Take a punt on the economic turnaround
Fergus Murphy, boss of the EBS
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C&C
The company has been transformed over the past year, with new management making two strategic moves to grow its presence in the UK, through the purchase of Tennent's and Gaymers/Blackthorn.
C&C will now have a broader portfolio of brands to offer its customer base and to regain market share lost in the UK in recent years. The environment is tough but costs in the existing business have been cut, new products have been introduced and prices lowered for consumers.
CPL
CPL Resources as an Irish recruiter may be out of favour at present but the group has over €40m in net cash and has acted swiftly to lower its cost base in the past 18 months. The group has been consistently profitable and is well placed when trends become more favourable, hopefully by late 2010.
CRH
CRH is a global construction materials play. The environment is tough at present but government infrastructure spending should boost demand in the group's business. Earnings are depressed but the balance sheet was boosted by the fundraising earlier this year and the group has cut costs hard, which should boost profits when demand eventually recovers.
FBD
FBD has been building its franchise in the urban centres, augmenting a well-established position in rural markets. It made positive comments on trends in premiums in November but the floods have since led to increased claims. This will force rates higher and tight cost control should benefit the bottom line.
ICG
Irish Continental is a play on economic recovery and, in the meantime, offers an eight per cent annual payout. ICG took tough decisions in relation to its cost base which have enabled it to be consistently profitable in the downturn. The fleet is the most modern in Europe, resulting in high cash generation. Debt is low and the performance of its tourist car market is up. As the economy stabilises, freight volumes should level in 2010.
SMURFIT KAPPA
Smurfit Kappa has pointed to stabilising trends in its paper-based packaging businesses. Debt is high at around €3bn but the repayment profile is medium to long term and a strong focus on cash generation provides some headroom. ISEQ in December 2010: 3,500
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