Watermark - One Stop Shop for Airlines

Yes a half decent set of results should set the share price motoring again and reward we patient holders.

Watermark made PAT of £3,117,000 in 2004, but there are £2,329,000 of exceptional costs which should drop out. Assuming 30% tax relief, then PAT should get to £4,747,000 without any growth. That's a fully diluted EPS of about 10.0p.

Interim PAT was up 41%, but it might be hard to replicate such growth in the second half. Neverthless interim growth adds about 1p to EPS, so current consensus forecast EPS of 11.70p looks eminently beatable. I would certainly hope for 12p+ putting WMK on a P/E of little over 10. Could see WMK share price picking up 20% (to 150p) between now and results if everything is okay.