NAHL (NAH:AIM) 272p

Gain to date: 24.3%

Previous Shares view: 'Buy' at 263p, 26 Feb 2015

Full-year results (24 Mar) from personal injury marketing specialist NAHL (NAHL:AIM) beat expectations, prompting analysts to upgrade their earnings forecasts once again, having already raised their numbers in January following a strong trading update. Profit before tax (£12.5 million) and the size of the dividend (15.7p) are the star performers this time round.

Investec has pushed up its net income forecast for 2015 by 3.1% to £11.7 million - if achieved this would represent an 16.9% jump on 2014. It also expects 2015 dividend to rise by 20% year-on-year to 18.9p. Based on the current share price, NAHL is therefore trading on a prospective 6.9% dividend yield - a shareholder payout that is covered 1.4 times by earnings per share forecasts. While that's a lower ratio than we'd normally seek from a plc business, we aren't concerned about the sustainability of the dividend as the business is highly cash generative and doesn't need lots of money for capital expenditure.

The stock continues to please, up 24.3% since we put NAHL in the Plays of the Week portfolio (2 Oct '14, 'buy' at 218.75p). The valuation remains attractive despite the share price appreciation, presently trading on 10.1 times 2015 forecast earnings. (DC)