Sunday newspaper share tips

Sunday Telegraph

LEISURE group Hilton seems to have had a good 2004 and is expected to post a 40% hike in full year pre-tax profits this month, driven by stronger hotels revenues in the second half. It is also likely to argue the hotels business is only in its second year of a three-year recovery. The shares are a long-term bet at 301p.

Plant and tool hire business Ashtead, 80¼p, has emerged from its troubles better-placed to profit from improved trading conditions. After a rollercoaster ride for investors, revenues are up 3.6% on last year, meaning this may be the time to get back in.

South African gemstone explorer Petra Diamonds has discovered a kimberlite pipe - a rock formation holding diamonds - which analysts say could be top class. The company is generating much excitement and at 93½p the shares should go further.

Drugs development group Sinclair Pharma has made major progress in the past few weeks, announcing several deals. It is also expected to make a number of announcements in the coming months including a new oral rinse that should drive shares further. The shares are worth a bet at 130p.

Technology firm Polaron, 190.5p, said last week it was confident of reaching full year market expectations. The firm, which is the UK's only listed nanotechnology group, is expected to post underlying pre-tax profits of £1.8m this year and £4.1m in 2006. The shares are worth holding in the longer term.

The Business

Caffe Uno and Frankie & Benny's owner The Restaurant Group has already reported a 5% rise in same-outlet sales during 2004 and analysts expect full year profits to have risen from £19.3m to £24m. The firm plans to open 20 to 30 more restaurants this year. The shares are a long-term investment at 117p.

Air cargo group Aerobox is trying to grab a slice of the market with a more robust freight box which distributes the load more evenly. Tests showed its boxes suffered 25% less damage than aluminium containers. The shares are an interesting speculation at 18p.