Powerscreen, the shares of which collapsed from 700p to less than 50p in the wake of the Matbro debacle and an investigation by the Serious Fraud Office, can bounce back, according to NCB Stockbrokers.

NCB analyst Mr Rory Gillen says the shares could rise to 200p sterling and the company can return to profit under its new management, once its non-core assets are sold off.

Powerscreen is now concentrating on its crushing and screening businesses, and Mr Gillen believes that the group will be able to realise £56 million from the sale of its materials handling business.