BSS shares boosted by boiler scrappage scheme
Published: 08 January, 2010
LEICESTER: Shares in BSS Group gained 2.4% on the back of expected sales boost from the Government's boiler scrappage scheme.
Brokers Collins Stewart expects boiler demand will prove strong over the first quarter of 2010, following the scrappage scheme combined with the current cold weather, rising bills and several boiler discounts from British Gas.
The broker said BSS controls 30% of the UK market for boilers selling half a million boilers annually with sales valued at £300m, about a quarter of group turnover.
Collins Stewart said the scrappage scheme will also benefit blue chip peer Wolseley but to a lesser extent. Wolseley was yesterday morning's best performer as it shrugged off news that pending home sales fell for the first time in nine months, down a sharper than expected 16% in November. Wolseley shares topped the FTSE 100 leaderboard, up 4.3%.
Grafton reported a stabilisation of turnover and turnaround in its main British market.