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Evain sells as ICG's share price lifts off

Opportune Evain sells Intermediate Capital's shares, Mr Barber from Next takes advantage of the meteoric rise in his company's share price whereas Sierra's directors buy as their company's share price takes a dip.
January 31, 2013, Julia Bradshaw, Matthew Allan and Robert Ansted

Intermediate Capital (ICP) deploys capital on behalf of its investors through mezzanine finance, credit and minority equity funds specialising in mid-market transactions (typically €250m (£214m) to €1bn of enterprise value). It also invests its own funds alongside, and of the €12.9bn of assets under management around €3bn are the group’s own funds.

Trading in the third quarter has been relatively brisk, with the ICG Europe Fund V closing out at its maximum permitted size of €2.5bn, and two deals have already been secured, using funds to support a management led buyout and acquiring senior debt in an existing portfolio company. Credit funds have performed well in a strong market, while the investment portfolio has held up well, given the tough trading climate. Fundraising also continues for ICG Senior Debt Partners, with the fund focusing on direct lending of senior secured loans to European mid-market corporate borrowers. The better tone is in marked contrast to trading in the first six months, where impairment charges saw pre-tax profits down 64 per cent at £39.6m. The shares have risen 23 per cent since the interim results were announced in November, and chief executive Christophe Evain took the opportunity to sell 183,150 shares, raising £657,509 and taking his remaining holding down to 598,477.

Jonas Crosland

 

Barber cashes in on Next’s escalating share price.

Next's (NXT) share price has been rising steadily since 1990 when it was valued at just 10p. That's a far cry from today's 4,058p and a whopping 400-fold increase over two decades. Perhaps that's why non-executive director and seasoned accountant Steve Barber cashed in half of his 10,000 shares. At 4,024 a piece, that leaves Mr Barber with a tidy windfall of £201,200.

Next is incredibly cash generative and able to translate respectable like-for-like sales into strong earnings growth, driven in part by a robust internet business and opportunities overseas, but also by good management. However, it's worth bearing in mind that retailers are facing an exceptionally tough year ahead. Squeezed household budgets and economic malaise are expected to continue for the foreseeable future, making life difficult even for the country's top performing brands. Next will not be immune to these issues and trading will be tough, something even management has conceded. General retail as a sector outperformed the broader UK stock market last year, but it's unlikely to repeat the same trick. Next's shares are now rated on 15 times earnings, which isn't cheap, while its dividend yield is close to historic lows, reflecting our decision to keeping the shares firmly on a hold.

Julia Bradshaw

 

Sierra directors buy the dip

After an eight-fold share price rise in 2011 and 2012 from 10p to 80p, shares of minerals sands miner Sierra Rutile (SRX) finally dipped toward the tail end of last year as the red-hot market for ilmenite and rutile softened. Previously insatiable demand from China and restricted supply of the mineral sands - which are used as feedstock for titatium dioxide pigment - proved the perfect storm for Sierra Rutile, only for demand to temporarily loosen as fears grew within China of an economic 'hard landing'.

Several Sierra Rutile directors saw the price action as a buying opportunity. Chairman Jan Castro has been the biggest buyer, adding 768,750 shares at prices between 49.8p and 60p. Directors Mike Brown, Richard Lister and Michael Barton all made smaller purchases around the same prices.

IC View: The market for minerals sands may be relatively small and niche, but there are hefty profits to be made should prices hold up. To that end, they remain near historic highs with the Chinese economy surging back nicely and precious little new production scheduled to come on stream over the next few years. Although we are mildly cautious on the sector, the recently announced positive economics of Sierra Rutile’s Gangama project were so impressive we upgrade the company’s shares from 'hold' to 'buy' at 70p.

Matthew Allan

Buys

CompanyDirectorDateNo. of sharesPrice (p)Value (£)Total shares heldValue (%)
Amino TechnologiesDonald McGarva (ceo)28 Jan 139,50081.57,74352,2000.09
Amino TechnologiesJulia Hornby (cfo)29 Jan 1333,1497524,86233,1490.06
Big YellowNicholas Vetch23 Jan 1367,568370250,0029,157,5686.49
Big YellowJames Gibson23 Jan 134,59537017,0022,529,2261.79
Big YellowRichard Cotton23 Jan 138,91937033,00058,9190.04
Big YellowMark Richardson23 Jan 135,40437019,99524,6680.02
C&CRichard Holroyd28 Jan 1312,226€ 4.64€56,700--
easyJetSir Michael Rake28 Jan 131,066929.849,91212,3490.00003
El OroCRW Parish09 Jan 137,000986,86010,654,51116.48
Hansa TrustJonathan Davie23 Jan 134,00081532,600--
Hansa Trust "A non voting"Jonathan Davie23 Jan 136,00081248,720--
Haveloch EuropaAndrew Burgess28 Jan 13426,15616.4570,1037,771,21820.17
Human Capital ResourcesPaul Bell25 Jan 13329,422723,0606,739,442-
Jersey Electricity "A"Christopher Ambler24 Jan 134,90528513,9794,905-
Jersey Electricity "A"Martin Magee24 Jan 134,08428511,6394,084-
Jersey Electricity "A"Richard Plaster24 Jan 133,87528511,0443,875-
Magnolia PetroleumSteven Snead (ceo)25 Jan 13500,0002.914,500200,415,99823.56
Magnolia PetroleumRonald Harwood24 Jan 13850,0002.924,65030,582,4263.6
Magnolia PetroleumGavin Burnell25 Jan 13200,0002.925,84014,385,7971.69
MothercareSimon Calver (ceo)24 Jan 1318,310325.2559,553188,3100.212
Sierra RutileJan Castro (ch)23 Jan 13113,7506068,2501,464,7500.28
Sierra RutileRichard Lister28 Jan 13100,0006060,000200,0000.04
StratMin Global ResourcesManoli Yannaghas28 Jan 136,50056.83,69237,5000.001
Taliesin Property FundNigel Le Quesne (ch)24 Jan 134,200120050,4004,2000.11
Throgmorton TrustSimon Beart25 Jan 131,690216.93,666--
Urals EnergyAndrew Shrager (ch)23 Jan 13450,0006.529,250525,0000.207
XCAP SecuritiesNitin Parekh (ceo)24 Jan 134,750,0000.2511,875443,926,58228.25
XCAP SecuritiesKenneth West28 Jan 13800,0000.32,4001,355,5550.09

 

Sells

CompanyDirectorDateNo. of sharesPrice (p)Value (£)Total shares heldValue (%)
Entertainment OneRobert Lantos22 Jan 1319,00017633,4401,563,5280.6
EvrazAlexander Abramov23 Jan 13278,010311.75866,696329,938,74122.41
EvrazAlexander Frolov23 Jan 13138,796312432,697164,753,65011.19
ExperianSir John Peace (ch)28 Jan 1320,0001,084.00216,800--
ImmuPharmaDr Ajay Agrawal24 Jan 1362,1695735,436--
Intermediate CapitalChristophe Evain22 Jan 13183,150359657,509598,4770.149
KComPaul Simpson29 Jan 13500,00073.50367,5001,024,2670.198
NextSteve Barber24 Jan 135,0004,024201,2005,0000.0031
PennonSusan Davy29 Jan 135,00070735,350--
United UtilitiesGary Dixon22 Jan 139,38471767,2837,9840.00226

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