The week’s best buys

Cairn Energy The Times

The Edinburgh-based explorer has delivered a 19% upgrade to oil estimates in Senegal, and sees “significant untested prospectivity” in the North Sea and Mexico. A healthy balance sheet adds to the attraction. Buy. 180.2p.

Headlam Group Investors Chronicle

The floor coverings specialist has expanded to operate out of 60 UK and European trade counters. Warehousing and inventory management is improving, cash generation is strong and a special dividend is possible. Buy. 574p.

ITM Power The Times

ITM turns electricity into hydrogen to provide “clean” vehicle fuel. “More than just a speculative punt,” ITM is a bet that Government policy will include hydrogen in its plan to eliminate petrol and diesel engines. Buy. 28.38p.

Michelmersh Brick Holdings The Daily Telegraph

The value of the land below this brick firm’s factories is accruing – it could be worth £150m in the Home Counties. A recent purchase in Barnsley was “fantastic”. Almost debt-free and cheaply valued. Buy. 79p.

Non-standard Finance The Sunday Times

The doorstep lender is keeping its flexibility while capitalising on the travails of rival The Provvy, poaching over 350 debt collectors. The acquisition of George Banco should boost the home credit business’s profits. Buy. 72p.

NWF Group The Mail on Sunday

NWF operates three distinct businesses: animal feed for dairy cattle, fuel distribution, and groceries warehousing and transportation. Well managed, resilient and growing. Yields nearly 4%. Buy. 159p.