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Hercules Property - Experiencing reduced attrition at Deacon

September 2002

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.

We met with managing director, Robert Plumb, last month noting that the tide was finally turning for the group's insurance businesses, its largest activity affected last year by an inability to pass on higher rates to customers. Since then new insurers have been appointed, customer churn is reducing and margin improving once more. Since our meeting, Hercules has reported results for the year to 30 June. Pretax profit excluding non-recurring items and amortisation rose 20% to a record £11.5m on sales up 44% to £36.9m. Adjusted eps was 44.8p. We will review these results in full next month. The shares look a buy once again. ...

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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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