environmental pressure and EU-led legislation.

Elsewhere, respected analyst Stephen Williams was pleasantly surprised by preliminary numbers from Spring Group, particularly by a first ever increase in the final dividend showing boardroom confidence. Williams says Spring, which restructured in the cyclical low, is 'well placed to continue to benefit from the upswing', and retains a 'strong financial position'. Year-end net cash was £28.9 million. Williams de Broe's view is that Spring is cheaper than its peers, and a 150p target priceis justifiable.