UPDATE: Specialist Energy Group CEO is “quietly confident” about the prospects for Hayward Tyler

---Adds comments from broker finnCap---

Specialist Energy Group (LON:SEGR) chief executive Ewan Lloyd-Baker said this morning he is “quietly confident” about the prospects for Hayward Tyler, the company’s main operating subsidiary.

His comments were made as it was revealed order intake at HT rose 19 per cent to £25.4 million in the third quarter.

HT makes boiler circulating pumps used in power stations to pump water at high temperature and high pressure.

The traditional buyers of BCPs are the large power utilities and leading boiler manufacturers. However the group has also branched into the oil and nuclear industries.

In its update today, Specialist Energy said orders won by HT’s manufacturing division in the quarter included five offshore units for use in oil and gas exploration.

The contracts, expected to be shipped next year, are valued at over £2 million, it added.

Business in the aftermarket has been driven by the nuclear and energy markets, with over £7 million of contracts won since the half year, Specialist Energy revealed.

In the nuclear field, the group secured a major spares contract with Korea Hydro & Nuclear Power, as well as landing deals with TVO Finland and Hatch in the US.

Specialist Energy chief executive Ewan Lloyd-Baker said: "We are delighted that Hayward Tyler has continued its momentum in the core areas of its business activity.

“Indeed, despite the difficult market conditions, we are quietly confident that order intake levels for the year will be ahead of 2010."

Shares in SEGR responded positively to the news and were up 2.8 pence, or more than 9 per cent, at 33.8 pence in early deals.

The company’s broker FinnCap said the update as provided “re-assuring signs of decent order intake”.

Analyst David Buxton went on: “The second half should remain supported by strong aftermarket activity where margins are stronger than manufacturing.

“We anticipate a return of Far Eastern demand over coming months that will benefit growth rates next year.”

Buxton is predicting the company will make pre-tax profits of £2.2 million this year rising to £3.1 million in 2012.

The decline of the share price following the termination of takeover talks puts SEGR on a bargain basement rating of just 5.3 times next year’s earnings.

FinnCap’s Buxton added: “We believe that the third quarter statement provides some comfort that growth will improve going forward, following the gap in order placement by the Chinese and Indian customers (as previously highlighted by management).”