Small is beautiful for investors with faith

Readers who followed me will have been rewarded handsomely for their faith as Getech more than doubled in value. Shares rose from 44.5p to 94p over the year as the company published a raft of well-received updates.

Getech designs and sells studies featuring complex magnetic, geological and geophysical data to help firms drill for oil and gas.

In October, the Leeds University spin-out announced an 80 per cent leap in annual pre-tax profits and an unexpected hike in its dividend.

Getech raised its final dividend from 0.8p to 1.6p, bringing the total dividend for the year to July 31 to 2.0p, up from 1.0p last year.

The company, led by chief executive Raymond Wolfson, said pre-tax profits soared to £2.25m, up from £1.25m last year, and revenues rose 24 per cent to £8m. It added it is on the hunt for acquisitions and has £4m in the bank.

Analyst Eric Burns at house broker WH Ireland described the full year numbers as “top drawer”.

Getech has its origins in good, solid academia. It is a shining example of how Yorkshire’s universities should be contributing to the economic recovery.

This year, I am betting that we will see signs of emerging recovery in the construction industry.When that happens, Severfield-Rowen will among those to benefit.

The Thirsk-based company is a leading structural steelwork fabricator, but has had a torrid time in recent years.

It has a long track record of major projects, including Arsenal’s Emirates Stadium, the Shard skyscraper and the London 2012 Olympic stadium.

But the group made an underlying pre-tax loss of £21.5m for the 15-month period to March 31 and axed its chief executive Tom Haughey, who had been CEO since July 2007.

Severfield was forced to seek emergency funds after uncovering severe losses on contracts, most notably the Cheesegrater skyscraper in London.

The overrun on the 122 Leadenhall skyscraper has cost the company far more than the kudos of working on such an iconic building will provide in the future.

In the summer, Severfield admitted it had experienced “probably the most challenging period in the group’s history”.

But analysts are starting to see potential for upside. Jefferies has said the worst is behind the company. Indeed, consultants, architects and surveyors are seeing a significant increase in work, which bodes well for the likes of Severfield.

Shares closed yesterday afternoon at 60p.