“We believe global engineering group GKN is well-managed and has a firm eye on cash flow and return on capital employed. It currently trades on a forward P/E of around 14 times and is in a sector that we believe is exhibiting good value at present, both on a national and international basis. The company believes that it is set for another year of continued progress and we recommend it as a ‘buy’ for medium risk investors looking for a balanced opportunity.
 
“The company is regarded as having a good mix of business and geographical spread. Sales and profits have been supported by global light vehicle production with noticeable demand from Japan, China, North America and Europe. Demand for commercial aerospace remained robust in Q1.
 
“The Aerospace part of the business, which is regarded as having higher, more reliable earnings now accounts for around 40% of group profits. In addition, GKN is likely to benefit from the increased production at Airbus and Boeing for some time, and continues to do well from light vehicle production, as global demand is expected to rise this year.”