Share tip of the week: rock-solid marine engineer

This UK-based marine engineer is well-placed to benefit from escalating demand in its sector and has beefed up its operations to make sure it does so. As Paul Hill explains, this is one firm that will pull through the stormy waters of recession.

Hamworthy, a leading marine engineer based in Poole, reported last week that turnover (£214m) and earnings per share (32.2p) had tumbled by 15% and 20% respectively. Not only are fleet owners struggling to raise funding for new vessels, but those with capital are sitting on their hands expecting prices to head lower. Nonetheless, with the stock down 55% from its 2007 highs of 665p, there's opportunity amid the stormy waters.

Hamworthy is one of the world's top two suppliers of niche pumps and waters systems used to transport fluids by boat. The firm's patented liquefaction technology improves ship safety and fuel efficiency by refreezing liquid natural gas (LNG), which tends to vaporise during carriage. Following the discovery of vast quantities of cheap gas in American shale deposits over the past few years, Hamworthy looks well placed to benefit from escalating demand.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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.