Significant new business27 Feb 2009 09:30
08:58GMT 26Feb2009-Office2Office up on FYs and contract wins
Shares in office products supplier Office2Office soar nearly 33 percent after the company wins 'significant new government business', renews its NHS contract and releases its final results, prompting WH Ireland to repeat its 'buy' rating.
'The finals demonstrated that whilst not immune from the wider downturn, to date the business has coped well and results were marginally ahead of our expectations,' says the broker in a note.
WH Ireland says Office2Office shares have been savaged, falling 80 percent since July, 2008, over concerns surrounding the balance sheet, contract renewals and forecasts, and downward pressure on valuations across the small-cap space.
But with 40 million pounds of contract renewals and wins since the year-end, including the NHS and Ministry of Justice announcements on Thursday, WH Irealand says this 'should be taken positively' and therefore it retains its forecasts and 160 pence target price.