A lack of a transformational discovery over the past year has proved no obstacle to Premier Oil. Shares in the mid-cap explorer have rallied more than 50 per cent from their August low.

So, although yesterday's headline full-year results were dented by the expense of unsuccessful drilling campaigns in Guinea Bissau, India and Pakistan - as well as accounting charges against its hedging contracts - the greater encouragement came with Premier's shrewd stewardship of its existing assets, particularly, from forging gas sales contracts in South-East Asia.

That meant that although stated pre-tax profits fell 6 per cent, operating cashflow rose 10 per cent after a rise in production to 35,800 barrels.

However, as the company was keen to emphasise, last year's output is less than half its long-term target. Having previously set itself an objective of producing 50,000 barrels a year by 2010, Premier has now set its sights on 80,000 barrels by 2012.

That progress partly depends on the expansion of its existing projects in Vietnam and Indonesia, where the company confirms that key development approvals remain on track. Premier is also well funded.

It had $79 million of cash at the end of last year and secured $250 million of convertible debt on favourable terms last June just before the credit crunch bit. The only concern raised by yesterday's update is that the development of its Froy field offshore Norway - which is not due to enter production until late 2011 - is proving more expensive to develop than expected.

Of more immediate importance is the recommencement of Premier's eagerly awaited exploration campaign. In the next few days it is to start drilling appraisal wells in Vietnam, where the geology is similar to its existing blocks in the region, followed by a three-well programme shortly afterwards.

Further wells will be sunk in Norway in the summer followed, subject to the availability of rigs, by deepwater drilling off Congo - its biggest hope - towards the end of this year.

In the meantime, Premier is faring well in replacing its reserves - at a rate of 460 per cent, as reported yesterday, helped by upgrades to its fields in Indonesia and Pakistan. On the acquisition front, last year's purchase of the Scott field from Hess in the North Sea provided a payback within six months.

Premier's attraction is its combination of solid long-term production growth, efficient reserve replacement and a vigorous exploration programme which, given its recent history, the stock market is not according value. There is also the chance that, should it disappoint, a predator will emerge. Buy at £13.43.

Dignity

A day after the Chancellor turned the stock market's attention to taxes, full-year results from Britain's only quoted undertaker provided a reminder of the revenue potential of life's other certainty. As might be expected, Dignity's numbers contained few surprises.

With the death rate relatively predictable - about 1 per cent of the population every year - and the average price of a funeral continuing to rise ahead of inflation, sales were up 6 per cent.

However, increased scale - Dignity added 21 branches last year - and higher average spend saw operating profits rise 8 per cent, while the company's financial gearing - it has securitised debt of £285 million - helped earnings per share up 26 per cent. The star performer was its crematoriums division, where increased memorial sales drove profits up 16 per cent.

Not that growth is reliant on Dignity's ability to sell higher-margin extras. With only 12 per cent of the market and 70 per cent in the hands of independents, the company has considerable scope for further consolidation. It also has a steadily increasing backlog of pre-paid funeral packages.

The other opportunity, although progress has been slow, is for Dignity to run local authority crematoriums: a long-awaited deal with Rotherham, due to close in the next two months, could pave the way for similar deals.

Add in Dignity's defensiveness and strong cash generation, raising the prospect of a special dividend next year, the shares, at 735p, are a long-term hold.

UTV

It is a measure of how far the media sector has fallen from favour that UTV's equity is valued at only £40 million more that it paid for The Wireless Group three years ago.

But as yesterday's full-year figures from the Northern Ireland broadcaster showed, talkSPORT, Wireless's principal asset, continues to deliver. Like-for-like revenues from the station were up 12 per cent, against its sector's 3 per cent, despite tough comparatives from the 2006 World Cup. A strategy of hiring new presenters, such as Ian Wright, appears to have paid off.

That performance also indicated why UTV is so keen to acquire Virgin Radio, which would enable it to offer advertisers a one-stop shop for a male audience. Equally, selling advertising for both stations together would provide economies of scale. Elsewhere, UTV's Irish radio business showed an improvement in the second half.

But there is no escaping that UTV's television business is very much dependent on ITV1. Although UTV has outperformed ITV in the latest results, it is still dragged down by the commercial broadcaster. UTV is affected by ITV problems from programming to contract rights renewal undertakings.

Even its exposure to a more buoyant Irish economy south of the border and a forward price/earnings multiple of nine at 250p is little comfort next to net debt of £107 million and still terrible sentiment on its sector. Avoid.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive