October 2012
UK Value Investor Value Investing for Income and Growth
Of Mergers and Acquisitions John Kingham, Editor When I invest in a company my expectation is that I’ll be holding it for at least five years. So of course I want the business to be able to last the next five years and if possible for it to be bigger in five years than it is today. This means that I look for reasons as to why the company might fail or shrink, and if the case doesn’t look strong enough then I will move on to the next opportunity. However, there is one type of corporate event that pops up occasionally and unpredictably, and yet it can have a massive impact on investment returns. These events are mergers and acquisitions, or M&A as it’s often known. So far in the life of the UKVI model portfolio things have worked out well on this front. Robert Wiseman Dairies, one of the UK’s leading suppliers of fresh milk, was in the portfolio when it was taken over by Muller Dairies. It was an unexpected event because the shares jumped from about 245p up to the offer price of 390p almost instantly. Nobody saw it coming, but that was okay as it resulted in a 27% gain for the portfolio. Now we have a similar situation occurring with both Chemring and BAE Systems, although in both these cases a takeover or merger has been publicly mentioned, but neither one is a done deal just yet. Once again, exactly how this will work out is unclear. M&A provides a good example of the kind of randomness that equity investments are subject to all the time. They may turn out well or badly, but the best defence against this uncertainty is a well diversified portfolio. Contents Market forecast and tactical asset allocation
Page 2
Model portfolio review
Page 3
Selling: The latest sale will generate annualised returns of around 35%
Page 6
FTSE 350 Rankings: The easy way to find high income and growth
Page 9
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. Page 1 Photo credit: George Rex
Market forecast and asset allocation The FTSE 100 does its best impression of a roller coaster, but ultimately goes nowhere Looking back over recent history, the market has started the last two months at around 5,700, moved up to 5,900, and then promptly fallen back to 5,700 again. This pattern is reflected in the medium-term by gyrations between about 5,400 and 5,900 over the last year or so, and in the longer-term we have been stuck in a range between 3,500 and 7,000 since about 1995. While the market has been range-bound for a long time, the companies which make up the FTSE 100 have been on a broadly steady path of growth. This means that at some point we will wave goodbye to the FTSE 100 at 6,000 or 7,000 as it will be unsustainably cheap at that level. Inflation and economic growth will see to that. I think that perhaps that time is not too far away now. Certainly (as certain as I can be about anything to do with stocks and shares) in the next decade I expect 7,000 to be consigned to the history books, and with nothing but blue sky above that level I think it could be the start of another major bull market. FTSE 100 Range
Cyclically Adjusted PE
Description
7 Year Forecast Annual Returns (including dividends)
11,600 - 13,900
25 - 30
Bubble
-3% to 0%
9,300 - 11,600
20 - 25
Bull Top
0% to 3%
6,900 - 9,300
15 - 20
Expensive
3% to 8%
5,800 - 6,900
12.5 - 15
Normal
8% to 10%
4,600 - 5,800
10 - 12.5
Cheap
10% to 14%
3,500 - 4,600
7.5 - 10
Bear Bottom
14% to 19%
2,300 - 3,500
5 - 7.5
Depression
19% to 26%
In the mean time, while valuations are still low and attractive, intelligent investors have time to pick up world class companies at sensible prices, which is exactly what I intend to do. For those of you who are not happy being 100% in equities, the downside risk protection chart below shows the cash level I would hold today to reduce the volatility of the model portfolio. The cash buffer is at 20% and has scarcely moved for a while, which reflects the fact that the market is on a slow road to nowhere at the moment. The buffer is below its default level of 33% because the market’s cyclically adjusted PE (or CAPE) is 12.3, which is slightly below its long-term average of around 15. This means that by this measure equities are more attractive, with less downside risk, than usual.
Downside Risk Protection
Stocks, 80% Cash buffer, 20%
Page 2
Model portfolio review One of the nice things about owning a portfolio of shares versus a collective fund is the continuous payment of dividends. Now that the model portfolio has been fully invested for a while there are new dividend payments coming in every month, rather than the two or four payments a year that a typical fund would pay. For example, this month we’ve had payments from AstraZeneca, SSE, BP, Reckitt Benckiser and BHP Billiton. This steady stream of cash shows the true economic value of a portfolio much better than whether or not the capital value (i.e. the share prices) went up or down in a given period. These dividends are then available to be reinvested into more high quality businesses at attractive, high yielding valuations. In my opinion the growth of the income stream is the best way to gauge the success of an investment fund. Rio Tinto Following last month’s buy alert I’ve added Rio Tinto to the portfolio at 2,988p with the usual weighting of around 1/30th of the total.
Model Portfolio Total Return
FT SE 100 Tracker Total Return
15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% Mar-11
May-11
Jul-11
Performance (%)
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Yield
1y
YTD
2011
From inception
Model Portfolio
4.5
14.1
17
-6.9
8.9
Index Tracker
3.3
19.4
10.4
-3.4
6.6
+ 1.2
- 5.3
+ 6.6
- 3.5
+ 2.3
Relative to Index Tracker
Cash Results (started at £50,000)
Current Capital Value
Rolling 12 Month Income
Model Portfolio
£54,438
£2,437
Index Tracker
£53,309
£1,742
Relative to Index Tracker
£1,129
£695
Page 3
Model portfolio current holdings The current holdings are shown in order of their UKVI rank. The top 10 most attractively valued holdings are in green, the middle 10 are in yellow, and those which are least attractive and may be sold soon are in red.
Rank Weight Name
Epic
Index
Sector
Price (ÂŁ)
Growth Yield
PE10
Consistency
3Yr Int. cover
1
2.1%
Chemring Group PLC
CHG
FTSE Mid 250
Aerospace & Defense
3.245
33.9%
4.6%
13.5
98%
6.2
3
4.3%
AstraZeneca PLC
AZN
FTSE 100
Pharmaceuticals & Biotechnology
29.55
17.3%
5.9%
11
90%
26.6
4
3.2%
JD Sports Fashion PLC
JD.
FTSE Mid 250
General Retailers
7.01
22.8%
3.6%
10.8
95%
73.7
5
2.7%
ICAP PLC
IAP
FTSE Mid 250
Financial Services
3.211
12.3%
6.9%
12.3
93%
9.6
6
3.7%
Tullett Prebon PLC
TLPR
FTSE Mid 250
Financial Services
2.98
16.0%
5.5%
8.6
88%
9.9
7
2.8%
RSA Insurance Group PLC
RSA
FTSE 100
Nonlife Insurance
1.105
18.9%
8.3%
10.6
82%
8
4.6%
BHP Billiton PLC
BLT
FTSE 100
Mining
19.25
23.1%
3.7%
14.1
95%
60.8
10
4.6%
SSE PLC
SSE
FTSE 100
Electricity
13.92
16.5%
5.8%
15.9
90%
7.9
11
3.4%
Braemar Shipping Services PLC
BMS
FTSE Small Cap Industrial Transportation
3.685
10.8%
7.1%
9.4
86%
399.9
13
4.8%
BAE Systems PLC
BA.
FTSE 100
Aerospace & Defense
3.251
12.3%
5.8%
11.1
86%
7.6
14
3.4%
Tesco PLC
TSCO
FTSE 100
Food & Drug Retailers
3.32
9.7%
4.4%
14.2
98%
8.6
15
5.3%
Balfour Beatty PLC
BBY
FTSE Mid 250
Construction & Materials
3.037
12.6%
4.5%
12.6
88%
7.9
16
4.8%
Vodafone Group PLC
VOD
FTSE 100
Mobile Telecommunications
1.7575
11.1%
5.4%
12.6
88%
8.8
17
4.9%
Reckitt Benckiser Group PLC
RB.
FTSE 100
Household Goods & Home Construction
35.65
18.3%
3.5%
25
100%
71.3
21
3.3%
Brown (N) Group PLC
BWNG
FTSE Mid 250
General Retailers
2.747
12.3%
4.7%
14.6
88%
13.6
22
5.4%
MITIE Group PLC
MTO
FTSE Mid 250
Support Services
2.913
15.3%
3.3%
20.3
98%
13.7
23
4.7%
Mears Group PLC
MER
FTSE Small Cap Support Services
2.83
19.7%
2.7%
18.9
98%
11.5
24
3.2%
Rio Tinto PLC
RIO
FTSE 100
Mining
28.85
21.1%
3.1%
10.8
83%
35.5
28
2.7%
Go-Ahead Group (The) PLC
GOG
FTSE Mid 250
Travel & Leisure
13.12
7.4%
6.2%
9.4
79%
6.1
37
6.7%
Interserve PLC
IRV
FTSE Mid 250
Support Services
3.646
8.3%
5.2%
13.9
83%
8.6
46
3.3%
Centrica PLC
CNA
FTSE 100
Gas; Water & Multiutilities
3.278
10.5%
4.7%
16.5
81%
17.9
72
2.6%
Aviva PLC
AV.
FTSE 100
Life Insurance
3.187
0.2%
8.2%
8
68%
86
4.0%
BP PLC
BP.
FTSE 100
Oil & Gas Producers
4.365
2.9%
4.2%
9.3
71%
22.1
94
5.6%
UK Mail Group PLC
UKM
FTSE Small Cap Industrial Transportation
2.6363
2.8%
6.9%
12.6
64%
160.8
4.0%
Cash
Size Allocation
Large-cap, 52% Medium-cap, 34% Small-cap, 14%
Industry Allocation Health Care, 4.5% Financials, 12.4% Industrials, 39.4% Basic Materials, 8.1% Oil & Gas, 4.2% Consumer Services, 13.0% Utilities, 8.2% Consumer Goods, 5.1% Telecommunications, 5.0%
Page 4
Recent annual results 6th September 2012 - Go-Ahead Group - (joined portfolio on 10th April 2012) “Go-Ahead is one of the UK’s leading providers of quality public transport. We employ more than 22,000 people and over a billion passengers travel on our buses and trains each year” - www.go-ahead.com
Revenue
Normalised EPS
Dividend per share
+5.5%
-4.8%
+0%
Long-term growth rate
Dividend yield
3Yr interest cover
7.4%
6.2%
6.1
Quotes from the annual results Against a challenging economic backdrop, we have continued to drive growth across our bus and rail companies. Our local market focus and commitment to improving the passenger experience have attracted more people to our convenient and value for money services. During the year, we further strengthened our position in the UK bus market through five acquisitions and were delighted to have been shortlisted for the new combined Thameslink rail franchise. Our deregulated bus business performed exceptionally well in the year, delivering record operating profit and sector leading passenger growth and our London bus operations remain best in class. In line with the Group's strategy to grow our core bus division, we acquired four value-enhancing deregulated businesses, strengthening our portfolio of resilient operations in the South. In our regulated business, we moved into North London with the acquisition of the Northumberland Park depot. Overall, the Group's rail division performed well during the period, with strong operational performance across all three franchises and good passenger revenue growth, particularly in London Midland. Southern has started to be impacted by the economic environment, as the bid model assumed stronger economic growth rates than are currently being experienced. Our three rail franchises carry almost a third of all rail passengers in England. We have significant experience of successfully managing complex commuter franchises and delivering industry leading projects and will be using this expertise to deliver a strong bid for the new Thameslink franchise.
Go-Ahead Group Long-term Results Earnings (per share)
Dividends (per share)
Turnover (£m)
250
2,500
200
2,000
£ M 1,500 i l l 1,000 i
P e 150 n c 100 e 50
0 2004
Page 5
500
0 2005
2006
2007
2008
2009
2010
2011
2012
o n s
Selling: UK Mail Group Price paid (11/10/11)
Price now (01/10/12)
Dividends paid
210p Expected gain (pence)
264p Expected gain (percent)
18.2p Annualised gain
72.2p
33%
35%
“The UK Mail Group is the largest independent parcels, mail and logistics services company within the UK, offering innovative delivery solutions both locally and worldwide.” - UKMail.com
Overview There are basically three ways to make money in the stock market. The first way is to receive an income in the form of dividends; the second way is to buy a company that grows its intrinsic value (typically measured by earnings) over time and where the valuation ratio (which for earnings would normally be the price to earnings ratio) stays the same; the third way is to buy shares where the valuation ratio (PE in this case) expands while the earnings stay the same. Of course in reality all three of these factors are working together all the time, to a greater or lesser extent. The dividend return is always positive, but sometimes it’s zero, while both earnings growth and valuation changes can be positive or negative. The trick is to get all three working together for each of the stocks you buy. The UKVI rating system is designed to value shares based on their combination of dividends, growth and valuation. Sometimes all three are strong, sometimes only one or two are strong, but it is the combination that matters. By focusing almost exclusively on the things that actually make money in the stock market, rather than the masses of information that isn’t important, UK Mail Group has given us an annualised return of around 35% during its time in the portfolio. Why I chose UK Mail Back in October 2011 UK Mail was a top ranked stock on my screen. This meant that it had a better combination of income, growth and valuation that almost any other company in the market. So what exactly made it so attractive? In this case there was only one thing - an extremely high dividend yield. With the shares at 210p and the dividend at 18p, The yield was around 8.6%. That really is a very high yield and at that level many shares are a ‘value trap’, where the dividend lures you in but then gets cut soon after, which destroys the investment thesis. So the question initially was, is this yield going to be sustainable? In contrast to the outstandingly high yield, the valuation was low (with PE10 at just over 10), but not especially so given that the growth rate has been less than 3%. Even worse than that, the growth rate was almost all down to revenue growth rather than growth in earnings or dividends. Unless revenue growth can be converted into dividends at some point, it is empty growth with no real value. Using dividends as a way to get capital gains The great thing about high yield shares is that they can produce fantastic capital gains as well. In fact, I expect most of my high yield investments to generate better returns from capital gains than they do from income. How can that be? It comes down to the fact that a small change in the yield for a given dividend payment actually requires quite a large change in share price. Page 6
So for example, UK Mail was paying out a dividend of 18p, and with the share price at 210p it had a yield of 8.6%. If the dividend was sustained then it seemed highly likely that the high yield would attract other investors who would bid up the price until the yield became less attractive. To push the yield up to 7%, which is still a very attractive level, the share price would have to rise to 257p, which is a 22.4% capital gain. That return dwarfs the expected dividend income and that’s the hidden value in high yield shares.
UK Mail long-term results Earnings (per share)
Dividend (per share)
Turnover (£m)
50
500
45
450
40
400
£ 350 M 300 i l 250 l 200 i 150 o n 100
35 P 30 e n 25 c 20 e 15 10 5 0 2004
50 0 2005
2 006
2007
2008
2009
2010
2011
2012
But at the time the most important thing was to see if the yield would be sustainable, which for me starts with a review of how the company has done in the last decade. Looking for a successful past I want to invest in good businesses with proven track records, and UK Mail only just make the grade. It’s certainly a leading company in its industry, but what really matters is results and on this front they are far less successful than many other companies in the portfolio. Still, they’re not a basket case - far from it in fact. And even though the dividend is barely covered by earnings, it had been sustained at around 18p for many years, with no obvious signs that it was about to be cut. Of course the management focused on their success in growing revenues, but as I said before, unless revenues can be converted into cash they add little value. A survivable present Most of the time investments are attractive because they’re out of favour with the mainstream. Sometimes there are obvious reasons why, such as when Tesco’s recent like-for-like results missed estimates and triggered a fall of more than 15% in the share price. But sometimes the reasons are not so obvious, and with UK Mail it seemed like a combination of factors, none of which really stood out. Of course, we are in an environment that is quite negative for equities, and the company’s results haven’t exactly set the world on fire. There were also some worries about falling profits in 2011 and the share price has been on a long fall from 700p in 2005 to 200p in 2011. Page 7
Whatever the reason, the underlying business looked steady, debts were low (and the company now has more cash than borrowings), and at least to me, the dividend looked sustainable. A rosy future Shares are risky, we all know that. Nobody can know where the share price is going to be tomorrow, or next year. So I always invest with the expectation that I will be holding for at least 5 years, which means that I want the company to survive and thrive in that time. As a mail and parcel delivery company, I certainly didn’t think that the industry was going to see the kind of revolution that the music industry has seen. 5 years from now UK Mail will very probably still be hauling truck loads of letters and packages all over the country. And even if we faced a severe recession, parcels would still need to be sent no matter what, so there seemed to be little threat to the company from the ups and downs of the business cycle. How did it all turn out? In hindsight I can see that things have turned out pretty much as I hoped for. In terms of the company, nothing much has really happened. We’ve had a new annual report in which the results were much as they have been for many years. The important thing was that the dividend was maintained and this seems to have given investors more confidence that it will not be cut. The confidence of other investors is shown in the rising share price, which is good for the portfolio as it produces gains, at least on paper. Just as importantly, because the price has increased but the company’s intrinsic value hasn’t, there may be fewer returns on offer in future and at the same time there is more risk of a share price fall. Both of those factors are good reasons to sell. Knowing when to sell Selling is a difficult subject; it’s every bit as difficult as buying. In my case I buy and sell using much the same criteria, so if a stock doesn’t have an outstanding combination of yield, growth and valuation then I will sell up and move to another one that does. When I bought UK Mail Group a year ago at 210p the yield was 8.6%, PE10 was 10.2 and growth was 2.8%. Now the shares are at 264p the yield is 6.9%, PE10 is 12.6 and growth is much the same. Although these are still reasonable values they are far less attractive than they were before, to the extent that I now think there are better places that this money can be put to work. Does that mean I think the shares won’t go any higher? No, I think at current levels the shares could still easily double. But I don’t want to speculate about how high the shares might go. I want to buy only the most attractive shares in the market and sell them when they are no longer the most attractive shares. For UK Mail that means the time to go is now. I will be selling UK Mail Group in a few days and the cash will be used to buy two new holdings over the next couple of months, after which I will be selling another holding to recycle the cash into the most attractive opportunities.
Page 8
FTSE 350 sorted by UKVI Rank The UKVI ranking system is designed so that the highest ranked shares have the best combination of growth rate, consistency, valuation and yield.
Rank Name
Epic Index
Sector
Price (ÂŁ)
Growth Rate
Yield
PE10
3Yr Consistency Interest cover
1
Chemring Group PLC
CHG
FTSE Mid 250
Aerospace & Defense
3.245
33.9%
4.6%
13.5
98%
6.2
2
FirstGroup PLC
FGP
FTSE Mid 250
Travel & Leisure
2.4
10.2%
9.9%
6.7
93%
2.9
3
AstraZeneca PLC
AZN
FTSE 100
Pharmaceuticals & Biotechnology
29.55
17.3%
5.9%
11
90%
26.6
4
JD Sports Fashion PLC
JD.
FTSE Mid 250
General Retailers
7.01
22.8%
3.6%
10.8
95%
73.7
5
ICAP PLC
IAP
FTSE Mid 250
Financial Services
3.211
12.3%
6.9%
12.3
93%
9.6
6
Tullett Prebon PLC
TLPR
FTSE Mid 250
Financial Services
2.98
16.0%
5.5%
8.6
88%
9.9
7
RSA Insurance Group PLC
RSA
FTSE 100
Nonlife Insurance
1.105
18.9%
8.3%
10.6
82%
8
BHP Billiton PLC
BLT
FTSE 100
Mining
19.25
23.1%
3.7%
14.1
95%
60.8
9
Carillion PLC
CLLN
FTSE Mid 250
Support Services
2.71
13.5%
6.2%
10.9
86%
7.7
10
SSE PLC
SSE
FTSE 100
Electricity
13.92
16.5%
5.8%
15.9
90%
7.9
11
Braemar Shipping Services PLC
BMS
FTSE Small Cap
Industrial Transportation
3.685
10.8%
7.1%
9.4
86%
399.9
12
Vedanta Resources PLC
VED
FTSE 100
Mining
10.29
27.7%
3.3%
10.6
90%
6.6
13
BAE Systems PLC
BA.
FTSE 100
Aerospace & Defense
3.251
12.3%
5.8%
11.1
86%
7.6
14
Tesco PLC
TSCO
FTSE 100
Food & Drug Retailers
3.32
9.7%
4.4%
14.2
98%
8.6
15
Balfour Beatty PLC
BBY
FTSE Mid 250
Construction & Materials
3.037
12.6%
4.5%
12.6
88%
7.9
16
Vodafone Group PLC
VOD
FTSE 100
Mobile Telecommunications
1.7575
11.1%
5.4%
12.6
88%
8.8
17
Reckitt Benckiser Group PLC
RB.
FTSE 100
Household Goods & Home Construction
35.65
18.3%
3.5%
25
100%
71.3
18
Cranswick PLC
CWK
FTSE Mid 250
Food Producers
7.87
11.5%
3.6%
14.5
95%
42.7
19
Atkins (W S) PLC
ATK
FTSE Mid 250
Support Services
7.285
11.5%
4.2%
11.2
88%
45.1
20
Amlin PLC
AML
FTSE Mid 250
Nonlife Insurance
4.035
9.1%
5.7%
11
85%
21
Brown (N) Group PLC
BWNG FTSE Mid 250
General Retailers
2.747
12.3%
4.7%
14.6
88%
13.6
22
MITIE Group PLC
MTO
FTSE Mid 250
Support Services
2.913
15.3%
3.3%
20.3
98%
13.7
23
Mears Group PLC
MER
FTSE Small Cap
Support Services
2.83
19.7%
2.7%
18.9
98%
11.5
24
Rio Tinto PLC
RIO
FTSE 100
Mining
28.85
21.1%
3.1%
10.8
83%
35.5
25
Xstrata PLC
XTA
FTSE 100
Mining
9.575
21.2%
2.6%
10.2
86%
28.5
26
Imperial Tobacco Group PLC
IMT
FTSE 100
Tobacco
22.92
20.1%
4.1%
20.5
88%
3.7
27
Homeserve PLC
HSV
FTSE Mid 250
Support Services
2.1
13.1%
5.4%
12.7
79%
52
28
Go-Ahead Group (The) PLC
GOG
FTSE Mid 250
Travel & Leisure
13.12
7.4%
6.2%
9.4
79%
6.1
29
Pennon Group PLC
PNN
FTSE 100
Gas; Water & Multiutilities
7.225
11.8%
3.7%
24.1
95%
3.3
30
Morrison (Wm) Supermarkets PLC
MRW
FTSE 100
Food & Drug Retailers
2.852
16.0%
3.8%
19
86%
22.1
31
Domino Printing Sciences PLC
DNO
FTSE Mid 250
Electronic & Electrical Equipment
5.535
12.8%
3.4%
24.3
95%
159.7
32
British American Tobacco PLC
BATS
FTSE 100
Tobacco
31.795
12.5%
4.0%
25.8
93%
10
33
Greggs PLC
GRG
FTSE Mid 250
Food & Drug Retailers
5.02
7.5%
3.8%
16.3
93%
34
WPP Group PLC
WPP
FTSE 100
Media
8.415
12.7%
2.9%
20.5
95%
3.9
35
Cobham PLC
COB
FTSE Mid 250
Aerospace & Defense
2.217
13.3%
3.6%
17.9
88%
7
36
Man Group PLC
EMG
FTSE Mid 250
Financial Services
0.8235
5.1%
12.5%
3.6
71%
6.6
37
Interserve PLC
IRV
FTSE Mid 250
Support Services
3.646
8.3%
5.2%
13.9
83%
8.6
38
ITE Group PLC
ITE
FTSE Mid 250
Media
2.061
14.7%
3.0%
24.4
95%
31.7
39
Restaurant Group (The) PLC
RTN
FTSE Mid 250
Travel & Leisure
3.578
15.0%
2.9%
24.4
95%
32.2
40
Sage Group (The) PLC
SGE
FTSE 100
Software & Computer Services
3.134
15.7%
3.1%
24.2
93%
23.6
41
Greene King PLC
GNK
FTSE Mid 250
Travel & Leisure
6.005
6.8%
4.1%
12.8
88%
2.6
42
Capita Group (The) PLC
CPI
FTSE 100
Support Services
7.745
17.2%
2.8%
28.6
95%
10.4
43
London Stock Exchange Group PLC
LSE
FTSE Mid 250
Financial Services
9.43
17.4%
3.0%
18.6
86%
7.5
44
Fidessa Group PLC
FDSA
FTSE Mid 250
Software & Computer Services
14.71
23.0%
2.5%
33.6
98%
45
National Grid PLC
NG.
FTSE 100
Gas; Water & Multiutilities
6.83
9.3%
5.8%
13.9
76%
3.9
46
Centrica PLC
CNA
FTSE 100
Gas; Water & Multiutilities
3.278
10.5%
4.7%
16.5
81%
17.9
47
Cable & Wireless Communications PLC
CWC
FTSE Mid 250
Fixed Line Telecommunications
0.3608
7.6%
14.2%
11.8
67%
3.6
48
Kier Group PLC
KIE
FTSE Mid 250
Construction & Materials
12.95
9.1%
5.1%
12.8
74%
49
CRH PLC
CRH
FTSE 100
Construction & Materials
11.92
7.3%
4.5%
11.6
76%
3.3
50
Synergy Health PLC
SYR
FTSE Mid 250
Health Care Equipment & Services
9.2
20.8%
2.0%
29.9
98%
5.7
Page 9
Rank Name
Epic
Index
Sector
Price (ÂŁ)
Growth
Yield
PE10
Consistency
Interest cover
51
British Sky Broadcasting Group PLC
BSY
FTSE 100
Media
7.435
11.0%
3.4%
23.9
90%
52
RPC Group PLC
RPC
FTSE Mid 250
General Industrials
4.261
10.8%
3.4%
19.1
88%
6.3
53
GlaxoSmithKline PLC
GSK
FTSE 100
Pharmaceuticals & Biotechnology
14.275
5.0%
4.9%
15.8
83%
10.5
54
Spirax-Sarco Engineering PLC
SPX
FTSE Mid 250
Industrial Engineering
20.91
12.7%
2.3%
28.8
100%
86.5
55
Domino's Pizza UK & IRL PLC
DOM
FTSE Mid 250
Travel & Leisure
5.31
26.6%
2.3%
56.9
100%
64.9
56
Burberry Group PLC
BRBY
FTSE 100
Personal Goods
10.01
16.2%
2.5%
29.4
93%
84.4
57
Serco Group PLC
SRP
FTSE 100
Support Services
5.8
18.6%
1.4%
29.9
100%
6.4
58
Marks & Spencer Group PLC
MKS
FTSE 100
General Retailers
3.568
4.9%
4.8%
10.7
74%
6.6
59
Ultra Electronics Holdings PLC
ULE
FTSE Mid 250
Aerospace & Defense
15.42
15.5%
2.5%
25.3
90%
31.6
60
Victrex PLC
VCT
FTSE Mid 250
Chemicals
13.22
15.0%
2.5%
31.8
95%
635.1
61
Intermediate Capital Group PLC
ICP
FTSE Mid 250
Financial Services
2.983
-0.1%
6.4%
6.8
74%
5.2
62
Marston's PLC
MARS
FTSE Mid 250
Travel & Leisure
1.142
0.3%
5.1%
8
79%
2.1
63
Stagecoach Group PLC
SGC
FTSE Mid 250
Travel & Leisure
2.808
13.7%
2.8%
18.1
83%
6.3
64
Brewin Dolphin Holdings PLC
BRW
FTSE Mid 250
Financial Services
1.68
11.4%
4.2%
19.4
76%
666.2
65
IMI PLC
IMI
FTSE 100
Industrial Engineering
9
9.6%
3.3%
20.5
88%
15.4
66
Babcock International Group PLC
BAB
FTSE 100
Support Services
9.27
23.0%
2.4%
33.3
90%
4.8
67
Standard Chartered PLC
STAN
FTSE 100
Banks
14
6.4%
3.4%
15.6
85%
68
Diploma PLC
DPLM
FTSE Mid 250
Support Services
4.753
14.2%
2.5%
38.5
95%
45.7
69
Weir Group PLC
WEIR
FTSE 100
Industrial Engineering
17.68
18.8%
1.9%
33.7
95%
24.3
70
Prudential PLC
PRU
FTSE 100
Life Insurance
8.015
6.8%
3.1%
23.7
91%
71
Croda International PLC
CRDA
FTSE 100
Chemicals
24.25
22.4%
2.3%
48.7
93%
72
Aviva PLC
AV.
FTSE 100
Life Insurance
3.187
0.2%
8.2%
8
68%
73
Rotork PLC
ROR
FTSE Mid 250
Industrial Engineering
22.63
17.5%
1.6%
43.9
100%
74
Investec PLC
INVP
FTSE Mid 250
Financial Services
3.824
2.1%
4.4%
9.9
76%
75
PZ Cussons PLC
PZC
FTSE Mid 250
Personal Goods
3
10.6%
2.2%
26.1
95%
27.6
76
RPS Group PLC
RPS
FTSE Mid 250
Support Services
2.49
14.1%
2.2%
20
86%
19.7
77
Aberdeen Asset Management PLC
ADN
FTSE 100
Financial Services
3.111
20.6%
2.9%
39.9
86%
18.5
78
Segro PLC
SGRO
FTSE Mid 250
Real Estate Investment Trusts
2.268
-8.6%
6.5%
3.5
69%
1.5
79
Barr (A G) PLC
BAG
FTSE Mid 250
Beverages
4.471
10.9%
2.1%
30.2
100%
49.2
80
Bunzl PLC
BNZL
FTSE 100
Support Services
11.09
9.4%
2.4%
26.7
95%
8
81
Telecom plus PLC
TEP
FTSE Mid 250
Fixed Line Telecommunications
8.465
23.2%
3.2%
47.1
83%
193.1
82
Close Brothers Group PLC
CBG
FTSE Mid 250
Financial Services
8.335
0.6%
5.0%
13.3
79%
83
Ted Baker PLC
TED
FTSE Mid 250
General Retailers
8.99
9.4%
2.6%
26.9
93%
113.4
84
Next PLC
NXT
FTSE 100
General Retailers
34.5
8.9%
2.6%
21
90%
21
85
Intertek Group PLC
ITRK
FTSE 100
Support Services
27.4
18.1%
1.2%
48.1
100%
10.2
86
BP PLC
BP.
FTSE 100
Oil & Gas Producers
4.365
2.9%
4.2%
9.3
71%
22.1
87
Sainsbury (J) PLC
SBRY
FTSE 100
Food & Drug Retailers
3.475
14.7%
4.6%
21.2
60%
7
88
Dairy Crest Group PLC
DCG
FTSE Mid 250
Food Producers
3.463
1.3%
5.9%
8.4
64%
3.5
89
Meggitt PLC
MGGT
FTSE 100
Aerospace & Defense
3.949
11.4%
2.7%
22.1
86%
8.1
90
Premier Farnell PLC
PFL
FTSE Mid 250
Support Services
1.722
3.9%
6.0%
13.5
69%
7.4
91
Schroders PLC
SDR
FTSE 100
Financial Services
15.18
10.9%
2.6%
22.5
88%
92
BG Group PLC
BG.
FTSE 100
Oil & Gas Producers
12.5
18.9%
1.2%
21
86%
93
FTSE 100
5700
4.7%
3.6%
13.3
79%
18.4 859.8
39.1
94
UK Mail Group PLC
UKM
FTSE Small Cap Industrial Transportation
2.6363
2.8%
6.9%
12.6
64%
160.8
95
Aggreko PLC
AGK
FTSE 100
Support Services
23.13
26.7%
0.9%
56.8
98%
14.2
96
Computacenter PLC
CCC
FTSE Mid 250
Software & Computer Services
3.8
6.8%
3.9%
16.1
74%
31.2
97
Associated British Foods PLC
ABF
FTSE 100
Food Producers
12.89
7.8%
1.9%
24.5
98%
8.3
98
Johnson Matthey PLC
JMAT
FTSE 100
Chemicals
24.13
10.7%
2.4%
25.9
90%
10.2
99
Halma PLC
HLMA
FTSE Mid 250
Electronic & Electrical Equipment
4.239
9.2%
2.3%
30.7
95%
63.7
100
Dechra Pharmaceuticals PLC
DPH
FTSE Mid 250
Pharmaceuticals & Biotechnology
5.825
11.7%
2.1%
36.4
95%
7.8
101
Legal & General Group PLC
LGEN
FTSE 100
Life Insurance
1.319
2.5%
4.9%
13.9
74%
102
Millennium & Copthorne Hotels PLC
MLC
FTSE Mid 250
Travel & Leisure
4.857
12.4%
2.6%
18.4
79%
14.5
103
Spectris PLC
SXS
FTSE Mid 250
Electronic & Electrical Equipment
17.25
12.4%
1.9%
30.9
93%
12.5
104
Pearson PLC
PSON
FTSE 100
Media
12.1
8.4%
3.5%
26.1
83%
10.8
105
Hammerson PLC
HMSO
FTSE 100
Real Estate Investment Trusts
4.51
-3.6%
3.7%
6.5
74%
2.2
106
HSBC Holdings PLC
HSBA
FTSE 100
Banks
5.733
-3.2%
4.5%
10.8
74%
107
British Land Co PLC
BLND
FTSE 100
Real Estate Investment Trusts
5.22
-6.4%
5.0%
5
64%
3.6
108
SABMiller PLC
SAB
FTSE 100
Beverages
27.2
14.1%
2.1%
35.7
90%
6
109
Rolls-Royce Group PLC
RR.
FTSE 100
Aerospace & Defense
8.43
16.0%
2.1%
30.1
86%
32.1
110
Law Debenture Corporation (The) PLC
LWDB
FTSE Mid 250
Equity Investment Instruments
3.984
5.7%
3.4%
32.8
88%
Page 10
Rank
Name
Epic
Index
Sector
Price (ÂŁ)
Growth
Yield
PE10
Consistency
Interest cover
111
Smith & Nephew PLC
SN.
FTSE 100
Health Care Equipment & Services
6.835
12.0%
1.6%
21.8
88%
74.2
112
De La Rue PLC
DLAR
FTSE Mid 250
Support Services
10.13
8.8%
4.2%
23.7
71%
19.1
113
Electrocomponents PLC
ECM
FTSE Mid 250
Support Services
2.003
0.1%
5.9%
13.3
67%
14.5
114
AVEVA Group PLC
AVV
FTSE Mid 250
Software & Computer Services
19.67
32.3%
1.1%
52.9
90%
2433.2
115
Galliford Try PLC
GFRD
FTSE Mid 250
Construction & Materials
7.3
2.2%
4.1%
12.7
71%
116
Michael Page International PLC
MPI
FTSE Mid 250
Support Services
3.558
9.7%
2.8%
23.4
81%
117
Rathbone Brothers PLC
RAT
FTSE Mid 250
Financial Services
13.29
3.7%
3.5%
22.7
85%
118
Reed Elsevier PLC
REL
FTSE 100
Media
5.92
6.5%
3.6%
20.7
74%
4.3
119
Ladbrokes PLC
LAD
FTSE Mid 250
Travel & Leisure
1.728
-6.3%
4.5%
7.6
64%
11.5
120
Fenner PLC
FENR
FTSE Mid 250
Industrial Engineering
3.86
12.1%
2.1%
29.5
88%
4.6
121
Hays PLC
HAS
FTSE Mid 250
Support Services
0.771
2.5%
3.2%
10.4
71%
60.1
122
Genus PLC
GNS
FTSE Mid 250
Pharmaceuticals & Biotechnology
15.12
12.7%
1.0%
44.8
95%
123
Savills PLC
SVS
FTSE Mid 250
Real Estate Investment & Services
3.987
3.8%
3.4%
14.6
76%
28.8
124
Stobart Group Ltd
STOB
FTSE Mid 250
Industrial Transportation
1.177
-9.0%
5.1%
7.8
57%
7.1
125
Antofagasta PLC
ANTO
FTSE 100
Mining
12.62
20.3%
1.0%
24.8
81%
27
126
Compass Group PLC
CPG
FTSE 100
Travel & Leisure
6.835
9.3%
2.8%
30.7
83%
15.8
127
St James's Place PLC
STJ
FTSE Mid 250
Life Insurance
3.671
8.1%
2.2%
30.7
88%
128
Smiths Group PLC
SMIN
FTSE 100
General Industrials
10.37
4.3%
3.7%
16.6
69%
129
ARM Holdings PLC
ARM
FTSE 100
Technology Hardware & Equipment
5.75
20.5%
0.6%
151.9
93%
130
Berendsen PLC
BRSN
FTSE Mid 250
Support Services
5.455
3.9%
4.3%
17.3
64%
3.4
131
Tate & Lyle PLC
TATE
FTSE 100
Food Producers
6.655
2.1%
3.7%
16
71%
10.9
132
Derwent London PLC
DLN
FTSE Mid 250
Real Estate Investment Trusts
19.56
6.9%
1.6%
17.6
83%
2.2
133
Devro PLC
DVO
FTSE Mid 250
Food Producers
3.28
9.4%
2.4%
30.4
83%
37.3
134
BT Group PLC
BT.A
FTSE 100
Fixed Line Telecommunications
2.307
-1.6%
3.6%
13.4
71%
4.2
135
Rexam PLC
REX
FTSE 100
General Industrials
4.349
0.4%
3.3%
14.3
76%
4.1
136
Shanks Group PLC
SKS
FTSE Mid 250
Support Services
0.825
-0.6%
4.2%
12.1
60%
3.1
137
Senior PLC
SNR
FTSE Mid 250
Aerospace & Defense
2.043
13.3%
1.9%
28.8
81%
8
138
Land Securities Group PLC
LAND
FTSE 100
Real Estate Investment Trusts
7.615
-12.4%
3.8%
6.9
62%
2.7
139
John Wood Group PLC
WG.
FTSE 100
Oil Equipment; Services & Distribution
8.035
17.9%
1.1%
39
83%
19.9
140
Provident Financial PLC
PFG
FTSE Mid 250
Financial Services
13.73
0.7%
5.0%
20.8
67%
2.9
141
Barclays PLC
BARC
FTSE 100
Banks
2.1485
-10.4%
2.8%
5.9
74%
142
BBA Aviation PLC
BBA
FTSE Mid 250
Industrial Transportation
1.975
-1.8%
4.4%
12.2
55%
5.5
143
Workspace Group PLC
WKP
FTSE Mid 250
Real Estate Investment Trusts
2.69
-16.3%
3.3%
1.4
67%
3.7
144
Renishaw PLC
RSW
FTSE Mid 250
Electronic & Electrical Equipment
16.53
10.3%
2.3%
37.6
83%
219.6
145
Bodycote PLC
BOY
FTSE Mid 250
Industrial Engineering
3.907
4.9%
2.8%
20.4
76%
40.5
146
Unilever PLC
ULVR
FTSE 100
Food Producers
22.52
3.8%
3.4%
18.4
69%
13.1
147
Old Mutual PLC
OML
FTSE 100
Life Insurance
1.699
-8.1%
3.4%
11.8
71%
148
Tullow Oil PLC
TLW
FTSE 100
Oil & Gas Producers
13.7
21.8%
0.9%
65.7
83%
10.2
149
Severn Trent PLC
SVT
FTSE 100
Gas; Water & Multiutilities
16.79
3.9%
4.2%
21.8
62%
3
150
Euromoney Institutional Investor PLC
ERM
FTSE Mid 250
Media
7.7
5.8%
2.4%
23.2
79%
9.2
151
AMEC PLC
AMEC
FTSE 100
Oil Equipment; Services & Distribution
11.46
9.5%
2.7%
32
74%
152
Diageo PLC
DGE
FTSE 100
Beverages
17.395
6.2%
2.5%
28.8
81%
7.3
153
United Utilities Group PLC
UU.
FTSE 100
Gas; Water & Multiutilities
7.16
-3.7%
4.5%
16.2
60%
2.5
154
Jardine Lloyd Thompson Group PLC
JLT
FTSE Mid 250
Nonlife Insurance
7.655
5.3%
3.1%
23.5
69%
20.1
155
Whitbread PLC
WTB
FTSE 100
Travel & Leisure
22.68
9.0%
2.3%
28.8
74%
10
156
Laird PLC
LRD
FTSE Mid 250
Electronic & Electrical Equipment
2.252
-6.7%
3.6%
14.5
62%
5.4
157
Kingfisher PLC
KGF
FTSE 100
General Retailers
2.642
0.5%
3.3%
14.9
60%
23.4
158
Paragon Group of Companies (The) PLC
PAG
FTSE Mid 250
Financial Services
2.064
-11.3%
1.9%
2.8
71%
2
159
Smith (DS) PLC
SMDS
FTSE Mid 250
General Industrials
1.859
-0.6%
3.2%
20.6
71%
3.8
160
William Hill PLC
WMH
FTSE Mid 250
Travel & Leisure
3.168
-10.2%
3.0%
12.6
64%
8.1
161
Caledonia Investments PLC
CLDN
FTSE Mid 250
Equity Investment Instruments
14.76
0.6%
2.9%
20.9
71%
162
Daejan Holdings PLC
DJAN
FTSE Mid 250
Real Estate Investment & Services
29.35
0.3%
2.6%
21.5
71%
6.4
163
InterContinental Hotels Group PLC
IHG
FTSE 100
Travel & Leisure
16.2
6.5%
2.1%
27.3
67%
8
164
Templeton Emerging Markets Inv Tr PLC
TEM
FTSE Mid 250
Equity Investment Instruments
5.55
6.5%
1.0%
116.7
88%
165
Bellway PLC
BWY
FTSE Mid 250
Household Goods & Home Construction
9.205
-15.9%
1.4%
11.7
69%
3.8
166
Great Portland Estates PLC
GPOR
FTSE Mid 250
Real Estate Investment Trusts
4.509
-5.9%
1.9%
13.9
60%
3
167
Hunting PLC
HTG
FTSE Mid 250
Oil Equipment; Services & Distribution
8.265
4.0%
1.8%
36.4
74%
15.6
168
Oxford Instruments PLC
OXIG
FTSE Mid 250
Electronic & Electrical Equipment
13.75
13.2%
0.7%
79.7
60%
35.9
169 170
Aegis Group PLC Dialight PLC
Page 11
AGS DIA
FTSE Mid 250 FTSE Mid 250
Media Electronic & Electrical Equipment
2.355 12.02
0.4% 4.8%
1.3% 0.8%
34.4 85.1
71% 52%
3.5 344.9
FTSE 350 sorted by company name If you want to find out the headline numbers for a particular stock, or if you want to see how it ranks, just look it up in the table below.
Name
Epic
Index
Sector
Price (ÂŁ)
Growth
Yield
PE10
Consistency
Interest cover
77
Aberdeen Asset Management PLC
ADN
FTSE 100
Financial Services
3.111
20.6%
2.9%
39.9
86%
18.5
169
Aegis Group PLC
AGS
FTSE Mid 250 Media
2.355
0.4%
1.3%
34.4
71%
3.5
95
Aggreko PLC
AGK
FTSE 100
Support Services
23.13
26.7%
0.9%
56.8
98%
14.2
151
AMEC PLC
AMEC
FTSE 100
Oil Equipment; Services & Distribution
11.46
9.5%
2.7%
32
74%
20
Amlin PLC
AML
FTSE Mid 250 Nonlife Insurance
4.035
9.1%
5.7%
11
85%
125
Antofagasta PLC
ANTO
FTSE 100
Mining
12.62
20.3%
1.0%
24.8
81%
129
ARM Holdings PLC
ARM
FTSE 100
Technology Hardware & Equipment
5.75
20.5%
0.6%
151.9
93%
97
Associated British Foods PLC
ABF
FTSE 100
Food Producers
12.89
7.8%
1.9%
24.5
98%
8.3
3
AstraZeneca PLC
AZN
FTSE 100
Pharmaceuticals & Biotechnology
29.55
17.3%
5.9%
11
90%
26.6
19
Atkins (W S) PLC
ATK
FTSE Mid 250 Support Services
7.285
11.5%
4.2%
11.2
88%
45.1
114
AVEVA Group PLC
AVV
FTSE Mid 250 Software & Computer Services
19.67
32.3%
1.1%
52.9
90%
2433.2
72
Aviva PLC
AV.
FTSE 100
Life Insurance
3.187
0.2%
8.2%
8
68%
66
Babcock International Group PLC
BAB
FTSE 100
Support Services
9.27
23.0%
2.4%
33.3
90%
4.8
13
BAE Systems PLC
BA.
FTSE 100
Aerospace & Defense
3.251
12.3%
5.8%
11.1
86%
7.6
15
Balfour Beatty PLC
BBY
FTSE Mid 250 Construction & Materials
3.037
12.6%
4.5%
12.6
88%
7.9
141
Barclays PLC
BARC
FTSE 100
2.1485
-10.4%
2.8%
5.9
74%
79
Barr (A G) PLC
BAG
FTSE Mid 250 Beverages
4.471
10.9%
2.1%
30.2
100%
49.2
142
BBA Aviation PLC
BBA
FTSE Mid 250 Industrial Transportation
1.975
-1.8%
4.4%
12.2
55%
5.5
165
Bellway PLC
BWY
FTSE Mid 250 Household Goods & Home Construction
9.205
-15.9%
1.4%
11.7
69%
3.8
130
Berendsen PLC
BRSN
FTSE Mid 250 Support Services
5.455
3.9%
4.3%
17.3
64%
3.4
92
BG Group PLC
BG.
FTSE 100
Oil & Gas Producers
12.5
18.9%
1.2%
21
86%
39.1
8
BHP Billiton PLC
BLT
FTSE 100
Mining
19.25
23.1%
3.7%
14.1
95%
60.8
145
Bodycote PLC
BOY
FTSE Mid 250 Industrial Engineering
3.907
4.9%
2.8%
20.4
76%
40.5
86
BP PLC
BP.
FTSE 100
Oil & Gas Producers
4.365
2.9%
4.2%
9.3
71%
22.1
11
Braemar Shipping Services PLC
BMS
FTSE Small Cap
Industrial Transportation
3.685
10.8%
7.1%
9.4
86%
399.9
64
Brewin Dolphin Holdings PLC
BRW
FTSE Mid 250 Financial Services
1.68
11.4%
4.2%
19.4
76%
666.2
32
British American Tobacco PLC
BATS
FTSE 100
Tobacco
31.795
12.5%
4.0%
25.8
93%
10
107
British Land Co PLC
BLND
FTSE 100
Real Estate Investment Trusts
5.22
-6.4%
5.0%
5
64%
3.6
51
British Sky Broadcasting Group PLC BSY
FTSE 100
Media
7.435
11.0%
3.4%
23.9
90%
21
Brown (N) Group PLC
BWNG
FTSE Mid 250 General Retailers
2.747
12.3%
4.7%
14.6
88%
13.6
134
BT Group PLC
BT.A
FTSE 100
Fixed Line Telecommunications
2.307
-1.6%
3.6%
13.4
71%
4.2
80
Bunzl PLC
BNZL
FTSE 100
Support Services
11.09
9.4%
2.4%
26.7
95%
8
56
Burberry Group PLC
BRBY
FTSE 100
Personal Goods
10.01
16.2%
2.5%
29.4
93%
84.4
47
Cable & Wireless Communications PLC
CWC
FTSE Mid 250 Fixed Line Telecommunications
0.3608
7.6%
14.2%
11.8
67%
3.6
161
Caledonia Investments PLC
CLDN
FTSE Mid 250 Equity Investment Instruments
14.76
0.6%
2.9%
20.9
71%
42
Capita Group (The) PLC
CPI
FTSE 100
7.745
17.2%
2.8%
28.6
95%
10.4
9
Carillion PLC
CLLN
FTSE Mid 250 Support Services
2.71
13.5%
6.2%
10.9
86%
7.7
46
Centrica PLC
CNA
FTSE 100
3.278
10.5%
4.7%
16.5
81%
17.9
1
Chemring Group PLC
CHG
FTSE Mid 250 Aerospace & Defense
3.245
33.9%
4.6%
13.5
98%
6.2
82
Close Brothers Group PLC
CBG
FTSE Mid 250 Financial Services
8.335
0.6%
5.0%
13.3
79%
35
Cobham PLC
COB
FTSE Mid 250 Aerospace & Defense
2.217
13.3%
3.6%
17.9
88%
7
126
Compass Group PLC
CPG
FTSE 100
6.835
9.3%
2.8%
30.7
83%
15.8
96
Computacenter PLC
CCC
FTSE Mid 250 Software & Computer Services
3.8
6.8%
3.9%
16.1
74%
31.2
18
Cranswick PLC
CWK
FTSE Mid 250 Food Producers
7.87
11.5%
3.6%
14.5
95%
42.7
49
CRH PLC
CRH
FTSE 100
Construction & Materials
11.92
7.3%
4.5%
11.6
76%
3.3
71
Croda International PLC
CRDA
FTSE 100
Chemicals
24.25
22.4%
2.3%
48.7
93%
18.4
162
Daejan Holdings PLC
DJAN
FTSE Mid 250 Real Estate Investment & Services
29.35
0.3%
2.6%
21.5
71%
6.4
88
Dairy Crest Group PLC
DCG
FTSE Mid 250 Food Producers
3.463
1.3%
5.9%
8.4
64%
3.5
112
De La Rue PLC
DLAR
FTSE Mid 250 Support Services
10.13
8.8%
4.2%
23.7
71%
19.1
100
Dechra Pharmaceuticals PLC
DPH
FTSE Mid 250 Pharmaceuticals & Biotechnology
5.825
11.7%
2.1%
36.4
95%
7.8
Rank
Page 12
Banks
Support Services Gas; Water & Multiutilities
Travel & Leisure
27
Rank Name
Epic
Index
Sector
Price (ÂŁ)
Growth
Yield
PE10 Consistency
Interest cover
132
Derwent London PLC
DLN
FTSE Mid 250
Real Estate Investment Trusts
19.56
6.9%
1.6%
17.6
83%
2.2
133
Devro PLC
DVO
FTSE Mid 250
Food Producers
3.28
9.4%
2.4%
30.4
83%
37.3
152
Diageo PLC
DGE
FTSE 100
Beverages
17.395
6.2%
2.5%
28.8
81%
7.3
170
Dialight PLC
DIA
FTSE Mid 250
Electronic & Electrical Equipment
12.02
4.8%
0.8%
85.1
52%
344.9
68
Diploma PLC
DPLM
FTSE Mid 250
Support Services
4.753
14.2%
2.5%
38.5
95%
45.7
31
Domino Printing Sciences PLC
DNO
FTSE Mid 250
Electronic & Electrical Equipment
5.535
12.8%
3.4%
24.3
95%
159.7
55
Domino's Pizza UK & IRL PLC
DOM
FTSE Mid 250
Travel & Leisure
5.31
26.6%
2.3%
56.9
100%
64.9
113
Electrocomponents PLC
ECM
FTSE Mid 250
Support Services
2.003
0.1%
5.9%
13.3
67%
14.5
150
Euromoney Institutional Investor PLC
ERM
FTSE Mid 250
Media
7.7
5.8%
2.4%
23.2
79%
9.2
120
Fenner PLC
FENR
FTSE Mid 250
Industrial Engineering
3.86
12.1%
2.1%
29.5
88%
4.6
44
Fidessa Group PLC
FDSA
FTSE Mid 250
Software & Computer Services
14.71
23.0%
2.5%
33.6
98%
2
FirstGroup PLC
FGP
FTSE Mid 250
Travel & Leisure
2.4
10.2%
9.9%
6.7
93%
93
FTSE 100
57
4.7%
3.6%
13.3
79%
115
Galliford Try PLC
GFRD
FTSE Mid 250
Construction & Materials
7.3
2.2%
4.1%
12.7
71%
122
Genus PLC
GNS
FTSE Mid 250
Pharmaceuticals & Biotechnology
15.12
12.7%
1.0%
44.8
95%
2.9
53
GlaxoSmithKline PLC
GSK
FTSE 100
Pharmaceuticals & Biotechnology
14.275
5.0%
4.9%
15.8
83%
10.5
28
Go-Ahead Group (The) PLC
GOG
FTSE Mid 250
Travel & Leisure
13.12
7.4%
6.2%
9.4
79%
6.1
166
Great Portland Estates PLC
GPOR
FTSE Mid 250
Real Estate Investment Trusts
4.509
-5.9%
1.9%
13.9
60%
3
41
Greene King PLC
GNK
FTSE Mid 250
Travel & Leisure
6.005
6.8%
4.1%
12.8
88%
2.6
33
Greggs PLC
GRG
FTSE Mid 250
Food & Drug Retailers
5.02
7.5%
3.8%
16.3
93%
99
Halma PLC
HLMA
FTSE Mid 250
Electronic & Electrical Equipment
4.239
9.2%
2.3%
30.7
95%
63.7
105
Hammerson PLC
HMSO
FTSE 100
Real Estate Investment Trusts
4.51
-3.6%
3.7%
6.5
74%
2.2
121
Hays PLC
HAS
FTSE Mid 250
Support Services
0.771
2.5%
3.2%
10.4
71%
27
Homeserve PLC
HSV
FTSE Mid 250
Support Services
2.1
13.1%
5.4%
12.7
79%
106
HSBC Holdings PLC
HSBA
FTSE 100
Banks
5.733
-3.2%
4.5%
10.8
74%
52
167
Hunting PLC
HTG
FTSE Mid 250
Oil Equipment; Services & Distribution
8.265
4.0%
1.8%
36.4
74%
15.6
5
ICAP PLC
IAP
FTSE Mid 250
Financial Services
3.211
12.3%
6.9%
12.3
93%
9.6
65
IMI PLC
IMI
FTSE 100
Industrial Engineering
9
9.6%
3.3%
20.5
88%
15.4
26
Imperial Tobacco Group PLC
IMT
FTSE 100
Tobacco
22.92
20.1%
4.1%
20.5
88%
3.7
163
InterContinental Hotels Group PLC
IHG
FTSE 100
Travel & Leisure
16.2
6.5%
2.1%
27.3
67%
8
61
Intermediate Capital Group PLC
ICP
FTSE Mid 250
Financial Services
2.983
-0.1%
6.4%
6.8
74%
5.2
37
Interserve PLC
IRV
FTSE Mid 250
Support Services
3.646
8.3%
5.2%
13.9
83%
8.6
85
Intertek Group PLC
ITRK
FTSE 100
Support Services
27.4
18.1%
1.2%
48.1
100%
10.2
74
Investec PLC
INVP
FTSE Mid 250
Financial Services
3.824
2.1%
4.4%
9.9
76%
38
ITE Group PLC
ITE
FTSE Mid 250
Media
2.061
14.7%
3.0%
24.4
95%
31.7
154
Jardine Lloyd Thompson Group PLC
JLT
FTSE Mid 250
Nonlife Insurance
7.655
5.3%
3.1%
23.5
69%
20.1
4
JD Sports Fashion PLC
JD.
FTSE Mid 250
General Retailers
7.01
22.8%
3.6%
10.8
95%
73.7
139
John Wood Group PLC
WG.
FTSE 100
Oil Equipment; Services & Distribution
8.035
17.9%
1.1%
39
83%
19.9 10.2
98
Johnson Matthey PLC
JMAT
FTSE 100
Chemicals
24.13
10.7%
2.4%
25.9
90%
48
Kier Group PLC
KIE
FTSE Mid 250
Construction & Materials
12.95
9.1%
5.1%
12.8
74%
157
Kingfisher PLC
KGF
FTSE 100
General Retailers
2.642
0.5%
3.3%
14.9
60%
23.4
119
Ladbrokes PLC
LAD
FTSE Mid 250
Travel & Leisure
1.728
-6.3%
4.5%
7.6
64%
11.5
156
Laird PLC
LRD
FTSE Mid 250
Electronic & Electrical Equipment
2.252
-6.7%
3.6%
14.5
62%
5.4
138
Land Securities Group PLC
LAND
FTSE 100
Real Estate Investment Trusts
7.615
-12.4%
3.8%
6.9
62%
2.7
110
Law Debenture Corporation (The) PLC
LWDB
FTSE Mid 250
Equity Investment Instruments
3.984
5.7%
3.4%
32.8
88%
101
Legal & General Group PLC
LGEN
FTSE 100
Life Insurance
1.319
2.5%
4.9%
13.9
74%
43
London Stock Exchange Group PLC
LSE
FTSE Mid 250
Financial Services
9.43
17.4%
3.0%
18.6
86%
7.5
36
Man Group PLC
EMG
FTSE Mid 250
Financial Services
0.8235
5.1%
12.5%
3.6
71%
6.6
58
Marks & Spencer Group PLC
MKS
FTSE 100
General Retailers
3.568
4.9%
4.8%
10.7
74%
6.6
62
Marston's PLC
MARS
FTSE Mid 250
Travel & Leisure
1.142
0.3%
5.1%
8
79%
2.1
23
Mears Group PLC
MER
FTSE Small Cap
Support Services
2.83
19.7%
2.7%
18.9
98%
11.5
89
Meggitt PLC
MGGT
FTSE 100
Aerospace & Defense
3.949
11.4%
2.7%
22.1
86%
8.1
116
Michael Page International PLC
MPI
FTSE Mid 250
Support Services
3.558
9.7%
2.8%
23.4
81%
60.1
102
Millennium & Copthorne Hotels PLC
MLC
FTSE Mid 250
Travel & Leisure
4.857
12.4%
2.6%
18.4
79%
14.5
22
MITIE Group PLC
MTO
FTSE Mid 250
Support Services
2.913
15.3%
3.3%
20.3
98%
13.7
30
Morrison (Wm) Supermarkets PLC
MRW
FTSE 100
Food & Drug Retailers
2.852
16.0%
3.8%
19
86%
22.1
45
National Grid PLC
NG.
FTSE 100
Gas; Water & Multiutilities
6.83
9.3%
5.8%
13.9
76%
3.9
84
Next PLC
NXT
FTSE 100
General Retailers
34.5
8.9%
2.6%
21
90%
21
147
Old Mutual PLC
OML
FTSE 100
Life Insurance
1.699
-8.1%
3.4%
11.8
71%
168
Oxford Instruments PLC
OXIG
FTSE Mid 250
Electronic & Electrical Equipment
13.75
13.2%
0.7%
79.7
60%
Page 13
35.9
Rank Name
Epic
Index
Sector
Price (ÂŁ)
Growth Yield PE10 Consistency
Interest cover
158
Paragon Group of Companies (The) PLC
PAG
FTSE Mid 250
Financial Services
2.064
-11.3%
1.9%
2.8
71%
2
104
Pearson PLC
PSON
FTSE 100
Media
12.1
8.4%
3.5%
26.1
83%
10.8
29
Pennon Group PLC
PNN
FTSE 100
Gas; Water & Multiutilities
7.225
11.8%
3.7%
24.1
95%
3.3
90
Premier Farnell PLC
PFL
FTSE Mid 250
Support Services
1.722
3.9%
6.0%
13.5
69%
7.4
140
Provident Financial PLC
PFG
FTSE Mid 250
Financial Services
13.73
0.7%
5.0%
20.8
67%
2.9
70
Prudential PLC
PRU
FTSE 100
Life Insurance
8.015
6.8%
3.1%
23.7
91%
75
PZ Cussons PLC
PZC
FTSE Mid 250
Personal Goods
3
10.6%
2.2%
26.1
95%
117
Rathbone Brothers PLC
RAT
FTSE Mid 250
Financial Services
13.29
3.7%
3.5%
22.7
85%
27.6
17
Reckitt Benckiser Group PLC
RB.
FTSE 100
Household Goods & Home Construction
35.65
18.3%
3.5%
25
100%
71.3
118
Reed Elsevier PLC
REL
FTSE 100
Media
5.92
6.5%
3.6%
20.7
74%
4.3
144
Renishaw PLC
RSW
FTSE Mid 250
Electronic & Electrical Equipment
16.53
10.3%
2.3%
37.6
83%
219.6
39
Restaurant Group (The) PLC
RTN
FTSE Mid 250
Travel & Leisure
3.578
15.0%
2.9%
24.4
95%
32.2
135
Rexam PLC
REX
FTSE 100
General Industrials
4.349
0.4%
3.3%
14.3
76%
4.1
24
Rio Tinto PLC
RIO
FTSE 100
Mining
28.85
21.1%
3.1%
10.8
83%
35.5
109
Rolls-Royce Group PLC
RR.
FTSE 100
Aerospace & Defense
8.43
16.0%
2.1%
30.1
86%
32.1
73
Rotork PLC
ROR
FTSE Mid 250
Industrial Engineering
22.63
17.5%
1.6%
43.9
100%
859.8
52
RPC Group PLC
RPC
FTSE Mid 250
General Industrials
4.261
10.8%
3.4%
19.1
88%
6.3
76
RPS Group PLC
RPS
FTSE Mid 250
Support Services
2.49
14.1%
2.2%
20
86%
19.7
7
RSA Insurance Group PLC
RSA
FTSE 100
Nonlife Insurance
1.105
18.9%
8.3%
10.6
82%
108
SABMiller PLC
SAB
FTSE 100
Beverages
27.2
14.1%
2.1%
35.7
90%
6
40
Sage Group (The) PLC
SGE
FTSE 100
Software & Computer Services
3.134
15.7%
3.1%
24.2
93%
23.6
87
Sainsbury (J) PLC
SBRY
FTSE 100
Food & Drug Retailers
3.475
14.7%
4.6%
21.2
60%
7
123
Savills PLC
SVS
FTSE Mid 250
Real Estate Investment & Services
3.987
3.8%
3.4%
14.6
76%
28.8
91
Schroders PLC
SDR
FTSE 100
Financial Services
15.18
10.9%
2.6%
22.5
88%
78
Segro PLC
SGRO
FTSE Mid 250
Real Estate Investment Trusts
2.268
-8.6%
6.5%
3.5
69%
1.5
137
Senior PLC
SNR
FTSE Mid 250
Aerospace & Defense
2.043
13.3%
1.9%
28.8
81%
8
57
Serco Group PLC
SRP
FTSE 100
Support Services
5.8
18.6%
1.4%
29.9
100%
6.4
149
Severn Trent PLC
SVT
FTSE 100
Gas; Water & Multiutilities
16.79
3.9%
4.2%
21.8
62%
3
136
Shanks Group PLC
SKS
FTSE Mid 250
Support Services
0.825
-0.6%
4.2%
12.1
60%
3.1
111
Smith & Nephew PLC
SN.
FTSE 100
Health Care Equipment & Services
6.835
12.0%
1.6%
21.8
88%
74.2
159
Smith (DS) PLC
SMDS
FTSE Mid 250
General Industrials
1.859
-0.6%
3.2%
20.6
71%
3.8
128
Smiths Group PLC
SMIN
FTSE 100
General Industrials
10.37
4.3%
3.7%
16.6
69%
103
Spectris PLC
SXS
FTSE Mid 250
Electronic & Electrical Equipment
17.25
12.4%
1.9%
30.9
93%
12.5
54
Spirax-Sarco Engineering PLC
SPX
FTSE Mid 250
Industrial Engineering
20.91
12.7%
2.3%
28.8
100%
86.5
10
SSE PLC
SSE
FTSE 100
Electricity
13.92
16.5%
5.8%
15.9
90%
7.9
127
St James's Place PLC
STJ
FTSE Mid 250
Life Insurance
3.671
8.1%
2.2%
30.7
88%
63
Stagecoach Group PLC
SGC
FTSE Mid 250
Travel & Leisure
2.808
13.7%
2.8%
18.1
83%
67
Standard Chartered PLC
STAN
FTSE 100
Banks
14
6.4%
3.4%
15.6
85%
6.3
124
Stobart Group Ltd
STOB
FTSE Mid 250
Industrial Transportation
1.177
-9.0%
5.1%
7.8
57%
7.1
50
Synergy Health PLC
SYR
FTSE Mid 250
Health Care Equipment & Services
9.2
20.8%
2.0%
29.9
98%
5.7
131
Tate & Lyle PLC
TATE
FTSE 100
Food Producers
6.655
2.1%
3.7%
16
71%
10.9
83
Ted Baker PLC
TED
FTSE Mid 250
General Retailers
8.99
9.4%
2.6%
26.9
93%
113.4
81
Telecom plus PLC
TEP
FTSE Mid 250
Fixed Line Telecommunications
8.465
23.2%
3.2%
47.1
83%
193.1
164
Templeton Emerging Markets Inv Tr PLC
TEM
FTSE Mid 250
Equity Investment Instruments
5.55
6.5%
1.0%
116.7
88%
14
Tesco PLC
TSCO
FTSE 100
Food & Drug Retailers
3.32
9.7%
4.4%
14.2
98%
8.6
6
Tullett Prebon PLC
TLPR
FTSE Mid 250
Financial Services
2.98
16.0%
5.5%
8.6
88%
9.9
148
Tullow Oil PLC
TLW
FTSE 100
Oil & Gas Producers
13.7
21.8%
0.9%
65.7
83%
10.2
94
UK Mail Group PLC
UKM
FTSE Small Cap
Industrial Transportation
2.6363
2.8%
6.9%
12.6
64%
160.8
59
Ultra Electronics Holdings PLC
ULE
FTSE Mid 250
Aerospace & Defense
15.42
15.5%
2.5%
25.3
90%
31.6
146
Unilever PLC
ULVR
FTSE 100
Food Producers
22.52
3.8%
3.4%
18.4
69%
13.1
153
United Utilities Group PLC
UU.
FTSE 100
Gas; Water & Multiutilities
7.16
-3.7%
4.5%
16.2
60%
2.5
12
Vedanta Resources PLC
VED
FTSE 100
Mining
10.29
27.7%
3.3%
10.6
90%
6.6
60
Victrex PLC
VCT
FTSE Mid 250
Chemicals
13.22
15.0%
2.5%
31.8
95%
635.1
16
Vodafone Group PLC
VOD
FTSE 100
Mobile Telecommunications
1.7575
11.1%
5.4%
12.6
88%
8.8
69
Weir Group PLC
WEIR
FTSE 100
Industrial Engineering
17.68
18.8%
1.9%
33.7
95%
24.3
155
Whitbread PLC
WTB
FTSE 100
Travel & Leisure
22.68
9.0%
2.3%
28.8
74%
10
160
William Hill PLC
WMH
FTSE Mid 250
Travel & Leisure
3.168
-10.2%
3.0%
12.6
64%
8.1
143
Workspace Group PLC
WKP
FTSE Mid 250
Real Estate Investment Trusts
2.69
-16.3%
3.3%
1.4
67%
3.7
34
WPP Group PLC
WPP
FTSE 100
Media
8.415
12.7%
2.9%
20.5
95%
3.9
25
Xstrata PLC
XTA
FTSE 100
Mining
9.575
21.2%
2.6%
10.2
86%
28.5
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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. © John Kingham, 2012. Offices at Unit 5, Pluto House, 19-33 Station Road, Ashford, Kent, TN23 1PP. Subscribe online at ukvalueinvestor.com
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