Belvoir Lettings (BLV), which floated on Aim last year, may already have outlived its name. In light of the recovering housing market the self-proclaimed "lettings specialist" is thinking of diversifying into the sales market. Chief executive Dorian Gonsalves says estate agency would only ever be a "bolt-on" business for the franchise operation, but would pave the way for a more rapid expansion of the Belvoir brand. The company is running a 12-month trial at 10 branches before rolling estate agency out across the whole network.
Meanwhile it continues with its old expansion strategy, which involves both buying estate agents on its own book and making loans to franchisees to buy out local rivals. It spent the first half integrating a number of major acquisitions, which boosted sales by 35 per cent to £2.5m and profits by 27 per cent to £0.56m after tax.
At 188p, Belvoir's shares have jumped 62 per cent since we tipped them (116p, 13 Dec 2012) and now trade on 21 times profit forecasts for 2013. The company's growth prospects are strong, but the shares are no longer a bargain. Following the example of Mr Gonsalves and finance director Carl Chadwick, who sold £644,000 worth of Belvoir shares between them the day after these results were announced, we downgrade our recommendation to hold.
Stephen Wilmot
Afren directors in show of faith
Eight directors and executives of Nigeria-focused oil producer Afren (AFR) have spent a collective £5.1m buying shares in the company in the open market at prices between 141p and 146p a share - nearly an all-time high.
This would appear to be a remarkable show of faith in the company's future prospects, but the real reason behind the share purchases is much less compelling. In June, the Financial Times lifted the lid on some dubious corporate governance practices at Afren when the company belatedly disclosed in a circular that many of Afren's top management had invested personal money into a private Nigerian company which later became an Afren subsidiary. Afren's management were effectively sitting on paper profits of around $23m (£15m) and were publically criticised for their actions. So they announced they would sell the shares to a third party and use all the proceeds to buy Afren shares, and "undertake to hold the shares for a minimum of two years".
All in all, this is not a bad effort by management to salvage some of the lost credibility in the market. Afren is a successful long-term Investors Chronicle buy tip and, with the shares trading on just eight times forward earnings, and plenty of newsflow expected from exploration over the coming months, we continue to rate the shares a 'buy' despite the corporate governance concerns.
Matthew Allan
BUYS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| 1pm | Ron Russell | 11 Sep 13 | 120,000 | 41 | 49,200 | 6,877,302 | 22.95 |
| Afren | Dr Osman Shahenshah (ce) | 06 Sep 13 | 598,686 | 141.32 | 846,063 | 5,494,542 | 0.50 |
| Afren | Egbert Imomoh (ch) | 06 Sep 13 | 1,031,299 | 141.32 | 1,457,432 | 4,703,545 | 0.43 |
| Afren | Shahid Ullah (coo) | 06 Sep 13 | 171,092 | 141.32 | 241,787 | 4,531,198 | 0.42 |
| Afren | Darra Comyn (fd) | 06 Sep 13 | 343,590 | 141.32 | 485,561 | 343,590 | 0.03 |
| Afren | Galib Virani | 12 Sep 13 | 196,763 | 146.09 | 287,451 | 864,139 | 0.08 |
| Afren | Iain Wright | 12 Sep 13 | 98,113 | 146.09 | 143,333 | 913,688 | 0.08 |
| Afren | Egbert Imomoh (ch) | 12 Sep 13 | 700,866 | 146.09 | 1,023,895 | 5,404,411 | 0.50 |
| Afren | Dr Osman Shahenshah (ce) | 12 Sep 13 | 400,777 | 146.09 | 585,495 | 5,895,319 | 0.54 |
| Alliance Trust ** | Katherine L Garrett-Cox (ce) | 11 Sep 13 | 952 | 435.338 | 4,144 | 460,495 | 0.08 |
| Alliance Trust † | Karin Forseke | 12 Sep 13 | 10,000 | 435.4 | 43,540 | 94,181 | 0.02 |
| Ashley House | Richard Darch | 09 Sep 13 | 38,000 | 13 | 4,940 | 38,000 | 0.07 |
| Ashley House | Christopher Lyons (ch) | 09 Sep 13 | 38,000 | 13 | 4,940 | 38,000 | 0.07 |
| Ashley House | Antony Walters (fd) | 09 Sep 13 | 76,000 | 13 | 9,880 | 279,000 | 0.48 |
| Ashley House † | Jonathan Holmes (ce) | 09 Sep 13 | 158,000 | 13 | 20,540 | 1,831,736 | 3.14 |
| Avanti Communications | Alan Foster | 10 Sep 13 | 20,000 | 199.75 | 39,950 | 451,250 | 0.40 |
| Avanti Communications | Paul Walsh | 10 Sep 13 | 10,000 | 179 | 17,900 | 150,000 | 0.13 |
| Avanti Communications | David Williams (ce) | 10 Sep 13 | 10,000 | 180 | 18,000 | 1,696,101 | 1.52 |
| Avanti Communications | John Brackenbury (ch) | 10 Sep 13 | 34,731 | 186 | 64,600 | 470,522 | 0.42 |
| Avanti Communications | John Brackenbury (ch) | 11 Sep 13 | 15,108 | 230 | 34,748 | 485,630 | 0.43 |
| Avesco | Richard Murray (ch) | 10 Sep 13 | 15,005 | 200 | 30,010 | 5,508,211 | 20.79 |
| Brady | Pat Brazel | 09 Sep 13 | 100,000 | 62.55 | 62,550 | 381,682 | 0.47 |
| Brady | Paul Fullagar (ch) | 10 Sep 13 | 100,000 | 61.5 | 61,500 | 1,453,390 | 1.79 |
| Chamberlin | David Roberts (fd) | 06 Sep 13 | 5,000 | 110 | 5,500 | 5,000 | 0.06 |
| Clean Air Power * | Dr Karl Schaller | 10 Sep 13 | 51,948 | 9.625 | 5,000 | 120,329 | 0.05 |
| Clean Air Power * | Dr Ulrich Wohr | 10 Sep 13 | 20,779 | 9.625 | 2,000 | 388,138 | 0.17 |
| Clean Air Power * | Rodney Westhead (ch) | 10 Sep 13 | 124,675 | 9.625 | 12,000 | 485,284 | 0.21 |
| Clean Air Power * | Bernard Lord | 10 Sep 13 | 166,233 | 9.625 | 16,000 | 738,130 | 0.32 |
| Clean Air Power * | Pete Rowse (fd) | 10 Sep 13 | 86,092 | 9.625 | 8,286 | 385,000 | 0.17 |
| Clean Air Power * | John Pettitt (ce) | 10 Sep 13 | 623,433 | 9.625 | 60,005 | 3,000,000 | 1.30 |
| CLS Holdings | Sten Mortstedt (ch) | 09 Sep 13 | 5,657 | 1,169 | 66,130 | 22,670,389 | 53.06 |
| CLS Holdings | Sten Mortstedt (ch) | 06 Sep 13 | 429 | 1,169 | 5,015 | 22,664,732 | 52.34 |
| Conygar Investment Company (The) | Preston Rabl | 06 Sep 13 | 874 | 126 | 1,101 | 892,064 | 1.00 |
| Craneware | Keith Neilson (ce) | 11 Sep 13 | 12,280 | 402 | 49,366 | 3,483,809 | 12.90 |
| Essentra | Lorraine Trainer | 05 Sep 13 | 7,500 | 797 | 59,775 | 7,500 | 0.00 |
| Foresight 2 VCT | Peter Dicks | 05 Sep 13 | 2,370 | 45.5 | 1,078 | 45,747 | 0.10 |
| Foresight 2 VCT | Jocelin Harris (ch) | 05 Sep 13 | 3,364 | 45.5 | 1,531 | 22,301 | 0.05 |
| Gasol | Alan Buxton (coo) | 05 Sep 13 | 275,000 | 18 | 49,500 | 700,000 | 2.09 |
| Glencore Xstrata | Tony Hayward (ch) | 10 Sep 13 | 131,742 | 333 | 438,701 | 131,742 | 0.00 |
| Goals Soccer Centres | Philip Burks | 05 Sep 13 | 30,000 | 155.8 | 46,740 | 163,478 | 0.31 |
| Heritage Oil | Gregory Turnbull | 12 Sep 13 | 50,000 | 187.47 | 93,735 | 550,070 | 0.21 |
| Hydrodec | Lord Moynihan (ch) | 06 Sep 13 | 455,000 | 8.75 | 39,813 | 3,455,326 | 0.72 |
| Kalimantan Gold Corporation | Dr Peter Pollard (ch) | 06 Sep 13 | 153,000 | 3.791 | 5,801 | 202,052 | 0.12 |
| Low & Bonar * | Dr. Trudy Schoolenberg | 11 Sep 13 | 36,231 | 69 | 24,999 | 36,231 | 0.01 |
| Low & Bonar * | John Sheldrick | 11 Sep 13 | 6,993 | 69 | 4,825 | 76,993 | 0.02 |
| Low & Bonar * | Martin Flower (ch) | 11 Sep 13 | 43,770 | 69 | 30,201 | 481,912 | 0.15 |
| Low & Bonar * | Mike Holt (fd) | 11 Sep 13 | 33,291 | 69 | 22,971 | 366,535 | 0.11 |
| Low & Bonar † | Steve Good Ce) | 11 Sep 13 | 91,817 | 69 | 63,354 | 1,010,915 | 0.31 |
| Mattioli Woods ** | Nathan Imlach (fd) | 09 Sep 13 | 886 | 338.5 | 2,999 | 181,770 | 0.92 |
| Maven Income and Growth VCT 6 | Brian May | 05 Sep 13 | 37,200 | 37 | 13,764 | 255,000 | 4.80 |
| Maven Income and Growth VCT 6 | William Nixon | 10 Sep 13 | 23,000 | 38.25 | 8,798 | 178,300 | 3.36 |
| Maven Income and Growth VCT 6 | William Nixon | 11 Sep 13 | 11,000 | 39.25 | 4,318 | 327,184 | 6.16 |
| office2office | Jim Cohen | 10 Sep 13 | 41,850 | 49 | 20,507 | 107,346 | 0.30 |
| Oxford BioMedica | Timothy Watts | 12 Sep 13 | 400,000 | 2.5 | 10,000 | 3,682,829 | 0.26 |
| Pennon | Gill Rider | 09 Sep 13 | 5,000 | 723.5 | 36,175 | 5,000 | 0.00 |
| Perpetual Income & Growth | Antony Hardy | 10 Sep 13 | 1,000 | 218.94 | 2,189 | 12,000 | 0.01 |
| Perpetual Income & Growth | Sir Martyn Arbib | 10 Sep 13 | 1,000 | 218.94 | 2,189 | 13,000 | 0.01 |
| PuriCore | Daniel Hegglin | 06 Sep 13 | 550,000 | 43 | 236,500 | 3,909,091 | 7.80 |
| PuriCore | Daniel Hegglin | 05 Sep 13 | 50,000 | 40 | 20,000 | 3,359,091 | 6.70 |
| Rolls-Royce Holdings | Sir Frank Chapman | 09 Sep 13 | 263 | 1,137 | 2,990 | 3,850 | 0.00 |
| Rolls-Royce Holdings | Iain Conn | 09 Sep 13 | 218 | 1,137 | 2,479 | 26,711 | 0.00 |
| Rolls-Royce Holdings | John Neill | 09 Sep 13 | 218 | 1,137 | 2,479 | 40,618 | 0.00 |
| Rolls-Royce Holdings | Ian Davis (ch) | 09 Sep 13 | 174 | 1,137 | 1,978 | 6,081 | 0.00 |
| Stadium | Charlie Peppiatt (ce) | 11 Sep 13 | 15,000 | 45 | 6,750 | 15,000 | 0.05 |
| Stadium | Joanne Estell (fd) | 11 Sep 13 | 10,000 | 45 | 4,500 | 10,000 | 0.03 |
| Stadium ** | Nick Brayshaw (ch) | 11 Sep 13 | 10,000 | 50 | 5,000 | 162,727 | 0.55 |
| StatPro | MC Adorian | 05 Sep 13 | 25,000 | 75 | 18,750 | 2,670,698 | 3.96 |
| StatPro ** | J Wheatley (ce) | 06 Sep 13 | 25,000 | 80 | 20,000 | 7,378,672 | 10.93 |
| Synety | Simon Cleaver (ch) | 06 Sep 13 | 35,000 | 150.41 | 52,644 | 237,606 | 3.75 |
| Thomas Cook | Michael Healy (cfo) | 05 Sep 13 | 18,248 | 137 | 25,000 | 24,001 | 0.00 |
| Thorntons | Martin George | 11 Sep 13 | 20,000 | 87.5 | 17,500 | 20,000 | 0.03 |
| Thorntons | Jonathan Hart (ce) | 11 Sep 13 | 52,155 | 90 | 46,940 | 202,155 | 0.30 |
| Thorntons | Paul Wilkinson (ch) | 11 Sep 13 | 125,000 | 89 | 111,250 | 1,325,503 | 1.94 |
| Xplorer | John Davies (ch) | 05 Sep 13 | 13,000 | 22.1 | 2,873 | 13,000 | 0.12 |
SELLS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Belvoir Lettings | Dorian Gonsalves (ce) | 06 Sep 13 | 200,000 | 184 | 368,000 | 453,595 | 2.19 |
| Belvoir Lettings | Carl Chadwick (fd) | 06 Sep 13 | 150,000 | 184 | 276,000 | 340,196 | 1.65 |
| Craneware | Neil Heywood | 12 Sep 13 | 25,000 | 402 | 100,500 | 105,356 | 0.39 |
| Delcam | Ed Lambourne | 05 Sep 13 | 575,000 | 1,650 | 9,487,500 | 287,389 | 3.62 |
| Delcam | Clive Martell (ce) | 05 Sep 13 | 13,333 | 1,650 | 219,995 | 150,068 | 1.89 |
| Enterprise Inns | WS Townsend | 12 Sep 13 | 100,000 | 154 | 154,300 | 546,555 | na |
| Frenkel Topping ** | Richard Fraser | 05 Sep 13 | 1,100,000 | 26 | 286,000 | 3,306,880 | 5.23 |
| Goals Soccer Centres † | William Gow (fd) | 09 Sep 13 | 150,000 | 163.5 | 245,250 | 1,123,145 | 2.14 |
| Informa | Peter Rigby (ce) | 10 Sep 13 | 285,372 | 532.417 | 1,519,368 | 523,524 | 0.09 |
| LMS Capital | Bernard Duroc-Danner | 06 Sep 13 | 69,595 | 76.2 | 53,031 | 0 | 0.00 |
| LMS Capital | Bernard Duroc-Danner | 05 Sep 13 | 28,062 | 77.1 | 21,636 | 69,595 | 0.04 |
| Staffline | Andy Hogarth (ce) | 05 Sep 13 | 600,000 | 540 | 3,240,000 | 2,225,492 | 8.79 |
* Placing † Spouse ** SIPP
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
