Builders' Merchants News

Galiform shares topping out

Published:  16 November, 2009

LONDON: Shares in builders' merchant and kitchen group Galiform surged in value last week.

Analysts say now looks like a good time to take some profits in the shares, which have almost doubled since their initial recommendation on July 23 at 461/2p.

On Thursday, the company, which trades as Howdens Joinery, said it was unlikely that pre-tax profits for 2009 would be less than the top end of the current analysts' forecast range.

The group is to restart its UK depot-opening programme and plans eight new sites by the end of this year, with up to 30 sites opening next year. This news sent the shares up 12.5pc to hit a 12-month high.

Analysts warn that the fortunes of Galiform are likely to be tied into a recovery in the UK housing market, which is unlikely to be for some time yet. Gains in the next four months are unlikely to be as much as we have seen since their initial recommendation.