H1 21 results were ahead with FD EPS of 22.7p beating our estimate of 19.4p. We increase our FY 21 and FY 22 FD EPS by 2% and 3% respectively due to slightly stronger than expected trading in H1 and a strong outlook. Net debt was £16.9m at H1 21, but there is a £5m provision related to legacy contract issues. For FY 21 we reduce our net debt estimate to £21m on an IAS 17 basis due to strong trading and less capex. The organic order book is stable at £690m and J Browne added c. £60m. At Engineering Services, a strong performance was underpinned by strength in Rail. At Specialist Building, revenues should grow due to the strong order book, but margins remain well below the group level. We maintain our HOLD with a TP at 650p and we believe there are cheaper companies with higher EPS growth in the peer group.
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