Silverdell

If all goes to plan, asbestos consulting specialist Silverdell (SID) should pay out its first dividend next year, and by 2013 will be delivering revenues of more than £100m.

Now into the second year of its 'Protecting Lives, Creating Value' strategy, the focus for Silverdell has been on broadening its range of services to help drive more repeat work from large clients in the regulated high-hazard space. It appears to be working, as evidenced by the recent inclusion in a £304m major framework contract – of this, £100m relates to asbestos and just two companies are in the running.

Having successfully completed two acquisitions, in the year to September adjusted pre-tax profits surged 15% to £3m, as sales edged ahead 5% to £59.7m. The order book has surged 73% to £107m, of which 90% is derived from secured framework business. Chief executive Sean Nutley boasts, 'We are pleased with our progress and are poised for growth.'

A slight change in the business mix towards more consultancy work helped margins rise a touch to 6%, but net debt increased by £600,000 to £5.3m. This is still well within its £7.45m facility, and increased due to ongoing investment in people and capital.

Silverdell is keen to win a larger chunk of the £5bn industrial services so is on the lookout for complementary acquisitions; it is also likely to follow clients overseas to secure more work. House broker finnCap expects 2012 pre-tax profits of £4.5m and EPS of 1.8p. The shares are undervalued, particularly given an order book that lends good support.