Leading analyst Nicholas Batram has issued a Buy recommendation for Spirit ahead of its H1 results on Thursday (24 April).

Batram, of Peel Hunt, who set a Target Price of 95p for the company, said: “The absence of snow has helped the group in H1. At the pre-close trading statement Managed LFL for H1 was 4.8% (+6.1% for the last eight weeks of the period), while Leased net income was +2.6% (+6.0%), although this was 2.2% on an underlying basis post changes to supply network ordering processes.

“We are looking for adjusted operating profit to be in the region of £56m, with Leased flat (£15.6m) and Managed improving to c£40.5m (£37.7m). At the PBT level we are looking for c£24m (£22.9m), with higher finance charges reflecting the refinancing.”

He added: “While most of the margin recovery has been taken already, we feel that there is still some more to come. Furthermore, the refinancing gives the group more expansion flexibility. Spirit should also be a beneficiary of an economic recovery that spreads wider and deeper. We would expect current trading to positive as well.”