Galiform share boom
Published: 02 October, 2009
LONDON: Galiform shares continue to perform well, rising by almost 70pc since July and buoyed this week by rumours of a possible target acquisition by Travis Perkins.
The acquisition is viewed as attractive to Travis as its rival operation, Benchmarx is thought to be doing less well than Howdens, the Galiform kitchen business.
Brokers Noble initiated coverage on the stock with a "positive" rating last week although there is still some concern over Galiform's pension deficit, which stands at £131m. The company has agreed with the pension trustees to the amounts it must pay to help clear this over the next three years. Galiform is not presently paying a dividend as it gets its house in order.