Veteran player in a global field

The value of the new contract was not revealed but shareholders welcomed the news by sending shares 3p higher to 98p. The hope is that the Toll deal could turn into the sort of contract that runs for years and grows in value as the client expands.

Last year Kewill caught the eye of an American private equity bidder that offered 130p for the company, but the board walked away from the deal amid haggling over price. Paul Nichols, the former Logica executive who took over as chief executive in 2002 after the company’s shares fell from almost £30 to just 10p, has earned plaudits for turning his back on the bargain-hunters last year.

Kewill has clearly delineated its organic growth strategy and even the loss of a contract with Nokia should not slow its progress this year. However, that growth will be relatively modest and the company has turned to acquisitions, such as Minihouse in the Benelux area last year, to get hearts racing, which adds risk to the story.

Kewill trades at nine times its projected operating profit this year, according to IS Research, which is in line with the sector. In time it could attract the attention of SAP or Oracle, or a sector specialist such as Pitney Bowes, but its current valuation is fitting for its growth profile.

Assura

Investing in companies that depend on Britain’s healthcare system has been the cause of many a heart palpitation in recent years. Only last week, the tarnished iSoft brand claimed another victim after its Australian owner was sold, while the sudden decline of Southern Cross, the care home operator, has also proved chastening for investors.

Assura, once the UK’s largest private GP surgery operator, has also proved a volatile investment and has spent the past year recuperating from a bruising strategic U-turn. It began life as a property company but embarked on a plan to open dozens of GP surgeries three years ago at a cost of £750 million. It was not long before Assura showed signs of strain and a deal to sell 75 per cent of its loss-making GP business to Virgin Group last year marked the end of the adventure.

The sale sparked the exit of its founder Richard Burrell, and his replacement Nigel Rawlings has returned the company to its roots in the property market while shoring up its balance sheet. A trading statement revealed that rents over the past year had increased 5.6 per cent, boosting the top line by almost £500,000, and that overall results would be ahead of expectations.

Its profitable pharmacy business has also performed well, despite the NHS price cuts that have squeezed margins. Assura cryptically suggested it would explore “other opportunities to maximise value” from the division, which could be viewed as a signal that it intends to hoist a “for sale” sign.

Assura has also paid £28 million for AH Medical Properties to boost its property portfolio. Dividends have been restored and there are more disposals to come, which could add value. The business trades at a near-10 per cent discount to its net asset value — Investec argues that its property assets are worth 50p a share and the pharmacies a further 9p — so there is value there if the heart monitor allows.

Tanfield

Tanfield was briefly the largest stock on AIM when its valuation touched £600 million in 2007. Yet the adage “what goes up, must come down” has come to haunt the maker of scissor lifts.

The 2007 bubble was based on a dream that it could turn its Smiths milk float business into a global electric vehicle specialist. Yet it was the acquisition of the American aerial platform maker Snorkel for £50 million that year that had investors gasping for air as the recession hit the US construction industry hard.

Tanfield raised £2 million last September and sold the British division of Smiths. Its stake in the American arm of Smiths, which bought the UK business, has fallen to 32 per cent from 49 per cent after fundraising this year.

That leaves it reliant on a rebound in the construction industry for a recovery after an uninspiring set of results for 2010 indicated revenue up a mere 1 per cent and losses reduced by only 1 per cent to £14 million. Worryingly, its cash dropped by a third and any goodwill generated by a 250 per cent rise in orders was undermined by supply chain constraints that will restrict its ability to grow this year.

Tanfield has marked 2011 down as a “year of transition”, when it will pump debt into the business to return to growth. The shares have quadrupled since October to 40p amid hopes of a recovery that now looks a long way off. Take profits if you can.

Michelmersh Brick

Michelmersh Brick last made the headlines when the Romsey-based maker of posh bricks tried to gatecrash Wienerberger’s £89 million takeover of Baggeridge Brick in 2007. The 136-year-old company is now heading north after taking a 25 per cent stake in Jeffrey Building Products for £50,000. With sales and orders ahead of budget for 2011, the entry to a lucrative new market could see the shares head further north, too.