Shares digital

Finals Monday 2 July

BULL POINTS

> Subsidiary has won a major new contract

> Sector performing well

> A number of acquisitions made in the past year

BEAR POINTS

> Profits warning in April

> The shares have kept sliding

SHARES SUMMARY

Unexpectedly high interest costs, incurred after the acquisition of Forfab and RDT, led to a profits warning in April and a slump in the share price from which the company is yet to recover. However, this sector is comfortably outperforming the market, trading has improved slightly and Sovereign has a strong underlying business with a number of acquisitions and its subsidiary, Sovereign Dimensional Survey, securing a significant contract earlier this month. TS