August 2012
UK Value Investor
Searching for high returns and low risk By John Kingham, Editor This month’s new investment for the model portfolio is a good reminder of the goals that this newsletter has set out to achieve. It is not about disappearing into the depths of the small-cap world or the AIM index in search of decent returns. It is about getting more income and more growth than what is available from the FTSE 100, but without taking much - if any - additional risk and for the most part, sticking with FTSE 100 companies. Too many investors fail to do well simply because they believe that they can get outstanding results, and that the way to get those results is to invest in high risk companies. Perhaps this attitude is beginning to change though. The dot-com bubble has long since burst and investors have had generally poor capital gains in the last decade. Add to that the financial crisis that we have gone through, and are still going through, and investors are beginning to see once again the benefits of a focus on quality and dividend income. I doubt that it will last though. At some point in the future a new bull market will begin in earnest and any interest in dividends and steady, above average growth will be left behind. It would be a pity, as this type of strategy has been used over many decades by some of the world’s best investors to beat their respective market’s over and over again. In my opinion it is likely to remain an outstanding strategy for a long time yet.
Contents Market forecast and tactical asset allocation
Page 2
Model portfolio review: Pulling ahead of the market
Page 3
Buying: Another FTSE 100 company joins the portfolio
Page 5
FTSE 350 Rankings: The easy way to find income and growth
Page 8
UK Value Investor is for investors who want to make their own investment decisions and are capable of doing so without professional 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. Photo credit: David Catchpole
Market forecast and tactical asset allocation The UK market maintains its cheap valuation At 5,600, the FTSE 100 continues to move in the 5,000 to 6,000 range that it has been in since 2009. With a long enough time horizon (and investors should typically have a horizon of more than five years) then a cheap market is a good thing because it means companies can be bought at historically attractive prices. It’s always important to remember that future returns move in the opposite direction to historic price movements. So if the index (or a share) goes up then future returns will be lower than they were before. This is why the model portfolio sells out of positions where the share price has moved up considerably. I'm not going to say anything about where the market is going in the next year or so because quite frankly, neither I nor anybody else knows. We can all guess and, much like guessing which side a tossed coin will land, many people will be right, but they will be right only through luck. In the FTSE 100 Range
Description
7 Year Forecast Annual Returns (including dividends)
11,600 - 13,900
Bubble
-3% to 0%
9,300 - 11,600
Bull Top
0% to 3%
6,900 - 9,300
Expensive
3% to 8%
5,800 - 6,900
Normal
8% to 10%
4,600 - 5,800
Cheap
10% to 14%
3,500 - 4,600
Bear Bottom
14% to 19%
2,300 - 3,500
Depression
19% to 26%
longer-term though, it is possible to make sensible forecasts like the ones in the table, even if we know in advance that they will not be completely accurate. You may have also noticed that at 5,600, the FTSE 100 is at exactly the same level, to the nearest hundred, as it was in last month’s issue. This means that not only is the market still in the same ‘cheap’ range as last month, the tactical asset allocation numbers are the same too. With the market slightly below its long-term average valuation, the equity allocations are slightly above the default level of 66%, because the market’s future returns are expected to be slightly higher than usual. You can see the tactical asset allocation ranges below.
High Conviction Bonds 20%
Med Conviction Bonds 25%
Stocks 80%
Low Conviction Bonds 29%
Stocks 75%
Stocks 71%
Model portfolio review Staying ahead of the FTSE 100 Since the model portfolio began in March 2011 it has gained £1,250 in value beyond an equivalent FTSE 100 index tracker. That's 2.5% on the starting capital value of £50,000. As you would expect from an income and growth portfolio, some of that has come from capital gains and some from income. For example, in the last 12 months the model portfolio has generated an additional £562 from dividends. That's an improvement of 33% over the yield of £1,705 from the index tracker. This means that the portfolio is more or less on track with my expectations, which are to beat the FTSE 100 by at least 3% a year in the medium and long-term. Last month's sale of UTV Media netted a useful gain for the portfolio. With the shares purchased at 104.75p on 6th December 2011 and sold for 148.42p on 5th July 2012, plus a dividend of 4.5p on 16th July, the total gain was around 43%, with annualised returns of almost 88%. Of course, annual returns of 88% are very welcome, but they are most definitely not normal. This was simply a case of being in the right place at the right time; luck in other words, with a helping hand from a sensible strategy. Model Portfolio Total Return
FTSE 100 Tracker Total Return
15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
Performance (%)
Yield
1y
YTD
2011
From inception
Model Portfolio
5.0
2.4
11.2
-6.9
3.5
Index Tracker
3.8
0.2
4.5
-3.4
1
Relative to Index Tracker
1.2
2.2
6.7
-3.5
2.5
Cash Results (£)
Current Capital Value
Rolling 12 Month Income
Model Portfolio
51,726
2,267
Index Tracker
50,476
1,705
Relative to Index Tracker
1,250
562
Page 3
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Mar-11
-15.0%
Model portfolio current holdings Rank Weight Company
26 14 15 61
10.3% 6.3% 5.3% 5.3% 5.2%
CASH INTERSERVE VODAFONE GROUP BALFOUR BEATTY MITIE GROUP
72
5.1%
RECKITT BENCKISER
39 22 40 56
5% 4.8% 4.7% 4.7%
UK MAIL GROUP BAE SYSTEMS BHP BILLITON MEARS GROUP
10
4.6%
ASTRAZENECA
33 23 4 12 31 27 45 2 9 8 24 6
4.6% 4.1% 3.6% 3.4% 3.4% 3.3% 3.3% 2.9% 2.8% 2.7% 2.5% 2%
SSE BP TULLETT PREBON BRAEMAR SHIPPING SERVICES TESCO JD SPORTS FASHION BROWN (N) RSA INSURANCE ICAP GO-AHEAD GROUP AVIVA CHEMRING GROUP
Epic
Index
IRV VOD BBY MTO
FTSE250 FTSE100 FTSE250 FTSE250
Sector
SUPPORT SERVICES MOBILE TELECOMMUNICATIONS CONSTRUCTION AND MATERIALS SUPPORT SERVICES HOUSEHOLD GOODS AND HOME RB. FTSE100 CONSTRUCTION SMALLCAP INDUSTRIAL TRANSPORTATION UKM BA. FTSE100 AEROSPACE AND DEFENCE BLT FTSE100 MINING SMALLCAP SUPPORT SERVICES MER PHARMACEUTICALS AND AZN FTSE100 BIOTECHNOLOGY SSE FTSE100 ELECTRICITY BP. FTSE100 OIL AND GAS PRODUCERS TLPR FTSE250 FINANCIAL SERVICES SMALLCAP INDUSTRIAL TRANSPORTATION BMS TSCO FTSE100 FOOD AND DRUG RETAILERS JD. FTSE250 GENERAL RETAILERS BWNG FTSE250 GENERAL RETAILERS RSA FTSE100 NONLIFE INSURANCE IAP FTSE100 FINANCIAL SERVICES GOG FTSE250 TRAVEL AND LEISURE AV. FTSE100 LIFE INSURANCE CHG FTSE250 AEROSPACE AND DEFENCE
Zone
324.7 190.2 283 281.4
Hold Buy Buy Sell
6% 16% 11% 16%
9.6 15.2 10.7 19.9
6% 5.8% 5.1% 3.5%
3578.2
Sell
16%
26.5
3.6%
227.6 Hold 314.8 Buy 1917.6 Hold 269.9 Hold
1% 8% 22% 22%
11 11.1 19.6 17.7
8% 6.2% 3.8% 3%
3096.5
Buy
14%
12.7
5.9%
1327.7 437.9 288.2 375.1 318.8 692.9 264.3 111.4 328.2 1262.9 306.4 290.4
Hold Hold Buy Buy Hold Hold Hold Buy Buy Buy Hold Buy
9% 8% 15% 9% 10% 15% 8% 22% 14% 14% -1% 28%
15.2 8.3 9.2 10 12.7 12.3 14.1 9.8 12 10.5 5.4 12.4
6.2% 4.6% 5.9% 6.9% 4.7% 3.7% 5% 8.4% 6.8% 6.4% 8.1% 5.8%
Size Allocation
Large-cap, 55% Medium-cap, 32% Small-cap, 13%
Industry Allocation Health Care, 5.2% Financials, 13.5% Industrials, 40.6% Basic Materials, 5.3% Oil & Gas, 4.6% Consumer Services, 14.0% Consumer Goods, 5.7% Utilities, 5.1% Telecommunications, 6.0%
Page 4
Growth PE10 Yield rate
Price
Buying: Centrica (CNA) The company behind British Gas becomes the latest addition to the portfolio. Price
Index
Industry
323.6p Market Cap
FTSE 100 Revenue
Multi-utilities Profit before tax
£16.8 billion
£22.8 billion
£1.3 billion
“Centrica is a top 30 FTSE100 company. Our vision is to be the leading integrated energy company in our chosen markets in the UK and North America” - centrica.com
Overview When Warren Buffet recently announced that he had invested in IBM, the response from most investment pundits was a yawn at best. Investing in one of the world’s best known companies, one that has long since reached maturity, is unlikely to get anybody excited. In the same way, adding Centrica - owners of the British Gas brand - to the model portfolio is likely to elicit much the same response. However, that doesn’t mean it is not a good idea. If you need any further anecdotal evidence that ‘boring’ companies can be attractive investments, then you might be pleased to know that a certain Neil Woodford - head of two highly successful Invesco Perpetual income funds - is also an investor in this company, along with several other holdings of the model portfolio.
Initial screening The UK Value Investor strategy is based around the idea that there are certain features that any high quality company is going to have. These include a high long-term growth rate, the ability to generate growth in profits and dividends in most years, a low valuation relative to past earnings, a high dividend yield and low levels of debt.
10 Yr growth rate
Dividend yield
Valuation (PE10)
14%
5%
16.3
Consistency
Interest cover
UKVI Rank
80%
16.5
25 (out of 197)
Not all good investments will have all these features, but they will typically have some of them. Shares that don’t show at least some of these features are unlikely to be suitable for a low risk, income and growth strategy. You can see the results for Centrica, along with its UKVI Rank above. In terms of the FTSE 100, which is the benchmark the portfolio is trying to beat, it does better in terms of growth and income, but worse in terms of valuation and consistency. However, overall the combination of factors is much more attractive than the index, and when combined they result in Centrica ranking 25th out of 197 FTSE 350 companies, far above the index which still manages to come 73rd.
Page 5
Centrica 10 Year Per Share Results 30
Pence per share
25 20 15 10 5 0 2002
2003
2004
2005
2006
Adjusted Earnings
2007
2008
2009
2010
2011
Dividends
Investment checklist With the quantitative factors looking attractive, it’s time to look at the business from a qualitative point of view.
Would this company be the first, or at most the second from this particular industry in the portfolio? Centrica would be the second energy utility business in the portfolio, joining SSE (formerly Scottish and Southern Energy).
Does the business generate earnings across multiple geographic regions? No, Centrica is mostly a UK business, so it is not particularly geographically diverse. However, it is not in an economically sensitive industry so it is not particularly at risk from a UK based recession like the one we are currently in.
Does the business have diverse operations, including customers, suppliers and key staff? The company has diverse operations in sourcing, recovering, generating, trading and supplying gas and energy and operates at all stages of the energy supply chain. It is not reliant on a small number of suppliers, it has many millions of customers, and doesn’t have any obviously irreplaceable members of staff.
Is it in the leading group within its industry? Yes, centrica is the leading gas supplier in the UK and one of the leading energy companies.
Has the company been highly successful in the past? Yes, the growth and consistency numbers appear to be an accurate representation of the company’s fortunes; it has produced a good set of results over the last decade.
Does the company have any competitive advantages? Are they low cost and durable? Centrica’s main advantages appear to be size and brand. As the UK’s largest gas supplier and a leading energy company, it can use its size to produce economies of scale, and to gain access to high quality assets. In terms of brand, British Gas and Scottish Gas are very well known and are almost the de facto choice for many people. The size advantages is not low cost or durable; the company must continually work to maintain its size advantage. The leading brands on the other hand are relatively low cost and durable Page 6
advantages. Although brands have to be advertised, the costs are nothing compared to the costs of building a leading brand in the first place.
Does the company have a consistent operating history within the same industry? Yes, Centrica has been in the Gas and energy business for a long time (previously as British Gas PLC).
Has the company been free of any major crises during the last decade? If there were any, how were they solved and could they happen again? There have been no major crises in the last decade.
Is the company free of obvious problems today which could materially impact its future prosperity? This seems to be the case. Although the current economic climate is challenging, even for utility companies, there are no obvious major threats at present.
Does it seem likely that the history of success can continue into the future for many years to come? Is there virtually no chance of its economic engine becoming obsolete in the next decade? Although there are many things changing in the energy industry today, from volatile commodity prices to decarbonisation on energy, there doesn’t seem to be an obvious reason why Centrica can’t continue much as it has in the past, growing at or above inflation for the foreseeable future. As for obsolescence, that seems even less likely as power will be required in ever growing amounts for as long as the population is growing in size and prosperity.
Summary Centrica is the leading gas supplier in the UK through its Scottish Gas and British Gas brands. It has operations in the US and is active at every stage of the energy supply chain. It is a FTSE 100 company in a defensive industry and so could be considered a relatively low risk equity investment. It has grown earnings and dividends at around 14% a year over the last decade and has a current dividend yield of about 5%, both of which are comfortably higher than the market average. The dividend is well covered by earnings and the growth of both earnings and dividends has been reasonably consistent over time. Centrica will be added to the model portfolio shortly, with a weighting of approximately 1/30th of the total.
Higher ranking companies that were rejected Company CAPE, Carillion, Kier Group, Atkins (WS) Amlin, Hiscox Man Group, Intermediate Capital Aquarius Platinum First Group HomeServe Xstrata
Page 7
Reason for rejection These companies operate in the design, engineering, construction and support services industries. The portfolio already owns several similar companies (MITIE, Interserve, and Balfour Beatty). These are insurance companies and the portfolio already owns two insurance companies (Aviva and RSA). These are asset management businesses which are currently excluded from the portfolio. This mining company carries too much debt as interest cover is only 5.5 and mining is a volatile industry. It carries too much debt to get into the portfolio. It also has high interest payments relative to earnings with interest payments covered only 2.7 times. This company is currently being investigated by the FSA. This company is a good candidate, but it is currently in takeover talks with Glencore and takeover situations are not a good place to start a long-term investment.
FTSE 350 sorted by UKVI Rank The UKVI ranking system is designed so that the highest ranked shares have the best combination of: high long-term growth rate, high earnings and dividend consistency, low valuation and high dividend yield. UKVI Company Rank 1 CAPE 2 3 4 5 6 7 8 9 10
RSA INSURANCE AMLIN TULLETT PREBON CARILLION CHEMRING GROUP MAN GROUP GO-AHEAD GROUP ICAP ASTRAZENECA
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
KIER GROUP BRAEMAR SHIPPING SERVICES FIRSTGROUP VODAFONE GROUP BALFOUR BEATTY INTERMEDIATE CAPITAL HOMESERVE XSTRATA HISCOX ATKINS (W S) AQUARIUS PLATINUM BAE SYSTEMS BP AVIVA CENTRICA INTERSERVE JD SPORTS FASHION BT GROUP DAIRY CREST LADBROKES TESCO RIO TINTO SSE COMPUTACENTER
35 36 37 38 39 40 41
CRH AVOCET MINING NATIONAL GRID BREWIN DOLPHIN UK MAIL GROUP BHP BILLITON MARSTONS
42 43 44
OLD MUTUAL MARKS AND SPENCER SEGRO
45
BROWN (N)
46
SAGE GROUP
47 48
CLOSE BROTHERS MORRISON (WM) SUPERMARKETS NATIONAL EXPRESS ROYAL DUTCH SHELL
49 50
Page 8
Epic Index
Last price 192.5
Growth rate 22.7%
Yield 7.5%
Valuation Interest (PE10) cover 8.5 9.24
111.4 383 288.2 253.5 290.4 81.7 1262.9 328.2 3096.5
21.7% 44.4% 15.2% 12.5% 27.5% 8.5% 14.1% 13.7% 13.9%
8.4% 6.3% 5.9% 6.8% 5.8% 15.9% 6.4% 6.8% 5.9%
9.8 11.7 9.2 9.1 12.4 3.4 10.5 12 12.7
1276.8 375.1
13.9% 9.3%
5.2% 6.9%
11.3 10
132
FGP FTSE250 VOD FTSE100 BBY FTSE250 ICP FTSE250 HSV FTSE250 XTA FTSE100 HSX FTSE250 ATK FTSE250 AQP FTSE250 BA. FTSE100 BP. FTSE100 AV. FTSE100 CNA FTSE100 IRV FTSE250 JD. FTSE250 BT.A FTSE100 DCG FTSE250 LAD FTSE250 TSCOFTSE100 RIO FTSE100 SSE FTSE100 CCC FTSE250
235.3 190.2 283 260.8 219.4 879.8 454.8 668.1 35 314.8 437.9 306.4 323.6 324.7 692.9 216.2 338.6 159.8 318.8 3030 1327.7 359.2
6.6% 15.8% 10.8% 4.0% 11.8% 20.5% 19.9% 11.6% 11.9% 8.0% 8.0% -1.1% 14.1% 6.0% 15.0% 11.0% 1.6% 4.4% 9.8% 16.4% 8.6% 13.0%
10.3% 5.8% 5.1% 7.4% 5.1% 3.1% 4.0% 4.6% 3.1% 6.2% 4.6% 8.1% 5.0% 6.0% 3.7% 4.2% 6.1% 5.1% 4.7% 3.3% 6.2% 4.5%
6.6 15.2 10.7 6.7 12.9 9.7 14.8 11.4 3.5 11.1 8.3 5.4 16.3 9.6 12.3 11.1 7.2 6.8 12.7 12.4 15.2 15.7
2.73 7.81
CRH AVM NG. BRW UKM BLT MA RS OML MKS SG RO BW NG SGE
TRAVEL AND LEISURE MOBILE TELECOMMUNICATIONS CONSTRUCTION AND MATERIALS FINANCIAL SERVICES SUPPORT SERVICES MINING NONLIFE INSURANCE SUPPORT SERVICES MINING AEROSPACE AND DEFENCE OIL AND GAS PRODUCERS LIFE INSURANCE GAS - WATER AND MULTIUTILITIES SUPPORT SERVICES GENERAL RETAILERS FIXED LINE TELECOMMUNICATIONS FOOD PRODUCERS TRAVEL AND LEISURE FOOD AND DRUG RETAILERS MINING ELECTRICITY SOFTWARE AND COMPUTER SERVICES FTSE100 CONSTRUCTION AND MATERIALS FTSE250 MINING FTSE100 GAS - WATER AND MULTIUTILITIES FTSE250 FINANCIAL SERVICES SMALLCAP INDUSTRIAL TRANSPORTATION FTSE100 MINING FTSE250 TRAVEL AND LEISURE
1184.9 84.7 677.5 150.3 227.6 1917.6 111.7
9.6% 6.8% 8.7% 10.2% 0.6% 22.5% -0.1%
4.4% 6.2% 5.9% 4.7% 8.0% 3.8% 5.4%
11.4 13.2 16.5 15.4 11 19.6 8
3.8 13.48 3.81
FTSE100 FTSE100 FTSE250
LIFE INSURANCE GENERAL RETAILERS REAL ESTATE INVESTMENT TRUSTS
165.2 341 241.1
0.7% 5.5% -4.4%
10.5% 5.1% 6.2%
12 10.9 7.6
9.15 4.89
FTSE250
GENERAL RETAILERS
264.3
7.9%
5.0%
14.1
15.94
FTSE100
295
28.9%
3.6%
22.2
27.46
CBG FTSE250 MRW FTSE100
SOFTWARE AND COMPUTER SERVICES FINANCIAL SERVICES FOOD AND DRUG RETAILERS
758.8 277.1
4.2% 13.0%
5.4% 4.1%
12.4 19.5
37.42
NEX FTSE250 RDSBFTSE100
TRAVEL AND LEISURE OIL AND GAS PRODUCERS
211.7 2323.8
-2.1% 6.9%
4.7% 4.6%
6 12.7
CIU
Sector
FTSE250
OIL EQUIPMENT - SERVICES AND DISTRIBUTION RSA FTSE100 NONLIFE INSURANCE AML FTSE250 NONLIFE INSURANCE TLPR FTSE250 FINANCIAL SERVICES CLLN FTSE250 SUPPORT SERVICES CHG FTSE250 AEROSPACE AND DEFENCE EMG FTSE250 FINANCIAL SERVICES GOG FTSE250 TRAVEL AND LEISURE IAP FTSE100 FINANCIAL SERVICES AZN FTSE100 PHARMACEUTICALS AND BIOTECHNOLOGY KIE FTSE250 CONSTRUCTION AND MATERIALS BMS SMALLCAP INDUSTRIAL TRANSPORTATION
12.07 42.87 8.7 6.58 15.5 26.43
58.27 36.98 10.23 5.56 17.76 63.51 16.54 45.9 190.2 4.54 4.74 5.72 14.98 59.79 7.86
56.71 2.09
4.85
UKVI Rank 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
Company
Last price UBM UBM FTSE250 MEDIA 661.9 BERENDSEN BRSN FTSE250 SUPPORT SERVICES 509.9 LEGAL AND GENERAL LGEN FTSE100 LIFE INSURANCE 130 CONSTRUCTION AND MATERIALS 630.9 GALLIFORD TRY GFRD FTSE250 HSBC HOLDINGS HSBA FTSE100 BANKS 560.7 MEARS GROUP MER SMALLCAP SUPPORT SERVICES 269.9 PREMIER FARNELL PFL FTSE250 SUPPORT SERVICES 178 IMPERIAL TOBACCO IMT FTSE100 TOBACCO 2516.2 GREENE KING GNK FTSE250 TRAVEL AND LEISURE 598.5 LONDON STOCK EXCHANGE LSE FTSE250 FINANCIAL SERVICES 962.2 MITIE GROUP MTO FTSE250 SUPPORT SERVICES 281.4 ITE GROUP ITE FTSE250 MEDIA 197.5 SAVILLS SVS FTSE250 REAL ESTATE INVESTMENT AND 375.3 SERVICES MENZIES (JOHN) MNZS FTSE250 SUPPORT SERVICES 648.6 BARCLAYS BARC FTSE100 BANKS 171.4 GREGGS GRG FTSE250 FOOD AND DRUG RETAILERS 509.5 BBA AVIATION BBA FTSE250 INDUSTRIAL TRANSPORTATION 185.1 PROVIDENT FINANCIAL PFG FTSE250 FINANCIAL SERVICES 1310.3 BRITISH LAND CO BLND FTSE100 REAL ESTATE INVESTMENT 548.7 TRUSTS GLAXOSMITHKLINE GSK FTSE100 PHARMACEUTICALS AND 1498.2 BIOTECHNOLOGY WPP GROUP WPP FTSE100 MEDIA 829.5 RECKITT BENCKISER RB. FTSE100 HOUSEHOLD GOODS AND HOME 3578.2 CONSTRUCTION FTSE 100 5600 SHANKS GROUP SKS FTSE250 SUPPORT SERVICES 79.2 BRITISH SKY BROADCASTING BSY FTSE100 MEDIA 743 ANGLO AMERICAN AAL FTSE100 MINING 1901.3 REED ELSEVIER REL FTSE100 MEDIA 565.3 HAYS HAS FTSE250 SUPPORT SERVICES 76.5 SCHRODERS SDR FTSE100 FINANCIAL SERVICES 1349.4 ELECTROCOMPONENTS ECM FTSE250 SUPPORT SERVICES 219.1 DOMINO PRINTING SCIENCES DNO FTSE250 ELECTRONIC AND ELECTRICAL 571.2 EQUIPMENT CAPITA GROUP CPI FTSE100 SUPPORT SERVICES 739.2 CRANSWICK CWK FTSE250 FOOD PRODUCERS 857.9 LAIRD LRD FTSE250 ELECTRONIC AND ELECTRICAL 222.9 EQUIPMENT PRUDENTIAL PRU FTSE100 LIFE INSURANCE 791.5 MORGAN CRUCIBLE COMPANY MGCR FTSE250 ELECTRONIC AND ELECTRICAL 254.3 EQUIPMENT UNITED UTILITIES UU. FTSE100 GAS - WATER AND 686.2 MULTIUTILITIES COOKSON GROUP CKSN FTSE250 GENERAL INDUSTRIALS 566.3 ANTOFAGASTA ANTO FTSE100 MINING 1089.7 SAINSBURY (J) SBRY FTSE100 FOOD AND DRUG RETAILERS 323.1 STAGECOACH SGC FTSE250 TRAVEL AND LEISURE 280.7 INCHCAPE INCH FTSE250 GENERAL RETAILERS 385.1 IMI IMI FTSE100 INDUSTRIAL ENGINEERING 838.9 COBHAM COB FTSE250 AEROSPACE AND DEFENCE 235.2 RPC GROUP RPC FTSE250 GENERAL INDUSTRIALS 412.5 BRITISH AMERICAN TOBACCO BATS FTSE100 TOBACCO 3486.7 ULTRA ELECTRONICS ULE FTSE250 AEROSPACE AND DEFENCE 1450.6 WH SMITH SMWH FTSE250 GENERAL RETAILERS 558.8 RESTAURANT GROUP RTN FTSE250 TRAVEL AND LEISURE 316 INTERNATIONAL CONSOLIDATED IAG FTSE100 TRAVEL AND LEISURE 151 AIRLINES
Page 9
Epic
Index
Sector
Growth rate 9.6% 6.9% 4.7% -1.1% 0.6% 21.7% 2.9% 12.7% 7.0% 19.3% 16.2% 23.4% 8.2%
Yield 4.2% 4.8% 5.2% 4.8% 4.8% 3.0% 5.9% 4.1% 4.2% 3.0% 3.5% 3.3% 3.8%
Valuation Interest (PE10) cover 15.8 7.32 14.1 4.99 13.3 8.9 21.65 9.7 17.7 15.64 13.7 5.68 20.7 6.37 13.2 2.74 18 10.83 19.9 15.51 22.8 56.18 14.5
7.6% -7.5% 9.0% -1.5% 4.0% 7.1%
3.8% 4.0% 4.0% 4.8% 5.9% 4.8%
14.2 4 17.2 10.7 17.6 17.6
12.22
5.2%
4.8%
15.5
11.88
14.1% 16.1%
3.3% 3.6%
19.1 26.5
5.96 130.89
6.5% -2.4% 16.8% 8.5% 7.8% 1.2% 15.2% -1.7% 15.4%
3.8% 4.5% 3.5% 2.7% 4.0% 3.7% 3.0% 5.4% 3.5%
13.7 9.8 25.8 10.7 16.9 10.1 20.7 14.4 25.9
21.5% 8.9% -2.4%
3.1% 3.4% 4.2%
27.3 16.1 10.9
10.18 46.6 8.37
11.2% 5.9%
3.3% 4.0%
18.4 16.1
6.58
-0.7%
4.8%
14.3
1.91
-1.5% 21.0% -0.4% 12.5% 2.3% 8.1% 9.4% 9.8% 12.7% 13.1% 2.6% 10.9% 10.4%
4.0% 2.6% 5.1% 2.8% 3.1% 3.8% 3.3% 3.6% 3.8% 2.9% 4.6% 3.5% 0.0%
11 22.5 15.5 18.4 9 19.1 17.2 20.8 30.1 21 16.5 23.3 10.1
10.11 43.97 7.66 6.04 17.84 23.24 4.82 8.06 12 15.19
6.93 3.33 3.53
3.63 13.37 483.4 6.92 15.21 22.09 587.64
67.83 3.59
UKVI Rank 101 102 103 104 105 106 107
Company
Epic Index
Sector
STANDARD CHARTERED SMITH (DS) BABCOCK INTERNATIONAL DE LA RUE WETHERSPOON (J D) RPS GROUP TELECOM PLUS
STAN FTSE100 SMDS FTSE250 BAB FTSE100 DLAR FTSE250 JDW FTSE250 RPS FTSE250 TEP FTSE250
108
SEVERN TRENT
SVT
109 110 111 112
F AND C ASSET MANAGEMENT TATE AND LYLE DIPLOMA PENNON GROUP
FCAM FTSE250 TATE FTSE100 DPLM FTSE250 PNN FTSE100
113 114
SIG CAPITAL SHOPPING CENTRES
SHI FTSE250 CSCG FTSE100
115
FIDESSA GROUP
FDSA FTSE250
116 117 118 119 120
PEARSON REXAM DOMINOS PIZZA UK AND IRL NEXT PARAGON GROUP OF COMPANIES SYNERGY HEALTH
PSON FTSE100 REX FTSE100 DOM FTSE250 NXT FTSE100 PAG FTSE250
BANKS GENERAL INDUSTRIALS SUPPORT SERVICES SUPPORT SERVICES TRAVEL AND LEISURE SUPPORT SERVICES FIXED LINE TELECOMMUNICATIONS GAS - WATER AND MULTIUTILITIES FINANCIAL SERVICES FOOD PRODUCERS SUPPORT SERVICES GAS - WATER AND MULTIUTILITIES SUPPORT SERVICES REAL ESTATE INVESTMENT TRUSTS SOFTWARE AND COMPUTER SERVICES MEDIA GENERAL INDUSTRIALS TRAVEL AND LEISURE GENERAL RETAILERS FINANCIAL SERVICES
121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150
Interest cover
3.3% 3.9% 2.7% 4.0% 2.7% 2.6% 3.4%
Valuation (PE10) 18.2 14.8 27.9 25.8 18.9 18.7 49.6
5.7%
4.2%
21.3
2.2
88.1 678 424.7 768
-9.9% 3.8% 14.8% 8.6%
3.4% 3.7% 3.1% 3.6%
8.9 16.6 31.3 24.1
3.58 13.92 33.67 3.72
94.9 330.2
-13.2% -2.0%
2.8% 4.6%
2.5 16.6
6.93 1.76
1394.1
19.2%
2.7%
31.7
1238.1 436.6 510.5 3491.6 175.9
8.7% 0.4% 34.3% 11.9% -5.5%
3.5% 3.5% 2.7% 2.7% 2.5%
24.9 13.5 57.9 23.2 4.3
13.27 7.96 195.27 21.03
SYR FTSE250 HEALTH CARE EQUIPMENT AND 916.1 SERVICES 1259.6 BG GROUP BG. FTSE100 OIL AND GAS PRODUCERS 1094.2 SMITHS GROUP SMIN FTSE100 GENERAL INDUSTRIALS DEVRO DVO FTSE250 FOOD PRODUCERS 302.9 LAND SECURITIES LAND FTSE100 REAL ESTATE INVESTMENT 808.1 TRUSTS MICHAEL PAGE INTERNATIONAL MPI FTSE250 SUPPORT SERVICES 374.3 MEGGITT MGGTFTSE100 AEROSPACE AND DEFENCE 390.5 VICTREX VCT FTSE250 CHEMICALS 1279.1 GKN GKN FTSE100 AUTOMOBILES AND PARTS 210.5 RATHBONE BROTHERS RAT FTSE250 FINANCIAL SERVICES 1289.9 YULE CATTO AND CO YULC FTSE250 CHEMICALS 144 UNILEVER ULVR FTSE100 FOOD PRODUCERS 2334 AMEC AMEC FTSE100 OIL EQUIPMENT - SERVICES AND 1135.3 DISTRIBUTION CRODA INTERNATIONAL CRDA FTSE100 CHEMICALS 2408.4 TRAVIS PERKINS TPK FTSE250 SUPPORT SERVICES 1043.2 KINGFISHER KGF FTSE100 GENERAL RETAILERS 276 SPIRAX-SARCO ENGINEERING SPX FTSE250 INDUSTRIAL ENGINEERING 1991.8 RENTOKIL INITIAL RTO FTSE250 SUPPORT SERVICES 76 BODYCOTE BOY FTSE250 INDUSTRIAL ENGINEERING 340.1 MILLENNIUM AND COPTHORNE MLC FTSE250 TRAVEL AND LEISURE 473.7 HOTELS 598.3 SERCO GROUP SRP FTSE100 SUPPORT SERVICES DECHRA PHARMACEUTICALS DPH FTSE250 PHARMACEUTICALS AND 485.1 BIOTECHNOLOGY HMSOFTSE100 REAL ESTATE INVESTMENT 474.5 HAMMERSON TRUSTS COMPASS GROUP CPG FTSE100 TRAVEL AND LEISURE 702.5 TED BAKER TED FTSE250 GENERAL RETAILERS 915.9 BELLWAY BWY FTSE250 HOUSEHOLD GOODS AND HOME 827.1 CONSTRUCTION AVEVA GROUP AVV FTSE250 SOFTWARE AND COMPUTER 1821.4 SERVICES WOLSELEY WOS FTSE100 SUPPORT SERVICES 2385.8 EUROMONEY INSTITUTIONAL ERM FTSE250 MEDIA 724.5 INVESTOR WEIR GROUP WEIR FTSE100 INDUSTRIAL ENGINEERING 1693.4
20.9%
2.0%
28.5
8.82
17.4% 3.8% 12.7% -1.1%
1.3% 3.5% 2.8% 3.7%
24.9 17.3 29.5 15.6
48.04 8.84 51.31 2.47
10.9% 7.8% 14.7% -2.1% 5.4% -2.8% 6.6% 10.8%
2.7% 2.9% 2.7% 3.3% 3.6% 2.9% 3.3% 3.0%
25.4 18.7 32.7 12.5 22.4 11 21.6 30.9
17.4% 2.6% 1.2% 10.7% -9.8% 5.3% 7.3%
2.4% 2.2% 3.4% 2.8% 2.4% 3.4% 2.9%
51.4 11.6 17 28.8 7.2 22.5 21.9
1212 18.98 81.9
16.0% 12.2%
1.5% 2.4%
29.9 29
10.4 18.14
3.5%
3.6%
22.6
2.32
9.9% 10.0% -4.6%
3.0% 2.7% 2.0%
30.2 28.2 9.1
15.28 166.15 9.35
25.5%
1.2%
49.7
-5.7% 5.3%
2.4% 2.9%
9.8 19.6
7.7 15.13
13.9%
2.1%
32.8
27.33
Page 10
FTSE100
Last price Growth rate 1566.8 9.3% 154.7 0.7% 886.4 21.2% 1049.9 8.5% 468 12.1% 239.5 12.3% 840.1 16.6%
Yield
1738.6
7.72 6.07 15.39 2.88 23.76 339.31
9.85 11.14 8.33 17.06
5.04 18.59 29.82
UKVI Rank 150 151 152
Company
Epic
WEIR GROUP PERSIMMON
WEIR FTSE100 INDUSTRIAL ENGINEERING PSN FTSE250 HOUSEHOLD GOODS AND HOME CONSTRUCTION ADN FTSE100 FINANCIAL SERVICES
153 154
ABERDEEN ASSET MANAGEMENT WHITBREAD SMITH AND NEPHEW
155
SPECTRIS
156 157
BARR (A G) RENISHAW
158 159 160 161 162 163
DIXONS RETAIL BUNZL JOHNSON MATTHEY JARDINE LLOYD THOMPSON SABMILLER HUNTING
164 165 166 167 168 169
ROTORK AGGREKO SHAFTESBURY LONMIN FENNER BOVIS HOMES
ROR AGK SHB LMI FENR BVS
170 171 172 173 174
RANK GROUP ROLLS-ROYCE EASYJET PZ CUSSONS ASSOCIATED BRITISH FOODS HALMA
RNK RR. EZJ PZC ABF
175 176 177 178 179 180 181 182 183 184
SENIOR DERWENT LONDON SOCO INTERNATIONAL PREMIER OIL AEGIS GROUP TULLOW OIL BERKELEY GROUP HOLDINGS DIAGEO GENUS
185
ARM HOLDINGS
186
INVENSYS
187 188
ELEMENTIS DIALIGHT
189 190
CARPETRIGHT DAEJAN
191
OXFORD INSTRUMENTS
192 193
HOWDEN JOINERY SHIRE
194 195
ASHTEAD GROUP ANITE
196
SPIRENT COMMUNICATIONS GREAT PORTLAND ESTATES
197
Page 11
Index
Sector
WTB FTSE100 TRAVEL AND LEISURE SN. FTSE100 HEALTH CARE EQUIPMENT AND SERVICES SXS FTSE250 ELECTRONIC AND ELECTRICAL EQUIPMENT BAG FTSE250 BEVERAGES RSW FTSE250 ELECTRONIC AND ELECTRICAL EQUIPMENT DXNS FTSE250 GENERAL RETAILERS BNZL FTSE100 SUPPORT SERVICES JMAT FTSE100 CHEMICALS JLT FTSE250 NONLIFE INSURANCE SAB HTG
FTSE100 BEVERAGES FTSE250 OIL EQUIPMENT - SERVICES AND DISTRIBUTION FTSE250 INDUSTRIAL ENGINEERING FTSE100 SUPPORT SERVICES FTSE250 REAL ESTATE INVESTMENT TRUSTS FTSE250 MINING FTSE250 INDUSTRIAL ENGINEERING FTSE250 HOUSEHOLD GOODS AND HOME CONSTRUCTION FTSE250 TRAVEL AND LEISURE FTSE100 AEROSPACE AND DEFENCE FTSE250 TRAVEL AND LEISURE FTSE250 PERSONAL GOODS FTSE100 FOOD PRODUCERS
HLMA FTSE250 ELECTRONIC AND ELECTRICAL EQUIPMENT SNR FTSE250 AEROSPACE AND DEFENCE DLN FTSE250 REAL ESTATE INVESTMENT TRUSTS SIA FTSE250 OIL AND GAS PRODUCERS PMO FTSE250 OIL AND GAS PRODUCERS AGS FTSE250 MEDIA TLW FTSE100 OIL AND GAS PRODUCERS BKG FTSE250 HOUSEHOLD GOODS AND HOME CONSTRUCTION DGE FTSE100 BEVERAGES GNS FTSE250 PHARMACEUTICALS AND BIOTECHNOLOGY ARM FTSE100 TECHNOLOGY HARDWARE AND EQUIPMENT ISYS FTSE250 SOFTWARE AND COMPUTER SERVICES ELM FTSE250 CHEMICALS DIA FTSE250 ELECTRONIC AND ELECTRICAL EQUIPMENT CPR FTSE250 GENERAL RETAILERS DJAN FTSE250 REAL ESTATE INVESTMENT AND SERVICES OXIG FTSE250 ELECTRONIC AND ELECTRICAL EQUIPMENT HWDNFTSE250 SUPPORT SERVICES SHP FTSE100 PHARMACEUTICALS AND BIOTECHNOLOGY AHT FTSE250 SUPPORT SERVICES AIE FTSE250 SOFTWARE AND COMPUTER SERVICES SPT FTSE250 TECHNOLOGY HARDWARE AND EQUIPMENT GPOR FTSE250 REAL ESTATE INVESTMENT TRUSTS
Last price Growth rate 1693.4 13.9% 639.7 -6.3%
Yield 2.1% 1.8%
Valuation (PE10) 32.8 8.5
Interest cover 27.33 31.22
264.6
4.3%
3.9%
29.2
40.17
2133.5 675
9.6% 9.9%
2.5% 1.7%
25.9 22.3
8.62 121.12
1579.2
10.5%
2.3%
28.5
20.35
432 1514.4
10.3% 11.3%
2.7% 2.6%
31.4 35.7
16.1 1145.9 2184.1 760.9
-16.4% 8.7% 7.6% 3.0%
0.7% 2.4% 2.6% 3.3%
3 25.1 24.8 23.1
3.5 11.34 17.98 32.24
2848.1 778.1
12.6% 11.7%
2.1% 2.3%
36.9 33.7
7.09 36.82
2309 2204.1 542.2 725.9 366.8 461.8
13.1% 17.6% 13.0% -12.5% 7.4% -11.8%
1.8% 1.0% 2.2% 1.3% 2.8% 1.4%
46.9 59.2 73.5 8.4 27.4 9.5
18.31 2.05 62.2 7.09 8.07
120 856.9 572.4 320.2 1273.8
-10.1% 9.7% 7.9% 8.8% 6.8%
1.8% 2.2% 1.8% 2.2% 2.1%
10.1 30.5 23.7 29.1 23.4
10.86 14.12 12.81 84.91 10
405.6
7.5%
2.5%
28.6
84.57
197.6 1994.1 335.7 382.2 236.9 1305.1 1429.8
7.6% 10.5% 15.4% 13.4% 9.4% 12.8% 0.4%
2.1% 1.6% 0.0% 0.0% 1.5% 0.8% 0.5%
27 35.9 55.6 35.2 31.1 93.1 15.1
8.09 2.2 97.85 2.58 4.77 13.09 20.8
1707.5 1257.5
5.6% 10.3%
2.5% 1.1%
29.7 47.5
7.82 6.7
570
12.0%
0.7%
104.2
245
-6.7%
1.9%
16.9
20.9
206.6 1045
5.9% 9.4%
2.2% 1.0%
35 75.1
52.73
604.9 2994.7
-10.6% 1.6%
0.2% 2.5%
14 29.6
2 2.4
1250.7
8.4%
0.8%
64.6
52.62
138.3 1958.4
-4.2% 7.1%
0.7% 0.5%
18.4 43.3
95.25 31
264.7 125
4.5% -2.0%
1.4% 1.3%
38.3 27.6
3.58 36.01
144.7
0.3%
1.4%
31.6
443.5
0.1%
1.9%
46.9
1.58
FTSE 350 sorted by company name If you want to know how a particular company’s shares rank using the UK Value Investor system, just look them up in the table below. UKVI Rank 152
Company
Epic
Index
Sector
ADN
FTSE100
FINANCIAL SERVICES
180 165 133
ABERDEEN ASSET MANAGEMENT AEGIS GROUP AGGREKO AMEC
3 76 195
AMLIN ANGLO AMERICAN ANITE
AML AAL AIE
89 21 185
ANTOFAGASTA AQUARIUS PLATINUM ARM HOLDINGS
ANTO FTSE100 AQP FTSE250 ARM FTSE100
194 174
AHT ABF
FTSE250 FTSE100
10
ASHTEAD GROUP ASSOCIATED BRITISH FOODS ASTRAZENECA
AZN
FTSE100
20 147
ATKINS (W S) AVEVA GROUP
ATK AVV
FTSE250 FTSE250
24 36 103
AVIVA AVOCET MINING BABCOCK INTERNATIONAL BAE SYSTEMS BALFOUR BEATTY BARCLAYS BARR (A G) BBA AVIATION BELLWAY
AV. FTSE100 AVM FTSE250 BAB FTSE100
22 15 65 156 67 146 52 182 122 40 139 169 23 12 38 96 69 75
BERENDSEN BERKELEY GROUP HOLDINGS BG GROUP BHP BILLITON BODYCOTE BOVIS HOMES BP BRAEMAR SHIPPING SERVICES BREWIN DOLPHIN BRITISH AMERICAN TOBACCO BRITISH LAND CO
AGS FTSE250 AGK FTSE100 AMEC FTSE100 FTSE250 FTSE100 FTSE250
Yield 3.9%
Valuation Interest (PE10) cover 29.2 40.17
MEDIA SUPPORT SERVICES OIL EQUIPMENT - SERVICES AND DISTRIBUTION NONLIFE INSURANCE MINING SOFTWARE AND COMPUTER SERVICES MINING MINING TECHNOLOGY HARDWARE AND EQUIPMENT SUPPORT SERVICES FOOD PRODUCERS
236.9 2204.1 1135.3
9.4% 17.6% 10.8%
1.5% 1.0% 3.0%
31.1 59.2 30.9
383 1901.3 125
44.4% 8.5% -2.0%
6.3% 2.7% 1.3%
11.7 10.7 27.6
1089.7 35 570
21.0% 11.9% 12.0%
2.6% 3.1% 0.7%
22.5 3.5 104.2
43.97 5.56
264.7 1273.8
4.5% 6.8%
1.4% 2.1%
38.3 23.4
3.58 10
PHARMACEUTICALS AND BIOTECHNOLOGY SUPPORT SERVICES SOFTWARE AND COMPUTER SERVICES LIFE INSURANCE MINING SUPPORT SERVICES
3096.5
13.9%
5.9%
12.7
26.43
668.1 1821.4
11.6% 25.5%
4.6% 1.2%
11.4 49.7
10.23
306.4 84.7 886.4
-1.1% 6.8% 21.2%
8.1% 6.2% 2.7%
5.4 13.2 27.9
314.8 283 171.4 432 185.1 827.1
8.0% 10.8% -7.5% 10.3% -1.5% -4.6%
6.2% 5.1% 4.0% 2.7% 4.8% 2.0%
11.1 10.7 4 31.4 10.7 9.1
6.93 9.35
509.9 1429.8
6.9% 0.4%
4.8% 0.5%
14.1 15.1
4.99 20.8
4.77 18.31
483.4 36.01
13.48 6.07
AEROSPACE AND DEFENCE CONSTRUCTION AND MATERIALS BANKS BEVERAGES INDUSTRIAL TRANSPORTATION HOUSEHOLD GOODS AND HOME CONSTRUCTION BRSN FTSE250 SUPPORT SERVICES BKG FTSE250 HOUSEHOLD GOODS AND HOME CONSTRUCTION BG. FTSE100 OIL AND GAS PRODUCERS BLT FTSE100 MINING BOY FTSE250 INDUSTRIAL ENGINEERING BVS FTSE250 HOUSEHOLD GOODS AND HOME CONSTRUCTION BP. FTSE100 OIL AND GAS PRODUCERS BMS SMALLCAPINDUSTRIAL TRANSPORTATION
1259.6 1917.6 340.1 461.8
17.4% 22.5% 5.3% -11.8%
1.3% 3.8% 3.4% 1.4%
24.9 19.6 22.5 9.5
48.04 56.71 18.59 8.07
437.9 375.1
8.0% 9.3%
4.6% 6.9%
8.3 10
63.51
BRW FTSE250 BATS FTSE100
FINANCIAL SERVICES TOBACCO
150.3 3486.7
10.2% 12.7%
4.7% 3.8%
15.4 30.1
12
BLND FTSE100
REAL ESTATE INVESTMENT TRUSTS MEDIA
548.7
7.1%
4.8%
17.6
3.53
743
16.8%
3.5%
25.8
13.37
264.3 216.2
7.9% 11.0%
5.0% 4.2%
14.1 11.1
15.94 4.54
1145.9 192.5
8.7% 22.7%
2.4% 7.5%
25.1 8.5
11.34 9.24
739.2 330.2
21.5% -2.0%
3.1% 4.6%
27.3 16.6
10.18 1.76
253.5 604.9 323.6
12.5% -10.6% 14.1%
6.8% 0.2% 5.0%
9.1 14 16.3
42.87 2 16.54
290.4 758.8 235.2 702.5 359.2
27.5% 4.2% 9.4% 9.9% 13.0%
5.8% 5.4% 3.3% 3.0% 4.5%
12.4 12.4 17.2 30.2 15.7
8.7
566.3
-1.5%
4.0%
11
BA. BBY BARC BAG BBA BWY
FTSE100 FTSE250 FTSE100 FTSE250 FTSE250 FTSE250
BSY
45 28
BRITISH SKY BROADCASTING BROWN (N) BT GROUP
159 1
BUNZL CAPE
BNZL FTSE100 CIU FTSE250
82 114
CPI FTSE100 CSCG FTSE100
5 189 25
CAPITA GROUP CAPITAL SHOPPING CENTRES CARILLION CARPETRIGHT CENTRICA
6 47 94 144 34
CHEMRING GROUP CLOSE BROTHERS COBHAM COMPASS GROUP COMPUTACENTER
CHG CBG COB CPG CCC
88
COOKSON GROUP
CKSN FTSE250
Page 12
Last price Growth rate 264.6 4.3%
FTSE100
BWNGFTSE250 BT.A FTSE100
CLLN FTSE250 CPR FTSE250 CNA FTSE100 FTSE250 FTSE250 FTSE250 FTSE100 FTSE250
GENERAL RETAILERS FIXED LINE TELECOMMUNICATIONS SUPPORT SERVICES OIL EQUIPMENT - SERVICES AND DISTRIBUTION SUPPORT SERVICES REAL ESTATE INVESTMENT TRUSTS SUPPORT SERVICES GENERAL RETAILERS GAS - WATER AND MULTIUTILITIES AEROSPACE AND DEFENCE FINANCIAL SERVICES AEROSPACE AND DEFENCE TRAVEL AND LEISURE SOFTWARE AND COMPUTER SERVICES GENERAL INDUSTRIALS
17.76
4.82 15.28
10.11
UKVI Rank 83 35 134 190
Company
Epic
Index
CRANSWICK CRH CRODA INTERNATIONAL DAEJAN
CWK CRH CRDA DJAN
FTSE250 FTSE100 FTSE100 FTSE250
29 104 142
DAIRY CREST DCG FTSE250 DE LA RUE DLAR FTSE250 DECHRA PHARMACEUTICALS DPH FTSE250
177
DERWENT LONDON
DLN
FTSE250
124 183 188
DEVRO DIAGEO DIALIGHT
DVO DGE DIA
FTSE250 FTSE100 FTSE250
111 158 81
DIPLOMA DPLM FTSE250 DIXONS RETAIL DXNS FTSE250 DOMINO PRINTING SCIENCES DNO FTSE250
118 172 80 187 149 109 168 115
DOMINOS PIZZA UK AND IRL DOM EASYJET EZJ ELECTROCOMPONENTS ECM ELEMENTIS ELM EUROMONEY INSTITUTIONAL ERM INVESTOR F AND C ASSET MANAGEMENT FCAM FENNER FENR FIDESSA GROUP FDSA
13
FIRSTGROUP
73 54 184
FTSE 100 GALLIFORD TRY GENUS
129 70
GKN GLAXOSMITHKLINE
8 197
GO-AHEAD GROUP GREAT PORTLAND ESTATES
59 66 175
GREENE KING GREGGS HALMA
143
HAMMERSON
78 19 17 192 55 163
HAYS HISCOX HOMESERVE HOWDEN JOINERY HSBC HOLDINGS HUNTING
9 93 58 92 16 100 26 186
ICAP IMI IMPERIAL TOBACCO INCHCAPE INTERMEDIATE CAPITAL INTERNATIONAL CONSOLIDATED AIRLINES INTERSERVE INVENSYS
62 161 27
ITE GROUP JARDINE LLOYD THOMPSON JD SPORTS FASHION
Page 13
FGP
FTSE250 FTSE250 FTSE250 FTSE250 FTSE250
Sector
Last price Growth rate FOOD PRODUCERS 857.9 8.9% CONSTRUCTION AND MATERIALS 1184.9 9.6% CHEMICALS 2408.4 17.4% REAL ESTATE INVESTMENT AND 2994.7 1.6% SERVICES FOOD PRODUCERS 338.6 1.6% SUPPORT SERVICES 1049.9 8.5% PHARMACEUTICALS AND 485.1 12.2% BIOTECHNOLOGY REAL ESTATE INVESTMENT 1994.1 10.5% TRUSTS FOOD PRODUCERS 302.9 12.7% BEVERAGES 1707.5 5.6% ELECTRONIC AND ELECTRICAL 1045 9.4% EQUIPMENT SUPPORT SERVICES 424.7 14.8% GENERAL RETAILERS 16.1 -16.4% ELECTRONIC AND ELECTRICAL 571.2 15.4% EQUIPMENT TRAVEL AND LEISURE 510.5 34.3% TRAVEL AND LEISURE 572.4 7.9% SUPPORT SERVICES 219.1 -1.7% CHEMICALS 206.6 5.9% MEDIA 724.5 5.3%
FTSE250 FINANCIAL SERVICES FTSE250 INDUSTRIAL ENGINEERING FTSE250 SOFTWARE AND COMPUTER SERVICES FTSE250 TRAVEL AND LEISURE
GFRD FTSE250 CONSTRUCTION AND MATERIALS GNS FTSE250 PHARMACEUTICALS AND BIOTECHNOLOGY GKN FTSE100 AUTOMOBILES AND PARTS GSK FTSE100 PHARMACEUTICALS AND BIOTECHNOLOGY GOG FTSE250 TRAVEL AND LEISURE GPOR FTSE250 REAL ESTATE INVESTMENT TRUSTS GNK FTSE250 TRAVEL AND LEISURE GRG FTSE250 FOOD AND DRUG RETAILERS HLMA FTSE250 ELECTRONIC AND ELECTRICAL EQUIPMENT HMSO FTSE100 REAL ESTATE INVESTMENT TRUSTS HAS FTSE250 SUPPORT SERVICES HSX FTSE250 NONLIFE INSURANCE HSV FTSE250 SUPPORT SERVICES HWDN FTSE250 SUPPORT SERVICES HSBA FTSE100 BANKS HTG FTSE250 OIL EQUIPMENT - SERVICES AND DISTRIBUTION IAP FTSE100 FINANCIAL SERVICES IMI FTSE100 INDUSTRIAL ENGINEERING IMT FTSE100 TOBACCO INCH FTSE250 GENERAL RETAILERS ICP FTSE250 FINANCIAL SERVICES IAG FTSE100 TRAVEL AND LEISURE IRV ISYS ITE JLT JD.
FTSE250 SUPPORT SERVICES FTSE250 SOFTWARE AND COMPUTER SERVICES FTSE250 MEDIA FTSE250 NONLIFE INSURANCE FTSE250 GENERAL RETAILERS
Yield 3.4% 4.4% 2.4% 2.5%
Valuation (PE10) 16.1 11.4 51.4 29.6
Interest cover 46.6 3.8 1212 2.4
6.1% 4.0% 2.4%
7.2 25.8 29
4.74 15.39 18.14
1.6%
35.9
2.2
2.8% 2.5% 1.0%
29.5 29.7 75.1
51.31 7.82
3.1% 0.7% 3.5%
31.3 3 25.9
33.67 3.5 587.64
2.7% 1.8% 5.4% 2.2% 2.9%
57.9 23.7 14.4 35 19.6
195.27 12.81 22.09 52.73 15.13
88.1 366.8 1394.1
-9.9% 7.4% 19.2%
3.4% 2.8% 2.7%
8.9 27.4 31.7
3.58 7.09
235.3
6.6%
10.3%
6.6
2.73
5600 630.9 1257.5
6.5% -1.1% 10.3%
3.8% 4.8% 1.1%
13.7 8.9 47.5
21.65 6.7
210.5 1498.2
-2.1% 5.2%
3.3% 4.8%
12.5 15.5
11.14 11.88
1262.9 443.5
14.1% 0.1%
6.4% 1.9%
10.5 46.9
6.58 1.58
598.5 509.5 405.6
7.0% 9.0% 7.5%
4.2% 4.0% 2.5%
13.2 17.2 28.6
2.74
474.5
3.5%
3.6%
22.6
2.32
76.5 454.8 219.4 138.3 560.7 778.1
1.2% 19.9% 11.8% -4.2% 0.6% 11.7%
3.7% 4.0% 5.1% 0.7% 4.8% 2.3%
10.1 14.8 12.9 18.4 9.7 33.7
15.21
328.2 838.9 2516.2 385.1 260.8 151
13.7% 8.1% 12.7% 2.3% 4.0% 10.4%
6.8% 3.8% 4.1% 3.1% 7.4% 0.0%
12 19.1 20.7 9 6.7 10.1
15.5 23.24 6.37 17.84
324.7 245
6.0% -6.7%
6.0% 1.9%
9.6 16.9
45.9 20.9
197.5 760.9 692.9
23.4% 3.0% 15.0%
3.3% 3.3% 3.7%
22.8 23.1 12.3
56.18 32.24 190.2
84.57
58.27 95.25 36.82
3.59
UKVI Rank 160 11 136 30 84
Company
Epic
Index
JOHNSON MATTHEY KIER GROUP KINGFISHER LADBROKES LAIRD
JMAT KIE KGF LAD LRD
FTSE100 FTSE250 FTSE100 FTSE250 FTSE250
125
LAND SECURITIES
53 60 167 7 43 41 56 127 64 126
LEGAL AND GENERAL LONDON STOCK EXCHANGE LONMIN MAN GROUP MARKS AND SPENCER MARSTONS MEARS GROUP MEGGITT MENZIES (JOHN) MICHAEL PAGE INTERNATIONAL MILLENNIUM AND COPTHORNEMLC FTSE250 HOTELS MITIE GROUP MTO FTSE250 MORGAN CRUCIBLE COMPANYMGCR FTSE250
140 61 86 48 49 37 119 42 191 120
MORRISON (WM) SUPERMARKETS NATIONAL EXPRESS NATIONAL GRID NEXT OLD MUTUAL OXFORD INSTRUMENTS
2.6% 5.2% 3.4% 5.1% 4.2%
Valuation (PE10) 24.8 11.3 17 6.8 10.9
Interest cover 17.98 132 81.9 5.72 8.37
-1.1%
3.7%
15.6
2.47
130 962.2 725.9 81.7 341 111.7 269.9 390.5 648.6 374.3
4.7% 19.3% -12.5% 8.5% 5.5% -0.1% 21.7% 7.8% 7.6% 10.9%
5.2% 3.0% 1.3% 15.9% 5.1% 5.4% 3.0% 2.9% 3.8% 2.7%
13.3 18 8.4 3.4 10.9 8 17.7 18.7 14.2 25.4
TRAVEL AND LEISURE
473.7
7.3%
2.9%
21.9
29.82
SUPPORT SERVICES ELECTRONIC AND ELECTRICAL EQUIPMENT FOOD AND DRUG RETAILERS
281.4 254.3
16.2% 5.9%
3.5% 4.0%
19.9 16.1
15.51 6.58
277.1
13.0%
4.1%
19.5
37.42
TRAVEL AND LEISURE GAS - WATER AND MULTIUTILITIES GENERAL RETAILERS LIFE INSURANCE ELECTRONIC AND ELECTRICAL EQUIPMENT FINANCIAL SERVICES
211.7 677.5 3491.6 165.2 1250.7
-2.1% 8.7% 11.9% 0.7% 8.4%
4.7% 5.9% 2.7% 10.5% 0.8%
6 16.5 23.2 12 64.6
4.85 3.81 21.03
175.9
-5.5%
2.5%
4.3
1238.1 768 639.7
8.7% 8.6% -6.3%
3.5% 3.6% 1.8%
24.9 24.1 8.5
13.27 3.72 31.22
178 382.2 1310.3 791.5 320.2 120 1289.9 3578.2
2.9% 13.4% 4.0% 11.2% 8.8% -10.1% 5.4% 16.1%
5.9% 0.0% 5.9% 3.3% 2.2% 1.8% 3.6% 3.6%
13.7 35.2 17.6 18.4 29.1 10.1 22.4 26.5
5.68 2.58 3.33
565.3 1514.4
7.8% 11.3%
4.0% 2.6%
16.9 35.7
6.92
76 316 436.6 3030 856.9 2309 2323.8 412.5 239.5 111.4 2848.1 295
-9.8% 10.9% 0.4% 16.4% 9.7% 13.1% 6.9% 9.8% 12.3% 21.7% 12.6% 28.9%
2.4% 3.5% 3.5% 3.3% 2.2% 1.8% 4.6% 3.6% 2.6% 8.4% 2.1% 3.6%
7.2 23.3 13.5 12.4 30.5 46.9 12.7 20.8 18.7 9.8 36.9 22.2
5.04 67.83 7.96 59.79 14.12
CHEMICALS CONSTRUCTION AND MATERIALS GENERAL RETAILERS TRAVEL AND LEISURE ELECTRONIC AND ELECTRICAL EQUIPMENT LAND FTSE100 REAL ESTATE INVESTMENT TRUSTS LGEN FTSE100 LIFE INSURANCE LSE FTSE250 FINANCIAL SERVICES LMI FTSE250 MINING EMG FTSE250 FINANCIAL SERVICES MKS FTSE100 GENERAL RETAILERS MARS FTSE250 TRAVEL AND LEISURE MER SMALLCAP SUPPORT SERVICES AEROSPACE AND DEFENCE MGGT FTSE100 MNZS FTSE250 SUPPORT SERVICES MPI FTSE250 SUPPORT SERVICES
MRW
FTSE100
NEX NG. NXT OML OXIG
FTSE250 FTSE100 FTSE100 FTSE100 FTSE250
PAG
FTSE250
116 112 151
PARAGON GROUP OF COMPANIES PEARSON PENNON GROUP PERSIMMON
PSON FTSE100 PNN FTSE100 PSN FTSE250
57 179 68 85 173 170 130 72
PREMIER FARNELL PREMIER OIL PROVIDENT FINANCIAL PRUDENTIAL PZ CUSSONS RANK GROUP RATHBONE BROTHERS RECKITT BENCKISER
PFL PMO PFG PRU PZC RNK RAT RB.
FTSE250 FTSE250 FTSE250 FTSE100 FTSE250 FTSE250 FTSE250 FTSE100
77 157
REED ELSEVIER RENISHAW
REL RSW
FTSE100 FTSE250
138 99 117 32 171 164 50 95 106 2 162 46
RENTOKIL INITIAL RESTAURANT GROUP REXAM RIO TINTO ROLLS-ROYCE ROTORK ROYAL DUTCH SHELL RPC GROUP RPS GROUP RSA INSURANCE SABMILLER SAGE GROUP
RTO RTN REX RIO RR. ROR RDSB RPC RPS RSA SAB SGE
FTSE250 FTSE250 FTSE100 FTSE100 FTSE100 FTSE250 FTSE100 FTSE250 FTSE250 FTSE100 FTSE100 FTSE100
Page 14
Sector
MEDIA GAS - WATER AND MULTIUTILITIES HOUSEHOLD GOODS AND HOME CONSTRUCTION SUPPORT SERVICES OIL AND GAS PRODUCERS FINANCIAL SERVICES LIFE INSURANCE PERSONAL GOODS TRAVEL AND LEISURE FINANCIAL SERVICES HOUSEHOLD GOODS AND HOME CONSTRUCTION MEDIA ELECTRONIC AND ELECTRICAL EQUIPMENT SUPPORT SERVICES TRAVEL AND LEISURE GENERAL INDUSTRIALS MINING AEROSPACE AND DEFENCE INDUSTRIAL ENGINEERING OIL AND GAS PRODUCERS GENERAL INDUSTRIALS SUPPORT SERVICES NONLIFE INSURANCE BEVERAGES SOFTWARE AND COMPUTER SERVICES
Last price 2184.1 1276.8 276 159.8 222.9
Growth rate 7.6% 13.9% 1.2% 4.4% -2.4%
808.1
Yield
10.83 62.2 9.15 2.09 15.64 9.85 12.22
52.62
84.91 10.86 130.89
8.06 23.76 7.09 27.46
UKVI Rank 90 63
Company
Epic
Index
Sector
SAINSBURY (J) SAVILLS
SBRY SVS
FTSE100 FTSE250
79 44
SCHRODERS SEGRO
SDR FTSE100 SGRO FTSE250
176 141 108
SENIOR SERCO GROUP SEVERN TRENT
SNR SRP SVT
FTSE250 FTSE100 FTSE100
FOOD AND DRUG RETAILERS REAL ESTATE INVESTMENT AND SERVICES FINANCIAL SERVICES REAL ESTATE INVESTMENT TRUSTS AEROSPACE AND DEFENCE SUPPORT SERVICES GAS - WATER AND MULTIUTILITIES
166
SHAFTESBURY
SHB
FTSE250
74 193
SHANKS GROUP SHIRE
SKS SHP
FTSE250 FTSE100
113 102 154
SIG SMITH (DS) SMITH AND NEPHEW
SHI SMDS SN.
FTSE250 FTSE250 FTSE100
123 178 155
SMITHS GROUP SOCO INTERNATIONAL SPECTRIS
SMIN SIA SXS
FTSE100 FTSE250 FTSE250
137
SPX
FTSE250
SPT
FTSE250
33 91 101 121
SPIRAX-SARCO ENGINEERING SPIRENT COMMUNICATIONS SSE STAGECOACH STANDARD CHARTERED SYNERGY HEALTH
110 145 107
TATE AND LYLE TED BAKER TELECOM PLUS
TATE TED TEP
31 135 4 181 51 39 97 132 87
TESCO TRAVIS PERKINS TULLETT PREBON TULLOW OIL UBM UK MAIL GROUP ULTRA ELECTRONICS UNILEVER UNITED UTILITIES
128 14 150 105 98 153 148 71 18 131
VICTREX VODAFONE GROUP WEIR GROUP WETHERSPOON (J D) WH SMITH WHITBREAD WOLSELEY WPP GROUP XSTRATA YULE CATTO AND CO
196
Page 15
REAL ESTATE INVESTMENT TRUSTS SUPPORT SERVICES PHARMACEUTICALS AND BIOTECHNOLOGY SUPPORT SERVICES GENERAL INDUSTRIALS HEALTH CARE EQUIPMENT AND SERVICES GENERAL INDUSTRIALS OIL AND GAS PRODUCERS ELECTRONIC AND ELECTRICAL EQUIPMENT INDUSTRIAL ENGINEERING
Last price 323.1 375.3
Growth rate -0.4% 8.2%
Yield 5.1% 3.8%
Valuation Interest (PE10) cover 15.5 7.66 14.5
1349.4 241.1
15.2% -4.4%
3.0% 6.2%
20.7 7.6
4.89
197.6 598.3 1738.6
7.6% 16.0% 5.7%
2.1% 1.5% 4.2%
27 29.9 21.3
8.09 10.4 2.2
542.2
13.0%
2.2%
73.5
2.05
79.2 1958.4
-2.4% 7.1%
4.5% 0.5%
9.8 43.3
3.63 31
94.9 154.7 675
-13.2% 0.7% 9.9%
2.8% 3.9% 1.7%
2.5 14.8 22.3
6.93 7.72 121.12
1094.2 335.7 1579.2
3.8% 15.4% 10.5%
3.5% 0.0% 2.3%
17.3 55.6 28.5
8.84 97.85 20.35
1991.8
10.7%
2.8%
28.8
144.7
0.3%
1.4%
31.6
1327.7 280.7 1566.8 916.1
8.6% 12.5% 9.3% 20.9%
6.2% 2.8% 3.3% 2.0%
15.2 18.4 18.2 28.5
7.86 6.04
678 915.9 840.1
3.8% 10.0% 16.6%
3.7% 2.7% 3.4%
16.6 28.2 49.6
13.92 166.15 339.31
TSCO TPK TLPR TLW UBM UKM ULE ULVR UU.
TECHNOLOGY HARDWARE AND EQUIPMENT FTSE100 ELECTRICITY FTSE250 TRAVEL AND LEISURE FTSE100 BANKS FTSE250 HEALTH CARE EQUIPMENT AND SERVICES FTSE100 FOOD PRODUCERS FTSE250 GENERAL RETAILERS FTSE250 FIXED LINE TELECOMMUNICATIONS FTSE100 FOOD AND DRUG RETAILERS FTSE250 SUPPORT SERVICES FTSE250 FINANCIAL SERVICES FTSE100 OIL AND GAS PRODUCERS FTSE250 MEDIA SMALLCAP INDUSTRIAL TRANSPORTATION AEROSPACE AND DEFENCE FTSE250 FTSE100 FOOD PRODUCERS FTSE100 GAS - WATER AND MULTIUTILITIES
318.8 1043.2 288.2 1305.1 661.9 227.6 1450.6 2334 686.2
9.8% 2.6% 15.2% 12.8% 9.6% 0.6% 13.1% 6.6% -0.7%
4.7% 2.2% 5.9% 0.8% 4.2% 8.0% 2.9% 3.3% 4.8%
12.7 11.6 9.2 93.1 15.8 11 21 21.6 14.3
14.98 18.98 12.07 13.09 7.32
VCT VOD WEIR JDW SMWH WTB WOS WPP XTA YULC
FTSE250 FTSE100 FTSE100 FTSE250 FTSE250 FTSE100 FTSE100 FTSE100 FTSE100 FTSE250
1279.1 190.2 1693.4 468 558.8 2133.5 2385.8 829.5 879.8 144
14.7% 15.8% 13.9% 12.1% 2.6% 9.6% -5.7% 14.1% 20.5% -2.8%
2.7% 5.8% 2.1% 2.7% 4.6% 2.5% 2.4% 3.3% 3.1% 2.9%
32.7 15.2 32.8 18.9 16.5 25.9 9.8 19.1 9.7 11
SSE SGC STAN SYR
CHEMICALS MOBILE TELECOMMUNICATIONS INDUSTRIAL ENGINEERING TRAVEL AND LEISURE GENERAL RETAILERS TRAVEL AND LEISURE SUPPORT SERVICES MEDIA MINING CHEMICALS
8.82
15.19 17.06 1.91
7.81 27.33 2.88 8.62 7.7 5.96 36.98 8.33
IMPORTANT DISCLAIMER: The author is not registered as an investment advisor or as an independent financial advisor and does not provide individual investment advice. Neither the author nor this document are regulated by the Financial Services Authority. No information provided in this document should ever be construed as investment advice. It is prepared for education and information only. The specific needs, investment objectives and financial situation of any particular reader have not been taken into consideration and the investments mentioned may not be suitable for any individual. The information contained in this document is not intended to be an offer to buy or sell or a solicitation of an offer to buy or sell any securities. Readers must not base any investment decision solely on the basis of this document; instead they should seek independent financial advice. The information in this document and any expression of opinion by the author have been obtained from or are based on sources believed to be reliable but the accuracy or completeness of any such sources or the author’s interpretation of them 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 other than possibly receiving advertising revenue via a third party. The views reflected in this document may be wrong and may change without notice. To the maximum extent possible at law, the author does not accept any liability whatsoever arising from the use of the material or information contained herein. INVESTMENT RISK: The value of shares can fall as well as rise. Dividend payments can fall as well as rise. Any information relating to past performance of an investment or investment service is not necessarily a guide to future performance. There is an additional risk of making a loss when you buy shares in certain smaller companies. There is a big difference between the buying price and the selling price of some shares and if you have to sell quickly you may get back much less than you paid. Share prices may go down as well as up and you may not get back the original amount invested. It may be difficult to sell or realize an investment. You should not buy shares with money you cannot afford to lose. DISCLOSURE RULES: When content is published about a company and the author has a position or beneficial interest in it, that fact will be disclosed. In addition to the above disclosure requirement, the author follows additional trading restrictions and guidelines. These restrictions 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 any new model portfolio investments, and sell the shares of any model portfolio holdings which are sold. CONFIDENTIALITY: This document is for subscribers only. Please retain it for your own exclusive use and treat it as confidential. Published by John Kingham, 2012. Offices at Unit 5, Pluto House, 19-33 Station Road, Ashford, Kent, TN23 1PP. Subscribe online at ukvalueinvestor.com
Page 16