After a torrid year, there are signs that Powerscreen may be turning the corner. The beleaguered engineering group recently announced the sale of its Doggett subsidiary and, along with the proceeds of the Matbro sale, has raised £14 million from disposals to date.

According to NCB Stockbrokers, the company's estimates of generating £60 million sterling from the planned disposal programme look realistic.

"A successful completion of this disposal programme would virtually eliminate debt and financial risk from an investors' standpoint," the broker says, noting that a new management team is also in place. The remaining core business has a sales base of around £190 million sterling and margins of at least 11 to 12 per cent and is worth some 200p a share, NCB believes. "The shares are trading at 100p sterling and therefore, in our view, offer substantial upside from these levels," analyst Rory Gillen says.