The Week in Review: Analysts predict a post-war surge

Associated British Ports

If there is a decent port in the stock market storm it might be Associated British Ports. It has sold off non-core interests, such as property and the US airport management operation. Its base business now is its 21 ports in the UK plus a handful in the US. AB Ports has long-term contracts with major customers which gives it earnings certainty. In fact it is already guaranteed a 2.5 per cent increase in operating profits this year as over 50 per cent of its UK ports business over the next 12 months is backed by contracts. A solid hold.

Kingfisher

An upbeat fourth-quarter trading statement from Kingfisher, the B&Q and Comet retail group, pushed the shares up and had analysts raising their profit forecasts.Group like-for-like sales growth of 3.6 per cent was a good performance. Crucially, there were no nasties emerging from Castorama, the French DIY chain of which Kingfisher assumed full control last year. The good news is that there should be no significant change in tax charge, interest bill or dividend policy. Attractive, though there is an argument for waiting for the demerger details.

Brown & Jackson

Brown & Jackson, the Poundstretcher retailer, has had a shake-up since former Matalan boss Angus Monro became chief executive in September. The peripheral businesses, such as What Everyone Wants, were sold off for a nominal sum and the business is now focused purely on Poundstretcher with its 338 cheap and cheerful stores. The Poundstretcher business made £11m profits last year and like-for-like sales are up 13 per cent. A good start but there will be better times to buy.

Albemarle & Bond

The prospect of an economic downturn fills few businesses with joy. But for the pawnbroking industry, the cash tills are ringing more often. Half of Albemarle & Bond's business comes from pawnbroking, where it issues loans against the security of, typically, gold jewellery for a fee of around 7 per cent of the loan. A further 15 per cent of sales come from selling new and second-hand jewellery. The shares have more or less doubled in the last 18 months. Hold.

Informa Group

As a financial publisher, it is not surprising that Informa Group has not been having the greatest time. But its full-year figures for 2002 appeared to show the worst is behind it. The company publishes Lloyd's List, the shipping and insurance daily paper, dozens of niche trade publications and has a conference arm. It has been cutting its cost base (headcount was reduced by 9 per cent) and debt is down by £23m to £96m. Subscriptions make up 35 per cent of group sales. Time to buy in.

Honeycombe Leisure

The Northwest-based pubs operator Honeycombe Leisure has banked £11.72m by disposing of 12 freehold sites to Punch Taverns. The cash prize will allow Honeycombe to slash its gearing from an eye-watering 263 per cent to 180 per cent. The sale leaves Honeycombe with 60 managed sites. The deal's main appeal is that Honeycombe will manage the 12 sites for Punch for the next 20 years. The high-yielding shares are worth supping on.

Hanson

Hanson, the building materials group, has been hit hard by fears of asbestos-related legal claims. At first glance, the latest full-year figures contained bad news on this front with a big jump in claimants in the fourth quarter. But much of the leap was due to a rush of claims in the state of Mississippi to beat a 1 January deadline which would bar out-of- state claims. Hanson's other main problem has been the difficult US economy which accounts for 60 per cent of group profits. There was better news in the UK and Australia as well as a higher divided. A decent hold.

Pendragon

The car market has slowed considerably since the boom period of last year and Pendragon, the car dealer, has warned of slackening demand across the industry. But Pendragon primarily sells BMWs, Jaguars and Land Rovers and believes that by concentrating on the flashy end of the market it can weather the downturn. The shares trade on a low rating. Buy.

Diagonal

Diagonal shares slumped this week after its results for 2002 came in beneath expectations and it warned that the current year is likely to be "challenging". The business suffered across the board although its SAP consultancy business held up reasonably well. Margins also improved. But the economic outlook looks poor for IT companies. Hold at best.

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