Eduardo Hochschild, executive chairman of Hochschild Mining (HOC), has forked out about £23.2m for another 16.9m shares in the family precious metals business, leaving his holding in the miner just shy of the 200m mark. The chairman's share purchases were made as part of an agreement linked to the recent $280m (£175m) acquisition of minority interests (40 per cent) in two gold and silver mines (Pallancata and Inmaculada) in Peru that are the assets of International Mineral Corporation (IMZ).
The deal is subject to shareholder approval, so Mr Hochschild has been obliged to increase his holding and provide an irrevocable undertaking to vote in favour of the transaction by an unnamed financial institution from which the group is seeking to raise up to $100m in long-term financing. Hochschild also revealed that it has secured $340m in bridging finance in order to complete the IMZ acquisition.
Despite poor expectations for silver prices, analyst reaction to the IMZ deal has been broadly favourable, particularly as Hochschild already manages Pallancata, and is set to commission Inmaculada by the end of 2014. The group's share price is down by a third since our August sell call, but with silver still trading at around $21/oz, we feel that the recent sell-off has run it course. Hold.
Mark Robinson
Blur founder's maiden sale
Blur Group (BLUR) is on course to more than triple revenue this year, and analysts expect the company, which runs an online exchange for businesses to commission services and experts to pitch for the work, to easily double the top line for years to come. Yet, even those forecasts may prove conservative, they say. Stunning first half growth convinced us to upgrade the shares to a buy in September (449p, 25 Sep 2013) and record-breaking third quarter metrics justified our confidence. Revenue of $17.3m (£10.8m) was 84 per cent higher than the previous quarter and the company is busier than ever.
However, that success and surge in the share price from 155p just four months ago, has proved too tempting for chief executive Philip Letts. Seven and a half years since founding blur and one year on from the IPO, Mr Letts has just pocketed £3.6m after selling 900,000 shares at 400p each. Non-executive director Richard Bourne-Arton sold a £380,000 stake, too. But there's nothing to fear. Mr Letts has 14.1m shares left worth £60m, almost half the company, and will not sell any more for the "foreseeable future". What's more, board member Robert Brooksbank snapped up 35,000 shares at 429p. We still like the story, and a forecast enterprise value to sales ratio of 4 in 2015 is in line with the industry average. Buy at 425p.
Lee Wild
BUYS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Active Energy | Richard Spinks (ce) | 09 Oct 13 | 89,167 | 2.75 | 2,452 | 8,564,167 | 1.38 |
| AorTech International | Roy Mitchell | 08 Oct 13 | 25,000 | 83.88 | 20,970 | 360,163 | 7.45 |
| AorTech International | Eddie McDaid (fd) | 09 Oct 13 | 25,000 | 85 | 21,250 | 358,914 | 7.43 |
| Bango | Gary Tucker (cfo) | 04 Oct 13 | 1,857 | 133.25 | 2,474 | 6,328 | 0.01 |
| Bango | Gary Tucker (cfo) | 04 Oct 13 | 1,903 | 130 | 2,474 | 8,231 | 0.02 |
| Barclays | M Ashley | 08 Oct 13 | 11,049 | 269.4677 | 29,773 | 11,049 | 0.00 |
| British Land Co | Lord Turnbull | 09 Oct 13 | 435 | 574.9124 | 2,501 | 15,845 | 0.00 |
| British Land Co | Dido Harding | 09 Oct 13 | 627 | 574.9124 | 3,605 | 10,235 | 0.00 |
| British Land Co | William Jackson | 09 Oct 13 | 1,780 | 574.9124 | 10,233 | 37,486 | 0.00 |
| Cellcast | Mike Neville (ch) | 03 Oct 13 | 400,000 | 0.77 | 3,080 | 1,025,000 | 1.32 |
| CVS | Mike McCollum | 04 Oct 13 | 20,000 | 247.75 | 49,550 | 20,000 | 0.03 |
| EW Group | John Morton | 09 Oct 13 | 1,800,000 | 1 | 18,000 | 48,213,058 | 7.61 |
| EW Group | Rod Gentry | 09 Oct 13 | 2,000,000 | 1 | 20,000 | 40,912,000 | 6.46 |
| Ferrum Crescent * | Ed Nealon (ch) | 08 Oct 13 | 2,906,075 | 1.82 | 52,891 | 9,340,607 | 2.55 |
| Ferrum Crescent * | Robert Hair | 08 Oct 13 | 480,769 | 1.82 | 8,750 | 8,175,987 | 2.23 |
| Finsbury Growth & Income Trust | JP Allard | 07 Oct 13 | 548 | 471.3 | 2,583 | 26,896 | 0.03 |
| Hochschild Mining | Nigel Moore | 07 Oct 13 | 12,149 | 153.5 | 18,649 | 26,434 | 0.01 |
| Hochschild Mining | Ignacio Bustamante (ce) | 04 Oct 13 | 29,000 | 156.25 | 45,313 | 61,444 | 0.02 |
| Hochschild Mining | Eduardo Hochschild (ch) | 04 Oct 13 | 16,905,066 | 155 | 26,202,852 | 199,320,272 | 54.30 |
| India Capital Growth Fund | JR Whittle | 03 Oct 13 | 20,000 | 29 | 5,800 | 20,000 | 0.03 |
| India Capital Growth Fund | P Niven | 03 Oct 13 | 25,000 | 29 | 7,250 | 25,000 | 0.03 |
| India Capital Growth Fund | FC Carr (ch) | 03 Oct 13 | 10,000 | 29 | 2,900 | 130,000 | 0.17 |
| Inland Homes | Nishith Malde (fd & cs) | 04 Oct 13 | 49,529 | 39.65 | 19,638 | 11,270,029 | 5.60 |
| InternetQ | Iain Johnston | 03 Oct 13 | 4,000 | 323 | 12,920 | 53,027 | 0.14 |
| InternetQ | Harris Jones | 02 Oct 13 | 3,000 | 317 | 9,510 | 3,000 | 0.01 |
| Marechale Capital | Jon Pither | 09 Oct 13 | 125,000 | 2 | 2,500 | 4,732,320 | 8.20 |
| North Midland Construction | Robert Moyle (ch & ce) | 08 Oct 13 | 12,760 | 117.74 | 15,024 | 448,008 | 4.41 |
| Northern 2 VCT | AM Conn | 04 Oct 13 | 11,968 | 83.56 | 10,000 | 372,738 | 0.50 |
| Northern 2 VCT | ChrisFletcher | 04 Oct 13 | 11,968 | 83.56 | 10,000 | 99,416 | 0.13 |
| Northern 2 VCT | Frank Neale | 04 Oct 13 | 11,968 | 83.56 | 10,000 | 105,030 | 0.14 |
| Northern 2 VCT | E Denny | 04 Oct 13 | 50,255 | 83.55 | 41,988 | 220,255 | 0.30 |
| Northern 2 VCT | David Gravells (ch) | 04 Oct 13 | 7,181 | 83.55 | 6,000 | 18,925 | 0.03 |
| Northern 3 VCT | Chris Fleetwood | 04 Oct 13 | 19,257 | 103.86 | 20,000 | 44,834 | 0.09 |
| Northern 3 VCT | Tim Levett | 04 Oct 13 | 28,885 | 103.86 | 30,000 | 229,807 | 0.48 |
| Northern 3 VCT | James Ferguson (ch) | 04 Oct 13 | 96,285 | 103.86 | 100,002 | 276,174 | 0.58 |
| Northern Petroleum | Graham Heard | 04 Oct 13 | 30,000 | 33.5 | 10,050 | 617,497 | 0.65 |
| Northern Petroleum | Nick Morgan (fd) | 04 Oct 13 | 72,924 | 33.75 | 24,612 | 72,924 | 0.08 |
| Northern Venture Trust | Hugh Younger | 04 Oct 13 | 11,670 | 85.69 | 10,000 | 41,303 | 0.05 |
| Northern Venture Trust | Nigel Beer | 04 Oct 13 | 46,682 | 85.69 | 40,002 | 146,553 | 0.19 |
| Northern Venture Trust | Simon Constantine | 04 Oct 13 | 58,353 | 85.69 | 50,003 | 174,016 | 0.23 |
| Northern Venture Trust † | Tim Levett | 03 Oct 13 | 18,672 | 85.69 | 16,000 | 397,858 | 0.52 |
| Northern Venture Trust † | Tim Levett | 04 Oct 13 | 23,341 | 85.69 | 20,001 | 379,186 | 0.49 |
| Rialto Energy | Gregory Stoupnitzky | 08 Oct 13 | 500,000 | 1.69973 | 8,499 | 833,333 | 0.07 |
| Rolls-Royce Holdings | JM Neill | 07 Oct 13 | 221 | 1,119 | 2,473 | 40,839 | 0.00 |
| Rolls-Royce Holdings | IC Conn | 07 Oct 13 | 221 | 1,137 | 2,513 | 26,932 | 0.00 |
| Rolls-Royce Holdings | F Chapman | 07 Oct 13 | 267 | 1,119 | 2,988 | 4,117 | 0.00 |
| Rolls-Royce Holdings | I Davis (ch) | 07 Oct 13 | 177 | 1,119 | 1,981 | 6,258 | 0.00 |
| Standard Life | Martin St. Clair Pike | 09 Oct 13 | 40,000 | 337.9 | 135,160 | 40,000 | 0.00 |
| Top Level Domain Holdings | Michael Salazar (cfo) | 09 Oct 13 | 300,000 | 4.95 | 14,850 | 910,375 | 0.14 |
| TyraTech | Alan Reade (ch) | 04 Oct 13 | 675,000 | 5 | 33,750 | 10,486,358 | 6.28 |
| Waterman | N Taylor (ce) | 08 Oct 13 | 10,700 | 59.5 | 6,367 | 174,128 | 0.57 |
| Waterman | N Taylor (ce) | 07 Oct 13 | 38,000 | 56 | 21,280 | 163,128 | 0.53 |
| Waterman | N Taylor (ce) | 07 Oct 13 | 40,000 | 54 | 21,600 | 124,428 | 0.40 |
| Waterman | R S Fidgen (ch) | 07 Oct 13 | 35,000 | 56 | 19,600 | 85,000 | 0.28 |
SELLS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Aer Lingus | Chris Mueller (ce) | 04 Oct 13 | 125,000 | 1.239 | 1,549 | 613,625 | 0.12 |
| Allocate Software | Allen Swann | 07 Oct 13 | 1,119,000 | 101.8 | 1,139,142 | 0 | 0.00 |
| Blur | Richard Bourne-Arton | 09 Oct 13 | 95,000 | 400 | 380,000 | 379,975 | 1.28 |
| Blur | Philip Letts (ch & ce) | 09 Oct 13 | 900,000 | 400 | 3,600,000 | 14,100,000 | 47.58 |
| Dillistone | Giles Fearnley | 04 Oct 13 | 20,000 | 100 | 20,000 | 973,435 | 5.35 |
* Placing † Spouse/Connected Person
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
