Interactive Investor

The Insider: City deals uncovered

20th November 2014 09:44

by Lee Wild from interactive investor

Share on

UK Mail set to deliver? 

Britain's parcel delivery sector is a tough place to do business, ask Royal Mail. Its just warned about growth prospects for the next few years. Rival UK Mail issued its own warning back in September, raising the spectre of an industry-wide slowdown. But its share price has levelled off recently and boss Guy Buswell reckons this is the bottom.

Buswell, who's run the business for the past nine years, has shelled out over £74,000 for 18,310 shares at 405p each. He's now got 286,117 worth £1.16 million. But is his confidence justified? 

Well, half-year results on the 18 November were harmless enough. Revenue was flat at £241.4 million and underlying pre-tax profit of £11.4 million was unchanged, too, in line with forecasts. 

"Trading in the initial weeks of the second half, and overall trends within our individual businesses, have been as anticipated, with our peak trading weeks still to come," said Buswell. "Our expectations for the full year remain unchanged."

"It is a relief," said Investec Securities, which had already cut forecasts in September. "The stock has overshot on the downside, we believe." We'll get more clarity around Christmas trading early in the New Year, but the broker still reckons the shares, trading on 12.6 times forward earnings, are worth 600p.

Goal Soccer Centres scores

After doubling in value in just a couple of years, Goal Soccer Centres has spent most of 2014 trading sideways between 200p and 240p. But senior management at the five-a-side soccer firm clearly think that's cheap and have been stake-building all summer.

First-half results published in September were certainly well-received. Sales rose 3% to £17.1 million, generating underlying pre-tax profit, which strips out £3.8 million of costs linked to a balance sheet restructuring, of £4.4 million, up 9%.

Philip Burks, non-executive director and co-founder of Big Yellow Group, has spent over half-a-million pounds on shares since June at between 215p and 220p. That includes 50,000 at 218p on 17 November, which takes his entire holding to 471,228 worth over £1 million.

He's been joined for most of the summer by managing director Keith Rogers who's picked up over £80,000 of stock in recent months.

Ted Baker chief cooks up profit

Ted Baker sells expensive clothes to youngsters with plenty of disposable income. And despite the warmer weather, which has caused numerous profits warnings across the retail sector this autumn, the firm ramped up sales by almost 16% in the three months to 8 November.

But the shares trade on 26 times 2015 earnings per share estimates, dropping to 23.6 for the year to January 2016. That's hardly cheap, and having soared by 24% since early August, chief operating officer and finance boss since 1997, Lindsay Page has just flogged 45,000 shares at 2,050p apiece. That's netted him over £922,000. All round Mr Page's for Christmas!

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Get more news and expert articles direct to your inbox