The necessity of making homes more energy-efficient as utility bills soar has prompted one analyst to add Eaga, the support services group, to his “buy” list.

Ian Jermin, of Landsbanki, believes that as the political pressure rises on the Government to stop more people falling into fuel poverty – those who spend more than 10 per cent of their income on fuel bills – groups such as Newcastle-based Eaga will benefit. The company already holds several key contracts, such as the Government’s £1.5 billion Warm Front programme, and funding for such schemes is likely to increase.

Mr Jermin believes that the shares, up 3p to 136¼p yesterday, are set to be boosted still further by partnerships with energy suppliers and a negotiated rise in the 30 per cent limit on fuel poverty installation work.

Axon, the IT services group that agreed a 600p bid from Infosys over the Bank Holiday weekend, fell 1p to 605p, as hopes of a counterbid faded.

Relax Group rose 4p to 27½p after the debt management company said that it expected to report annual results in line with expectations. The company also said that the difficulties facing the British economy would boost demand for its services.

Polymer Logistics, the packaging group, fell 9p to 24½p after reporting a swing into the red at the halfway stage and giving warning that its full-year profits would be significantly below market expectations.

E-Pay Asia fell 0.375p to 1¼p after it said that it would cancel its AIM listing to save costs following a strategic review. The group will maintain its listing on the Australian Securities Exchange. Highway Insurance Group rose 14¼p to 64p after revealing that it was in advanced takeover talks that could lead to an offer for the company.

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