Share of the week from The Share Centre - 3 Oct 2011
Graham Spooner, investment adviser at The Share Centre, picks one of the most recognisable names in British engineering, Rolls Royce, as his share of the week. Here’s why:
“Growth seeking investors will be pleased to see the steady flow of contract wins for
Rolls Royce. The latest was China Eastern Airlines following recent deals with Singapore Airlines, Skymark Air, Air France, Tui and Cathay Pacific. Civil aviation currently accounts for around 45% of the company’s revenues and analysts expect future growth to be dominated by both this and marine.
“The group is also working on collaborations with EDF in France and Rosatom in Russia, which could see four nuclear plants built in the UK. The order book continues to grow along with the aftersales service contracts, which is no mean feat in these current depressed markets. Emerging markets, especially China and India, continue to grow in importance and almost 50% of the order book is from outside the traditional markets of Europe and North America.
“Rolls Royce also has attractions for income seeking investors, as results issued in July reported an 8% rise in dividend to 6.9p per share.
“Rolls Royce offers longer term investors the security of investing in a company with a quality and well spread order book that has increasing breadth and diversity. We believe patient investors will continue to be rewarded.”
THIS DATA IS PROVIDED BY THE SHARE CENTRE. THIS IS NOT INTENDED TO CONSTITUTE AN OFFER OR AGREEMENT TO BUY OR SELL INVESTMENTS.
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