Companies: HLS   

Waste goods and services provider Helesi is thriving in a booming market that is expected to remain largely immune to any global economic slowdown.

One of the five largest suppliers of waste bins in the world, Helesi sells into more than 50 countries, with demand for its services being driven by both recycling legislation in the EU and modernisation in its developing markets. ‘We can pick and choose our orders at the moment and have to turn down quite a few,’ reports finance director Apostolos Binomakis, who also boasts of first orders from new territories including Iran, Croatia and the Czech Republic.

Its production facilities in Greece, Italy and Yorkshire are two thirds of the way through an €83m investment program that will increase capacity by 150%. For the year to December, Helesi expects to report revenues increased by 42% to €50m with earnings in line with market forecasts. One part of the business that disappointed slightly during the year was the waste management services division, which is concentrating on the under-developed and fast-growing south-east European market. However, things are turning around, with it having won a number of new contracts in the second half and bolted on a complementary business in November.

Looking forward, this arm has ‘50% visibility’ on revenues for 2008, is expected to deliver new contracts and with the Athens Olympics contract under its belt ‘is eyeballing the London Olympics contracts’, says Binomakis.

For 2007, house broker Panmure Gordon forecasts 12.8p of earnings ahead of 14.5p for the current year, placing the shares on an '08 multiple of only nine times. Recommended here at 120.5p just after its December 2006 float, Helesi still looks good value.

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Helesi	AIM	£34.58m	105.50p	-1.00p
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