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SHL

March 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It's all coming together nicely at SHL. Although SHL is a very strong business, chief executive John Bateson has in the past spent too long distracted by management catfights which have prevented a series of reorganisations and disposals being put in place. But that process finally began last September and results for the year to 31 December contained a strategy on how he intends to grow the business. Turnover was £62.3m and profit before tax (allowing for £1.5m restructuring costs) was £4.6m, slightly ahead of last year, for eps of 5.1p. Net cash was £3.8m. SHL has two parts to its business. At the heart is its Product business (42% of continuing operations) supplying occupational psychometric tests to tes ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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