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Network International directors pile in

Five directors bought in after the company shed more than two-fifths of its market value last week
Network International directors pile in

It is usually alarming when a company sheds over two-fifths of its market value in just one week, as Network International (NETW) did between Monday 14th and Monday 21st September. But more surprising is the fact that it simply is not clear why the share price tumbled by so much – even prompting a business update from the payments company, who said it was “not aware of any reason to justify the move”. 

IC TIP: Hold at 290p

A wave of share purchases by five directors between 18th and 21st September, with an aggregate sum of £0.4m, was perhaps then an attempt to shore up confidence in the stock. Indeed, the company said in a statement that the buys “demonstrate the confidence that Network International directors have in the long-term growth prospects of the Company”.  The purchases – as well as a brief note emphasising that the volume of payments it had processed were steadily improving in August and September – did offer some reassurance to investors, and the shares have now rebounded by around a quarter since the beginning of the week. 

But the market is right to be cautious about Network International. While the pandemic has accelerated the shift to cashless payments, a nosedive in consumer spending has dealt a serious blow to its income statement. Pre-tax profits crashed 90 per cent in the six months ended in June and management has warned that it expects sales will drop by as much as a fifth in 2020. 

Nevertheless, the company is pushing ahead with the $288m (£227m) purchase of DPO, an online commerce platform in Africa, which will be funded partly by a £205m equity raise back in July. The acquisition is expected to complete towards the end of this year. 

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
Babcock InternationalDavid Lockwood (ceo)21 Sep 2046,924211.5299,254 
Crest NicholsonPeter Truscott (ceo)21 Sep 2044,000168.8774,301 
DX GroupRonald Series (ch)17 Sep 20210,50018.2738,449Average price
DX GroupDavid Mulligan (cfo)18 Sep 20116,00017.2520,010 
Finsbury FoodJohn Duffy (ceo)21 Sep 20173,91357.5100,000

Purchased by PCA

GreencoreGary Kennedy21 Sep 2036,4079835,679 
James FisherEoghan O'Lionaird (ceo)18 Sep 204,3291,148.5649,785Average price
Network InternationalSimon Haslam (ceo)21 Sep 2050,926216110,000 
Network InternationalRohinton Kalifa (ch)18 Sep 2035,000291101,704 
Network InternationalVictoria Hull21 Sep 2066,319224148,517Average price
Ninety OneHendrik du Toit/Kim McFarland17 Sep 20124,996208.72260,890

Purchased by PCA

Ninety OneHendrik du Toit/Kim McFarland18 Sep 201,000,718214.242,143,924

Purchased by PCA

Ninety OneColin Keogh18 Sep 2020,00021142,280Average price
Photo-Me InternationalSerge Crasnianski (ceo)16 Sep 203,568,448531,891,277

Purchased by PCA

RedrowJohn Tutte22 Sep 2025,000366.491,600

Purchased by PCA

RotalaBob Dunn15-16 Sep 20102,50020.9521,475Average price
SuperdryJulian Dunkerton (ceo)21 Sep 20846,883135.771,149,813

Residual interest of 19.5%

TT ElectronicsJack Boyer18 Sep 2012,92619825,593

10,126 shares purchased by PCA

UnipharPaul Hogan21 Sep 2032,99822775,037

Converted from €

Vistry GroupGreg Fitzgerald (ceo)21 Sep 2018,288542.799,249

Purchased by PCA

WANdiscoDavid Richards (ch/ceo)18 Sep 206,00040524,300Average price
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
AnparioKaren Prior18 Sep 2085,000398.41338,650Average price
DS SmithStefano Rossi18 Sep 2046,000292.3134,458

Sold to meet tax obligations

Dechra PharmaceuticalsJulian Heslop17 Sep 204,0003,248129,930 
ElectrocomponentsKaren Guerra16 Sep 2024,756716177,263Average price
Gaming RealmsJim Ryan15-17 Sep 201,000,00022.53225,300Average price
Highland Gold MiningEugene Shvidler (ch)18 Sep 2017,978,75830053,936,274 
Highland Gold MiningValery Oyf18 Sep 206,609,92230019,829,766 
IG GroupJoe McCaughran18 Sep 2018,356844154,925

10,000 shares sold by PCA

IG GroupMatthew Brief18 Sep 2050,000844.6422,300

Sale of derivative (spread bet)

Taseko MinesBrian Battison18 Sep 20100,000132132,371

Converted from US$