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Share tip summary With strong and defendable market positions, Avon is well placed to grow through product development and expansion into new markets. Yet this comes on a rating of barely 10 times forecast earnings for 2012-13. With scope to increase the dividend hugely, too

Avon is also investing in new product development through its Project Fusion initiative, which is expected to begin yielding results in the next 12 months. In Dairy, Avon has a 60 per cent global market share in consumable milk liners for milking machines and increased revenues by 7 per cent in the first half. The introduction of new products is expected to continue pushing growth; indeed, a new vented liner introduced into the US has already grabbed 10 per cent market share. Avon sells both to equipment manufacturers and directly to farmers through its Milk-Rite brand. As well as investing in the business, Avon's management has concentrated on running the existing operations efficiently so decent cash generation means that net debt has fallen from over £15m to below £10m in the past three-and-a-half years

To diversify its reliance on the US military, Avon also sells to other foreign military customers and, in May, announced its largest single commercial order from the Middle East, worth £14.7m for delivery in 2013 and 2014. Non-Department of Defense order intake this year has totalled £22.4m, compared with £5.4m last year. It also sells to foreign military customers via the Department of Defense. These are often so-called 'impact' sales following some crisis, which usually means better profits. But this is also lumpy business. In its latest trading update, Avon said it expected full-year order intake in Protection and Defence to be 38 per cent ahead of last year, with firm orders stretching into 2013.

Avon Rubber has built itself enviable market-leading positions in its two key markets, defence & protection and dairy. This gives the company a springboard from which to expand both geographically and through developing new products - and recent developments suggest momentum is in Avon's favour. Avon's biggest business provides respiratory protection equipment, essentially gas masks and associated filters, primarily to the US military. Protection and defence represents two-thirds of group revenues, but just 51 per cent of operating profits. The remaining revenues and profits come from supplying various bits of consumable equipment for milking machines. At present, most dairy industry sales are made in the US and Europe, but opening a sales and distribution facility in China promises action in this significant and fast-growing market. In 2011, dairy sales in the US totalled £20m, whereas Chinese sales were less than £1m. Sales to the US Department of Defense underpin the protection and defence business, Sales of gas masks are backed up by recurring revenues from selling filters. Defence budget constraints are a risk, but in the first half of 2012 sales of respirators were in line with forecasts, up 30 per cent on the year. That said, delays in setting up an agreed contract meant that sales volumes of filter spares were down. But Avon is the sole supplier of filters on this contract until 2013 so it hopes to make up lost volumes.

Mears is well-placed, but the shares don't reflect this. They trade on a multiple of just under 10 times underlying forecast earnings for 2012, which is well below the support services average of 12 times. True, we won't see a return to the heady days of a 25 times earnings multiple. But steady workflow and assured revenues translating into strong cash flow and progressive dividends mean the shares are a solid growth stock.

Mears has other plus points. Back in 2010, lack of cash did for Rok and Connaught, but cash flow is moving in the right direction at Mears. Cash generated from operating activities in the first-half improved from £7.5m a year ago to £12m, which allowed net debt to be halved from £13.4m to £6.2m in the first six months of 2012. The care business is also forging ahead. Sales were up 8 per cent to £56m, with operating profits up 17 per cent to £4.5m. But City analysts were expecting faster growth. The slow progress is in part due to the government dragging its heels on the white paper on health and social care, but also down to a dearth of acquisitions. There could be progress on both fronts in the next six months. Mr Miles says he is looking to acquire a couple of care-at-home businesses in the third or fourth quarter, and the government should clarify support for domestic care in the next session of parliament. There are risks inherent in this, though. Pressure on public spending will remain intense and the backlash against outsourcing after the G4S debacle could stall decisions, especially as social care for the elderly leaves so much to be desired.

After suffering from government cutbacks and a fractious relationship with the City, shares in social housing and care provider Mears have drifted down to ratings last seen 10 years ago. But the company has just reported record levels of activity, it is generating plenty of cash and, in the past five years, has doubled its sales and improved its earnings, yet the share price has gone sideways. Add in assured revenues and the potential for growth in its home-care business and we reckon the shares are worth buying. During the years of Blairite public-spending profligacy, social housing maintenance was a wonderful place to be. By late 2006, Mears' shares were touching 350p, trading on a multiple of over 25 times earnings. Then came the demise of Connaught and Rok, companies occupying a similar space to Mears. As a result, investors fled. Yet throughout this Mears weathered the storm, increasing its dividend every year. It has now emerged with less competition, more business, and a better outlook. Mears' first-half results for 2012 were encouraging, with revenue up 5 per cent to £307m and adjusted pre-tax profit up 2 per cent to £14.3m. The order book was flat at £2.7bn, yet provides for 99 per cent of 2012's expected revenues and 85 per cent of next year's. The numbers were all the more impressive because Mears mobilised a record number of new contracts in the period, whose annual revenues will top £50m. As chief executive David Miles explains, when Mears begins a new contract its takes in start-up costs, such as buying new vans and employing staff, upfront. As a result, contracts tend to lose money in the first six months, break even in the next six; then they move into profit, hitting peak profitability around the 18-month mark. Understandably, the social housing unit, which took on all this work, reported operating profit margins down from 5.5 per cent to 5 per cent, on sales up 4 per cent to £215m.

After a well-earned public holiday, and the last before Christmas, the markets will focus on interim results from security group G4S (GFS), the company that risked turning the London Olympic 2012 dream into something of a nightmare. Ultimately, the scandal may actually have only done lasting damage to Mitt Romney’s Presidential campaign as he publicly doubted the Olympics could be a success after the G4S failure. These results will give some insight into the fallout from any legal action and / or damage to profits, with the most recent broker notes in July from Jefferies and UBS estimating that damages could be between £35m - £50m.

Events may have proved challenging for G4S, but the struggle faced by the Far East and particularly China to maintain growth, as well as the way the banking sector seems to be lurching from crisis to crisis means that recruitment agencies such as Hays (HAS) haven’t had the best of times in recent months. This has been tempered by the performance of the group in Germany where the rate of unemployment is lower and hence jobs availability rather greater than for many leading economies. Observers will be looking to see whether the reduced client numbers and candidates confidence reported in July has been maintained, and whether the slight 2% rise in Q2 like-for-like fees doesn’t flip around into negative territory.

Motor insurer Admiral Group (ADM) may have faced the odd bump in the fundamental road over the 5-year history of the financial crisis, but overall the group has been a sector outperformer, and unlike many other players has not been affected by the EU crisis. Added to this, in March Admiral announced it would to pay a special dividend as pre-tax profits rose 13% to £299m in 2011 beating the consensus forecast of £291m. Since then the group reported in April that UK policy growth was below expectations, but that overall 2012 had begun in line with forecasts. What the interim results will underline is whether or not this group has finally started to feel the same pressure than many rivals have been reporting for the past few years.

Getting fed up of waiting for ntog aswell......ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

Yes that would be the sensible thing to do then your covered both ways..........anway im up 6 grand on qfi hope it holds stable now,should sell really and get back in......but i dont want to risk getting back in at a higher price.........

Yes noticed that i sold out of here with a nice profit.......think ill get back in this is a nice little trader,but prospects are good here aswell...

Might be time to get back in here.........

Textile maintenance business, Berendsen, will post flat revenues in the half year to the end of June, after taking into account currency effects. The company, formerly known as Davis Service Group, should deliver an increase in operating margin at the half-year stage.

On the corporate front we will find out what's cooking at Aga Rangemaster, the oven maker, which is set to declare its interim results. The group has already indicated that overall revenues and operating profits, excluding property profits, were slightly lower in the first half of 2012 than in the corresponding period of last year. Despite this, the group said in early July that it continues to expect to achieve revenue and profit growth for the full year as its product and cost initiatives work through. Particular attention is likely to be paid to Ireland, where sales have been on the slide as the Irish tighten their belts.

John Warren, a Non-Executive Director of promotions company 4imprint Group, has purchased himself a chunk of shares less than a month after the company reported a strong first half which saw a 50 per cent increase in pre-tax profits. Warren bought 5,000 shares at 300.62p each for a total of £15,031, his only holding in the company. At the beginning of August 4imprint posted profit before tax of £2.46m (H1 2011: £1.64m) on revenues of £88.36m, up 17% from £75.84m. Underlying operating profit was up 21% at £3.39m (H1 2011: £2.80m). Underlying basic earnings per share were up 25% at 8.61p (H1 2011: 6.89p). The firm's 4imprint Direct Marketing business saw revenue increase by 17% compared to the same period the previous year (constant currency: 14%), pushed higher by a 22% rise in existing customer orders. Revenue from the SPS business increased eight per cent with the underlying operating profit up by £0.25m as a result of a stable gross margin and control over costs. Peter Saxton, the Chief Financial Officer at Bango, a mobile web payments and analytics company, made a much more sizeable transaction, selling off 386,701 shares at 179.50p each for a total of £694,128. Saxton, who joined Bango in 2004, provides the financial leadership, direction and policy guidance to the company.

"STV national airtime revenue was down 1% in July and we expect August to be down 6% with September expected to be down 2%," he said. "The regional airtime market remains challenging, reflecting the wider Scottish economy, and we expect the third quarter to be down 12% with regional revenues expected to be up 4% across the whole year."

Scottish digital media business STV posted a rise in profits but said it was cautious about the effect economic uncertainty would have on advertising. The group, which holds the ITV licenses for central and northern Scotland, said pre-tax profit rose 8% to £7m on revenues that were up 1% to £47.6m. A 15% increase in the group's effective tax rate resulted in earnings per share on an unadjusted pre-exceptionals basis dropping 10% to 16.0p. The firm said it was keeping the question of an interim dividend under review and would provide an update in February. STV reported mixed results based on its key performance indicators, with peak time audiences and monthly page impressions ahead of targets, but digital revenues and production margins falling behind. However, the firm said digital business growth had continued with 13% increase in revenue and increased traffic. Over 60% of the company's broadcast audience now accesses STV online. Chief Executive Rob Woodward said the immediate outlook for TV revenues was tough given continuing macro-economic uncertainty and the effect on the TV advertising market.

Faroe Petroleum said it had acquired a 12.5% interest in the Darwin prospect in the PL531 licence in the Norwegian Barents Sea. It said multiple targets had been identified on 3D seismic tests and the first exploration well was expected to spud from the end December. The firm said the deal was an important step towards its ambition of building a strategic position in the Barents Sea.