Hightex

Hightex is set to grow profits on the back of deals made to build its specialist 'membrane' roofs for sporting events including the 2012 European Football Championships.

Germany-based Hightex manufactures a variety of different styles of roof, using materials such as PVC foil, silicon glass and plexiglas and has worked on high-profile projects including the construction of Johannesburg's Soccer City, the flagship stadium for South Africa's 2010 World Cup and venue for the final.

Headed by recently appointed CEO Frank Molter, Hightex boasts a strong management team that includes Charles Sebag-Montefiore, a descendant of the famous Montefiore banking dynasty and cousin of historian Simon Sebag-Montefiore, as well as chairman Charles DesForges, previously a director at corporate advisory firm Ludgate Investments.

Hightex experienced a challenging few years during which revenues were inconsistent, due to its dependence on projects such as the Olympics or large redevelopment programmes – losses of €1.15m (£0.97m), €2.38m and €3.08m were posted for 2006, 2007 and 2008 respectively.

However, having won significant contracts for the World Cup, the company returned to profit for 2009, making an encouraging €780,000 (£650,000) on €20m sales. Hightex now has a number of projects planned for the coming years ahead, having clinched contracts to install roof systems at both the Kiev Olympic Stadium and Warsaw's national stadium in time for the European Football Championships. In addition, projects are in development for the 2014 Winter Olympics in Russia and Hightex should also benefit should England's bid to host the 2018 World Cup prove successful.

For December 2010, house broker finnCap is forecasting earnings of 1¢ (0.83p) on sales of €30m, placing Hightex shares, first recommended as a speculation by Growth Company Investor at 7.5p last October, on a forward multiple of nine times earnings. Although earnings can be erratic, that rating looks undemanding and the shares could still go significantly higher.