Liontrust directors go hunting

The total number of transactions are on the increase once again with the buyers still owning sway suggesting that directors believe share prices are cheap at the moment. This week we have highlighted two buys and one sell where we hold a contrary view and rank that company's shares as good value.

Liontrust Asset Management is making steady progress to repair the damage caused by the departure of two key fund managers early in 2009 and the sharp fall in equities that saw assets under management tumble from £5.7bn in 2007 to near £1bn. The group is starting to attract more funds, with net inflows of £59m in the six months to September helping to lift assets to £1.19bn. And by 10 November, this had risen further to £1.35bn. The group also swung into profit of £1.7m in the six months to September compared with a £3.7m loss a year earlier. Liontrust's directors are certainly upbeat, with director Jonathan Hughes-Morgan buying 750,000 shares at 60.25p while chief executive John Ions bought 50,000 at 63p. They were joined by chief financial officer Vinay Abrol who purchased 20,000 shares at 63p and non-executive director Mike Bishop, who bought 25,000 shares at 70p. All four directors are already showing a profit, with the shares trading at 78p.

- Jonas Crosland

Woodhouse offloads Debenhams’ shares

Debenhams' outgoing finance director Chris Woodhouse has offloaded almost his entire holding in the retail group - the disposal of 3m shares for £1.9m leaves him with a residual holding of just 152,000 shares, and is his second major disposal after the sale of 8.7m shares for £7.2m in late 2009. Investors, who have seen the value of their investments slide by more than two-thirds since the business was floated by its private equity owners in 2006, may feel slightly aggrieved that Mr Woodhouse has profited so extravagantly from his time at Debenhams . Along with former chief executive Rob Templeman, he was one of the executives put in place by the private equity consortium that bought the retailer back in 2003, before dumping it back on the market laden with debt. Many will remember that Mr Woodhouse did rather well out of that transaction, too, pocketing an estimated £41m. In the years since he has, at least, achieved some redemption - while the share price has suffered, the strategy put in place by Messrs Woodhouse and Templeman has resulted in underpinning steady profit improvement, a reduction in borrowings and a return to the dividend list, and it means the company is now financially strong enough to resume measured expansion both at home and overseas. Good value.

- John Hughman

O’Toole celebrates in style

Tim O’Toole took over the wheel at FirstGroup from Sir Moir Lockhead exactly a year ago, and to celebrate he’s bought 100,000 shares at a little under 343p each - his first significant purchase since joining the bus and train group as a non-executive director in May 2009.

Veteran of a six-year stint as managing director of London Underground, the American has his work cut out reversing the slump at FirstGroup’s underperforming US school bus division. Still, judging by this month’s interim results, he’s making good progress and margins at First Student are set to recover. O’Toole wants them back to 10-11 per cent within three to four years. And there is also potential to overshoot a $65m target for cost savings.

If he’s still in the hot seat in two years time, a controversial retention bonus will swell his stake by 215,000 shares. We back him to succeed. Buy.

- Lee Wild

Director buys

Director sells

Table compiled by Robert Ansted.

Key to abbreviations: ch = chairman; ce = chief executive; cfo = chief financial officer; fd = finance director; coo = chief operating officer; cs =company secretary; md = managing director

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