Support services special: good fundamentals

The companies we track grew 13% last year, expect more of the same this year, and trade on average PER of x14, see our review of results.

The market fundamentals look good: infrastructure investment; outsourcing; activist government. Even better, a class of companies is emerging in the sector that justifies serious long-term investment. Quality companies like Balfour Beatty, Serco and Carillion all feature in this CVJ. These companies have sound strategy, proven management and conservative accounting.

As ever in a large and diverse sector, there are other tales to tell. We highlight private equity’s stellar 2007, which is unlikely to be repeated this year; and Rentokil’s 2007 troubles, which are.

There are the data, on page four, for those who like such things. There’s also notice of upcoming breakfasts which provide a great opportunity for us to meet you. And you to meet your peers. If you’re doing well but wonder if you’re alone, it might be an opportunity to meet others like you!

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Articles from this issue

• Private equity slowdown
• Review of results
• Stockmarket falls, who wins?
• Spending sprees
• Rentokil - falling from a height
• 2007 Sector watch

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