Intercare A profit warning from Intercare this week was another reminder that its drug distribution business is holding back the group, which is trying to focus on manufacturing pharmaceuticals. Although two-thirds of the group's turnover comes from distribution, this low-margin business accounts for less than 40 per cent of profits. The manufacturing division is growing at some 10 per cent a year Hold. International Greetings International Greetings is the AIM-listed group which designs and makes greeting cards and wrapping paper.

It holds a string of "character" merchandise licenses including Harry Potter. The next big thing is The Hulk film, due out in a fortnight, with International Greetings producing display units for retailers. Also in the pipeline is a deal on Shrek 2, for release next July. The company has net cash of £3.4m, giving it the firepower to make acquisitions in a highly fragmented market Attractive. Wilson Bowden If you are going to own a housebuilder, you want to own Wilson Bowden. The group has some of the best profit margins in the sector and among the best returns on capital.

Having closed the books on the first half of the year this week, the group said trading had met forecasts. Wilson Bowden does little work inside the M25, where house prices are weakening. The recent acquisition of Henry Boot, which has bedded down well, took the group even further down the price scale Hold. Wilson Connolly Wilson Connolly is among the least profitable, least efficient companies in the building sector, but it has called in a team of master-builders (led by the Post Office boss Allan Leighton as chairman and Graeme McCallum) to fix the subsidence in its share price. They have made job cuts at head office and demanded more standardised building work by regional offices. Margins, which had dipped below 10 per cent, are creeping back to the target of 15 per cent The value of forward orders is up 10 per cent on last year A good, start, but the shares look too risky.