Northern Ireland group Viridian is rated as a buy for investors by Davy Stockbrokers. In its latest note on the company, Davy points to the record of consistent revenue and earnings growth with the group reporting a 6 per cent rise in pre-tax profits to £89.5 million sterling (£115 million). Viridian Capital, its unregulated arm, is a key driver of growth with strong performances also from its financial services and property business Open & Direct.

Profits in the core electricity business were broadly flat though with profits in the power procurement business reduced by £1 million sterling on the back of increased costs associated with market opening and the renegotiation of a generation contract.

Davy has adjusted its forecasts for the group to reflect a stronger performance from Viridian Capital and the maintenance of a lower tax rate. Its profits forecasts remain unchanged at £96.3 million but Davy has revised its earnings per share forecast to 62.4p sterling up from 60.5p sterling. The stock has appreciated in value by 18 per cent in the year to date outperforming the Irish market by 12 per cent.

It has also outperformed the UK electricity sector by a similar amount. Given these factors Davy believes the share price can exceed its all-time high of 734p sterling.