Kelda Group has moved ahead to over £2.70 this week, a significant bounce from a recent low point around £2. The company recently gave a presentation to analysts which confirmed a positive trading outlook. It looks as though the tough OFWAT targets will be achieved, and other non-regulated business is proceeding well.

Kelda's major US acquisition, Aquarion, based in a prosperous part of New England, is the first step in a strategy to develop its US activities in order to increase its non-regulated business. The US water market is seen as of low risk and providing a higher rate of return than in the UK. Kelda will seek to grow its business east of the Mississippi as the market consolidates.

A second factor pushing Kelda's shares up was the news that Welsh water and electricity utility company Hyder may be taken over. If this happens, some market observers consider Kelda to be vulnerable too.

Star shares Filtronic and Pace Micro recovered some lost ground this week, but their prices will continue to be volatile as investors see quickly their promise is translated into orders and profits on a global scale.

Allied Textile, for many years a respected pillar of the textile industry in West Yorkshire, is reducing its North American operations. Loss-making Carleton has filed for protection against its creditors under chapter 11 of the US Bankruptcy code, and Cleyn & Tinker in Canada is likely to be acquired by its management.

Shareholders were informed at the recent annual meeting that trading profits of £3.5m have been achieved in the first five months, and the net cash position has risen from £26.2m to £33.4m over a similar period.

Peter Black recently purchased Hexel International for £19.2m, but this will have come too late to affect profits for the year to January, where a pre-tax figure of around £25m is expected.

As a major supplier to Marks & Spencer, news of current trading will be analysed carefully for evidence of the long awaited revival in M&S fortunes.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.