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The comeback kids: Purplebricks and Berkeley, and RWS's consistency

The latest from the IC companies team
December 6, 2016

In today's mailing, we pick up on a couple of companies that have bounced back after a rocky summer. After a solid start to the year (and its life as a listed entity), hybrid estate agency Purplebricks (PURP) rather came off the boil following the Brexit vote and, more recently, news of the proposed ban on letting agents charging fees on tenants. There had also been some concerns, which I addressed in a column earlier this year, about its conversion rates and competition. The company has done its best to answer all these questions in its half-year results, which triggered a recovery in the shares: click here for our take.

One big faller after the referendum was housebuilder Berkeley Group (BKG). Click here for its half-year numbers, which also triggered a re-rating in the share price. Despite lower reservations, average sales prices and operating margins rose. So low had the stock fallen that the company decided to return part of its promised shareholder payout as buybacks rather than dividends.

Or how about consistency, a company that has delivered 13 straight years of revenue and (adjusted) profit growth? Step forward RWS Holdings (RWS), which has a rating to match that record. Click here for its latest full-year results, which included a decent bump from a 2015 acquisition.

There is much more below, and in the usual places. And if you fancy it, do follow us (and me) on Twitter.