Jennings Brothers is likely to meet its target of 25 new leases by the end of the year, according to Greg Feehely, analyst for Old Mutual Securities.

Feehely was upbeat about the prospects for the company, which yesterday reported a 54% year-on-year increase in pre-tax profit for the first half of 2001.

Feehely warned that the second half of the year was traditionally weaker for the industry than the first half, but said: "We are growing in confidence that the company can exceed our expectations but feel it prudent to err on the side of caution at this stage.

"The shares have continued to outperform difficult markets and with a 4% yield and the likelihood of forecast upgrades we see no reason why this should not continue."