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Telecom Plus director banks £34m

Executive chairman Charles Wigoder and non-executive director Melvin Lawson sold £33.75m and £9.45m worth of shares, respectively
Telecom Plus director banks £34m

Telecom Plus’s (TEP) executive chairman, Charles Wigoder, sold £33.75m-worth of shares on 26 June. The group said in a statement that Mr Wigoder had sold part of his holding "in order to meet strong institutional demand and enable him to diversify his personal investment portfolio". The company also noted that Mr Wigoder will not sell any further shares for at least one year, subject to waiver by Peel Hunt and Numis Securities. He still remains the largest personal shareholder with a holding of around 12 per cent. Mr Wigoder was not available for comment. 

IC TIP: Buy at 1,386p

The transaction was accompanied by another disposal by Melvin Lawson, a non-executive director. Mr Lawson sold £9.45m, also on 26 June, and now holds around 1.8 per cent of the total voting rights in the company. Mr Lawson was also not available for comment. 

These are of course significant sales, but we remain undeterred in our investment case. The group had a strong financial year running to 31 March 2020, in which new partner recruitment grew by nearly a quarter. And as a provider of essential household services, income has been and will likely continue to be mostly sheltered from the disruption caused by coronavirus. Management expects profits next year will only be marginally below those secured in 2020. 

In April, May and June, the rate at which customers left the business was significantly below heightened levels during the previous quarter. New partner recruitment was tracking over two-fifths ahead of the same period last year.

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
Alliance PharmaDavid Cook (ch)23 Jun 20127,75877.799,268

63,879 shares purchased by PCA

Crest NicholsonIain Ferguson (ch)25 Jun 2010,000218.0621,806 
Crest NicholsonCatherine Ferguson25 Jun 2040,000213.6985,477

Average price. PCA of Iain Ferguson

VodafoneNick Read (ceo)26 Jun 20446,822128.38573,630 
Urban & CivicIan Barlow26 Jun 2030,000216.564,950 
Unite GroupRichard Smith26 Jun 205,74787050,000 
Unite GroupJoe Lister26 Jun 205,74787050,000 
BunzlPeter Ventress (ch)29 Jun 202,6082,16056,333 
MondiAndrew King (ceo)29 Jun 2015,0001,496224,400 
Renew HoldingsShatish Dasani30 Jun 2010,00044444,400 
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
RenishawDaniel John Deer24 Jun 2010,0003,905390,460

Children are beneficial owners

RenishawDaniel John Deer25 Jun 2030,0003,8131,143,900 
Brooks MacdonaldRichard Spencer26 Jun 2018,3811,672307,330 
Telecom PlusMelvin Lawson26 Jun 20700,0001,3509,450,000

Residual interest of 1.8%

Telecom PlusCharles Wigoder (ch)26 Jun 202,500,0001,35033,750,000

Residual interest of 17.2%

National ExpressDean Finch (ceo)26 Jun 20117,686198.43233,524 
National ExpressDean Finch (ceo)29 Jun 20272,891192.13524,306