Shares in closed life assurance run-off specialist Phoenix Group (PHNX) fell over 3 per cent after private equity firm TDR Capital sold 22m shares on 5 December at 660p each - raising £145m. Phoenix non-executive director Manjit Dale is also a director of TDR Capital Nominees, which is majority owned by TDR Capital managed funds - that explains the apparently hefty disposal by a Phoenix director.
TDR originally announced that TDR Capital Nominees and TDR Shares (also majority owned by fund managed by TDR Capital) would offer 18m shares in Phoenix Group to institutional investors. But that was increased to 22m, with the additional shares being offered by Jambright - another company effectively controlled by investment funds managed by TDR (until his resignation in August, Mr Dale was also a director of Jambright). The sellers now hold 13.9m shares in Phoenix, or around 6 per cent of the share capital, and have undertaken not to sell any more shares for 120 days following the completion of the transaction.
In November, Phoenix announced that discussions regarding a possible combination of Phoenix and Swiss Re's UK Admin Re business had been terminated - that pushed the shares down 8 per cent the day of the news appeared. But, at 696p, they've also jumped about 70 per cent since early June 2012 - yet they still trade at a chunky discount to reported embedded value. What's more, strong cash flow generation should help to relax covenants on boosting dividend payouts - the historical yield is already a fat 8 per cent or so. On that basis, the disposals strike us as premature and we reiterate our long-standing buy tip (659p, 9 June 2011).
Empresaria chairman boosts holding
Anthony Martin, chairman of specialist recruiter Empresaria (EMR), appears to have plenty of faith in his company. Indeed, on 9 December, he splashed out £1.16m, snapping up 3.23m shares at 36p each - the shares have since risen to 37.5p. And, while the group has experienced challenging conditions, recent trading suggests that Mr Martin's faith isn't misplaced.
True, with the half-year figures in September Empresaria did report a 7 per cent fall in group net fee income (NFI) - the European business, in particular, remains under pressure and NFI dropped 21 per cent there. But the UK operation managed a roughly flat performance and the group's rest of the world unit saw NFI rise 6 per cent. What's more, and helped by robust cost controls, the group's adjusted operating profit rose 11 per cent year-on-year to £2m. House broker Shore Capital expects more progress in the traditionally stronger second half, too, and anticipates EPS for the year to end-December of 5.9p (from 5p in 2012), before rising to 6.4p in 2014.
That leaves the shares rated on just six times 2013's full-year forecast earnings - a modest rating for the recruitment sector, especially given expected earnings growth. On that basis, investors might want to follow Mr Martin's example. Buy.
BUYS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| AGA Rangemaster Group PLC | P B Dermody OBE | 10-Dec-13 | 10,000 | 153.75 | 15,375 | 60,591 | 0.09 |
| Amati VCT PLC | P A Lawrence (ch) | 11-Dec-13 | 40,970 | 75.42 | 30,900 | 130,563 | 0.27 |
| Ariana Resources PLC | A K Sener (md) | 05-Dec-13 | 800,000 | 1.25 | 10,000 | 8,299,091 | 1.50 |
| Bilfinger Berger Global Infrastructure SICAV SA* | M Denny (fd) | 11-Dec-13 | 15,000 | 108.9 | 16,335 | 35,000 | 0.01 |
| Bilfinger Berger Global Infrastructure SICAV SA* | C C Maltby | 11-Dec-13 | 50,000 | 108.9 | 54,450 | 100,000 | 0.02 |
| Bilfinger Berger Global Infrastructure SICAV SA* | D H Richardson (ch) | 11-Dec-13 | 50,000 | 108.9 | 54,450 | 151,928 | 0.04 |
| Bilfinger Berger Global Infrastructure SICAV SA* | D Ball | 11-Dec-13 | 60,000 | 108.9 | 65,340 | 171,939 | 0.04 |
| Bilfinger Berger Global Infrastructure SICAV SA* | F Schramm | 11-Dec-13 | 60,000 | 108.9 | 65,340 | 171,939 | 0.04 |
| Caledonia Investments PLC | R D Kent (ch) | 10-Dec-13 | 10,000 | 1914 | 191,400 | 10,000 | 0.02 |
| Capital Gearing Trust PLC† | A Laing | 06-Dec-13 | 500 | 3298 | 16,490 | 658 | 0.02 |
| China Chaintek United Co Ltd* | S C Lane | 06-Dec-13 | 11,000 | 140 | 15,400 | 11,000 | 0.02 |
| Diamondcorp PLC | E A Worthington (ch) | 06-Dec-13 | 300,000 | 5.3 | 15,900 | 1,387,000 | 0.50 |
| Diploma PLC | J E Nicholas | 09-Dec-13 | 2,000 | 701.5 | 14,030 | 2,000 | 0.00 |
| Empresaria Group PLC | A V Martin (ch) | 09-Dec-13 | 3,234,049 | 36 | 1,164,258 | 12,924,595 | 29.00 |
| Flowgroup PLC | A D Stiff (ceo) | 05-Dec-13 | 63,959 | 17.9 | 11,449 | 791,749 | 0.60 |
| Flowgroup PLC | A D Stiff (ceo) | 05-Dec-13 | 61,885 | 18.5 | 11,449 | 853,634 | 0.64 |
| Genesis Emerging Markets Fund Ltd | Helene Ploix | 09-Dec-13 | 7,690 | 512.5 | 39,411 | 7,690 | 0.01 |
| Goldplat PLC | B M Moritz (ch) | 05-Dec-13 | 250,000 | 7.25 | 18,125 | 2,050,000 | 1.22 |
| Hays PLC | A M Thomson (ch) | 05-Dec-13 | 25,000 | 117.9 | 29,475 | 200,000 | 0.01 |
| Howden Joinery Group PLC | M P W Robson (cfo) | 10-Dec-13 | 3,436 | 328 | 11,270 | 1,485,351 | 0.23 |
| Hrvatski Telekom DD† | D Grbavac | 05-Dec-13 | 2,500 | 3090.92 | 77,273 | 6,243,364 | 7.62 |
| Hrvatski Telekom DD† | D Grbavac | 06-Dec-13 | 2,500 | 3099.34 | 77,483 | 6,245,864 | 7.63 |
| Intercede Group PLC | R A Parris (ch & ce) | 10-Dec-13 | 6,773 | 172 | 11,650 | 5,607,941 | 11.51 |
| Kentz Corporation Ltd | D A MacFarlane | 09-Dec-13 | 10,000 | 598.25 | 59,825 | 20,000 | 0.02 |
| Lansdowne Oil & Gas PLC | J Aldersey-Williams | 06-Dec-13 | 40,000 | 26.75 | 10,700 | 40,000 | 0.03 |
| Micro Focus International PLC† | M S Phillips (cfo) | 11-Dec-13 | 1,350 | 809.82 | 10,933 | 87,532 | 0.06 |
| Mitchells & Butlers PLC | Imelda Walsh | 10-Dec-13 | 7,500 | 410.3 | 30,773 | 7,500 | 0.00 |
| Mitchells & Butlers PLC | R L Ivell (ch) | 06-Dec-13 | 12,006 | 411.5 | 49,404 | 12,006 | 0.00 |
| Mitchells & Butlers PLC† | A Darby (ceo) | 05-Dec-13 | 7,231 | 414.9 | 30,001 | 84,654 | 0.02 |
| Nighthawk Energy PLC | S M Eaton | 06-Dec-13 | 250,000 | 11.06 | 27,650 | 1,496,500 | 0.16 |
| Ocean Wilsons Holdings Ltd | C C Maltby | 11-Dec-13 | 3,000 | 1027 | 30,810 | 3,000 | 0.01 |
| Ocean Wilsons Holdings Ltd | C Townsend | 10-Dec-13 | 6,792 | 1033 | 70,161 | 40,000 | 0.11 |
| Phoenix Group Holdings | H J Davies (ch) | 11-Dec-13 | 3,623 | 681.50 | 24,691 | 3,623 | 0.00 |
| Phoenix Group Holdings | I D Cormack | 10-Dec-13 | 3,650 | 684.79 | 24,995 | 3,650 | 0.00 |
| Private & Commercial Finance Group PLC† | D G Anthony (ch) | 06-Dec-13 | 101,731 | 9.83 | 10,000 | 654,609 | 1.23 |
| Rathbone Brothers PLC | J Dean | 06-Dec-13 | 1,000 | 1522.4 | 15,224 | 1,000 | 0.00 |
| Reconstruction Capital II Ltd | I A Florescu | 09-Dec-13 | 65,000 | 19.5 | 12,675 | 9,961,075 | 9.96 |
| Reed Elsevier PLC | Linda S Sanford | 11-Dec-13 | 3,600 | 871.64 | 31,379 | 3,600 | 0.00 |
| Scapa Group PLC | H R Chae (ceo) | 09-Dec-13 | 10,000 | 100 | 10,000 | 500,709 | 0.34 |
| Scapa Group PLC | M C Buzzacott | 09-Dec-13 | 10,000 | 101 | 10,100 | 250,000 | 0.17 |
| Shanta Gold Ltd | A P W Durrant (ch) | 11-Dec-13 | 200,000 | 11.2 | 22,400 | 1,025,606 | 0.22 |
| Sirius Real Estate Ltd* | J Peggie | 06-Dec-13 | 281,250 | 24 | 67,500 | 281,250 | 0.09 |
| Sirius Real Estate Ltd* | R A G Sinclair (ch) | 06-Dec-13 | 333,333 | 24 | 80,000 | 333,333 | 0.10 |
| Spirent Communications PLC | A Walker (ch) | 11-Dec-13 | 50,000 | 100.79 | 50,396 | 180,481 | 0.03 |
| Telford Homes PLC | D Campbell (sls & mktg) | 06-Dec-13 | 16,420 | 351 | 57,634 | 19,444 | 0.03 |
| Thomas Cook Group PLC | C G Symon | 09-Dec-13 | 32,000 | 171.5 | 54,880 | 32,000 | 0.00 |
| Thor Mining PLC* | M R Billing (ch & ceo) | 11-Dec-13 | 13,571,428 | 0.28 | 38,000 | 30,354,773 | 2.26 |
| TXO PLC | T E Baldwin (ch & ceo) | 05-Dec-13 | 12,500,000 | 0.11 | 13,750 | 37,500,000 | 1.74 |
| United Utilities Group PLC | M S Clare | 05-Dec-13 | 7,628 | 658 | 50,192 | 7,628 | 0.00 |
| Utilitywise PLC | J Kempster | 09-Dec-13 | 21,000 | 230.5 | 48,405 | 21,000 | 0.03 |
| Weatherly International PLC* | C G Stavrakis | 10-Dec-13 | 1,000,000 | 3 | 30,000 | 1,000,000 | 0.17 |
SELLS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Character Group (The) PLC** | J J P Kissane | 10-Dec-13 | 100,000 | 182 | 182,000 | 500,000 | 2.30 |
| Character Group (The) PLC** | K P Shah (jmd & gfd) | 10-Dec-13 | 1,000,000 | 182 | 1,820,000 | 4,613,584 | 21.25 |
| Hilton Food Group PLC | R A Watson OBE (ceo) | 05-Dec-13 | 300,000 | 430 | 1,290,000 | 3,016,380 | 4.18 |
| Intercede Group PLC | A M Walker (fd & cs) | 10-Dec-13 | 125,000 | 155 | 193,750 | 1,491,227 | 3.06 |
| JPMorgan European Smaller Companies Trust PLC | A B Davidson | 09-Dec-13 | 2,037 | 1090.51 | 22,214 | 3,080 | 0.01 |
| Lancashire Holdings Ltd† | N McConachie | 11-Dec-13 | 40,000 | 769.5 | 307,800 | - | 0.00 |
| Local Shopping REIT (The) PLC | J G Whateley (ch) | 11-Dec-13 | 2,400,000 | 24 | 576,000 | 5,255,171 | 6.37 |
| M.P. Evans Group PLC | J D Shaw | 06-Dec-13 | 8,000 | 467 | 37,360 | 447,747 | 0.81 |
| Peel Hotels PLC | C J Govett LVO | 11-Dec-13 | 300,000 | 76.01 | 228,030 | 50,000 | 0.36 |
| Phoenix Group Holdings† | M Dale | 05-Dec-13 | 18,144,054 | 660 | 119,750,756 | 17,779,355 | 7.91 |
| Phoenix Group Holdings† | M Dale | 05-Dec-13 | 3,297,139 | 660 | 21,761,117 | 14,482,216 | 6.44 |
| Phoenix Group Holdings† | M Dale | 05-Dec-13 | 558,807 | 660 | 3,688,126 | 13,923,409 | 6.19 |
| S & U PLC | A M V Coombs (ch) | 10-Dec-13 | 16,800 | 1558 | 261,744 | 1,453,427 | 12.30 |
| Spirax-Sarco Engineering PLC | N H Daws | 10-Dec-13 | 9,740 | 2874.79 | 280,004 | 22,751 | 0.03 |
*Placing **Buyback/tender offer †Spouse/connected party
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
