Sunday share tips: Restore, Helical

The Mail on Sunday's Midas column touted data-storage specialist Restore as a 'buy', calling attention to the resilience of its storage division despite the Covid-19 pandemic and strong demand at its IT unit.

Midas also called attention to the company's reputation for trustworthiness.

"When it comes to storing, shredding and digitalising documents, trust is paramount," it said.

"Reassuringly", the firm's chief executive officer and finance director had splashed out £45,000 of their own money in just the last week scooping up shares in the outfit.

According to Midas, the company might also benefit as it is better positioned than some smaller competitors, which might put themselves up for sale.

It could also count the Ministry of Defence, the Royal Navy and 80% of NHS trusts among its clients.

As well, analysts were predicting a strong recovery in 2021 with the dividend payout seen at 8.5p per share and set to rise again in 2022 and in later years.

The Sunday Times's Sam Chambers thinks shares of Helical are a 'buy' despite the risk that the property developer might defer or scrap its dividend payout.

Yes, the daunting macroeconomic outlook has seen its shares retreat by 21%.

But in the Times's 'Inside the City' column, Chambers pointed to the continued interest from some investors, such as the French outfit that recently scooped up a building near the Barbican from it for £48.5m.

The company had also recently drawn from a revolving credit facility, boosting its cash reserves by £30m to £64m, the tipster said, adding that "analysts still do not see a major risk of breaching the covenants on its debt".

Furthermore, the share price drop had seen a "yawning gap" open up between the shares' market value and their £556.7m net asset value.

According to the tipster, there were also rumours making the rounds that Helical might soon receive another approach from private equity, with the firm having already rebuffed multiple others in the not too distant past.

"There should be enough positives to keep investment coming into London offices, and with a market cap of £437m, Helical looks a manageable target for a brave investor. Buy."