2 December 2011 – trading update/acquisition

Titan Europe has issued a trading update confirming that trading is continuing in line with expectations and it should therefore achieve market forecasts for the coming year.  Thus pre-tax profits of £22m and earnings per share of 17.5p are on the cards.  The group has also made a small bolt-on acquisition in South Africa.  The business being acquired manufactures and repairs wheels used in the agriculture, earthmoving and forklift markets.  Although only small, costing £0.9m, this provides the group with a local presence on the African continent which can obviously be expanded going forward.  With further positive progress forecast for next year the shares remaina BUY.