How you can share profits of energy advice; in association with RBS SHARE TIPS.
Domestic, business and governmental energy advisory firm eaga was formed in 1990 to improve the plight of poor people living in cold, draughty homes.
It is now a FTSE 250 company valued at more than pounds 500m, with sales of pounds 482m and pre-tax profits of pounds 31.3m.
Eaga's main customers are Whitehall, local authorities and gas and electric companies, all of whom use it to help them deal with domestic customers who find it hard to pay their bills. This is big business.
The company's principal work is helping homeowners cut their energy bills by installing more efficient boilers and insulating their houses properly.
The Government aims to reduce carbon emissions by 60% between now and 2050 and one of the easiest ways is by making homes more energ y-efficient.
Eaga is also expanding in other area and recently won a contract to manage the BBC's pounds 500m Switchover Help Scheme which will advise elderly and other vulnerable people what to do when analogue is turned off. The City expects profits of about pounds 40m this year and pounds 48m the next.
There seems plenty of potential in the stock so it is rated as a buy.
The Sunday Telegraph:
Insurer Royal & Sun Alliance posted full-year results ahead of expectations last week. The group managed to increase pre-tax profits by 3% to pounds 670m despite being hit with a pounds 120m bill for last year's flooding and challenging markets.
Looking ahead, premiums for motor insurance are rising by an average of 7% on last year and the international business is performing strongly. The group has no holdings in the troubled monoline insurers, nor has it got any exposure to investments like credit insured bonds or US municipal bonds. A lot of Royal's growth is being driven overseas and its international and emerging markets are growing much more rapidly than its UK business.
However, the insurer is prepared to withdraw from countries that have not lived up to expectations, and have recently retrenched from Venezuela following the 2006 exit from its US business.
Investors are advised to buy.
Oil explorer Roc Oil Company posted strong full-year figures last week, with turnover up 90% to EUR208.5m (pounds 104.7m) and a trading profit of EUR87.4m (pounds 43.9m).
Despite the results, shares are trading at a two-and-a-half-year low.
Investors have gone elsewhere for safe-haven investments during the recent turbulent markets.
But the group should benefit from higher oil prices and stable production. Roc Oil Company is now one of the cheapest shares in the oil sector. Investors are therefore advised to buy.
GOOD INVESTMENT John Clough, chief executive of energy advisory firm Eaga plc.
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|Publication:||The Journal (Newcastle, England)|
|Date:||Mar 3, 2008|
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