Engineer’s winning formula is set to deliver steady growth

A rock-solid balance sheet and a healthy order book makes this engineering stock a buy, says Paul Hill.

I like high-quality, dividend-paying stocks with sound balance sheets, good track records and big order books. Kentz Corporation, an engineer with a £460m market capitalisation, fits the bill.

It operates in the oil and gas (55% of sales), petrochemical (16%), mining (21%) and power sectors (8%), providing services to clients such as Exxon Mobil, Chevron and Sasol. In the first half year, revenues rose by 9% to $703.7m and profits by 36% to $51.2m.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.