Since the retirement of Bruce Thompson – Diploma’s (DPLM) longstanding chief executive – in May 2018, the distribution group has struggled to find a new leader. Initially, Mr Thompson was replaced by Richard Ingram, former president of Smiths Drotection. But Mr Ingram left at the end of August, as the company said a change at the top was "in the best interests of the company and its shareholders".
The group performed well in the following months, despite uncertainty at the top. It beat profit expectations for the year to September 2018, before trading in line during the three months to December. Then, new chief executive Johnny Thomson was announced in January and appointed at the end of February 2019.
Mr Thomson bought 22,000 shares in the group on the day of his appointment. He was also granted 122,801 shares on the same day as part of the group’s performance share plan.
| Buys | |||||||
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
| Alpha Real Trust | David Jeffreys (ch) | 25 Feb 19 | 5,000 | 143 | 7,150 | 5,000 | 0.007 |
| Arc Minerals* | Donald Bailey | 26 Feb 19 | 433,334 | 3 | 13,000 | 7,697,224 | 1.090 |
| Arc Minerals* | Brian McMaster | 26 Feb 19 | 333,334 | 3 | 10,000 | 2,555,557 | 0.362 |
| Arc Minerals* | Mumena Mushinge | 26 Feb 19 | 333,334 | 3 | 10,000 | 73,937,495 | 10.474 |
| Arc Minerals* | Nicholas Von Schirnding (ch) | 26 Feb 19 | 2,333,334 | 3 | 70,000 | 15,940,532 | 2.258 |
| Brown (N) | Stephen Johnson (ceo) | 26 Feb 19 | 9,300 | 106.061 | 9,864 | 19,300 | 0.007 |
| Castings | Andrew Eastgate | 25 Feb 19 | 1,000 | 377.4 | 3,774 | 1,000 | 0.002 |
| Centrica | Iain Conn (ceo) | 25 Feb 19 | 100,000 | 123.1132 | 123,113 | 1,393,153 | 0.024 |
| Chemring | Michael Ord (ceo) | 21 Feb 19 | 50,000 | 150.9 | 75,450 | 50,000 | 0.018 |
| City of London Investment Trust (The) | Samantha Wren | 26 Feb 19 | 4,912 | 404.895 | 19,888 | 8,912 | 0.002 |
| Condor Gold* | James Mellon | 26 Feb 19 | 3,125,000 | 24 | 750,000 | 4,938,222 | 6.631 |
| Condor Gold* | Mark Child (ch) | 26 Feb 19 | 41,667 | 24 | 10,000 | 4,094,167 | 5.498 |
| Condor Gold* | Andrew Cheatle | 26 Feb 19 | 30,000 | 24 | 7,200 | 64,884 | 0.087 |
| Diploma | Johnny Thomson (ceo) | 25 Feb 19 | 22,000 | 1349.5 | 296,890 | 22,000 | 0.019 |
| Gooch & Housego | Alexander Warnock | 25 Feb 19 | 817 | 1225 | 10,008 | 17,247 | 0.069 |
| Gooch & Housego | Gary Bullard (ch) | 21 Feb 19 | 1,150 | 1280 | 14,720 | 5,024 | 0.020 |
| IG Design | Elaine Bond | 21 Feb 19 | 3,485 | 573.85 | 19,999 | 19,301 | 0.025 |
| InnovaDerma | Joseph Bayer | 26 Feb 19 | 5,000 | 86 | 4,300 | 121,513 | 0.838 |
| Intermediate Capital | Michael Nelligan | 26 Feb 19 | 12,000 | 1024.87 | 122,984 | 130,042 | 0.045 |
| Kromek* | Christopher Wilks | 25 Feb 19 | 50,000 | 25 | 12,500 | 125,000 | 0.036 |
| Kromek* | Derek Bulmer (cfo) | 25 Feb 19 | 8,797 | 25 | 2,199 | 108,797 | 0.032 |
| Kromek* | Lawrence Kinet | 25 Feb 19 | 50,000 | 25 | 12,500 | 300,000 | 0.087 |
| Kromek* | Peter Williams (ch) | 25 Feb 19 | 50,000 | 25 | 12,500 | 150,000 | 0.044 |
| Live Co* | Ranjit Murugason | 25 Feb 19 | 69,230 | 65 | 45,000 | 1,066,471 | 1.540 |
| Live Co*♥ | John Ciclitira (ch) | 25 Feb 19 | 153,844 | 65 | 99,999 | 27,129,659 | 39.177 |
| Montanaro UK Smaller Companies Inv Tr | Arthur Copple | 22 Feb 19 | 50,000 | 108.529 | 54,265 | 125,000 | 0.075 |
| Northbridge Industrial Services | Judith Aldersey-Williams | 22 Feb 19 | 3,975 | 125.5 | 4,989 | 3,975 | 0.014 |
| RiverFort Global Opportunities | Philip Haydn-Slater (ch) | 21 Feb 19 | 140,000,000 | 0.1 | 140,000 | 200,000,000 | 2.946 |
| Serco | Roy Gardner (ch) | 26 Feb 19 | 50,000 | 129.3 | 64,650 | 150,000 | 0.014 |
| SysGroup* | Michael Fletcher | 25 Feb 19 | 1,710,526 | 38 | 650,000 | 1,710,526 | 3.461 |
| SysGroup* | Michael Edelson (ch) | 25 Feb 19 | 131,579 | 38 | 50,000 | 858,179 | 1.737 |
| Temple Bar Investment Trust♥ | Lesley Sherratt | 22 Feb 19 | 34,000 | 1274.1 | 433,194 | 65,000 | 0.097 |
| Sells | |||||||
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
| B&M European Value Retail | Thomas Hübner | 22 Feb 19 | 11,111 | 345.2 | 38,355 | 0 | 0.000 |
| Gateley | Michael Ward (ceo) | 25 Feb 19 | 139,450 | 150 | 209,175 | 2,491,754 | 2.248 |
| Gateley♥ | Michael Ward (ceo) | 25 Feb 19 | 25,000 | 150 | 37,500 | 2,466,754 | 2.225 |
| Gateley | Neil Smith (fd) | 25 Feb 19 | 18,000 | 150 | 27,000 | 556,700 | 0.502 |
| Gateley♥ | Neil Smith (fd) | 25 Feb 19 | 75,854 | 150 | 113,781 | 480,846 | 0.434 |
| Gateley | Peter Davies | 25 Feb 19 | 18,000 | 150 | 27,000 | 2,642,104 | 2.383 |
| Gateley♥ | Peter Davies | 25 Feb 19 | 160,900 | 150 | 241,350 | 2,481,204 | 2.238 |
| Hazel Renewable Energy VCT 1 | Stuart Knight | 26 Feb 19 | 89,250 | 111.67 | 99,665 | 330,750 | 1.296 |
| Spectra Systems Corp | Martin Jaskel | 21 Feb 19 | 18,003 | 130.25 | 23,449 | 19,960 | 0.044 |
| Spectra Systems Corp | Martin Jaskel | 21 Feb 19 | 10,000 | 130.35 | 13,035 | 9,960 | 0.022 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 500,000 | 225 | 1,125,000 | 2,667,891 | 1.045 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 8,000 | 225 | 18,000 | 2,617,891 | 1.026 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 10,000 | 225 | 22,500 | 2,600,000 | 1.019 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 2,891 | 225.26 | 6,512 | 2,610,000 | 1.022 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 8,000 | 225.35 | 18,028 | 2,625,891 | 1.029 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 5,000 | 225.53 | 11,277 | 2,612,891 | 1.024 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 22,500 | 225.7 | 50,783 | 2,633,891 | 1.032 |
| Watkin Jones | Philip Byrom (cfo) | 26 Feb 19 | 11,500 | 225.73 | 25,959 | 2,656,391 | 1.041 |
| Whitbread | Louise Smalley | 25 Feb 19 | 3,313 | 4891 | 162,039 | 37,923 | 0.021 |
* placing/tender/open offer ♥ spouse/connected party | |||||||
IC View
It's par for the course for a new director – especially a chief executive – to make a large purchase when they join the company. We expect Mr Thomson will continue to build his stake over time – provided he lasts longer than his immediate predecessor. Buy at 1,391p.
Last IC View: Buy, 1,253p, 24 Jan 2019
