UK Value Investor November 2013
18
UK Value Investor provides information, not advice. It is for investors who want to make their own investment decisions and are capable of doing so without advice. If you think you need advice then you should seek a professional advisor. Please see the important notes on the back page for further information. November 2013 UK Value Investor For Defensive Value Investors Contents Market Valuation, Forecast and Asset Allocation Page 2 Model Portfolio Review Page 3 Buying: Admiral Group PLC Page 7 FTSE All-Share Stock Screens Page 12 The value of long-term active investors W hen I began to invest about 20 years ago I started out as a passive investor. It was then, and is now, the best way to invest in terms of the balance between effort, risk and returns. Until recently I still told investors to look at passive investing as a starting point, before even thinking about either fund manager picking or stock picking. However, recently I have started to change my opinion. I now think that investors should pick actively managed funds with an explicitly long-term focus, or become an active and direct stock picker themselves, rather than take the passive route. The passive argument is simple. As the mass of active investors try to work out the “correct” price of an investment, they inevitably push its price towards their combined best answer. If the price was obviously too low (or too high) investors would buy (or sell) which would push the price up (or down). That is how the efficient market works. The problem is that passive investing is growing, and passive investing by definition is passive - it pays no consideration to the companies in an index; it just owns them all. As passive investing grows more and more popular we will eventually see companies where their largest shareholders are passive funds who, by definition, are passive. Passive investors are less likely to question company management about pay levels, internal investment decisions, environmental and sustainability issues, or anything else for that matter. The management of these companies will be under ever less pressure to deliver long-term value to shareholders, rather than whatever is in their own short-term interests. On the other hand, active investors (either yourself or the managers of any active funds that you own) have the potential to positively influence the companies they invest in as well as the wider economy. The recent “shareholder spring” was one of the few occasions where active investors behaving as engaged and active owners of capital made the news. Most of the time they do not, but truly active long-term investors remain a vital driver of effective capital allocation decisions within our economy. John Kingham, 1st November 2013 “[Investors] can endeavour to take advantage of short-term opportunities, effectively to “win” against other investors, or they can seek to nurture genuine economic growth in which they can participate." The Marathon Club
-
Upload
uk-value-investor -
Category
Documents
-
view
215 -
download
0
description
Buying Admiral Group PLC
Transcript of UK Value Investor November 2013
Page 1
UK Value Investor provides information, not advice. It is for investors who want to make their own investment decisions andare capable of doing so without advice. If you think you need advice then you should seek a professional advisor. Pleasesee the important notes on the back page for further information.
November 2013
UK Value InvestorFor Defensive Value Investors
ContentsMarket Valuation, Forecast and Asset Allocation Page 2
Model Portfolio Review Page 3
Buying: Admiral Group PLC Page 7
FTSE All-Share Stock Screens Page 12
The value of long-term active investors
When I began to invest about 20 years ago I started out as a passive investor. It was then, and is now,the best way to invest in terms of the balance between effort, risk and returns. Until recently I still told
investors to look at passive investing as a starting point, before even thinking about either fund managerpicking or stock picking. However, recently I have started to change my opinion.
I now think that investors should pick actively managed funds with an explicitly long-term focus, or becomean active and direct stock picker themselves, rather than take the passive route.
The passive argument is simple. As the mass of active investors try to work out the “correct” price of aninvestment, they inevitably push its price towards their combined best answer. If the price was obviously toolow (or too high) investors would buy (or sell) which would push the price up (or down). That is how theefficient market works.
The problem is that passive investing is growing, and passive investing by definition is passive - it pays noconsideration to the companies in an index; it just owns them all. As passive investing grows more and morepopular we will eventually see companies where their largest shareholders are passive funds who, bydefinition, are passive.
Passive investors are less likely to question company management about pay levels, internal investmentdecisions, environmental and sustainability issues, or anything else for that matter. The management ofthese companies will be under ever less pressure to deliver long-term value to shareholders, rather thanwhatever is in their own short-term interests. On the other hand, active investors (either yourself or themanagers of any active funds that you own) have the potential to positively influence the companies theyinvest in as well as the wider economy.
The recent “shareholder spring” was one of the few occasionswhere active investors behaving as engaged and active ownersof capital made the news. Most of the time they do not, buttruly active long-term investors remain a vital driver of effectivecapital allocation decisions within our economy.
John Kingham, 1st November 2013
“[Investors] can endeavour to takeadvantage of short-term opportunities,effectively to “win” against otherinvestors, or they can seek to nurturegenuine economic growth in which theycan participate."
The Marathon Club
Page 2
FTSE 100 at 6,731 Cyclically AdjustedP/E Ratio Description Ben Graham Equity
Allocation (%)7 Year Annualised
Return Forecast (%)
12,800 - 14,700 26 - 30 Very expensive 25 -2.3 to -0.2
10,800 - 12,800 22 - 26 Expensive 25 to 35 -0.2 to 2.2
8,800 - 10,800 18 - 22 Slightly expensive 35 to 45 2.2 to 5.3
6,900 - 8,800 14 - 18 Normal 45 to 55 5.3 to 9.0
5,900 - 6,900 12 - 14 Slightly cheap 55 to 65 9.0 to 11.54,900 - 5,900 10 - 12 Cheap 65 to 75 11.5 to 14.4
3,900 - 4,900 8 - 10 Very cheap 75 14.4 to 18.2
However, unlike the FTSE 100’s previous flirtations with 7,000, this time it does it with a reasonable, ifnot especially attractive, valuation. In 2000, when we first reached 7,000, the index’s price was almost30 times its average earnings over the previous decade. In 2007 when we came close one again,valuations were less extreme thanks to both inflation and the underlying growth of the UK and globaleconomies. Less extreme does not mean cheap though, as the market was still priced at almost 20times the previous decade’s earnings.
And now in 2013, an incredible 13 years after we first reached this level, inflation and economic growthhave combined to push earnings higher, which means that 7,000 is no longer remotely expensive. If wedo hit that level before the end of the year I think we could easily see 8,000 by the end of 2014.
Market valuation, forecast and asset allocationThe UK equity markets have surged again during October, with the FTSE 100 ending the month up around 4%at 6,731, well within reach of its all-time high. At this rate the large cap index could very easily end the yearat a level which has never been seen before.
How such an event would affect the market is unknowable, but if I had to guess (and I don’t) then I would saythat it could kick-start another leg of the bull market which we’ve seen since 2009. The UK economy isgradually recovering and that, combined with news of all-time highs in the stock market, could pull in retailinvestors from other asset classes (such as cash, bond and property).
500
1,000
2,000
4,000
8,000
16,000
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
FTSE 100 Valuations - 1988 to 2013
CAPE 30
CAPE 26
CAPE 22
CAPE 18
CAPE 14
CAPE 12
CAPE 10
CAPE 8
FTSE 100
Page 3
Model portfolio reviewLast month’s sell decisionLast month Go-Ahead left the portfolio at £16.97 per share. The original purchase price was £13.04, socapital gains were just over 30%. £1.065 was received in dividends, which is just over 8% of the originalinvestment, so total returns were just over 38%, or 36% after commission and stamp duty. The holdingperiod was 18 months which gives an annualised return of just over 21%.
When will the bull market end?Along with the general market, the model portfolio has also had a good run and hit another new high inOctober, up to £67,713. In 2012 the portfolio gained 20.4% as the market gained 13.9%, and this year theportfolio is up over 20% again, as is the All-Share index on a total return basis.
While annual gains of more than 20% are welcome, they are not sustainable in the long-term. If you look atthe dividend payments in that time then their annual totals have increased by around 10% in the last year,not 20%. The difference between dividend growth and capital value growth is in part due to an increase inthe valuation multiple that investors are paying for that dividend. This shows up in the lower dividend yieldsthat we’re seeing now, relative to where they were. For example, a year ago the model portfolio yield was4.8% and the index benchmark was at 3.2%, while today they are at 4% and 2.9% respectively. But as I notedin the market valuation section, we’re a long way from bubble territory and valuations are not excessive.
New model income portfolioFrom this month onward I’ll be tracking a new income portfolio and income benchmark (based on a FTSEAll-Share tracking investment trust) alongside the existing “dividend reinvestment” model portfolio. The newincome portfolio is essentially the same as the existing portfolio, with the same holdings in approximately thesame weightings, except for these differences:
● The income portfolio and its benchmark will pay out most of their dividends once a year.
● Rather than pay out all dividends, a cash buffer will be used to smooth out the payments so that theincome paid out goes up every year, preferably ahead of inflation.
● The cash buffer should be approximately equal to one year’s income, so around four or five percentof the whole portfolio on average.
My aim is that this income portfolio will stand as evidence that equities can be a good source of steady andprogressive inflation-beating income for the long-term. You can see how the income portfolio and its indexbenchmark are progressing so far below.
Year (March) Model PortfolioCapital Value Cash Balance Income Drawn
Income as %of Current
Value
Income as %of Originalinvestment
IncomeGrowth
2011 £50,000 100% £0 0.0% 0.0%2012 £49,500 27.1% £1,800 3.6% 3.6%2013 £54,974 10.6% £1,980 3.6% 4.0% 10.0%Totals £3,780 7.6%
Year (March)Index
BenchmarkCapital Value
Cash Balance Income DrawnIncome as %of Current
Value
Income as %of Originalinvestment
IncomeGrowth
2011 £50,000 100% £0 0.0% 0.0%2012 £50,184 2.4% £1,500 3.0% 3.0%2013 £55,676 2.3% £1,650 3.0% 3.3% 10.0%Totals £3,150 6.3%
Page 4
Performance (%) Model Portfolio (A) FTSE All-ShareTracker Trust (B)
Difference(A) - (B)
1 Year 21.1 22.6 - 1.5
Total return from inception (March 2011) 35.4 32.2 3.3
Annualised return from inception 12 11 1
Current cash value £67,713 £66,085 £1,628
Historic dividend yield 4 2.9 1.1
Trailing 1 year beta (lower = less risk) 0.54 1 56% less volatile
Model portfolio performance and statistics
UK Revenue 51% International Revenue 49%
Note that the “average investor” and “bad investor” underperform the market by 3% and 6% per year respectively due toovertrading, buying high and selling low. These figures are based on research cited by Barclays and the book, Monkey with a Pin.
£40,000
£45,000
£50,000
£55,000
£60,000
£65,000
£70,000
Mar-11 Jun-11 Sep-11 Dec-11 Mar- 12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
Model Portfolio Total Return FTSE All-Share Tracker Total Return
Average Investor Bad Investor
Industry Allocation
Industrials, 33%
Financials, 15%
Consumer Services, 13%
Consumer Goods, 11%
Utilities, 7%
Basic Materials, 7%
Telecommunications, 5%
Health Care, 4%
Oil & Gas, 4%
Size Allocation
Large Cap, 52%
Mid Cap, 30%
Small Cap, 18%
Model Portfolio Current HoldingsValue/growth factors: Green = better than FTSE100, Light Red = worse than FTSE100
Rank: Green = high, Amber = medium, Light Red = low - may be sold soon
Rank Weight Name EPIC Index Sector Price PE RatioValue
Div.Yield
Value
PE10
Growth
Rate
Growth
Quality
Debt
RatioUK Focus Purchase Date
1 1.1% Chemring Group PLC CHG FTSE 250 Aerospace & Defense £2.18 9.0 4.4% 8.4 27.1% 93% 3.7 15% 18/04/2011
2 3.9% AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology £33.09 9.2 5.4% 11.1 13.6% 90% 0.9 21% 13/06/2011
4 3.1% Homeserve PLC HSV FTSE 250 Support Services £2.34 11.5 4.8% 13.4 12.7% 93% 1.2 75% 05/08/2013
7 3.7% BHP Billiton PLC BLT FTSE 100 Mining £19.31 13.1 3.9% 13.3 18.3% 90% 4.2 1% 12/09/2011
9 3.8% SSE PLC SSE FTSE 100 Electricity £14.16 17.7 5.9% 15.6 12.8% 88% 3.9 98% 01/11/2011
10 3.2% Tullett Prebon PLC TLPR FTSE 250 Financial Services £3.18 7.7 5.3% 8.4 12.2% 86% 1.8 59% 05/09/2011
11 3.0% Tesco PLC TSCO FTSE 100 Food & Drug Retailers £3.64 9.6 4.1% 13.9 9.3% 95% 2.7 67% 11/06/2012
12 2.9% Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers £2.82 11.0 4.2% 17.3 17.3% 93% 3.4 100% 07/05/2013
13 4.0% Balfour Beatty PLC BBY FTSE 250 Construction & Materials £2.86 10.5 4.9% 11.3 11.1% 88% 2.8 50% 09/08/2011
14 5.0% Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications £2.25 13.7 4.5% 15.2 8.6% 95% 3.0 12% 02/06/2011
15 2.9% Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities £3.53 10.6 4.6% 16.1 10.4% 93% 2.6 71% 10/08/2012
17 3.1% Imperial Tobacco Group PLC IMT FTSE 100 Tobacco £23.29 11.4 4.5% 18.4 13.0% 93% 4.2 19% 08/03/2013
18 4.6% MITIE Group PLC MTO FTSE 250 Support Services £3.15 14.3 3.3% 19.8 13.2% 98% 2.5 100% 16/09/2011
20 2.8% Rio Tinto PLC RIO FTSE 100 Mining £31.58 8.0 3.4% 10.4 18.9% 86% 2.2 10% 07/09/2012
22 4.0% Braemar Shipping Services PLC BMS Small Cap Industrial Transportation £5.37 16.1 4.8% 13.1 7.2% 88% 0.0 68% 13/05/2011
23 5.4% BAE Systems PLC BA. FTSE 100 Aerospace & Defense £4.55 13.7 4.3% 14.5 11.6% 88% 1.7 21% 21/06/2011
25 2.6% ICAP PLC IAP FTSE 250 Financial Services £3.85 14.1 5.7% 14.2 10.4% 86% 1.9 30% 10/04/2012
26 4.2% JD Sports Fashion PLC JD. Small Cap General Retailers £11.36 12.5 2.3% 15.4 20.8% 93% 0.1 82% 16/03/2011
29 2.7% Greggs PLC GRG FTSE 250 Food & Drug Retailers £4.60 12.6 4.2% 14.3 6.7% 90% 0.0 100% 07/12/2012
30 3.6% Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering £4.82 13.8 3.1% 17.2 11.3% 93% 2.4 75% 07/06/2013
31 3.6% British American Tobacco PLC BATS FTSE 100 Tobacco £34.36 16.4 3.9% 24.7 12.6% 95% 2.1 11% 09/09/2013
32 3.8% Cranswick PLC CWK FTSE 250 Food Producers £10.71 13.8 2.8% 18.2 9.9% 95% 0.5 97% 06/11/2012
40 3.1% Amlin PLC AML FTSE 250 Nonlife Insurance £4.26 7.9 5.6% 10.5 3.9% 83% 0.0 23% 08/02/2013
43 2.7% RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance £1.28 9.9 5.7% 9.4 4.4% 79% 0.0 36% 09/01/2012
46 5.7% Mears Group PLC MER Small Cap Support Services £4.28 18.0 1.9% 25.3 16.3% 98% 2.2 100% 24/03/2011
72 3.6% BP PLC BP. FTSE 100 Oil & Gas Producers £4.83 12.4 4.5% 10.0 -0.5% 79% 2.1 30% 04/03/2011
102 3.0% Aviva PLC AV. FTSE 100 Life Insurance £4.49 9.2 4.2% 11.3 -1.4% 73% 0.0 51% 12/03/2012
5.2% Cash
Page 6
Recent Interim Results
29th October 2013 - Braemar Shipping (added to model portfolio on 13th May 2011)
“Braemar is a leading provider of services to the shipping and energy industries globally. The Group isdivided into four operating divisions: Shipbroking, Technical, Logistics and Environmental. These worktogether to offer a unique combination of skills for clients.” (www.braemarplc.com)
Revenue down 17% Adjusted EPS down 15% Dividend unchanged
Quotes from the interim results
In the first half the oversupply of tonnage in most shipping sectors continued to depress the markets and ourshipbroking income. However, our Technical and Logistics businesses performed well and enabled us to ride thecycle and produce a solid result.
Braemar Seascope [Shipbroking division] felt the impact of low freight rates and vessel values, which served toreduce income even though transaction volumes were maintained. The division finished the first half with someoptimism, boosted by a resurgence in dry bulk rates and the addition of significant newbuilding business.Braemar Technical Services ("BTS") [Technical division] ]has reported an excellent half year performance,demonstrating its broad-ranging capability with a widespread global presence. In particular, BTS is providingexpertise to several large, long-term oil and gas projects as well as fulfilling the role of technical consultant to anumber of LNG interests. Our Logistics division, Cory Brothers, continues to see its profitability grow with astrong contribution from ship agency and an improving logistics business.
After several tough years, there is now a degree of optimism in some shipping markets that a cyclical recoveryis underway. This is most evident in the volume of new vessels being ordered and the rise in dry bulk charteringrates. Shipping is intrinsically linked to wider global economic conditions where a gradual improvement can beexpected over a number of years. We expect our Shipbroking division to produce an improved performance inthe second half of the year and our Technical, Logistics and Environmental divisions to continue with a similarlevel of activity to the first half. Overall our full year expectation remains unchanged.
“Compared with their predecessors, modern investors concentrate too much on annual, quarterly, or evenmonthly valuation of what they hold, and on capital appreciation and depreciation generally; and toolittle either on immediate yield or on future prospects and intrinsic worth.”
John Maynard Keynes, 1938
“It is the strongly held belief of the Marathon Club that this short-term focus by all parties leads toinvestment choices being made which fail to maximise the longer-term financial performance of clientportfolios, investee companies and the wider economy. Investors are forming their decisions on outcomesthat cannot be reliably forecast. Managers are allocating capital to value-destroying projects which,nevertheless, deliver on short-term targets such as analysts’ earnings per share estimates. Businesses arebeing valued on the basis of accounting metrics that do not capture the effect of extra-financial factors onlong-term operating performance. In receipt of the wrong signals from investors, investment managersare in danger of inefficiently allocating capital.”
The Marathon Club (in association with the Universities Superannuation Scheme)
Page 7
Buying: Admiral Group PLC (ADM)
Price on 1st November 2013
1,279p
Index
FTSE 100
Sector
Non-life InsuranceMarket cap
£3.5 billion
Revenue
£2.2 billion
Pre-tax profit
£345 million
“The Admiral Group is a highly profitable and fast-growing financial services intermediary. It nowemploys over 6,500 people at its offices in the UK, Canada, Spain, Italy, France, US and India. All itsgrowth has been organic.” (www.admiralgroup.co.uk)
OverviewAdmiral Group is the company behind the well-known Admiral car insurance brand, as well as a few otherslike Elephant.co.uk and Confused.com. It began life in 1993 as a new entrant to the then relatively new directinsurance market. Its market was, and to a large extent still is, higher premium business such as city-dwellingyoung people.
It has grown rapidly from a standing start, up and through its listing on the stock exchange in 2004 to todaywhere it is a multi-billion pound FTSE 100 listed company. Along the way it has helped to disrupt the existinginsurance market with the direct model pioneered by Direct Line. Part of this strategy was the creation ofConfused.com as the UK’s first insurance comparison site, reducing the cost (in terms of time and effort) ofswitching from your existing insurance company (probably a higher cost company that distributes insurancethrough a network of insurance brokers) to, preferrably, Admiral who operate a lower-cost direct-to-marketmodel.
Today Admiral is a very successful company with an enviably progressive record of profitable growth.
10Yr Growth rate
14%
Dividend yield
7.1%
Valuation (PE10)
22.2Growth quality
96%
Debt ratio (max 5)
0
Pension ratio (max 10)
0
Rank
8 (out of 219)Green = Better than FTSE 100, Red = Worse than FTSE 100
0
500
1,000
1,500
2,000
2,500
0
10
20
30
40
50
60
70
80
90
100
2004 2005 2006 2007 2008 2009 2010 2011 2012
£
Millions
Pence
per
share
Adj.Earnings (left axis) Dividends (left axis) Revenue (right axis)
Page 8
Investment analysisSuccessful investing requires the methodical application of a systematic approach in order to achieve specificobjectives, and a checklist is a great aid towards that end. This checklist helps to ensure that the companyunder investigation is high quality, and that its shares are likely to improve the portfolio in the long-run.
Are there less than three companies from this FTSE sector already in the portfolio? YES Admiral is in the Non-life Insurance sector, along with two existing holdings, Amlin and RSA. This meansthat I won’t add any more Non-life insurance companies after Admiral, unless one of these three is sold.
Beyond simply the sector there is some cross-over between Admiral, RSA (via its More Than brand) Amlin (viaits Motor Fleet insurance products) and Aviva, where all four insure UK cars to some extent. However,Admiral is the only one that has UK car insurance as the majority of its business. The other companies all havecar insurance, and UK car insurance in particular, as relatively small parts of their total income. On that basisI don’t think Admiral will make the portfolio “over exposed” to the UK car insurance market.
Will this company increase the geographic diversity of the portfolio?NO Admiral does not increase the geographic diversity of the portfolio because it generates 10% of its
turnover from overseas, while the portfolio overall is closer to 50%. Admiral does have plans to expandinternationally, so over time I would expect the percentage of revenue generated internationally to increase.However, given that Admiral will make the portfolio more UK focused I will be looking for a moreinternational company next time.
Is the company free of dependency risks, e.g. from a small number of key customers, suppliers or staff?NO The main dependency risk that came up during my analysis was the coinsurance and reinsurance
agreements which are used to place 75% of the insurance business that Admiral writes.
In order to run a low-cost, capital-light business, Admiral makes use of an unusual degree of coinsurance andreinsurance, effectively passing 75% of each policy’s risk to other insurance companies. This allows Admiralto grow rapidly and increase returns on equity and returns to shareholders. However, it does mean thatAdmiral is dependent on these contracts staying in place and on broadly similar terms, and Admiral is reliantupon just a handful of insurance companies.
The existing contracts are in place up to the 2014-2016 period, and beyond that they will need to bere-negotiated. If they cannot be “rolled over” on good terms, or at all, then the volumes that Admiral can putthrough will be hurt, or less profitable. These arrangements, and their predecessors, have been used atAdmiral for many years and I could find no obvious reason to expect that they won’t continue in anapproximately similar form in the future, but they still represent a dependency risk.
Is the company in the leading group within its industry?YES Admiral is one of the top 5 private car insurers in the UK.
Does the company have a consistent and successful history?YES Admiral floated on the stock exchange in 2004 and has produced consistently high rates of profitable,
organic growth in every year.
Does the company have any low cost and durable competitive advantages?YES Admiral has some competitive advantages, but they are not all “low cost and durable”, as Warren
Buffett would say.
Admiral’s strategy is to get car drivers to switch from their existing policies to Admiral (via any of the Admiralbrands), and then to retain them as policy holders by providing a good service at a low price.
Page 9
As a direct insurer Admiral has a low-cost advantage over traditional insurers who use insurance brokers.Admiral has an interest in “stirring up” the car insurance market and increasing the number of policy holderswho want to switch. They do this by operating insurance comparison web sites such as Confused.com in theUK and CompareNow.com in the US.
These websites reduce switching costs (i.e. the barriers that customers have from switching from theircurrent provider to a new provider) because you don’t have to look through the yellow pages and talk to lotsof different brokers. This leads to more people looking to switch, especially when the cyclical car insurancemarket is in its price increase phase (i.e. people tend to look for new insurance when their renewal premiumgoes up, but not if it has gone down).
Once somebody is looking to switch then Admiral can compete on service and price, and attempt to retainthem by doing a good job at a good price.
Another relatively mild advantage is their brand name (an intangible asset advantage), which is a relativelylow cost and durable advantage over less well-known insurers.
Has the company been free of major crises during the last decade? If there were any, were they resolvedsuccessfully? YES Admiral has had a very smooth ride since they listed back in 2004. In almost every year there has beennothing to report but good news and steady, progressive growth.
But in 2011 the company went through a brief rough patch. It would be hard to call 2011 a crisis from anoperational point of view, but with a 50% decline in share price it was definitely a crisis for shareholders.
So what went wrong? Not much in fact. In the third quarter the company announced that earnings wouldbe towards the bottom end of expectations. This was due to slightly higher than expected claim levels which,due to the levering effect of Admiral’s heavy use of coinsurance and reinsurance, led to magnified reductionsin profit growth.
Note that I said reductions in profit growth, not profits, because profits in 2011 still grew by more than 13%.
The other factor that spooked the market was the announcement by the Government that personal injuryreferral fees from legal firms were to be banned. Admiral estimated that earnings lost from this source wouldamount to around 6%.
The combination of these two factors which, with hindsight, now appear to have been relatively minor, werethe cause of a savage 50% share price decline. This is a lesson, if ever one were needed, that Mr Market canget very depressed, or very excited, over very minor events.
Is the company free of current problems or risks (including excessive debt) which could materially impactits future prosperity? YES Admiral doesn’t seem to have any obvious problems at the moment beyond the minor bumps that youhave to expect with most companies, most of the time. So why does a company with a double digit growthrate have a dividend yield close to 7%? I think there are several reasons.
The first is that Admiral has always traded on a relatively modest multiple, at least relative to dividends.The company is unusual in that it pays out almost 100% of its earnings as dividends. This means that evennow with a dividend yield of more than 7%, the PE ratio is 13.4. All those investors that screen primarily onPE ratios (and there are many) will not find Admiral very interesting.
For dividend investors, the problem is that although the yield is astonishingly high, it is broken into twoparts: the “normal” dividend, which in 2012 was 22.7p, and a “special” dividend, which in 2012 was 27.9p.
Page 10
Usually a special dividend is a one-off; something that happens once in a blue moon, but Admiral’s is differ-ent. For some reason or other the company has decided on a dividend policy of paying 45% of profits outas the normal dividend, and topping that up, so far every year, with a special dividend. The special dividendis made up of surplus cash, after taking into account “our required solvency, provision for our overseas ex-pansion plans, and a margin for contingencies”.
On that basis the special dividend doesn’t appear to be a typical special dividend, and so I have consideredit as part of the normal dividend for valuation purposes, rather than as a special one-off distribution. Myexpectation, which I think is reasonable, is that the special portion of the dividend will continue to be paid.
These issues have a permanent dampening effect on Admiral’s share price, and the problems of 2011, al-though relatively minor, have further depressed the share price, potentially making it more attractive.
Is it highly unlikely that the company’s economic engine will become obsolete in the next decade? YES Insurance is something that will always be needed and car insurance, although commoditised, ismandatory and therefore relatively immune to economic cycles.
I think it’s reasonable to expect that the car insurance business will change in the years ahead, but that it willstill be around, and will probably be bigger than it is today in 10, 50 or 100 years.
However, Admiral is not without risk and 2011 showed that some major risks stem from its heavy use ofcoinsurance and reinsurance. These are a form of operational leverage and while leverage magnifies profitsand increases return on equity, it can also magnify earnings volatility and losses.
Making the tradeShares in Admiral Group will be added to the model portfolio a few days after this issue is published, with theusual position size of approximately 1/30th of the portfolio’s total value.
Higher ranked companies that were skipped over Reason for not investing
FirstGroup PLC The recent large rights issue means that past “per share”results do not relate well to future “per share” results.
Vedanta Resources PLC Too much debtPhoenix IT Group PLC Too UK focused and too small
Please remember that this investment analysis is for education only. It should not be construed as advice and should not berelied upon before investing. You should perform your own analysis and independent factual verification. If you need adviceyou should seek a financial advisor. Please see the important notes on the last page.
“The most important change in my 40 years of investing has probably been in investors’ time horizons.Today the majority of investors – Ben Graham would call them speculators – are focused so closely on thisweek, this month and this quarter. Stocks are bought and sold on penny deviations from short-termestimates, which is mind-boggling. Crazy as it is, we can’t complain – it just creates more opportunities forinvestors with longer time horizons.”
William Nasgovitz
“We have no problem buying things that take a long time to play out. Call me lazy, but I don't want toworry about last week's same-store sales or next week's oil price.”
Jeffrey Schwarz
Page 11
A quick guide to the model portfolio and stock screenPortfolio management policies and proceduresDeliberate Diversification - To reduce the risks that come with each individual company and its shares, it isgenerally considered a good idea to hold a widely diversified portfolio.
The model portfolio is diversified in terms of the number of companies (with a target of 30 equallyweighted holdings), the industrial spread of those companies (no more than 2 or 3 from the same Sector)and their geographic spread (no more than 50% of portfolio revenue to be generated in the UK).
Continuous Portfolio Improvement - A portfolio of stocks is a dynamic entity much like a garden. If it is leftunmanaged (as with a pure buy-and-hold portfolio) there is a risk that over time the portfolio will drift awayfrom its original goal. For example a high yield portfolio may become an average yield portfolio if the shareprices of all the holdings increase faster than the dividends.
To avoid this, the portfolio is actively managed to make sure that it only contains high quality companieswith attractively valued shares. Each month a company is either added to or removed from the portfoliobased on its Stock Screen rank and various other factors.
Buy and sell proceduresBuy Decisions - Each buy decision starts by looking through the Stock Screen for the highest ranked stockwhich is not already in the portfolio and which has a debt ratio of less than five (a debt ratio of more thanfive is highlighted in red).
The second step is to enter the companies results from the past decade into the investment analysisworksheet or spreadsheet which are available on the website. This makes it easier to see if the past resultsdo actually match what the stock screen suggests, in terms of profitability, growth and consistency.
If all of that looks okay then the next step is to check the total defined pension benefit liabilities to see ifthey are excessive relative to the company’s earnings power.
Another step is to review the qualitative history of the company over the past decade, i.e. to read its annualreports in order to get a picture of what it has been doing and what problems it has faced in recent years.
Finally, all these strands are pulled together to try to answer the questions in the investment analysischecklist about the company’s past, its present and its potential future.
Sell Decisions - Sell decisions are made primarily on an existing holdings rank, with the lowest rankedshares most likely to be sold. However, there is a degree of subjectivity involved and it isn’t a purelymechanical process. For example, companies which are surrounded by a reasonable amount of good newsare more likely to be sold than those which are still unloved, or which are still in the middle of a turnaroundstrategy.
The Stock ScreenThe stock screen ranks stocks based on a combination of their cyclically adjusted earnings and dividendyields, as well as the long-term growth rate and quality of that growth.
Each of these factors is based on academic research and together create a unique screen which focuseshigh yield shares from companies which have produced high quality results in the past.
Stock Screen - Sorted by RankColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high
Rank Name EPIC Index Sector
Share
Price PE Ratio
(Value)
Div.Yield
(Value)
PE10
(Growth)
Rate
(Growth)
Quality
Debt
Ratio
Earnings
Power (m)
1 Chemring Group PLC CHG FTSE 250 Aerospace & Defense £2.18 9.0 4.4% 8.4 27.1% 93% 3.7 £93
2 AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology £33.09 9.2 5.4% 11.1 13.6% 90% 0.9 £6,748
3 FirstGroup PLC FGP FTSE 250 Travel & Leisure £1.16 5.4 5.4% 3.9 6.3% 90% 4.3 £645
4 Homeserve PLC HSV FTSE 250 Support Services £2.34 11.5 4.8% 13.4 12.7% 93% 1.2 £107
5 Phoenix IT Group PLC PNX Small Cap Software & Computer Services £1.47 10.0 5.3% 6.3 11.3% 86% 2.9 £30
6 Vedanta Resources PLC VED FTSE 100 Mining £10.63 32.8 3.5% 10.7 15.6% 90% 22.9 £478
7 BHP Billiton PLC BLT FTSE 100 Mining £19.31 13.1 3.9% 13.3 18.3% 90% 4.2 £5,528
8 Admiral Group PLC ADM FTSE 100 Nonlife Insurance £12.79 13.5 7.1% 22.2 14.0% 96% 0.0 £307
9 SSE PLC SSE FTSE 100 Electricity £14.16 17.7 5.9% 15.6 12.8% 88% 3.9 £1,541
10 Tullett Prebon PLC TLPR FTSE 250 Financial Services £3.18 7.7 5.3% 8.4 12.2% 86% 1.8 £141
11 Tesco PLC TSCO FTSE 100 Food & Drug Retailers £3.64 9.6 4.1% 13.9 9.3% 95% 2.7 £4,021
12 Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers £2.82 11.0 4.2% 17.3 17.3% 93% 3.4 £707
13 Balfour Beatty PLC BBY FTSE 250 Construction & Materials £2.86 10.5 4.9% 11.3 11.1% 88% 2.8 £308
14 Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications £2.25 13.7 4.5% 15.2 8.6% 95% 3.0 £13,662
15 Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities £3.53 10.6 4.6% 16.1 10.4% 93% 2.6 £2,079
16 Carillion PLC CLLN FTSE 250 Support Services £3.04 8.8 5.7% 11.3 11.1% 86% 4.1 £198
17 Imperial Tobacco Group PLC IMT FTSE 100 Tobacco £23.29 11.4 4.5% 18.4 13.0% 93% 4.2 £2,278
18 MITIE Group PLC MTO FTSE 250 Support Services £3.15 14.3 3.3% 19.8 13.2% 98% 2.5 £114
19 Sainsbury (J) PLC SBRY FTSE 100 Food & Drug Retailers £3.95 14.3 4.2% 23.4 23.4% 90% 4.8 £579
20 Rio Tinto PLC RIO FTSE 100 Mining £31.58 8.0 3.4% 10.4 18.9% 86% 2.2 £7,388
21 British Sky Broadcasting Group PLC BSY FTSE 100 Media £9.38 8.5 3.2% 20.3 13.9% 98% 2.0 £1,439
22 Braemar Shipping Services PLC BMS Small Cap Industrial Transportation £5.37 16.1 4.8% 13.1 7.2% 88% 0.0 £16
23 BAE Systems PLC BA. FTSE 100 Aerospace & Defense £4.55 13.7 4.3% 14.5 11.6% 88% 1.7 £1,777
24 Pennon Group PLC PNN FTSE 250 Gas, Water & Multiutilities £6.81 12.3 4.2% 20.1 10.9% 95% 11.1 £239
25 ICAP PLC IAP FTSE 250 Financial Services £3.85 14.1 5.7% 14.2 10.4% 86% 1.9 £301
26 JD Sports Fashion PLC JD. Small Cap General Retailers £11.36 12.5 2.3% 15.4 20.8% 93% 0.1 £66
27 Chesnara PLC CSN Small Cap Life Insurance £2.92 10.2 5.9% 15.3 5.4% 89% 0.0 £39
28 Halfords Group PLC HFD FTSE 250 General Retailers £4.24 15.0 4.0% 13.5 6.1% 88% 1.1 £110
29 Greggs PLC GRG FTSE 250 Food & Drug Retailers £4.60 12.6 4.2% 14.3 6.7% 90% 0.0 £59
30 Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering £4.82 13.8 3.1% 17.2 11.3% 93% 2.4 £40
31 British American Tobacco PLC BATS FTSE 100 Tobacco £34.36 16.4 3.9% 24.7 12.6% 95% 2.1 £5,013
32 Cranswick PLC CWK FTSE 250 Food Producers £10.71 13.8 2.8% 18.2 9.9% 95% 0.5 £55
33 Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers £21.60 9.2 5.1% 10.2 8.6% 81% 1.1 £21,232
34 Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction £48.48 19.6 2.8% 29.8 17.0% 100% 1.4 £2,336
35 National Grid PLC NG. FTSE 100 Gas, Water & Multiutilities £7.85 12.8 5.2% 14.9 7.5% 86% 8.4 £3,362
36 Beazley PLC BEZ FTSE 250 Nonlife Insurance £2.29 9.0 3.6% 13.7 10.8% 86% 0.0 £149
37 Sage Group (The) PLC SGE FTSE 100 Software & Computer Services £3.37 17.0 3.2% 22.7 13.1% 93% 0.7 £303
38 Stagecoach Group PLC SGC FTSE 250 Travel & Leisure £3.52 12.2 2.4% 19.7 14.3% 90% 4.4 £186
39 Serco Group PLC SRP FTSE 250 Support Services £5.57 14.7 1.8% 24.5 17.4% 100% 3.4 £227
40 Amlin PLC AML FTSE 250 Nonlife Insurance £4.26 7.9 5.6% 10.5 3.9% 83% 0.0 £337
41 Smiths News PLC NWS Small Cap Support Services £2.10 12.3 4.4% 14.5 6.4% 86% 2.3 £46
42 Huntsworth PLC HNT Small Cap Media £0.66 10.8 5.3% 7.1 5.1% 81% 1.5 £48
43 RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance £1.28 9.9 5.7% 9.4 4.4% 79% 0.0 £785
44 Intermediate Capital Group PLC ICP FTSE 250 Financial Services £4.80 14.7 4.2% 10.9 -1.1% 87% 3.8 £309
45 Brown (N) Group PLC BWNG FTSE 250 General Retailers £5.25 18.4 2.6% 25.4 11.9% 95% 2.2 £111
46 Mears Group PLC MER Small Cap Support Services £4.28 18.0 1.9% 25.3 16.3% 98% 2.2 £33
47 Headlam Group PLC HEAD Small Cap Household Goods & Home Construction £3.97 15.7 3.7% 13.7 -2.4% 88% 0.8 £43
48 G4S PLC GFS FTSE 100 Support Services £2.62 13.2 3.4% 19.5 12.2% 88% 6.7 £367
49 Wood Group (John) PLC WG. FTSE 250 Oil Equipment, Services & Distribution £8.12 17.3 1.3% 13.4 29.0% 86% 0.5 £389
50 Marston's PLC MARS FTSE 250 Travel & Leisure £1.52 13.2 4.0% 10.7 -1.4% 83% 8.7 £136
51 Morgan Sindall PLC MGNS Small Cap Construction & Materials £7.92 10.8 3.4% 10.1 6.1% 76% 0.1 £52
52 DCC PLC DCC FTSE 250 Support Services £27.99 16.8 2.5% 21.6 14.0% 88% 4.3 £191
53 Hyder Consulting PLC HYC Small Cap Support Services £5.46 11.6 2.2% 17.1 22.7% 88% 0.4 £22
54 Synergy Health PLC SYR FTSE 250 Health Care Equipment & Services £10.37 18.8 2.0% 29.2 16.4% 98% 5.0 £41
55 Charles Taylor PLC CTR Small Cap Financial Services £2.23 13.9 4.5% 10.1 -1.0% 81% 2.8 £15
56 BG Group PLC BG. FTSE 100 Oil & Gas Producers £12.74 12.4 1.3% 18.6 14.7% 93% 2.2 £4,335
57 Barclays PLC BARC FTSE 100 Banks £2.64 60.5 2.3% 8.0 -9.2% 82% 0.0 £8,756
58 Anglo Pacific Group PLC APF Small Cap Mining £2.22 34.9 4.6% 18.4 9.5% 83% 0.0 £22
59 Capita Group (The) PLC CPI FTSE 100 Support Services £9.86 23.4 2.4% 32.7 14.8% 98% 4.0 £388
60 Menzies (John) PLC MNZS FTSE 250 Support Services £8.19 12.1 3.1% 18.1 4.4% 93% 2.5 £51
61 Standard Chartered PLC STAN FTSE 100 Banks £15.00 12.6 3.6% 15.2 7.1% 86% 0.0 £4,093
62 Catlin Group Ltd CGL FTSE 250 Nonlife Insurance £5.12 10.7 5.8% 12.1 4.4% 80% 0.0 £245
63 Aggreko PLC AGK FTSE 100 Support Services £16.10 16.1 1.5% 31.7 26.5% 100% 2.3 £273
64 Greene King PLC GNK FTSE 250 Travel & Leisure £8.25 16.1 3.2% 16.8 5.5% 88% 7.9 £189
65 Atkins (W S) PLC ATK FTSE 250 Support Services £12.34 13.2 2.6% 17.5 9.2% 88% 0.9 £124
66 GlaxoSmithKline PLC GSK FTSE 100 Pharmaceuticals & Biotechnology £16.44 18.1 4.5% 18.2 3.9% 88% 2.4 £7,719
67 Go-Ahead Group (The) PLC GOG FTSE 250 Travel & Leisure £16.82 13.5 4.8% 11.9 5.1% 76% 3.6 £93
68 Fenner PLC FENR FTSE 250 Industrial Engineering £4.00 12.9 2.6% 25.1 12.8% 90% 3.7 £56
69 Management Consulting Group PLC MMC Small Cap Support Services £0.25 7.5 3.3% 5.0 1.5% 81% 1.2 £39
70 Cobham PLC COB FTSE 250 Aerospace & Defense £2.88 14.7 3.1% 21.8 12.7% 88% 2.5 £252
71 Investec PLC INVP FTSE 250 Financial Services £4.37 12.8 4.1% 10.9 0.1% 82% 0.0 £401
72 BP PLC BP. FTSE 100 Oil & Gas Producers £4.83 12.4 4.5% 10.0 -0.5% 79% 2.1 £14,274
73 Chime Communications PLC CHW Small Cap Media £3.17 62.5 2.3% 20.5 13.8% 88% 0.5 £26
74 Domino's Pizza UK & IRL PLC DOM FTSE 250 Travel & Leisure £5.86 23.1 2.5% 48.1 25.7% 100% 1.2 £40
75 Restaurant Group (The) PLC RTN FTSE 250 Travel & Leisure £5.76 23.6 2.0% 34.6 13.3% 100% 0.8 £67
76 NCC Group PLC NCC Small Cap Software & Computer Services £1.64 23.1 1.9% 40.0 23.9% 100% 1.8 £17
77 Croda International PLC CRDA FTSE 100 Chemicals £24.36 18.8 2.4% 39.6 24.3% 98% 1.6 £163
78 Domino Printing Sciences PLC DNO FTSE 250 Electronic & Electrical Equipment £6.92 21.2 3.0% 27.8 12.3% 90% 0.7 £51
79 Antofagasta PLC ANTO FTSE 100 Mining £8.55 8.8 1.6% 14.1 16.8% 83% 1.2 £994
80 HSBC Holdings PLC HSBA FTSE 100 Banks £6.82 13.8 4.2% 11.7 0.2% 79% 0.0 £17,113
81 Fisher (James) & Sons PLC FSJ FTSE 250 Industrial Transportation £11.12 20.4 1.6% 28.2 12.5% 98% 2.1 £39
82 Victrex PLC VCT FTSE 250 Chemicals £16.50 19.5 2.3% 33.8 15.7% 95% 0.0 £79
83 Spirax-Sarco Engineering PLC SPX FTSE 250 Industrial Engineering £29.18 22.8 1.9% 34.3 12.8% 100% 0.4 £128
84 Marks & Spencer Group PLC MKS FTSE 100 General Retailers £5.04 17.0 3.4% 14.9 2.8% 83% 2.5 £910
85 Ladbrokes PLC LAD FTSE 250 Travel & Leisure £1.91 9.0 4.7% 8.1 -4.1% 76% 1.3 £330
Stock Screen - Sorted by RankColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high
Rank Name EPIC Index Sector
Share
Price PE Ratio
(Value)
Div.Yield
(Value)
PE10
(Growth)
Rate
(Growth)
Quality
Debt
Ratio
Earnings
Power (m)
86 Fidessa Group PLC FDSA FTSE 250 Software & Computer Services £20.25 25.2 1.8% 40.2 21.3% 98% 0.0 £37
87 Man Group PLC EMG FTSE 250 Financial Services £0.89 -5.7 16.2% 4.7 -8.1% 71% 1.1 £494
88 Vitec Group (The) PLC VTC Small Cap Industrial Engineering £7.03 14.8 3.1% 19.3 7.4% 86% 2.7 £28
89 Centaur Media PLC CAU Small Cap Media £0.56 16.3 4.3% 12.4 -4.0% 81% 2.2 £10
90 IMI PLC IMI FTSE 100 Industrial Engineering £15.19 18.6 2.1% 30.1 10.9% 98% 0.8 £309
91 AMEC PLC AMEC FTSE 100 Oil Equipment, Services & Distribution £11.77 15.2 3.1% 28.1 14.8% 88% 0.8 £220
92 Bunzl PLC BNZL FTSE 100 Support Services £13.77 22.4 2.0% 30.7 9.3% 100% 2.8 £299
93 William Hill PLC WMH FTSE 100 Travel & Leisure £4.01 16.3 2.6% 16.7 -8.2% 90% 1.1 £376
94 RPS Group PLC RPS FTSE 250 Support Services £2.90 22.7 2.2% 22.5 11.3% 90% 0.6 £51
95 Smith & Nephew PLC SN. FTSE 100 Health Care Equipment & Services £7.97 14.4 2.1% 22.4 13.1% 90% 0.5 £577
96 Weir Group PLC WEIR FTSE 100 Industrial Engineering £22.55 17.0 1.7% 34.5 21.6% 95% 4.1 £265
97 Speedy Hire PLC SDY Small Cap Support Services £0.65 75.6 0.8% 9.0 -25.9% 81% 1.2 £61
98 PayPoint PLC PAY FTSE 250 Support Services £10.41 23.0 2.9% 32.7 12.3% 93% 0.0 £40
99 RPC Group PLC RPC FTSE 250 General Industrials £5.10 13.4 2.9% 20.5 11.5% 86% 3.0 £71
100 Diageo PLC DGE FTSE 100 Beverages £19.87 18.8 2.4% 29.9 8.1% 95% 3.2 £3,173
101 Darty PLC DRTY Small Cap General Retailers £0.83 19.4 3.6% 6.4 -10.6% 71% 1.9 £98
102 Aviva PLC AV. FTSE 100 Life Insurance £4.49 9.2 4.2% 11.3 -1.4% 73% 0.0 £1,704
103 WPP Group PLC WPP FTSE 100 Media £13.25 20.2 2.2% 29.3 12.8% 93% 4.2 £1,126
104 CRH PLC CRH FTSE 100 Construction & Materials £15.23 24.4 2.9% 15.3 3.8% 83% 3.3 £1,213
105 Clarkson PLC CKN Small Cap Industrial Transportation £20.16 28.8 2.5% 17.7 7.2% 86% 0.0 £37
106 Rotork PLC ROR FTSE 250 Industrial Engineering £28.63 28.2 1.5% 47.5 17.5% 100% 0.0 £105
107 Anglo-Eastern Plantations PLC AEP Small Cap Food Producers £6.75 8.2 0.4% 12.6 15.6% 81% 0.4 £35
108 Halma PLC HLMA FTSE 250 Electronic & Electrical Equipment £5.49 23.8 1.9% 35.8 9.8% 100% 1.4 £116
109 Meggitt PLC MGGT FTSE 100 Aerospace & Defense £5.73 17.7 2.1% 28.7 11.6% 90% 2.6 £287
110 Renishaw PLC RSW FTSE 250 Electronic & Electrical Equipment £16.22 17.2 2.5% 31.2 12.9% 90% 0.0 £68
111 SABMiller PLC SAB FTSE 100 Beverages £32.54 23.1 2.0% 37.5 13.6% 95% 4.6 £2,655
112 Fuller Smith & Turner PLC FSTA Small Cap Travel & Leisure £9.08 20.7 1.5% 29.9 10.5% 98% 7.2 £19
113 St Ives PLC SIV Small Cap Support Services £1.81 13.2 3.6% 10.2 -10.6% 69% 1.0 £29
114 Intertek Group PLC ITRK FTSE 100 Support Services £33.32 27.6 1.2% 49.7 18.8% 100% 3.3 £216
115 ITE Group PLC ITE FTSE 250 Media £3.22 24.8 2.0% 34.2 12.7% 93% 0.7 £44
116 Pearson PLC PSON FTSE 100 Media £13.04 25.5 3.5% 27.3 6.7% 88% 3.3 £689
117 Cable & Wireless Communications PLC CWC FTSE 250 Fixed Line Telecommunications £0.47 24.9 5.5% 17.2 1.7% 74% 11.7 £102
118 Spectris PLC SXS FTSE 250 Electronic & Electrical Equipment £23.12 19.3 1.7% 35.3 13.9% 95% 1.9 £148
119 FTSE 100 6,731 15.8 3.5% 15.1 3.6% 81%
120 Whitbread PLC WTB FTSE 100 Travel & Leisure £34.33 22.1 1.7% 38.3 14.0% 95% 1.7 £308
121 Bloomsbury Publishing PLC BMY Small Cap Media £1.73 15.8 3.2% 14.8 1.0% 83% 0.0 £14
122 Dairy Crest Group PLC DCG FTSE 250 Food Producers £5.37 11.7 3.9% 13.6 1.0% 74% 4.4 £80
123 Communisis PLC CMS Small Cap Support Services £0.63 11.3 2.6% 9.7 -9.5% 69% 2.4 £17
124 Keller Group PLC KLR FTSE 250 Construction & Materials £10.51 19.4 2.2% 17.1 5.7% 86% 1.4 £75
125 Senior PLC SNR FTSE 250 Aerospace & Defense £2.98 16.2 1.6% 27.3 18.7% 88% 1.4 £80
126 Aberdeen Asset Management PLC ADN FTSE 100 Financial Services £4.43 25.2 2.6% 46.5 20.1% 90% 11.6 £207
127 Ultra Electronics Holdings PLC ULE FTSE 250 Aerospace & Defense £19.34 20.7 2.1% 28.8 13.6% 88% 0.9 £82
128 Premier Farnell PLC PFL FTSE 250 Support Services £2.26 15.0 4.6% 17.1 4.8% 67% 4.5 £65
129 Babcock International Group PLC BAB FTSE 100 Support Services £12.75 21.2 2.1% 36.8 21.9% 90% 3.1 £227
130 KCOM Group PLC KCOM FTSE 250 Fixed Line Telecommunications £1.01 12.2 4.4% 17.6 8.3% 79% 2.2 £46
131 Burberry Group PLC BRBY FTSE 100 Personal Goods £15.35 19.6 1.9% 37.7 17.1% 93% 0.4 £336
132 Diploma PLC DPLM FTSE 250 Support Services £6.93 24.4 2.1% 46.9 15.3% 95% 0.1 £32
133 4imprint Group PLC FOUR Small Cap Media £6.28 26.9 2.5% 32.6 7.7% 93% 0.7 £10
134 Provident Financial PLC PFG FTSE 250 Financial Services £15.80 14.5 4.9% 22.6 4.2% 83% 7.4 £162
135 Low & Bonar PLC LWB Small Cap Construction & Materials £0.77 16.7 3.1% 13.9 -1.4% 76% 3.9 £28
136 De La Rue PLC DLAR FTSE 250 Support Services £8.55 16.9 5.0% 18.8 5.5% 76% 1.5 £69
137 Aveva Group PLC AVV FTSE 250 Software & Computer Services £25.86 35.2 1.0% 55.2 27.1% 95% 0.0 £57
138 London Stock Exchange Group PLC LSE FTSE 100 Financial Services £16.42 21.8 1.8% 29.1 13.8% 88% 3.0 £270
139 Severn Trent PLC SVT FTSE 100 Gas, Water & Multiutilities £18.57 22.4 4.1% 23.4 2.4% 86% 14.8 £325
140 Interserve PLC IRV FTSE 250 Support Services £6.14 19.0 3.3% 21.7 6.2% 83% 0.8 £61
141 PZ Cussons PLC PZC FTSE 250 Personal Goods £3.94 23.3 1.9% 30.7 10.3% 93% 1.0 £102
142 Computacenter PLC CCC FTSE 250 Software & Computer Services £5.94 15.1 2.9% 21.4 9.3% 83% 0.3 £64
143 Barr (A G) PLC BAG FTSE 250 Beverages £5.24 22.5 1.9% 35.3 8.5% 98% 0.8 £34
144 Millennium & Copthorne Hotels PLC MLC FTSE 250 Travel & Leisure £5.70 15.1 2.4% 18.9 9.1% 83% 2.2 £163
145 United Utilities Group PLC UU. FTSE 100 Gas, Water & Multiutilities £7.05 19.9 4.9% 16.6 -4.0% 74% 14.4 £428
146 Informa PLC INF FTSE 250 Media £5.60 16.2 3.3% 23.6 7.6% 86% 3.4 £245
147 Laird PLC LRD FTSE 250 Technology Hardware & Equipment £2.50 19.0 4.0% 18.2 -2.7% 83% 2.9 £61
148 Paragon Group of Companies (The) PLC PAG FTSE 250 Financial Services £3.39 10.8 1.8% 4.9 -12.4% 75% 28.7 £319
149 Devro PLC DVO FTSE 250 Food Producers £3.16 16.1 2.7% 26.2 10.9% 86% 0.9 £35
150 Hays PLC HAS FTSE 250 Support Services £1.25 24.3 2.0% 17.1 0.2% 79% 0.9 £161
151 Kier Group PLC KIE FTSE 250 Construction & Materials £18.09 17.6 3.8% 17.5 4.7% 79% 1.2 £89
152 Rexam PLC REX FTSE 100 General Industrials £5.20 13.9 2.9% 15.3 0.7% 79% 5.3 £421
153 Tate & Lyle PLC TATE FTSE 100 Food Producers £7.92 13.8 3.3% 17.9 2.2% 81% 2.7 £333
154 Compass Group PLC CPG FTSE 100 Travel & Leisure £8.97 28.8 2.4% 38.1 11.6% 90% 2.3 £768
155 Telecom plus PLC TEP FTSE 250 Fixed Line Telecommunications £15.43 40.4 2.0% 74.0 25.5% 90% 0.1 £27
156 Unilever PLC ULVR FTSE 100 Food Producers £25.25 20.3 3.1% 20.2 5.2% 83% 3.0 £2,732
157 F&C UK Real Estate Investment Ltd FCRE Small Cap Real Estate Investment & Services £0.79 44.7 8.4% 17.5 -2.4% 60% 9.9 £11
158 Vp PLC VP. Small Cap Support Services £4.98 20.7 2.5% 25.7 7.6% 86% 4.1 £13
159 Smiths Group PLC SMIN FTSE 100 General Industrials £14.35 15.1 2.8% 20.2 6.0% 81% 2.5 £454
160 Marshalls PLC MSLH Small Cap Construction & Materials £1.74 23.6 3.0% 15.2 -10.3% 69% 2.5 £31
161 Prudential PLC PRU FTSE 100 Life Insurance £12.79 14.4 2.3% 30.6 7.8% 90% 0.0 £1,938
162 Shanks Group PLC SKS Small Cap Support Services £1.06 21.8 3.3% 16.0 -1.8% 76% 8.8 £40
163 Electrocomponents PLC ECM FTSE 250 Support Services £2.98 19.1 3.9% 20.2 1.4% 71% 1.9 £93
164 Lavendon Group PLC LVD Small Cap Support Services £1.84 18.5 1.5% 12.1 4.8% 74% 2.9 £38
165 ARM Holdings PLC ARM FTSE 100 Technology Hardware & Equipment £9.86 85.7 0.5% 202.7 21.7% 93% 0.0 £126
166 United Drug PLC UDG FTSE 250 Food & Drug Retailers £3.12 18.6 0.5% 21.0 6.4% 86% 3.7 £61
167 Old Mutual PLC OML FTSE 100 Life Insurance £2.04 15.8 3.4% 14.6 -3.1% 79% 0.0 £1,073
168 Brammer PLC BRAM Small Cap Support Services £4.84 23.1 1.9% 34.1 11.3% 90% 1.8 £30
169 Next PLC NXT FTSE 100 General Retailers £54.45 18.6 1.9% 29.3 8.8% 90% 1.4 £522
170 Tarsus PLC TRS Small Cap Media £2.47 30.7 2.8% 27.0 10.0% 81% 1.8 £14
Stock Screen - Sorted by RankColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high
Rank Name EPIC Index Sector
Share
Price PE Ratio
(Value)
Div.Yield
(Value)
PE10
(Growth)
Rate
(Growth)
Quality
Debt
Ratio
Earnings
Power (m)
171 Carr's Milling Industries PLC CRM Small Cap Food Producers £17.38 18.3 1.7% 26.8 9.0% 88% 2.5 £10
172 Rolls-Royce Group PLC RR. FTSE 100 Aerospace & Defense £11.50 13.9 1.7% 32.1 10.5% 90% 1.7 £1,218
173 Close Brothers Group PLC CBG FTSE 250 Financial Services £12.65 15.8 3.5% 19.4 1.6% 79% 0.0 £152
174 Dignity PLC DTY FTSE 250 General Retailers £13.93 22.2 1.2% 34.1 11.2% 93% 8.3 £40
175 Rathbone Brothers PLC RAT FTSE 250 Financial Services £16.34 24.4 2.9% 26.3 3.7% 86% 0.0 £49
176 Associated British Foods PLC ABF FTSE 100 Food Producers £22.67 27.8 1.3% 39.8 8.6% 98% 1.6 £881
177 Berendsen PLC BRSN FTSE 250 Support Services £9.71 23.2 2.6% 29.9 5.3% 88% 5.4 £99
178 Euromoney Institutional Investor PLC ERM FTSE 250 Media £10.75 19.0 2.0% 28.9 6.7% 88% 0.5 £83
179 BT Group PLC BT.A FTSE 100 Fixed Line Telecommunications £3.77 16.8 2.5% 21.1 -2.2% 83% 4.3 £2,354
180 Galliford Try PLC GFRD FTSE 250 Construction & Materials £11.46 16.6 3.2% 19.3 3.0% 83% 0.9 £81
181 Ted Baker PLC TED FTSE 250 Personal Goods £17.07 32.5 1.6% 46.5 9.7% 95% 0.7 £30
182 Reed Elsevier PLC REL FTSE 100 Media £8.74 19.3 2.6% 27.9 6.9% 83% 3.4 £610
183 Goodwin PLC GDWN Small Cap Industrial Engineering £36.99 17.5 1.0% 38.8 13.9% 90% 1.5 £12
184 Jardine Lloyd Thompson Group PLC JLT FTSE 250 Nonlife Insurance £10.01 18.9 2.5% 28.6 8.2% 81% 2.0 £124
185 Genus PLC GNS FTSE 250 Pharmaceuticals & Biotechnology £13.20 35.8 1.2% 42.3 11.0% 93% 2.0 £35
186 InterContinental Hotels Group PLC IHG FTSE 100 Travel & Leisure £18.17 15.7 2.3% 26.5 11.1% 81% 2.7 £288
187 Ricardo PLC RCDO Small Cap Support Services £6.11 17.0 2.3% 23.0 5.4% 83% 0.0 £23
188 S & U PLC SUS Small Cap Financial Services £14.55 15.8 3.2% 23.8 4.1% 81% 1.8 £12
189 Johnson Matthey PLC JMAT FTSE 100 Chemicals £30.04 21.2 1.9% 29.5 11.1% 83% 2.7 £347
190 British Polythene Industries PLC BPI Small Cap General Industrials £6.85 15.7 1.9% 17.0 -1.4% 74% 1.5 £16
191 Bodycote PLC BOY FTSE 250 Industrial Engineering £6.58 16.9 1.9% 29.4 7.0% 88% 0.6 £75
192 Greencore Group PLC GNC FTSE 250 Food Producers £1.80 17.3 2.1% 19.6 -3.2% 74% 5.3 £55
193 Legal & General Group PLC LGEN FTSE 100 Life Insurance £2.16 15.4 3.5% 20.8 1.6% 76% 0.1 £936
194 Dechra Pharmaceuticals PLC DPH FTSE 250 Pharmaceuticals & Biotechnology £6.90 43.5 2.0% 44.1 5.7% 93% 4.5 £25
195 Brewin Dolphin Holdings PLC BRW FTSE 250 Financial Services £2.84 31.1 2.5% 29.7 6.7% 79% 0.0 £41
196 Kingfisher PLC KGF FTSE 100 General Retailers £3.78 15.0 2.5% 20.7 2.8% 76% 0.7 £660
197 F&C Asset Management PLC FCAM FTSE 250 Financial Services £1.02 19.9 3.0% 25.6 -11.4% 57% 9.8 £26
198 Robert Walters PLC RWA Small Cap Support Services £3.25 48.5 1.6% 28.2 6.2% 86% 1.0 £15
199 BBA Aviation PLC BBA FTSE 250 Industrial Transportation £3.38 19.2 2.7% 21.2 1.1% 71% 3.3 £109
200 Schroders PLC SDR FTSE 100 Financial Services £25.79 25.3 1.7% 33.7 9.6% 86% 6.2 £359
201 UK Mail Group PLC UKM Small Cap Industrial Transportation £5.85 23.4 3.2% 27.9 3.3% 74% 0.1 £17
202 Savills PLC SVS FTSE 250 Real Estate Investment & Services £6.50 20.1 1.5% 22.7 0.8% 83% 0.0 £64
203 Daejan Holdings PLC DJAN FTSE 250 Real Estate Investment & Services £41.48 7.5 1.9% 22.9 2.6% 81% 6.0 £48
204 Dialight PLC DIA FTSE 250 Electronic & Electrical Equipment £10.89 27.1 1.2% 62.5 12.4% 88% 0.0 £10
205 Michael Page International PLC MPI FTSE 250 Support Services £4.85 34.0 2.1% 29.6 7.4% 81% 0.1 £85
206 Bellway PLC BWY FTSE 250 Household Goods & Home Construction £15.04 16.8 2.0% 21.3 -8.1% 83% 0.6 £143
207 Hunting PLC HTG FTSE 250 Oil Equipment, Services & Distribution £8.92 19.8 2.1% 33.7 2.5% 90% 3.8 £71
208 Porvair PLC PRV Small Cap Alternative Energy £2.57 25.9 1.0% 44.0 7.0% 90% 2.4 £5
209 Boot (Henry) PLC BHY Small Cap Construction & Materials £1.81 25.3 2.6% 25.0 -1.5% 79% 1.7 £15
210 Consort Medical PLC CSRT Small Cap Health Care Equipment & Services £8.92 23.0 2.2% 21.8 0.9% 67% 0.0 £16
211 Tullow Oil PLC TLW FTSE 100 Oil & Gas Producers £9.43 22.4 1.3% 46.8 14.6% 81% 2.5 £297
212 Tribal Group PLC TRB Small Cap Support Services £1.88 21.5 0.7% 17.2 -8.7% 74% 1.2 £15
213 Smith (DS) PLC SMDS FTSE 250 General Industrials £3.03 19.3 2.6% 30.8 3.7% 81% 6.5 £148
214 Wilmington Group PLC WIL Small Cap Media £2.16 28.7 3.2% 30.3 1.6% 67% 5.0 £8
215 Oxford Instruments PLC OXIG FTSE 250 Electronic & Electrical Equipment £13.00 30.3 0.9% 62.8 16.9% 74% 0.0 £17
216 St James's Place PLC STJ FTSE 250 Life Insurance £6.76 34.4 1.6% 48.4 8.5% 86% 0.0 £123
217 Xaar PLC XAR FTSE 250 Electronic & Electrical Equipment £8.42 42.8 0.5% 93.3 9.6% 79% 0.1 £11
218 Helical Bar PLC HLCL Small Cap Real Estate Investment & Services £3.00 60.0 1.9% 31.1 -12.0% 74% 15.4 £17
219 Carclo PLC CAR Small Cap Chemicals £3.76 53.9 0.7% 46.3 5.3% 79% 3.0 £8
Stock Screen - Sorted by NameColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high
Rank Name EPIC Index Sector
Share
Price PE Ratio
(Value)
Div.Yield
(Value)
PE10
(Growth)
Rate
(Growth)
Quality
Debt
Ratio
Earnings
Power (m)
133 4imprint Group PLC FOUR Small Cap Media £6.28 26.9 2.5% 32.6 7.7% 93% 0.7 £10
126 Aberdeen Asset Management PLC ADN FTSE 100 Financial Services £4.43 25.2 2.6% 46.5 20.1% 90% 11.6 £207
8 Admiral Group PLC ADM FTSE 100 Nonlife Insurance £12.79 13.5 7.1% 22.2 14.0% 96% 0.0 £307
63 Aggreko PLC AGK FTSE 100 Support Services £16.10 16.1 1.5% 31.7 26.5% 100% 2.3 £273
91 AMEC PLC AMEC FTSE 100 Oil Equipment, Services & Distribution £11.77 15.2 3.1% 28.1 14.8% 88% 0.8 £220
40 Amlin PLC AML FTSE 250 Nonlife Insurance £4.26 7.9 5.6% 10.5 3.9% 83% 0.0 £337
58 Anglo Pacific Group PLC APF Small Cap Mining £2.22 34.9 4.6% 18.4 9.5% 83% 0.0 £22
107 Anglo-Eastern Plantations PLC AEP Small Cap Food Producers £6.75 8.2 0.4% 12.6 15.6% 81% 0.4 £35
79 Antofagasta PLC ANTO FTSE 100 Mining £8.55 8.8 1.6% 14.1 16.8% 83% 1.2 £994
165 ARM Holdings PLC ARM FTSE 100 Technology Hardware & Equipment £9.86 85.7 0.5% 202.7 21.7% 93% 0.0 £126
176 Associated British Foods PLC ABF FTSE 100 Food Producers £22.67 27.8 1.3% 39.8 8.6% 98% 1.6 £881
2 AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology £33.09 9.2 5.4% 11.1 13.6% 90% 0.9 £6,748
65 Atkins (W S) PLC ATK FTSE 250 Support Services £12.34 13.2 2.6% 17.5 9.2% 88% 0.9 £124
137 Aveva Group PLC AVV FTSE 250 Software & Computer Services £25.86 35.2 1.0% 55.2 27.1% 95% 0.0 £57
102 Aviva PLC AV. FTSE 100 Life Insurance £4.49 9.2 4.2% 11.3 -1.4% 73% 0.0 £1,704
129 Babcock International Group PLC BAB FTSE 100 Support Services £12.75 21.2 2.1% 36.8 21.9% 90% 3.1 £227
23 BAE Systems PLC BA. FTSE 100 Aerospace & Defense £4.55 13.7 4.3% 14.5 11.6% 88% 1.7 £1,777
13 Balfour Beatty PLC BBY FTSE 250 Construction & Materials £2.86 10.5 4.9% 11.3 11.1% 88% 2.8 £308
57 Barclays PLC BARC FTSE 100 Banks £2.64 60.5 2.3% 8.0 -9.2% 82% 0.0 £8,756
143 Barr (A G) PLC BAG FTSE 250 Beverages £5.24 22.5 1.9% 35.3 8.5% 98% 0.8 £34
199 BBA Aviation PLC BBA FTSE 250 Industrial Transportation £3.38 19.2 2.7% 21.2 1.1% 71% 3.3 £109
36 Beazley PLC BEZ FTSE 250 Nonlife Insurance £2.29 9.0 3.6% 13.7 10.8% 86% 0.0 £149
206 Bellway PLC BWY FTSE 250 Household Goods & Home Construction £15.04 16.8 2.0% 21.3 -8.1% 83% 0.6 £143
177 Berendsen PLC BRSN FTSE 250 Support Services £9.71 23.2 2.6% 29.9 5.3% 88% 5.4 £99
56 BG Group PLC BG. FTSE 100 Oil & Gas Producers £12.74 12.4 1.3% 18.6 14.7% 93% 2.2 £4,335
7 BHP Billiton PLC BLT FTSE 100 Mining £19.31 13.1 3.9% 13.3 18.3% 90% 4.2 £5,528
121 Bloomsbury Publishing PLC BMY Small Cap Media £1.73 15.8 3.2% 14.8 1.0% 83% 0.0 £14
191 Bodycote PLC BOY FTSE 250 Industrial Engineering £6.58 16.9 1.9% 29.4 7.0% 88% 0.6 £75
209 Boot (Henry) PLC BHY Small Cap Construction & Materials £1.81 25.3 2.6% 25.0 -1.5% 79% 1.7 £15
72 BP PLC BP. FTSE 100 Oil & Gas Producers £4.83 12.4 4.5% 10.0 -0.5% 79% 2.1 £14,274
22 Braemar Shipping Services PLC BMS Small Cap Industrial Transportation £5.37 16.1 4.8% 13.1 7.2% 88% 0.0 £16
168 Brammer PLC BRAM Small Cap Support Services £4.84 23.1 1.9% 34.1 11.3% 90% 1.8 £30
195 Brewin Dolphin Holdings PLC BRW FTSE 250 Financial Services £2.84 31.1 2.5% 29.7 6.7% 79% 0.0 £41
31 British American Tobacco PLC BATS FTSE 100 Tobacco £34.36 16.4 3.9% 24.7 12.6% 95% 2.1 £5,013
190 British Polythene Industries PLC BPI Small Cap General Industrials £6.85 15.7 1.9% 17.0 -1.4% 74% 1.5 £16
21 British Sky Broadcasting Group PLC BSY FTSE 100 Media £9.38 8.5 3.2% 20.3 13.9% 98% 2.0 £1,439
45 Brown (N) Group PLC BWNG FTSE 250 General Retailers £5.25 18.4 2.6% 25.4 11.9% 95% 2.2 £111
179 BT Group PLC BT.A FTSE 100 Fixed Line Telecommunications £3.77 16.8 2.5% 21.1 -2.2% 83% 4.3 £2,354
92 Bunzl PLC BNZL FTSE 100 Support Services £13.77 22.4 2.0% 30.7 9.3% 100% 2.8 £299
131 Burberry Group PLC BRBY FTSE 100 Personal Goods £15.35 19.6 1.9% 37.7 17.1% 93% 0.4 £336
117 Cable & Wireless Communications PLC CWC FTSE 250 Fixed Line Telecommunications £0.47 24.9 5.5% 17.2 1.7% 74% 11.7 £102
59 Capita Group (The) PLC CPI FTSE 100 Support Services £9.86 23.4 2.4% 32.7 14.8% 98% 4.0 £388
219 Carclo PLC CAR Small Cap Chemicals £3.76 53.9 0.7% 46.3 5.3% 79% 3.0 £8
16 Carillion PLC CLLN FTSE 250 Support Services £3.04 8.8 5.7% 11.3 11.1% 86% 4.1 £198
171 Carr's Milling Industries PLC CRM Small Cap Food Producers £17.38 18.3 1.7% 26.8 9.0% 88% 2.5 £10
62 Catlin Group Ltd CGL FTSE 250 Nonlife Insurance £5.12 10.7 5.8% 12.1 4.4% 80% 0.0 £245
89 Centaur Media PLC CAU Small Cap Media £0.56 16.3 4.3% 12.4 -4.0% 81% 2.2 £10
15 Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities £3.53 10.6 4.6% 16.1 10.4% 93% 2.6 £2,079
55 Charles Taylor PLC CTR Small Cap Financial Services £2.23 13.9 4.5% 10.1 -1.0% 81% 2.8 £15
1 Chemring Group PLC CHG FTSE 250 Aerospace & Defense £2.18 9.0 4.4% 8.4 27.1% 93% 3.7 £93
27 Chesnara PLC CSN Small Cap Life Insurance £2.92 10.2 5.9% 15.3 5.4% 89% 0.0 £39
73 Chime Communications PLC CHW Small Cap Media £3.17 62.5 2.3% 20.5 13.8% 88% 0.5 £26
105 Clarkson PLC CKN Small Cap Industrial Transportation £20.16 28.8 2.5% 17.7 7.2% 86% 0.0 £37
173 Close Brothers Group PLC CBG FTSE 250 Financial Services £12.65 15.8 3.5% 19.4 1.6% 79% 0.0 £152
70 Cobham PLC COB FTSE 250 Aerospace & Defense £2.88 14.7 3.1% 21.8 12.7% 88% 2.5 £252
123 Communisis PLC CMS Small Cap Support Services £0.63 11.3 2.6% 9.7 -9.5% 69% 2.4 £17
154 Compass Group PLC CPG FTSE 100 Travel & Leisure £8.97 28.8 2.4% 38.1 11.6% 90% 2.3 £768
142 Computacenter PLC CCC FTSE 250 Software & Computer Services £5.94 15.1 2.9% 21.4 9.3% 83% 0.3 £64
210 Consort Medical PLC CSRT Small Cap Health Care Equipment & Services £8.92 23.0 2.2% 21.8 0.9% 67% 0.0 £16
32 Cranswick PLC CWK FTSE 250 Food Producers £10.71 13.8 2.8% 18.2 9.9% 95% 0.5 £55
104 CRH PLC CRH FTSE 100 Construction & Materials £15.23 24.4 2.9% 15.3 3.8% 83% 3.3 £1,213
77 Croda International PLC CRDA FTSE 100 Chemicals £24.36 18.8 2.4% 39.6 24.3% 98% 1.6 £163
203 Daejan Holdings PLC DJAN FTSE 250 Real Estate Investment & Services £41.48 7.5 1.9% 22.9 2.6% 81% 6.0 £48
122 Dairy Crest Group PLC DCG FTSE 250 Food Producers £5.37 11.7 3.9% 13.6 1.0% 74% 4.4 £80
101 Darty PLC DRTY Small Cap General Retailers £0.83 19.4 3.6% 6.4 -10.6% 71% 1.9 £98
52 DCC PLC DCC FTSE 250 Support Services £27.99 16.8 2.5% 21.6 14.0% 88% 4.3 £191
136 De La Rue PLC DLAR FTSE 250 Support Services £8.55 16.9 5.0% 18.8 5.5% 76% 1.5 £69
194 Dechra Pharmaceuticals PLC DPH FTSE 250 Pharmaceuticals & Biotechnology £6.90 43.5 2.0% 44.1 5.7% 93% 4.5 £25
149 Devro PLC DVO FTSE 250 Food Producers £3.16 16.1 2.7% 26.2 10.9% 86% 0.9 £35
100 Diageo PLC DGE FTSE 100 Beverages £19.87 18.8 2.4% 29.9 8.1% 95% 3.2 £3,173
204 Dialight PLC DIA FTSE 250 Electronic & Electrical Equipment £10.89 27.1 1.2% 62.5 12.4% 88% 0.0 £10
174 Dignity PLC DTY FTSE 250 General Retailers £13.93 22.2 1.2% 34.1 11.2% 93% 8.3 £40
132 Diploma PLC DPLM FTSE 250 Support Services £6.93 24.4 2.1% 46.9 15.3% 95% 0.1 £32
78 Domino Printing Sciences PLC DNO FTSE 250 Electronic & Electrical Equipment £6.92 21.2 3.0% 27.8 12.3% 90% 0.7 £51
74 Domino's Pizza UK & IRL PLC DOM FTSE 250 Travel & Leisure £5.86 23.1 2.5% 48.1 25.7% 100% 1.2 £40
163 Electrocomponents PLC ECM FTSE 250 Support Services £2.98 19.1 3.9% 20.2 1.4% 71% 1.9 £93
178 Euromoney Institutional Investor PLC ERM FTSE 250 Media £10.75 19.0 2.0% 28.9 6.7% 88% 0.5 £83
197 F&C Asset Management PLC FCAM FTSE 250 Financial Services £1.02 19.9 3.0% 25.6 -11.4% 57% 9.8 £26
157 F&C UK Real Estate Investment Ltd FCRE Small Cap Real Estate Investment & Services £0.79 44.7 8.4% 17.5 -2.4% 60% 9.9 £11
68 Fenner PLC FENR FTSE 250 Industrial Engineering £4.00 12.9 2.6% 25.1 12.8% 90% 3.7 £56
86 Fidessa Group PLC FDSA FTSE 250 Software & Computer Services £20.25 25.2 1.8% 40.2 21.3% 98% 0.0 £37
3 FirstGroup PLC FGP FTSE 250 Travel & Leisure £1.16 5.4 5.4% 3.9 6.3% 90% 4.3 £645
81 Fisher (James) & Sons PLC FSJ FTSE 250 Industrial Transportation £11.12 20.4 1.6% 28.2 12.5% 98% 2.1 £39
119 FTSE 100 6,731 15.8 3.5% 15.1 3.6% 81%
112 Fuller Smith & Turner PLC FSTA Small Cap Travel & Leisure £9.08 20.7 1.5% 29.9 10.5% 98% 7.2 £19
Stock Screen - Sorted by NameColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high
Rank Name EPIC Index Sector
Share
Price PE Ratio
(Value)
Div.Yield
(Value)
PE10
(Growth)
Rate
(Growth)
Quality
Debt
Ratio
Earnings
Power (m)
48 G4S PLC GFS FTSE 100 Support Services £2.62 13.2 3.4% 19.5 12.2% 88% 6.7 £367
180 Galliford Try PLC GFRD FTSE 250 Construction & Materials £11.46 16.6 3.2% 19.3 3.0% 83% 0.9 £81
185 Genus PLC GNS FTSE 250 Pharmaceuticals & Biotechnology £13.20 35.8 1.2% 42.3 11.0% 93% 2.0 £35
66 GlaxoSmithKline PLC GSK FTSE 100 Pharmaceuticals & Biotechnology £16.44 18.1 4.5% 18.2 3.9% 88% 2.4 £7,719
67 Go-Ahead Group (The) PLC GOG FTSE 250 Travel & Leisure £16.82 13.5 4.8% 11.9 5.1% 76% 3.6 £93
183 Goodwin PLC GDWN Small Cap Industrial Engineering £36.99 17.5 1.0% 38.8 13.9% 90% 1.5 £12
192 Greencore Group PLC GNC FTSE 250 Food Producers £1.80 17.3 2.1% 19.6 -3.2% 74% 5.3 £55
64 Greene King PLC GNK FTSE 250 Travel & Leisure £8.25 16.1 3.2% 16.8 5.5% 88% 7.9 £189
29 Greggs PLC GRG FTSE 250 Food & Drug Retailers £4.60 12.6 4.2% 14.3 6.7% 90% 0.0 £59
28 Halfords Group PLC HFD FTSE 250 General Retailers £4.24 15.0 4.0% 13.5 6.1% 88% 1.1 £110
108 Halma PLC HLMA FTSE 250 Electronic & Electrical Equipment £5.49 23.8 1.9% 35.8 9.8% 100% 1.4 £116
150 Hays PLC HAS FTSE 250 Support Services £1.25 24.3 2.0% 17.1 0.2% 79% 0.9 £161
47 Headlam Group PLC HEAD Small Cap Household Goods & Home Construction £3.97 15.7 3.7% 13.7 -2.4% 88% 0.8 £43
218 Helical Bar PLC HLCL Small Cap Real Estate Investment & Services £3.00 60.0 1.9% 31.1 -12.0% 74% 15.4 £17
30 Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering £4.82 13.8 3.1% 17.2 11.3% 93% 2.4 £40
4 Homeserve PLC HSV FTSE 250 Support Services £2.34 11.5 4.8% 13.4 12.7% 93% 1.2 £107
80 HSBC Holdings PLC HSBA FTSE 100 Banks £6.82 13.8 4.2% 11.7 0.2% 79% 0.0 £17,113
207 Hunting PLC HTG FTSE 250 Oil Equipment, Services & Distribution £8.92 19.8 2.1% 33.7 2.5% 90% 3.8 £71
42 Huntsworth PLC HNT Small Cap Media £0.66 10.8 5.3% 7.1 5.1% 81% 1.5 £48
53 Hyder Consulting PLC HYC Small Cap Support Services £5.46 11.6 2.2% 17.1 22.7% 88% 0.4 £22
25 ICAP PLC IAP FTSE 250 Financial Services £3.85 14.1 5.7% 14.2 10.4% 86% 1.9 £301
90 IMI PLC IMI FTSE 100 Industrial Engineering £15.19 18.6 2.1% 30.1 10.9% 98% 0.8 £309
17 Imperial Tobacco Group PLC IMT FTSE 100 Tobacco £23.29 11.4 4.5% 18.4 13.0% 93% 4.2 £2,278
146 Informa PLC INF FTSE 250 Media £5.60 16.2 3.3% 23.6 7.6% 86% 3.4 £245
186 InterContinental Hotels Group PLC IHG FTSE 100 Travel & Leisure £18.17 15.7 2.3% 26.5 11.1% 81% 2.7 £288
44 Intermediate Capital Group PLC ICP FTSE 250 Financial Services £4.80 14.7 4.2% 10.9 -1.1% 87% 3.8 £309
140 Interserve PLC IRV FTSE 250 Support Services £6.14 19.0 3.3% 21.7 6.2% 83% 0.8 £61
114 Intertek Group PLC ITRK FTSE 100 Support Services £33.32 27.6 1.2% 49.7 18.8% 100% 3.3 £216
71 Investec PLC INVP FTSE 250 Financial Services £4.37 12.8 4.1% 10.9 0.1% 82% 0.0 £401
115 ITE Group PLC ITE FTSE 250 Media £3.22 24.8 2.0% 34.2 12.7% 93% 0.7 £44
184 Jardine Lloyd Thompson Group PLC JLT FTSE 250 Nonlife Insurance £10.01 18.9 2.5% 28.6 8.2% 81% 2.0 £124
26 JD Sports Fashion PLC JD. Small Cap General Retailers £11.36 12.5 2.3% 15.4 20.8% 93% 0.1 £66
189 Johnson Matthey PLC JMAT FTSE 100 Chemicals £30.04 21.2 1.9% 29.5 11.1% 83% 2.7 £347
130 KCOM Group PLC KCOM FTSE 250 Fixed Line Telecommunications £1.01 12.2 4.4% 17.6 8.3% 79% 2.2 £46
124 Keller Group PLC KLR FTSE 250 Construction & Materials £10.51 19.4 2.2% 17.1 5.7% 86% 1.4 £75
151 Kier Group PLC KIE FTSE 250 Construction & Materials £18.09 17.6 3.8% 17.5 4.7% 79% 1.2 £89
196 Kingfisher PLC KGF FTSE 100 General Retailers £3.78 15.0 2.5% 20.7 2.8% 76% 0.7 £660
85 Ladbrokes PLC LAD FTSE 250 Travel & Leisure £1.91 9.0 4.7% 8.1 -4.1% 76% 1.3 £330
147 Laird PLC LRD FTSE 250 Technology Hardware & Equipment £2.50 19.0 4.0% 18.2 -2.7% 83% 2.9 £61
164 Lavendon Group PLC LVD Small Cap Support Services £1.84 18.5 1.5% 12.1 4.8% 74% 2.9 £38
193 Legal & General Group PLC LGEN FTSE 100 Life Insurance £2.16 15.4 3.5% 20.8 1.6% 76% 0.1 £936
138 London Stock Exchange Group PLC LSE FTSE 100 Financial Services £16.42 21.8 1.8% 29.1 13.8% 88% 3.0 £270
135 Low & Bonar PLC LWB Small Cap Construction & Materials £0.77 16.7 3.1% 13.9 -1.4% 76% 3.9 £28
87 Man Group PLC EMG FTSE 250 Financial Services £0.89 -5.7 16.2% 4.7 -8.1% 71% 1.1 £494
69 Management Consulting Group PLC MMC Small Cap Support Services £0.25 7.5 3.3% 5.0 1.5% 81% 1.2 £39
84 Marks & Spencer Group PLC MKS FTSE 100 General Retailers £5.04 17.0 3.4% 14.9 2.8% 83% 2.5 £910
160 Marshalls PLC MSLH Small Cap Construction & Materials £1.74 23.6 3.0% 15.2 -10.3% 69% 2.5 £31
50 Marston's PLC MARS FTSE 250 Travel & Leisure £1.52 13.2 4.0% 10.7 -1.4% 83% 8.7 £136
46 Mears Group PLC MER Small Cap Support Services £4.28 18.0 1.9% 25.3 16.3% 98% 2.2 £33
109 Meggitt PLC MGGT FTSE 100 Aerospace & Defense £5.73 17.7 2.1% 28.7 11.6% 90% 2.6 £287
60 Menzies (John) PLC MNZS FTSE 250 Support Services £8.19 12.1 3.1% 18.1 4.4% 93% 2.5 £51
205 Michael Page International PLC MPI FTSE 250 Support Services £4.85 34.0 2.1% 29.6 7.4% 81% 0.1 £85
144 Millennium & Copthorne Hotels PLC MLC FTSE 250 Travel & Leisure £5.70 15.1 2.4% 18.9 9.1% 83% 2.2 £163
18 MITIE Group PLC MTO FTSE 250 Support Services £3.15 14.3 3.3% 19.8 13.2% 98% 2.5 £114
51 Morgan Sindall PLC MGNS Small Cap Construction & Materials £7.92 10.8 3.4% 10.1 6.1% 76% 0.1 £52
12 Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers £2.82 11.0 4.2% 17.3 17.3% 93% 3.4 £707
35 National Grid PLC NG. FTSE 100 Gas, Water & Multiutilities £7.85 12.8 5.2% 14.9 7.5% 86% 8.4 £3,362
76 NCC Group PLC NCC Small Cap Software & Computer Services £1.64 23.1 1.9% 40.0 23.9% 100% 1.8 £17
169 Next PLC NXT FTSE 100 General Retailers £54.45 18.6 1.9% 29.3 8.8% 90% 1.4 £522
167 Old Mutual PLC OML FTSE 100 Life Insurance £2.04 15.8 3.4% 14.6 -3.1% 79% 0.0 £1,073
215 Oxford Instruments PLC OXIG FTSE 250 Electronic & Electrical Equipment £13.00 30.3 0.9% 62.8 16.9% 74% 0.0 £17
148 Paragon Group of Companies (The) PLC PAG FTSE 250 Financial Services £3.39 10.8 1.8% 4.9 -12.4% 75% 28.7 £319
98 PayPoint PLC PAY FTSE 250 Support Services £10.41 23.0 2.9% 32.7 12.3% 93% 0.0 £40
116 Pearson PLC PSON FTSE 100 Media £13.04 25.5 3.5% 27.3 6.7% 88% 3.3 £689
24 Pennon Group PLC PNN FTSE 250 Gas, Water & Multiutilities £6.81 12.3 4.2% 20.1 10.9% 95% 11.1 £239
5 Phoenix IT Group PLC PNX Small Cap Software & Computer Services £1.47 10.0 5.3% 6.3 11.3% 86% 2.9 £30
208 Porvair PLC PRV Small Cap Alternative Energy £2.57 25.9 1.0% 44.0 7.0% 90% 2.4 £5
128 Premier Farnell PLC PFL FTSE 250 Support Services £2.26 15.0 4.6% 17.1 4.8% 67% 4.5 £65
134 Provident Financial PLC PFG FTSE 250 Financial Services £15.80 14.5 4.9% 22.6 4.2% 83% 7.4 £162
161 Prudential PLC PRU FTSE 100 Life Insurance £12.79 14.4 2.3% 30.6 7.8% 90% 0.0 £1,938
141 PZ Cussons PLC PZC FTSE 250 Personal Goods £3.94 23.3 1.9% 30.7 10.3% 93% 1.0 £102
175 Rathbone Brothers PLC RAT FTSE 250 Financial Services £16.34 24.4 2.9% 26.3 3.7% 86% 0.0 £49
34 Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction £48.48 19.6 2.8% 29.8 17.0% 100% 1.4 £2,336
182 Reed Elsevier PLC REL FTSE 100 Media £8.74 19.3 2.6% 27.9 6.9% 83% 3.4 £610
110 Renishaw PLC RSW FTSE 250 Electronic & Electrical Equipment £16.22 17.2 2.5% 31.2 12.9% 90% 0.0 £68
75 Restaurant Group (The) PLC RTN FTSE 250 Travel & Leisure £5.76 23.6 2.0% 34.6 13.3% 100% 0.8 £67
152 Rexam PLC REX FTSE 100 General Industrials £5.20 13.9 2.9% 15.3 0.7% 79% 5.3 £421
187 Ricardo PLC RCDO Small Cap Support Services £6.11 17.0 2.3% 23.0 5.4% 83% 0.0 £23
20 Rio Tinto PLC RIO FTSE 100 Mining £31.58 8.0 3.4% 10.4 18.9% 86% 2.2 £7,388
198 Robert Walters PLC RWA Small Cap Support Services £3.25 48.5 1.6% 28.2 6.2% 86% 1.0 £15
172 Rolls-Royce Group PLC RR. FTSE 100 Aerospace & Defense £11.50 13.9 1.7% 32.1 10.5% 90% 1.7 £1,218
106 Rotork PLC ROR FTSE 250 Industrial Engineering £28.63 28.2 1.5% 47.5 17.5% 100% 0.0 £105
33 Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers £21.60 9.2 5.1% 10.2 8.6% 81% 1.1 £21,232
99 RPC Group PLC RPC FTSE 250 General Industrials £5.10 13.4 2.9% 20.5 11.5% 86% 3.0 £71
94 RPS Group PLC RPS FTSE 250 Support Services £2.90 22.7 2.2% 22.5 11.3% 90% 0.6 £51
Stock Screen - Sorted by NameColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio too high
Rank Name EPIC Index Sector
Share
Price PE Ratio
(Value)
Div.Yield
(Value)
PE10
(Growth)
Rate
(Growth)
Quality
Debt
Ratio
Earnings
Power (m)
43 RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance £1.28 9.9 5.7% 9.4 4.4% 79% 0.0 £785
188 S & U PLC SUS Small Cap Financial Services £14.55 15.8 3.2% 23.8 4.1% 81% 1.8 £12
111 SABMiller PLC SAB FTSE 100 Beverages £32.54 23.1 2.0% 37.5 13.6% 95% 4.6 £2,655
37 Sage Group (The) PLC SGE FTSE 100 Software & Computer Services £3.37 17.0 3.2% 22.7 13.1% 93% 0.7 £303
19 Sainsbury (J) PLC SBRY FTSE 100 Food & Drug Retailers £3.95 14.3 4.2% 23.4 23.4% 90% 4.8 £579
202 Savills PLC SVS FTSE 250 Real Estate Investment & Services £6.50 20.1 1.5% 22.7 0.8% 83% 0.0 £64
200 Schroders PLC SDR FTSE 100 Financial Services £25.79 25.3 1.7% 33.7 9.6% 86% 6.2 £359
125 Senior PLC SNR FTSE 250 Aerospace & Defense £2.98 16.2 1.6% 27.3 18.7% 88% 1.4 £80
39 Serco Group PLC SRP FTSE 250 Support Services £5.57 14.7 1.8% 24.5 17.4% 100% 3.4 £227
139 Severn Trent PLC SVT FTSE 100 Gas, Water & Multiutilities £18.57 22.4 4.1% 23.4 2.4% 86% 14.8 £325
162 Shanks Group PLC SKS Small Cap Support Services £1.06 21.8 3.3% 16.0 -1.8% 76% 8.8 £40
95 Smith & Nephew PLC SN. FTSE 100 Health Care Equipment & Services £7.97 14.4 2.1% 22.4 13.1% 90% 0.5 £577
213 Smith (DS) PLC SMDS FTSE 250 General Industrials £3.03 19.3 2.6% 30.8 3.7% 81% 6.5 £148
159 Smiths Group PLC SMIN FTSE 100 General Industrials £14.35 15.1 2.8% 20.2 6.0% 81% 2.5 £454
41 Smiths News PLC NWS Small Cap Support Services £2.10 12.3 4.4% 14.5 6.4% 86% 2.3 £46
118 Spectris PLC SXS FTSE 250 Electronic & Electrical Equipment £23.12 19.3 1.7% 35.3 13.9% 95% 1.9 £148
97 Speedy Hire PLC SDY Small Cap Support Services £0.65 75.6 0.8% 9.0 -25.9% 81% 1.2 £61
83 Spirax-Sarco Engineering PLC SPX FTSE 250 Industrial Engineering £29.18 22.8 1.9% 34.3 12.8% 100% 0.4 £128
9 SSE PLC SSE FTSE 100 Electricity £14.16 17.7 5.9% 15.6 12.8% 88% 3.9 £1,541
113 St Ives PLC SIV Small Cap Support Services £1.81 13.2 3.6% 10.2 -10.6% 69% 1.0 £29
216 St James's Place PLC STJ FTSE 250 Life Insurance £6.76 34.4 1.6% 48.4 8.5% 86% 0.0 £123
38 Stagecoach Group PLC SGC FTSE 250 Travel & Leisure £3.52 12.2 2.4% 19.7 14.3% 90% 4.4 £186
61 Standard Chartered PLC STAN FTSE 100 Banks £15.00 12.6 3.6% 15.2 7.1% 86% 0.0 £4,093
54 Synergy Health PLC SYR FTSE 250 Health Care Equipment & Services £10.37 18.8 2.0% 29.2 16.4% 98% 5.0 £41
170 Tarsus PLC TRS Small Cap Media £2.47 30.7 2.8% 27.0 10.0% 81% 1.8 £14
153 Tate & Lyle PLC TATE FTSE 100 Food Producers £7.92 13.8 3.3% 17.9 2.2% 81% 2.7 £333
181 Ted Baker PLC TED FTSE 250 Personal Goods £17.07 32.5 1.6% 46.5 9.7% 95% 0.7 £30
155 Telecom plus PLC TEP FTSE 250 Fixed Line Telecommunications £15.43 40.4 2.0% 74.0 25.5% 90% 0.1 £27
11 Tesco PLC TSCO FTSE 100 Food & Drug Retailers £3.64 9.6 4.1% 13.9 9.3% 95% 2.7 £4,021
212 Tribal Group PLC TRB Small Cap Support Services £1.88 21.5 0.7% 17.2 -8.7% 74% 1.2 £15
10 Tullett Prebon PLC TLPR FTSE 250 Financial Services £3.18 7.7 5.3% 8.4 12.2% 86% 1.8 £141
211 Tullow Oil PLC TLW FTSE 100 Oil & Gas Producers £9.43 22.4 1.3% 46.8 14.6% 81% 2.5 £297
201 UK Mail Group PLC UKM Small Cap Industrial Transportation £5.85 23.4 3.2% 27.9 3.3% 74% 0.1 £17
127 Ultra Electronics Holdings PLC ULE FTSE 250 Aerospace & Defense £19.34 20.7 2.1% 28.8 13.6% 88% 0.9 £82
156 Unilever PLC ULVR FTSE 100 Food Producers £25.25 20.3 3.1% 20.2 5.2% 83% 3.0 £2,732
166 United Drug PLC UDG FTSE 250 Food & Drug Retailers £3.12 18.6 0.5% 21.0 6.4% 86% 3.7 £61
145 United Utilities Group PLC UU. FTSE 100 Gas, Water & Multiutilities £7.05 19.9 4.9% 16.6 -4.0% 74% 14.4 £428
6 Vedanta Resources PLC VED FTSE 100 Mining £10.63 32.8 3.5% 10.7 15.6% 90% 22.9 £478
82 Victrex PLC VCT FTSE 250 Chemicals £16.50 19.5 2.3% 33.8 15.7% 95% 0.0 £79
88 Vitec Group (The) PLC VTC Small Cap Industrial Engineering £7.03 14.8 3.1% 19.3 7.4% 86% 2.7 £28
14 Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications £2.25 13.7 4.5% 15.2 8.6% 95% 3.0 £13,662
158 Vp PLC VP. Small Cap Support Services £4.98 20.7 2.5% 25.7 7.6% 86% 4.1 £13
96 Weir Group PLC WEIR FTSE 100 Industrial Engineering £22.55 17.0 1.7% 34.5 21.6% 95% 4.1 £265
120 Whitbread PLC WTB FTSE 100 Travel & Leisure £34.33 22.1 1.7% 38.3 14.0% 95% 1.7 £308
93 William Hill PLC WMH FTSE 100 Travel & Leisure £4.01 16.3 2.6% 16.7 -8.2% 90% 1.1 £376
214 Wilmington Group PLC WIL Small Cap Media £2.16 28.7 3.2% 30.3 1.6% 67% 5.0 £8
49 Wood Group (John) PLC WG. FTSE 250 Oil Equipment, Services & Distribution £8.12 17.3 1.3% 13.4 29.0% 86% 0.5 £389
103 WPP Group PLC WPP FTSE 100 Media £13.25 20.2 2.2% 29.3 12.8% 93% 4.2 £1,126
217 Xaar PLC XAR FTSE 250 Electronic & Electrical Equipment £8.42 42.8 0.5% 93.3 9.6% 79% 0.1 £11
IMPORTANT DISCLAIMER: The author is not registered as an investment adviser or as an independent financialadviser and does not provide individual investment advice. As no advice is provided, neither the author nor this documentare regulated by the Financial Services Authority. This document contains the opinions of the author and should neverbe construed as investment advice; it is for information only. The information contained in this document is not an offeror recommendation to buy or sell or a solicitation of an offer to buy or sell any securities.
The specific needs, investment objectives and financial situation of any particular reader have not been taken intoconsideration and the investments mentioned may not be suitable for any individual. You should not base anyinvestment decision solely on the basis of this document. You should carry out your own independent research andverification of facts and data. If you are unsure of any investment and need advice you should seek professional financialadvice.
The information in this document and any expression of opinion by the author have been obtained from or are based onsources believed to be reliable, but the accuracy or completeness of any such sources or the author’s interpretation ofthem cannot be guaranteed although the author believes the document to be clear, fair and not misleading.
The author receives no compensation from and is not affiliated with any company mentioned in this document.
To the maximum possible extent of the law, the author does not accept any liability whatsoever for losses arising fromthe use of the material or information contained herein.
Please see the full Terms and Conditions and Disclaimer at http://www.ukvalueinvestor.com/terms-and-conditions/
INVESTMENT RISK: The value of shares can fall as well as rise. Dividend payments can fall as well as rise. Anyinformation relating to past performance of an investment or investment service is not necessarily a guide to futureperformance. There is an additional risk of making a loss when you buy shares in certain smaller companies. There is abig difference between the buying price and the selling price of some shares and if you have to sell quickly you may getback much less than you paid. Share prices may go down as well as up and you may not get back the original amountinvested. It may be difficult to sell or realize an investment. You should not buy shares with money you cannot afford tolose.
DISCLOSURE RULES: When content is published about a company and the author has a position or beneficial interestin it, that fact will be disclosed.
In addition to the above disclosure requirement, the author follows additional trading restrictions and guidelines. Theserestrictions require that the author:
· Hold any stocks owned for at least 10 full market business days.
· Cannot write about a stock for 2 business days before and after purchasing or selling the stock.
DISCLOSURE: The author owns shares in all of the companies in the model portfolio and intends to buy shares in anynew model portfolio investments, and sell the shares of any model portfolio holdings which are sold, according to thetrading restrictions noted above.
CONFIDENTIALITY: This document is for the personal use of paid subscribers only. The information contained in thisdocument may not be used for any commercial endeavour without explicit written consent from the author. Please retainthis document for your own exclusive use and treat it as confidential.
© John Kingham, 2012. Offices at Unit 5, Pluto House, 19-33 Station Road, Ashford, Kent, TN23 1PP.
Subscribe online at www.ukvalueinvestor.com
