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Casting an eye over the electronic and electrical equipment sector, Bridgewell urged clients to switch from techMARK-listed First Technology into small cap sector peer TT Electronics. This followed a weak AGM statement in which First Technology re-emphasised tricky trading at its automotive and special products business. Analysts worry the trend is hitting its gas-sensing operations, and debt covenant issues also caused jitters. ‘A better approach over the short-to-medium-term would be to switch into TT, as in our opinion the potential for auto-related weaknesses is lower,’ advised the broker.

A slew of FTSE 250 maintenance and contracting firms also received the once over. Bridgewell applauded good final figures from Kier, urging investors to look at the group’s excellent cash generation, and upgrading forecasts for the year. Good interim figures from Interserve were also welcomed – with its yield attractions, the broker argues recent share price underperformance is ‘unwarranted’. Outsourced maintenance play Enterprise scraped by with a retained buy. Although interim profits were slightly below the broker’s forecasts, it argues ‘mid-to-high teens growth for the next couple of years is not fully priced in’.

On the small cap scene, the broker also ran with the bulls on AIM-quoted Adamind, the provider of media adaptation for multimedia messages and content services markets, which smashed forecasts with first-half figures. ‘Adamind’s global market leadership position in the media adaptation segment, in our view, positions it exceptionally well for strong growth,’ opined the broker, reiterating its buy stance.