UMC16 Jun 2011 23:27
Arbuthnot commented on Umeco (UMC), the aerospace and defence focused distributor and supply chain manager. The broker said that, in view of the strengthened balance sheet and better characteristics of the Composites business, whether the disposal of the supply chain business is really value enhancing will depend on how quickly resources can be redeployed and if the market is happy to re-rate the shares. That said, Arbuthnot added that given the 14.5% under-performance of the shares against the FTSE All-Share index in the last month, it may not be justified to maintain its previous "reduce" recommendation. The shares lost 37p to 378p.