Following two profit warnings and boardroom change last year, we believe the business – which is largely underpinned by safety, energy and educational legislation – is benefitting from a turnaround programme led by new Executive Chairman Bob Holt. Mr Holt has been incentivised to double the share price from the current level over the next two years, and we believe the initial signs look encouraging. We initiate with a Buy recommendation and 12-month Target Price of 75p.
