Eaga in line with expectations

Oct 17 2008 by Graeme King, The Journal

IN the regional portfolio, green support services company Eaga confirmed that trading is in line with management expectations and the business is performing well across all divisions.

On September 11, the Government announced that additional funds will be made available to residential energy schemes and Eaga – where we act as joint broker – is involved in the Warm Front project that will benefit from an additional £74m of funding over the next two years.

At the company’s annual general meeting, chairman Charles Berry said the underlying market dynamics of environmental, social and technological change were positioning eaga well for future growth and expansion.

He also said the company was “relatively well protected” from the current turbulence in the global financial climate.

Eaga stated that there are good growth opportunities for the business going forward and management will consider suitable acquisitions in its favoured markets. The shares rose by 2.5p to close at 117p.

In vestment house WestKB upgraded its rating on GlaxoSmithKline from “reduce” to “hold”. The broker increased its price target for the shares to 1120p from 980p, citing the businesses defensive characteristics and robust dividend yield as attractive qualities in current markets. GSK’s share price finished 23p lower at 1052p.

The best performance in the regional portfolio was by AIM listed company, E-Therapeutics whose share price climbed by 6.67% to finish the business day at 32p.

Anthony Peart Anthony.Peart@Brewin.co.uk