june 2014 uk value investor...john kingham, 1st june 2014 “this is my quest, to follow that star -...

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June 2014

UK Value InvestorThe Stock Market Newsletter for Defensive Value Investors

ContentsFTSE 100 Valuation and Projection Page 2

Model Portfolio Review Page 3

Selling: AstraZeneca PLC Page 14

FTSE All-Share Stock Screens Page 19

To run where the brave dare not goMost people don’t like uncertainty. I would guess that as a defensive investor, you probably have a healthyaversion to it as well, and in general it’s a healthy aversion. Our ancestors, over millions of years, have beenrewarded for caution. After all, from an evolutionary perspective it’s usually better to be cautious and aliverather than brave and dead. But when it comes to investing, this dislike for uncertainty can be costly.

For example, most ISAs are Cash ISAs, and from an optimal risk/return point of view, most people hold toomuch cash. And the equity premium puzzle (where equities generate higher long-term returns than theytheoretically “should” do relative to cash and bonds) exists because investors need to see a very big carrotbefore accepting the uncertainty that comes with equities.

Even among those who are willing to step into the equity market, many are too cautious to ever generatedecent returns. They invest only where everything is going well, where everybody agrees that the company’sfuture is bright and that the stock is obviously a good investment. In other words, they invest where thefuture appears certain (and certainly good) rather than uncertain.

But in most cases this certain future is an illusion, and things will turn out differently than was expected.That’s because capitalism is an incredibly productive system, but it’s also a dynamic, complex and chaoticsystem that produces many unpredictable results.

This gap between subjective certainty and fundamental uncertainty becomes painfully obvious when a stockmarket darling hits the buffers. Serco is a good example of this; when everything was going well the sharesreached 650p, only to sink to around 350p when its run of rapid and “reliable” growth came to an end.

A massive price drop like that means only one thing; there are substantially more sellers than buyers, andmost investors are heading for the exit. Of course, the sellers could be right, but it’s in situation like thiswhere value investors, and even defensive value investors, can reallymake their money.

Being contrarian and running where the brave dare not go can beunpleasant, and it takes some getting used to, but as the saying goes,if it were easy, everyone would do it.

John Kingham, 1st June 2014

“This is my quest, to follow thatstar - no matter how hopeless, nomatter how far. To fight for theright without question or pause, tobe willing to march into hell for aheavenly cause.”

- Man of La Mancha

factor? My answer is that I think it’s almost entirely unlikely that the market will return 6% over the next 10years. However, I do think that’s still the best guess (or at least a reasonable one).

Here’s the analogous situation. Imagine we are playing a game where we have to guess which side of a diewill be face up after the next roll, and the closest guess wins. I chose 6 and you chose 3.5. You have a zerochance of being right because there is no face with 3.5 dots on it. However, the aim of the game isn’t to beright, it’s to minimise the probability weighted gap between your guess and the eventual result. In that casethe average value is the right choice, and 3.5 is the average of 1,2,3,4,5 and 6. The same is true of the market.We have no idea what the market’s valuation multiple (CAPE) will be in 10 years and so the best guess is thatthe valuation will be at its historically average value, even though that guess is almost guaranteed to be wrong.

FTSE 100 valuation and projectionThe FTSE 100 ended May at 6,845, just 105 points (1.5%) below its all time high of 6,950. This barrier has kepta lid on the large-cap market this year and so far it’s up by less than 2% year to date. However, valuations donot appear to be even slightly stretched at the moment, so projected 10 year returns are still slightly aboveaverage at about 6% (I’ve switched from using the term “forecast” to “projection” as the latter implies lesscrystal ball gazing and its the term favoured by the Bank of England).

I have been asked several times whether these projections mean that I think the market will return about 6%(for example) over the next 10 years, and if so then how can I be so sure, and what about this factor or that

FTSE 100 Level(currently at 6,845) Description 10 Year Annual Real

Return ProjectionCyclically Adjusted

P/E Ratio“Ben Graham” Equity

Allocation

Above 12,400 Very Expensive Below 0% Above 24.4 20%

10,500 to 12,400 Expensive 0% to 2% 20.7 to 24.4 20% to 30%

8,800 to 10,500 Slightly Expensive 2% to 4% 17.3 to 20.7 30% to 40%

7,500 to 8,800 Normal 4% to 6% 14.8 to 17.3 40% to 60%

6,300 to 7,500 Slightly Cheap 6% to 8% 12.4 to 14.8 60% to 70%5,400 to 6,300 Cheap 8% to 10% 10.6 to 12.4 70% to 80%

Below 5,400 Very Cheap Above 10% Below 10.6 80%

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1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

FTSE 100 10 Year Annual Real Return ProjectionsBelow 0% 0% to 2% 2% to 4% 4% to 6% 6% to 8% 8% to 10% Above 10% FTSE 100

Model portfolio reviewLast month’s buy decisionOn the 7th of May 700 Serco shares were added to the model portfolio at 355.275p each. After stamp dutyand broker commission the total investment was £2,509.18, which was around 3.4% of the portfolio’s totalvalue.

Overall performanceOver the last year the portfolio has increased in value by 17.7% compared to 8.2% for the FTSE All-Sharebenchmark, while annualised returns from inception are 12.3% versus 9.9%. The model portfolio continuesto be less volatile than the wider market, with a 2-year Beta of 0.48.

Pfizer bid for AstraZeneca falls throughAfter much ado about the proposed Pfizer merger with (or takeover of) AstraZeneca, with lots of newscoverage and political posturing, the deal has come to nothing. Or perhaps not entirely nothing as the sharesstand about 15% higher now than they did before the announcement.

Braemar proposed merger with ACMIn contrast to the failed AstraZeneca takeover, the board of Braemar Shipping Services have announced thatthey have reached agreement on the details of a merger with ACM Shipping Group PLC, in which Braemar willacquire 100% of the share capital of ACM. From the announcement:

“The boards of directors of Braemar and ACM believe that the Merger will create a strong shipping servicesgroup. In particular, they believe that, upon the Merger becoming Effective, the Enlarged Group will benefit asfollows:

The Braemar Group's and the ACM Group's respective shipbroking teams possess highly complementary skillsand experience. Both are expected to enhance greatly the Enlarged Group's shipbroking capabilities making itone of the world's leading shipbrokers. It is expected that the increased shipbroking capabilities of the EnlargedGroup and the potential synergies arising out of the Merger, will make the Enlarged Group more attractive toclients, employees and investors. Following completion of the Merger, the Enlarged Group will comprise 1,026employees in Europe, Asia Pacific, the Americas, Africa and the Middle East of which 426 employees will be inthe shipbroking division. The Enlarged Group is expected to deliver earnings per share enhancement in the firstfull financial year following the Merger and have a strong balance sheet and cashflow generation.“

RSA consolidation of sharesOn the 12th of May RSA completed a 1:5 share consolidation, reducing the number of shares outstanding byfive and increasing the share price by five-fold. If you hold RSA shares then the value of your holdings will nothave been materially affected, although the large change in share price may have come as a bit of a surprise.

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2011 2012 2013 2014 YTD

Model Portfolio Dividends FTSE All-Share Tracker Trust Dividends

Performance (%) Model Portfolio (A) FTSE All-ShareTracker Trust (B)

Difference(A) - (B)

1 Year 17.7 8.2 9.5

3 Year 45.1 31.5 13.6

Total return from inception (March 2011) 45.8 35.7 10.1

Annualised return from inception 12.3 9.9 2.5

Current cash value £72,919 £67,870 £5,049

Historic dividend yield 3.7 3.1 0.6

Trailing 2 year beta (lower = less risk) 0.48 1 0.52

Model portfolio performance and statistics

UK Revenue 46.8% International Revenue 53.2%

Note that the “average investor” and “bad investor” under-perform the market by 3% and 6% per year respectively due toovertrading, buying high and selling low. These figures are based on research cited by Barclays and the book, Monkey with a Pin.

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Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 Mar-13 Jul-13 Nov-13 Mar-14

Model Portfolio Total Return FTSE All-Share Tracker Total Return

Average Investor Bad Investor

Size Allocation

Large Cap, 54%Mid Cap, 34%Small Cap, 12%

Industry Allocation

Industrials, 29%

Consumer Goods, 15%

Financials, 14%

Consumer Services,13%Oil & Gas, 9%

Utilities, 7%

Basic Materials, 6%

Health Care, 5%

Telecommunications,2%

Model Portfolio Current HoldingsValue/growth factors: Green = better than FTSE100, Light Red = worse than FTSE100

Rank: Green = high, Amber = medium, Light Red = low - may be sold soon

Rank Weight Name EPIC Index SectorShare

PricePE Ratio

(Value)

Div.Yield

(Value)

PE10

(Growth)

Rate

(Growth)

Quality

Debt

RatioUK Focus Purchase Date

1 1.9% Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers £2.02 20.4 6.4% 12.3 12.6% 88% 4.0 100% 07/05/2013

2 1.1% Chemring Group PLC CHG Small Cap Aerospace & Defense £2.24 9.6 3.2% 8.1 18.6% 79% 3.4 15% 18/04/2011

3 2.3% Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications £2.10 3.0 5.2% 9.5 10.4% 88% 2.9 12% 02/06/2011

5 3.0% Admiral Group PLC ADM FTSE 100 Nonlife Insurance £14.58 14.0 6.8% 22.3 15.1% 100% 0.0 84% 07/11/2013

6 3.3% BHP Billiton PLC BLT FTSE 100 Mining £18.68 12.6 4.1% 12.9 18.3% 83% 1.7 1% 12/09/2011

9 2.5% Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities £3.36 8.7 5.1% 13.5 7.9% 88% 2.7 71% 10/08/2012

10 3.6% Serco Group PLC SRP FTSE 250 Support Services £3.72 10.3 2.8% 14.7 14.6% 92% 3.8 48% 07/05/2014

11 3.1% Balfour Beatty PLC BBY FTSE 250 Construction & Materials £2.36 11.8 6.0% 8.8 6.9% 75% 4.8 50% 09/08/2011

13 2.3% Tesco PLC TSCO FTSE 100 Food & Drug Retailers £3.04 10.8 4.9% 11.2 7.0% 79% 3.2 68% 11/06/2012

14 4.6% BAE Systems PLC BA. FTSE 100 Aerospace & Defense £4.23 13.0 4.8% 13.2 8.0% 83% 1.6 21% 21/06/2011

16 3.5% British American Tobacco PLC BATS FTSE 100 Tobacco £36.01 16.5 4.0% 23.4 12.0% 96% 2.0 11% 09/09/2013

17 3.1% Petrofac Ltd PFC FTSE 100 Oil Equipment, Services & Distribution £12.62 11.3 3.2% 20.1 35.0% 88% 2.1 19% 07/03/2014

18 3.8% SSE PLC SSE FTSE 100 Electricity £15.56 17.1 5.6% 17.2 7.9% 83% 4.2 97% 01/11/2011

19 3.3% Imperial Tobacco Group PLC IMT FTSE 100 Tobacco £26.92 14.0 4.3% 19.5 12.5% 79% 5.4 18% 08/03/2013

20 4.6% MITIE Group PLC MTO FTSE 250 Support Services £3.35 18.6 3.3% 19.9 10.6% 92% 2.7 97% 16/09/2011

22 2.7% Tullett Prebon PLC TLPR FTSE 250 Financial Services £2.90 7.5 5.8% 7.2 7.5% 63% 2.0 50% 05/09/2011

27 3.2% Amlin PLC AML FTSE 250 Nonlife Insurance £4.70 8.1 5.5% 10.6 3.4% 75% 0.0 23% 08/02/2013

28 3.5% Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction £51.00 22.0 2.7% 28.4 15.3% 96% 1.1 7% 07/02/2014

34 5.5% JD Sports Fashion PLC JD. FTSE 250 General Retailers £16.13 13.6 1.7% 19.3 18.2% 92% 0.4 82% 16/03/2011

36 2.5% Rio Tinto PLC RIO FTSE 100 Mining £30.57 8.9 3.9% 9.1 13.6% 63% 2.3 1% 07/09/2012

37 3.8% Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering £5.52 14.4 2.9% 17.9 8.8% 88% 2.4 45% 07/06/2013

38 4.2% Cranswick PLC CWK FTSE 250 Food Producers £12.66 14.7 2.5% 19.8 9.1% 92% 0.6 97% 06/11/2012

42 2.5% ICAP PLC IAP FTSE 250 Financial Services £4.00 13.7 5.5% 14.2 6.6% 67% 2.4 30% 10/04/2012

46 2.7% Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers £24.35 11.9 4.6% 11.0 6.9% 63% 1.6 10% 09/12/2013

49 2.9% Greggs PLC GRG Small Cap Food & Drug Retailers £5.22 15.4 3.7% 15.8 5.5% 79% 0.0 100% 07/12/2012

50 4.2% Homeserve PLC HSV FTSE 250 Support Services £3.38 19.2 3.3% 18.4 8.6% 79% 1.4 50% 05/08/2013

58 3.6% Braemar Shipping Services PLC BMS Small Cap Industrial Transportation £5.27 17.2 4.9% 12.9 3.3% 67% 0.0 68% 13/05/2011

59 4.7% AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology £42.83 37.4 4.1% 15.4 7.2% 71% 1.1 21% 13/06/2011

88 1.8% RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance £4.80 11.5 2.1% 7.5 -1.8% 46% 0.0 36% 09/01/2012

93 3.4% BP PLC BP. FTSE 100 Oil & Gas Producers £5.03 63.0 4.6% 11.4 1.8% 54% 3.1 20% 04/03/2011

2.8% Cash

Recent Annual Results

14th May 2014 - ICAP PLC (purchased 10th April 2012)

“ICAP provides a wide variety of electronic execution, risk mitigation, messaging, broking andinformation services for wholesale market participants, and facilitates the flow of capital and investmentthrough the financial system.” (www.icap.com)

Revenue

Down 5%

10 Year average earnings

Up 6%

Dividend per share

UnchangedDebt ratio (max 5)

3.2

Pension liability ratio (max 10)

0

Does it still pass the buy tests?

Yes

Quotes from the annual results

The past year has presented many challenges. Trading conditions have been and are likely to remain extremelydifficult. We operate in an industry which is undergoing an enormous amount of structural change with theemergence of a new post-financial crisis regulatory landscape. The trading operations of our bank customers,particularly their FICC franchises, continue to be scaled back as balance sheets are de-levered in response toincreased capital requirements. In addition to these structural developments, cyclical factors such as the lowinterest rate environment, muted foreign exchange rate volatility and continued uncertainty over the long overdueeconomic recovery, have inevitably impacted revenue.

This was also an extremely difficult year because of the yen Libor investigation. In September 2013, one of ourGlobal Broking subsidiaries reached settlement agreements with the CFTC and FCA and paid penalties totalling£55 million relating to the involvement of certain brokers assisting bank traders seeking to manipulate yen Libor.We have learnt lessons from this experience and have taken steps to strengthen the business.

Despite the ongoing structural challenges facing the industry, I believe that there are reasons to be optimistic.ICAP, with its diverse portfolio of businesses, is uniquely positioned to provide the full range of pre trade,execution and post trade services. I am convinced that the move towards increased electronic trading ofderivatives, central clearing and risk mitigation are positive drivers for future growth. In anticipation of the newmarket place, we are investing heavily in delivering both new and enhanced product and technological solutionsincluding the ICAP SEF, EBS Direct, TriOptima’s triResolve and Traiana’s CreditLink services.

ICAP is profitable and cash generative. Over many years, we have demonstrated our ability to reposition ourbusiness to the changing market landscape. We will continue to pursue our long-term strategy to grow ourElectronic Markets and Post Trade Risk and Information businesses and reshape Global Broking in response tothe structural changes in the marketplace.

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Adj.Earnings (left axis) Dividends (left axis) Revenue (right axis)

http://www.icap.com/


19th May 2014 - Cranswick PLC (purchased 6th November 2012)

“A leading UK food supplier providing the consumer with a range of great tasting food that includesfresh pork, gourmet sausages, cooked meats, air-dried bacon and sandwiches along with a variety ofnon-meat products. Food is supplied under licensed brands and private labels.” (www.cranswick.plc.uk/)

Revenue

Up 14%


Up 8%

Dividend per share

Up 7%Debt ratio (max 5)

0.5


0.4


Yes


This has been a positive, albeit challenging, year for Cranswick. The business has had to contend with recordinput prices, the impact on its customer base of the changing dynamics of UK food retailing and an environmentwhere the consumer has been subject to ongoing financial constraints.

Strong growth in both total and underlying sales was recorded and this reflected market share gains along withfurther growth in those categories in which the Group is positioned in the UK market. Export sales continued togrow and this achievement was recently recognised by the industry with Cranswick being named “Exporter ofthe Year.

The Group invested £28 million in its infrastructure during the year, bringing total capital expenditure to morethan £130 million over the last five years. This investment is reflected in the quality of the Group’s productionfacilities which are some of the most efficient and well invested in the sectors in which Cranswick operates.

During the year the Company invested in pig breeding and pig rearing activities. This strategic developmentenhances Cranswick’s commitment to, and gives greater control over, a robust and integrated supply chain witha clear focus on premium British ingredients.

Further investment in new product categories came with the commissioning of the Yorkshire Baker pastry facilityin Malton, North Yorkshire. The site produces a range of premium pastry products including pies, sausage rollsand quiches and was operational from summer last year.

The Group’s future growth strategy will focus on; consolidating its position in UK markets, developing newchannels both in pork and other proteins and continuing to grow its international presence.

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http://www.cranswick.plc.uk/


19th May 2014 - Mitie Group PLC (purchased 16th September 2011)

“We are a ftse 250 business with revenue of £2bn and more than 70,000 people. We help our clients torun more efficient and effective businesses by looking after their facilities, their energy needs and thepeople they’re responsible for.” (www.mitie.com)

Revenue

Up 5%


Up 10%

Dividend per share


2.4


1.5


Yes


Mitie has had another very good year, delivering strong organic growth and implementing further change toaccelerate growth in the longer term.

Our core facilities management (FM) business performed exceptionally well, with a steady flow of contractawards and retentions across both the private and public sectors. We are beginning to see an uplift in the levelof bid activity across our businesses and we have a robust sales pipeline. We also see a significant opportunityto expand our business with our existing client base, by proactively selling the benefits of bundling more servicesand of integrated FM. Our energy consulting capability remains an important niche area for us and differentiatesour integrated FM proposition in the marketplace.

Our entry into the healthcare market has continued with success, with MiHomecare performing well and theacquisition of Complete Group during the year providing us with more complex care capabilities. We have builta strong proposition in the healthcare market and see significant long-term growth opportunities in this area.

Our strategy is to focus on markets where we see potential for growth and which meet our margin targets. In thisfinancial year, we expect to complete our exit from our loss-making mechanical and electrical engineeringconstruction business, which is exposed to the construction markets. We are also moving out of the design andbuild element of asset management. Whilst we have incurred significant losses in doing so, the group is nowbetter positioned to deliver our growth ambitions.

We are focused on growing EPS to support our dividend growth aspirations and as a driver to enhancingshareholder value. The group has a strong track record of dividend growth and it is the Board’s policy to growdividends broadly in line with the headline earnings of the group. Accordingly, this year’s cash returns toshareholders fully reflect the strong underlying performance of the business.

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http://www.mitie.com/


19th May 2014 - Braemar Shipping Services PLC (purchased 13th May 2011)

“The Group is divided into four operating divisions: Shipbroking, Technical, Logistics andEnvironmental. Our vision is to build a balanced shipping and energy services business with leadingpositions in key markets across the world.” (www.braemarplc.com)

Revenue

Down 13%


Unchanged

Dividend per share


0


0


Yes


The shipping markets – the principal driver of our Shipbroking division - remained subdued for the majority of theyear. However, during the second half, a greater sense of confidence encouraged new investment and morelong term business and our forward order book began to increase.

Our Technical division, which provides services to the offshore energy market, benefitted from improved levelsof activity and achieved excellent results. The non-core US-based offshore engineering business, Casbarian,was sold in March 2014.

Our Logistics division produced a solid performance and the Environmental division reverted to its regular levelof activity, having been significantly boosted last year by the “RENA” project.

We believe the proposed merger with ACM represents a transformational change in the development of ourGroup. Like Braemar, ACM is a leading shipbroker providing a wide range of shipbroking services for the globalmarket. It is widely recognized as a market leader in tanker broking and has extensive international operationsemploying over 160 brokers and support staff worldwide. With our 282 brokers and support staff and theenhanced global footprint going forward, we believe that the combined business will enable us to provide evenhigher quality service to our clients based on improved market coverage. Following the merger, we plan toestablish broking desks which maintain succession and have strength in depth and will create a leading brokingplatform for the next decade.

Our objective is to continue to build the Braemar brand to be the most valued provider of knowledge andskill-based services to the shipping and offshore markets on a global basis. We have made significant steps inthis direction during the year and will do so again in the year ahead.

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20th May 2014 - HomeServe PLC (purchased 5th August 2013)

“We provide home emergency and repair services to over 4.9m customers across establishedbusinesses in the UK, USA, France (Doméo) and Spain. We also have developing businesses in Italy andGermany.” (www.homeserveplc.com)

Revenue

Up 4%


Up 6%

Dividend per share


1.5


0.2


Yes


In January 2014, the FCA concluded its investigation into the past issues in the UK business and we paid theresulting financial penalty of £30.6m in February 2014. We have now re-contacted all of the customers who mayhave suffered detriment as a result of the way in which they initially purchased their policy or had a complainthandled. The cost of this re-contact exercise is fully provided. We have reinforced a customer focused cultureacross all of our operations, documenting and adhering to a Customer Charter in each territory. Customersatisfaction has increased in all of our businesses and we have also strengthened the governance and controlframework. For example in the UK, USA, France, Spain and Italy we have appointed independent non-executivedirectors to support the local Boards.

We have successfully re-focused the UK business on providing a high level of service to our customers at eachstage of the journey, from product design to repairing the customer’s home, in order to create a sustainablebusiness model.

Our International businesses’ results have shown continued strong growth with customer numbers up 31% to3.4m and adjusted operating profits from our established International businesses, in the USA, France andSpain, 15% higher than the prior year. We signed 12 new affinity partnerships with water and energy utilities inthe USA and a new partner in Spain, in total providing an opportunity to offer our products to 7m additionalhouseholds.

The USA remains our greatest opportunity and during FY15 we intend to increase investment in marketing andbusiness development to take advantage of this. All our businesses are progressing in line with our expectationsand we are confident of making further progress in FY15.”

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20th May 2014 - Vodafone Group PLC (purchased 2nd June 2011)

“One of the world's largest telecommunications companies providing a wide range of services includingvoice, messaging, data and fixed broadband. We have over 411 million customers, employ around 90,000people and operate in nearly 30 countries” (www.vodafone.com)

Revenue

Down 2%


Up 6%

Dividend per share


2.0


0.1


Yes


It has been a year of substantial strategic progress. The sale of our Verizon Wireless stake has rewardedshareholders for their support, and enabled the acceleration of our strategy through the acquisition of KDG, thepending acquisition of Ono and our Project Spring investment programme.

Project Spring is our organic investment programme which will allow us to accelerate and extend our strategicpriorities through investment in mobile and fixed networks, products and services, and our retail platform.Announced alongside the Verizon transaction in September 2013, Project Spring will strengthen further ournetwork and service differentiation. The transition to 4G and unified communications, coupled with an improvedeconomic outlook for Europe, lead us to believe Vodafone has a unique opportunity to invest now.

The Group’s emerging markets businesses have delivered strong organic growth this year, combining good localexecution on marketing and distribution with leading network quality. In particular, data usage in emergingmarkets is really taking off, providing further growth potential for the Group. This has however been offset bysignificant ongoing pressures in our European operations, from a combination of a weak macroeconomicenvironment, regulatory headwinds, and stiff competition. We experienced revenue declines in all of our majorEuropean markets, and related pressure on margins, despite continuing measures to control costs.

I am confident about the future of the business given the growth prospects in data, emerging markets, enterpriseand unified communications. We have commenced our Project Spring two-year investment programme whichwill accelerate our plans to establish stronger network and service differentiation for our customers. I expect thefirst signs of this to become evident later this year, with wider 4G coverage in Europe and 3G coverage inemerging markets, improved network performance and increased customer advocacy. While cash flow will bedepressed during this investment phase, our intention to continue to grow dividends per share annuallydemonstrates our confidence in strong future cash flow generation.

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http://www.vodafone.com/


21st May 2014 - SSE PLC (purchased 1st November 2011)

“At SSE, our job is to provide the energy people need in a reliable and sustainable way. We're involvedin producing, distributing and supplying electricity and gas and we provide other energy-relatedservices as well. ” (sse.com)

Revenue

Up 8%


Up 4%

Dividend per share


4.5


3.7


Yes


SSE’s core purpose is to provide the energy people need in a reliable and sustainable way. Its strategy is todeliver the efficient operation of, and investment in, a balanced range of economically regulated and market-based businesses in energy production, storage, transmission, distribution, supply and related services in theenergy markets in Great Britain and Ireland.

The financial objective of this strategy is to increase annually the dividend payable to shareholders by at leastRPI inflation. SSE focuses on the dividend because the ultimate objective of investing capital in companies is tosecure a return; and receiving and reinvesting dividends is the biggest source of a shareholder’s return over thelong term. SSE’s target of annual increases in the dividend of at least Retail Price Index (RPI) inflation means itmust, can and does look beyond short-term value and profit maximisation in any one year and maintain adisciplined, consistent and long-term approach to the management of, and investment in, business activities.

SSE has identified a range of assets and businesses which are not core to its future plans or which result in adisproportionate financial burden to SSE. It has started a programme of disposal of such assets that will becompleted over the next two years and which are taken into account in the total expected net capex […] of£5.5bn across the four years to March 2018. Some disposal processes, such as SSE’s portfolio of PFI streetlighting contracts, are already under way and some should be completed in the course of this financial year.Proceeds and debt reduction from all of these disposals are estimated to total around £500m. In addition, thereare other assets such as onshore wind farms which present, through disposal, opportunities to release capital tosupport future investment. SSE currently envisages securing proceeds of around £500m through disposals ofsuch assets. In total, therefore, the disposal programme is expected to result in a financial benefit of around £1bnincluding proceeds received and balance sheet debt reduced. The disposal programme is also intended toenable SSE to ensure its resources are fully focused on what is important and relevant to its core purpose ofproviding the energy people need in a reliable and sustainable way.

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http://sse.com/

Recent Interim Results

7th May 2014 - Imperial Tobacco (purchased on 8th March 2013)

“We focus on generating quality sustainable growth in our core tobacco business, whilst exploring newareas for long-term revenue growth. Our portfolio spans the entire tobacco spectrum and our brands andproducts are enjoyed by millions of consumers around the world.” (www.imperial-tobacco.co.uk)

Underlying Revenue up 2% Adjusted EPS down 1% Dividend up 10%

Quotes from the interim results

We continue to drive our strategy to build the quality and sustainability of the business. Our stock optimisationprogramme has inevitably impacted some of our numbers but I'm pleased with our underlying performance. OurGrowth Brands again outperformed the market, with underlying volumes up 4 per cent. Actively managing ourcost base is releasing funds to invest in these brands and their development is being further supported by thestock optimisation programme.

The actions we're taking in transitioning the business are strengthening our brands and market footprint,providing a stronger platform for generating quality sustainable growth. Building further momentum behind ourGrowth and Specialist Brands and improving our market share positions are key priorities for the second half.

The good progress we're making with our cost and stock optimisation programmes supports our growthambitions. Trading conditions are unlikely to materially improve in the coming months but we're experienced ingrowing our business in a demanding environment and remain on track to achieve our targets and create furthervalue for shareholders.

We increased the interim dividend by 10 per cent to 38.8 pence per share, in line with our commitment to growdividends ahead of adjusted earnings per share and by at least 10 per cent per year over the medium term. Witheffect from our 2015 financial year we will pay dividends on a quarterly basis in order to give shareholders moreregular cash returns.

“Common yardsticks such as dividend yield, the ratio of price toearnings or to book value, and even growth rates have nothing to dowith valuation except to the extent they provide clues to the amountand timing of cash flows into and from the business. Indeed, growthcan destroy value if it requires cash inputs in the early years of a projector enterprise that exceed the discounted value of the cash that thoseassets will generate in later years. Market commentators andinvestment managers who glibly refer to ‘growth’ and ‘value’ styles ascontrasting approaches to investment are displaying their ignorance,not their sophistication. Growth is simply a component - usually a plus,sometimes a minus - in the valuation equation.”

- Warren Buffett

[Although I would disagree with Buffett here somewhat. What some people mean by growth or valueinvesting is the degree to which the investor is focused on company growth or changes to valuation multiplesas the driver of expected returns.]

http://www.imperial-tobacco.co.uk/

Selling: AstraZeneca PLC (AZN)

Purchase price and date

3,095.48p on 13/06/2011

Current price

4,283.5p on 01/06/14

Holding period

3 yearsCapital gain (net of fees)

37.1%

Dividend income

17%

Annualised rate of return

16.7% per year

“We are a global innovation-driven biopharmaceutical company specialising in the discovery,development, manufacturing and marketing of prescription medicines that make a meaningful differencein healthcare.” (www.astrazeneca.com)

OverviewThis investment in AstraZeneca has been an almost textbook example of how a strong, market-leadingcompany can survive through tough times, and how patient and brave investors can sometimes get lucky.

When AstraZeneca was added to the model portfolio back in 2011 it was seen as a high risk investment,primarily because of something called the patent cliff (which is as unpleasant as it sounds). Fears over thepatent cliff helped to keep the share price below 3,200p for most of the last decade, even as earnings anddividends doubled.

However, the market is often right, and in this case fears over the patent cliff were well founded. Since 2011earnings have more than halved, the dividend has remained flat and the CEO was effectively forced to resignduring 2012’s Shareholder Spring. So, investors were right to gradually reduce AstraZeneca’s valuationmultiple even as the company grew, because despite that past growth the future was looked (and turned outto be) less and less rosy. As is often the case though, the market missed two things; 1) That companies canadapt, and adapt rapidly when under extreme pressure and 2) that the world is a fickle and random place,and if you wait long enough sometimes good things happen to patient investors, and in this case good thingscame in the form of a takeover bid from Pfizer.

http://www.astrazeneca.com/

The decision to buyThe UKVI strategy is based around the idea that a high yield, high growth, low risk portfolio can be builtaround companies that are, to varying degrees, high yield, high growth and low risk.

Back in June 2011 AstraZeneca had a dividend yield of 5.3% (the FTSE 100 was yielding 3.1%) and a historicgrowth rate of 19%. You just don’t get a dividend yield of 5.3% on a company growing at 19% a year unlessthere’s trouble ahead; and trouble ahead there was.

Companies in trouble are the bread and butter of value investors, so rather than running the other way, avalue investor should try to understand whether or not the problems are sufficient to justify the low shareprice. If they’re not then the shares may be worth buying.

In this case the problem was the patent cliff, and it was and still is a massive problem for the company.

The patent cliff is where revenues, profits and cash flows fall off a cliff because the patents on one or morehighly profitable “blockbuster” drugs expire. This allows “generic” manufacturers to come in andmanufacture the same drug and to freely compete on price. As a consequence margins fall and the drug isno longer a viable product for a research-based company like AstraZeneca, which needs high margins to coverits R&D costs.

Fortunately the expiry date of patents is known well in advance and so companies have ample time to investin new replacement drugs. Unfortunately, investment in R&D has uncertain returns which are often far offin the future, and so many CEOs are reluctant to reduce profits today for shareholder gain many years fromnow. Eventually though the patent cliff will punish companies that under-invest, as it did and continues todo with AstraZeneca.

Having researched the issue, it wasn’t clear (at least to me) that the patent cliff was an insurmountablechallenge. There appeared to be plenty of research and commentators who felt that, given enoughinvestment and restructuring, AstraZeneca could build a pipeline of new drugs to replace the old. It wouldtake time, but the potential was there.

And so that (very briefly) was the basis on which I selected AstraZeneca for the model portfolio. It was aleading company with world-class research facilities and access to some of the best brains in the world. It stillhad massive cash flows which would last for years, giving the company time and a decent chance of beatingthe patent cliff, as long as the company’s management didn’t just tinker around the edges.

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AstraZeneca Results at Time of PurchaseAdj.Earnings (left axis) Dividends (left axis) Revenue (right axis)

The decision to holdOwning AstraZeneca hasn’t been a walk in the park. Because of the patent cliff most of the news over thepast three years has been bad, with profit warnings, no dividend hikes and a CEO effectively being kicked outby a shareholder revolt.

As a consequence, for the first two years the investment was mostly underwater, with paper losses of up to15%. However, these unpleasantries are the price of generating market beating risk adjusted returns; whatreally matters are the long-term fundamentals of the company, not whether or not the shares are down inany given month.

Eventually, things began to look up. The dividend was maintained and, thanks to the initial 5.3% dividendyield, it helped to provide a decent return despite the lack of capital gains. The new CEO set aboutrestructuring the company and as 2013 progressed some good news began to surface, along with earlyresults from its re-focused R&D efforts.

As investors started to realise (or believe) that perhaps the patent cliff wasn’t the end of the world and thatAstraZeneca might just survive and even thrive in the future, the share price began to climb. However, thecompany’s results were still going in the opposite direction, as you can see in the chart below. It’s fair to saythat the last few years have not been kind to the AstraZeneca’s headline results.

As usual the stock market is a leading indicator; it is forward looking rather than backward looking. Even asAstraZeneca’s results have declined, so the share price has risen, just as in the years before the share pricedeclined as the results got better. This odd state of affairs simply reflects the fact that investors care,rationally, about the future, and at the moment they are beginning to expect a brighter future now that thecompany is putting more and more of the patent cliff years behind it.

More recently, things became very interesting and perhaps even a little exciting when Pfizer entered the story.

Pfizer is a research-based pharmaceutical company like AstraZeneca, only bigger. Only a few short weeks agoPfizer’s board decided that they could make better use of the company’s cash pile by acquiring AstraZeneca.Despite a series of offers around the 5,000p mark, AstraZeneca refused to play ball, on the reasonablegrounds that there was no compelling reason for the deal from AstraZeneca’s point of view, and that thecompany had a potentially bright future as a stand-alone venture.

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AstraZeneca Results During OwnershipAdj.Earnings (left axis) Dividends (left axis) Revenue (right axis)

From a shareholder’s point of view though, Pfizer’s offer and the inevitable reaction of the share price havefundamentally changed the game, and the price to intrinsic value ratio is now far less attractive than it was.

The decision to sellWhen AstraZeneca was added to the model portfolio at 3,095p the dividend yield was 5.3%, but the companyfaced an uncertain future because of the patent cliff. Now that the shares are trading at 4,284p (after thePfizer-induced rally and subsequent partial relapse after the deal fell through) the dividend yield is down to4%, and yet the company still faces an uncertain future, although at least now investors can see (and arepaying for) the light at the end of the tunnel.

Relative to the rest of the portfolio AstraZeneca now has a fairly weak combination of yield, value, growthand quality, and so its rank on the UKVI screen is one of the lowest. However, it isn’t the lowest rankedholding and I don’t think it’s a particularly strong sell either. It still has an above market average yield and Ithink it still probably has good prospects for future growth. But a sell decision has to be made because thereare more compelling opportunities out there.

This is one of the least clear-cut sell decisions I’ve made for a while. Looking at AstraZeneca, RSA and BP, theyall have relatively weak combinations of yield, growth and so on, with RSA and BP being the weakest of thebunch by far. So why sell AstraZeneca rather than the other two?

If I am completely honest (as I always try to be) then there is simply no way to know, or even have a sensibleopinion on, which of those three stocks will do best over the next year or five. It is simply not somethingwhich can be known in advance. And so with a decision to be made I find myself rationalising my decision,rather than making a rational decision, because the rational decision is probably to toss a coin.

Here’s my rationalisation then:

AstraZeneca is unlikely to grow its dividend for the next few years because revenues and profits are expectedto be suppressed by the patent cliff, and the new pipeline will take years to get up to speed. The currentdividend yield is 4% which is not especially compelling given the odds of no growth in the short andmedium-term.

RSA has an even weaker yield at just 2.1%. However, this is a depressed dividend yield and, if new CEOStephen Hester can enact a turnaround similar to Aviva’s (where the share price has rallied significantly), Ithink there is a good chance that the share price will increase on the back of any good news. This would resultin a larger and more near-term payoff than is likely from AstraZeneca.

BP is slightly different again in that it has a yield of 4.6%, which is an attractive proposition in itself. Also, BPis expected to grow the dividend solidly in the short-term, and an increase in dividends with an already quitehigh 4.6% yield may act as a strong catalyst for share price appreciation. Again, this is a nearer-term payoffthan AstraZeneca.

Another reason is psychological, in that AstraZeneca has produced solid returns and this is a chance to closethe investment with a good result. Both RSA and BP have so far under-performed, and so I’d rather give themboth a little more time to turn things around than sell either one of them now and lock in those weak returns.

Therefore I will be selling the model portfolio’s AstraZeneca shares a couple of days after this issue is published.

IMPORTANT NOTICE: This investment analysis is for information only. It should not be construed as advice and should notbe relied upon before investing. You should perform your own investment analysis and factual verification before makinginvestment decisions. If you need advice you should seek a financial advisor. See the important notes on the last page.

Lower ranked holdings that were not sold Reason for not sellingBP Turnaround not yet complete

RSA Turnaround just getting started

A quick guide to the model portfolio and stock screenPortfolio management policies and proceduresDeliberate Diversification - To reduce the risks that come with each individual company and its shares, it isgenerally considered a good idea to hold a widely diversified portfolio.

The model portfolio is diversified in terms of the number of companies (with a target of 30 equallyweighted holdings), the industrial spread of those companies (no more than 2 or 3 from the same Sector)and their geographic spread (no more than 50% of portfolio revenue to be generated in the UK).

Continuous Portfolio Improvement - A portfolio of stocks is a dynamic entity much like a garden. If it is leftunmanaged (as with a pure buy-and-hold portfolio) there is a risk that over time the portfolio will drift awayfrom its original goal. For example a high yield portfolio may become an average yield portfolio if the shareprices of all the holdings increase faster than the dividends.

To avoid this, the portfolio is actively managed to make sure that it only contains high quality companieswith attractively valued shares. Each month a company is either added to or removed from the portfoliobased on its Stock Screen rank and various other factors.

Buy and sell proceduresBuy Decisions - Each buy decision starts by looking through the Stock Screen for the highest ranked stockwhich is not already in the portfolio and which has a debt ratio of less than five (a debt ratio of more thanfive is highlighted in red).

The second step is to enter the companies results from the past decade into the investment analysisworksheet or spreadsheet which are available on the website. This makes it easier to see if the past resultsdo actually match what the stock screen suggests, in terms of profitability, growth and consistency.

If all of that looks okay then the next step is to check the total defined pension benefit liabilities to see ifthey are excessive relative to the company’s earnings power.

Another step is to review the qualitative history of the company over the past decade, i.e. to read its annualreports in order to get a picture of what it has been doing and what problems it has faced in recent years.

Finally, all these strands are pulled together to try to answer the questions in the investment analysischecklist about the company’s past, its present and its potential future.

Sell Decisions - Sell decisions are made primarily on an existing holdings rank, with the lowest rankedshares most likely to be sold. However, there is a degree of subjectivity involved and it isn’t a purelymechanical process. For example, companies which are surrounded by a reasonable amount of good newsare more likely to be sold than those which are still unloved, or which are still in the middle of a turnaroundstrategy.

The Stock ScreenThe stock screen ranks stocks based on a combination of their cyclically adjusted earnings and dividendyields, as well as the long-term growth rate and quality of that growth.

Each of these factors is based on academic research and together create a unique screen which focuseshigh yield shares from companies which have produced high quality results in the past.

Stock Screen - Sorted by RankColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio over 5

Rank Name EPIC Index SectorShare

PricePE Ratio

(Value)

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Power (m)

1 Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers £2.02 20.4 6.4% 12.3 12.6% 88% 4.0 £751

2 Chemring Group PLC CHG Small Cap Aerospace & Defense £2.24 9.6 3.2% 8.1 18.6% 79% 3.4 £78

3 Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications £2.10 3.0 5.2% 9.5 10.4% 88% 2.9 £14,435

4 Phoenix IT Group PLC PNX Small Cap Software & Computer Services £1.04 7.1 7.4% 4.5 11.3% 75% 3.6 £24

5 Admiral Group PLC ADM FTSE 100 Nonlife Insurance £14.58 14.0 6.8% 22.3 15.1% 100% 0.0 £351

6 BHP Billiton PLC BLT FTSE 100 Mining £18.68 12.6 4.1% 12.9 18.3% 83% 1.7 £13,485

7 Sainsbury (J) PLC SBRY FTSE 100 Food & Drug Retailers £3.46 7.5 5.0% 14.4 9.6% 88% 4.1 £682

8 Chesnara PLC CSN Small Cap Life Insurance £3.26 8.0 5.5% 14.1 6.9% 88% 0.0 £43

9 Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities £3.36 8.7 5.1% 13.5 7.9% 88% 2.7 £2,167

10 Serco Group PLC SRP FTSE 250 Support Services £3.72 10.3 2.8% 14.7 14.6% 92% 3.8 £230

11 Balfour Beatty PLC BBY FTSE 250 Construction & Materials £2.36 11.8 6.0% 8.8 6.9% 75% 4.8 £211

12 Standard Chartered PLC STAN FTSE 100 Banks £13.43 11.1 3.9% 13.0 10.4% 79% 0.0 £3,451

13 Tesco PLC TSCO FTSE 100 Food & Drug Retailers £3.04 10.8 4.9% 11.2 7.0% 79% 3.2 £3,451

14 BAE Systems PLC BA. FTSE 100 Aerospace & Defense £4.23 13.0 4.8% 13.2 8.0% 83% 1.6 £1,807

15 Carillion PLC CLLN FTSE 250 Support Services £3.54 9.3 4.9% 12.3 9.2% 75% 3.8 £164

16 British American Tobacco PLC BATS FTSE 100 Tobacco £36.01 16.5 4.0% 23.4 12.0% 96% 2.0 £5,874

17 Petrofac Ltd PFC FTSE 100 Oil Equipment, Services & Distribution £12.62 11.3 3.2% 20.1 35.0% 88% 2.1 £386

18 SSE PLC SSE FTSE 100 Electricity £15.56 17.1 5.6% 17.2 7.9% 83% 4.2 £1,463

19 Imperial Tobacco Group PLC IMT FTSE 100 Tobacco £26.92 14.0 4.3% 19.5 12.5% 79% 5.4 £2,049

20 MITIE Group PLC MTO FTSE 250 Support Services £3.35 18.6 3.3% 19.9 10.6% 92% 2.7 £105

21 Pennon Group PLC PNN FTSE 250 Gas, Water & Multiutilities £7.84 14.2 3.6% 23.1 10.9% 92% 11.8 £223

22 Tullett Prebon PLC TLPR FTSE 250 Financial Services £2.90 7.5 5.8% 7.2 7.5% 63% 2.0 £116

23 Hyder Consulting PLC HYC Small Cap Support Services £4.28 9.1 2.8% 13.4 22.7% 79% 0.4 £19

24 Beazley PLC BEZ FTSE 250 Nonlife Insurance £2.45 7.5 3.6% 12.6 7.9% 79% 0.0 £143

25 Fenner PLC FENR FTSE 250 Industrial Engineering £3.50 14.4 3.2% 19.6 12.6% 83% 4.1 £53

26 Connect Group PLC CNCT Small Cap Support Services £2.05 10.1 4.5% 13.7 6.7% 79% 2.1 £52

27 Amlin PLC AML FTSE 250 Nonlife Insurance £4.70 8.1 5.5% 10.6 3.4% 75% 0.0 £328

28 Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction £51.00 22.0 2.7% 28.4 15.3% 96% 1.1 £2,522

29 WPP Group PLC WPP FTSE 100 Media £12.87 10.1 2.7% 20.7 15.3% 92% 3.0 £1,471

30 Catlin Group Ltd CGL FTSE 250 Nonlife Insurance £5.24 8.8 5.9% 11.9 2.9% 75% 0.0 £214

31 British Sky Broadcasting Group PLC BSY FTSE 100 Media £8.82 14.7 3.4% 24.8 10.8% 96% 1.9 £1,542

32 ITE Group PLC ITE FTSE 250 Media £2.34 16.8 3.0% 22.4 11.0% 88% 0.5 £46

33 Ashley (Laura) Holdings PLC ALY Small Cap General Retailers £0.26 12.1 7.7% 18.7 9.0% 67% 0.0 £14

34 JD Sports Fashion PLC JD. FTSE 250 General Retailers £16.13 13.6 1.7% 19.3 18.2% 92% 0.4 £75

35 Antofagasta PLC ANTO FTSE 100 Mining £7.89 16.4 7.2% 12.7 19.5% 67% 1.0 £872

36 Rio Tinto PLC RIO FTSE 100 Mining £30.57 8.9 3.9% 9.1 13.6% 63% 2.3 £7,444

37 Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering £5.52 14.4 2.9% 17.9 8.8% 88% 2.4 £41

38 Cranswick PLC CWK FTSE 250 Food Producers £12.66 14.7 2.5% 19.8 9.1% 92% 0.6 £52

39 Computacenter PLC CCC FTSE 250 Software & Computer Services £6.12 13.5 2.9% 20.1 11.4% 83% 0.3 £72

40 Devro PLC DVO Small Cap Food Producers £2.57 12.3 3.4% 19.1 12.0% 75% 1.2 £33

41 Huntsworth PLC HNT Small Cap Media £0.51 8.9 6.9% 7.8 4.3% 58% 2.4 £17

42 ICAP PLC IAP FTSE 250 Financial Services £4.00 13.7 5.5% 14.2 6.6% 67% 2.4 £244

43 AMEC PLC AMEC FTSE 250 Oil Equipment, Services & Distribution £12.08 15.8 3.5% 26.0 16.9% 83% 0.5 £252

44 Brown (N) Group PLC BWNG FTSE 250 General Retailers £4.69 17.4 3.0% 20.4 8.7% 88% 2.3 £110

45 Cobham PLC COB FTSE 250 Aerospace & Defense £3.19 14.6 3.0% 21.7 11.9% 83% 2.4 £274

46 Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers £24.35 11.9 4.6% 11.0 6.9% 63% 1.6 £17,364

47 Inmarsat PLC ISAT FTSE 250 Mobile Telecommunications £7.32 20.9 4.0% 23.8 19.7% 67% 6.4 £187

48 William Hill PLC WMH FTSE 100 Travel & Leisure £3.56 14.3 3.3% 14.9 -0.5% 88% 3.2 £279

49 Greggs PLC GRG Small Cap Food & Drug Retailers £5.22 15.4 3.7% 15.8 5.5% 79% 0.0 £55

50 Homeserve PLC HSV FTSE 250 Support Services £3.38 19.2 3.3% 18.4 8.6% 79% 1.4 £96

51 Intermediate Capital Group PLC ICP FTSE 250 Financial Services £4.18 11.7 5.0% 9.4 -4.4% 71% 6.8 £171

52 Vitec Group (The) PLC VTC Small Cap Industrial Engineering £5.80 11.4 4.0% 13.4 7.0% 67% 3.0 £25

53 Stagecoach Group PLC SGC FTSE 250 Travel & Leisure £3.90 13.5 2.2% 21.8 14.3% 83% 3.7 £221

54 Primary Health Properties PLC PHP Small Cap Real Estate Investment Trusts £3.52 15.9 5.5% 13.9 -0.4% 71% 37.8 £16

55 Menzies (John) PLC MNZS Small Cap Support Services £6.65 12.9 4.0% 14.3 3.7% 79% 3.2 £44

56 Mears Group PLC MER Small Cap Support Services £4.72 19.7 1.9% 25.6 14.4% 96% 2.8 £29

57 Domino's Pizza UK & IRL PLC DOM FTSE 250 Travel & Leisure £5.63 25.1 2.8% 40.6 22.6% 100% 1.1 £44

58 Braemar Shipping Services PLC BMS Small Cap Industrial Transportation £5.27 17.2 4.9% 12.9 3.3% 67% 0.0 £11

59 AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology £42.83 37.4 4.1% 15.4 7.2% 71% 1.1 £5,678

60 G4S PLC GFS FTSE 100 Support Services £2.50 18.9 3.6% 19.4 9.6% 75% 8.5 £265

61 GlaxoSmithKline PLC GSK FTSE 100 Pharmaceuticals & Biotechnology £16.01 15.6 4.9% 17.3 3.4% 79% 2.4 £7,727

62 HSBC Holdings PLC HSBA FTSE 100 Banks £6.29 14.6 4.8% 11.7 -0.6% 67% 0.0 £11,177

63 Marston's PLC MARS FTSE 250 Travel & Leisure £1.51 11.2 4.2% 10.0 -1.2% 67% 13.4 £96

64 BBA Aviation PLC BBA FTSE 250 Industrial Transportation £3.13 2.8 3.0% 12.0 9.6% 54% 14.9 £86

65 Sage Group (The) PLC SGE FTSE 100 Software & Computer Services £4.10 20.6 2.8% 25.8 10.0% 88% 1.3 £343

66 Aberdeen Asset Management PLC ADN FTSE 100 Financial Services £4.45 15.8 3.6% 37.1 19.7% 88% 0.4 £209

67 Aggreko PLC AGK FTSE 100 Support Services £16.67 18.5 1.6% 27.8 23.1% 92% 1.4 £289

68 National Grid PLC NG. FTSE 100 Gas, Water & Multiutilities £8.90 16.5 4.7% 16.4 5.3% 71% 11.3 £2,489

69 Compass Group PLC CPG FTSE 100 Travel & Leisure £9.95 21.2 2.4% 36.1 14.7% 96% 2.2 £1,008

70 Meggitt PLC MGGT FTSE 100 Aerospace & Defense £4.84 16.6 2.6% 22.4 11.1% 79% 2.8 £241

71 BG Group PLC BG. FTSE 100 Oil & Gas Producers £12.21 10.3 1.5% 15.6 11.8% 83% 2.4 £4,445

72 Atkins (W S) PLC ATK FTSE 250 Support Services £13.13 14.0 2.4% 18.6 9.2% 79% 1.0 £112

73 Morgan Advanced Materials PLC MGAM FTSE 250 Electronic & Electrical Equipment £3.39 14.8 3.1% 16.8 8.8% 75% 3.1 £86

74 Severn Trent PLC SVT FTSE 100 Gas, Water & Multiutilities £19.68 7.9 4.1% 19.4 4.9% 79% 15.5 £310

75 Spirax-Sarco Engineering PLC SPX FTSE 250 Industrial Engineering £28.59 21.6 2.1% 30.2 11.7% 100% 0.7 £142

76 Halfords Group PLC HFD FTSE 250 General Retailers £4.87 16.5 2.9% 15.2 3.2% 75% 1.1 £103

77 Capita Group (The) PLC CPI FTSE 100 Support Services £11.07 26.5 2.4% 33.7 13.4% 96% 5.0 £398

78 Ladbrokes PLC LAD FTSE 250 Travel & Leisure £1.53 12.5 5.8% 6.5 -3.1% 58% 1.7 £247

79 Barclays PLC BARC FTSE 100 Banks £2.47 28.3 2.6% 9.7 -11.0% 67% 0.0 £3,267

80 Restaurant Group (The) PLC RTN FTSE 250 Travel & Leisure £5.98 20.8 2.3% 31.3 11.4% 100% 0.7 £77

81 Senior PLC SNR FTSE 250 Aerospace & Defense £2.96 14.6 1.7% 23.4 17.6% 83% 1.3 £86

82 Croda International PLC CRDA FTSE 250 Chemicals £26.33 20.0 2.4% 36.7 22.1% 92% 1.3 £182

83 PayPoint PLC PAY FTSE 250 Support Services £10.55 20.5 3.3% 29.4 9.3% 88% 0.0 £40

84 Marks & Spencer Group PLC MKS FTSE 100 General Retailers £4.49 13.9 3.8% 12.8 -0.2% 67% 3.0 £773

85 Greene King PLC GNK FTSE 250 Travel & Leisure £8.55 16.7 3.1% 17.4 5.5% 79% 9.7 £152



PricePE Ratio

(Value)

Div.Yield

(Value)

PE10

(Growth)

Rate

(Growth)

Quality

Debt

Ratio

Earnings

Power (m)

86 Ultra Electronics Holdings PLC ULE FTSE 250 Aerospace & Defense £18.50 17.6 2.3% 25.2 12.0% 79% 0.9 £80

87 Anglo Pacific Group PLC APF Small Cap Mining £1.81 -156.0 5.6% 15.1 5.6% 54% 0.0 £14

88 RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance £4.80 11.5 2.1% 7.5 -1.8% 46% 0.0 £435

89 Man Group PLC EMG FTSE 250 Financial Services £1.00 17.4 4.9% 4.7 -10.0% 50% 1.4 £391

90 Telecom plus PLC TEP FTSE 250 Fixed Line Telecommunications £15.28 39.0 2.3% 64.0 24.4% 92% 0.1 £28

91 Rotork PLC ROR FTSE 250 Industrial Engineering £26.03 22.8 1.8% 37.0 16.7% 100% 0.0 £122

92 Kier Group PLC KIE FTSE 250 Construction & Materials £16.98 16.5 4.0% 14.5 4.7% 67% 1.8 £58

93 BP PLC BP. FTSE 100 Oil & Gas Producers £5.03 63.0 4.6% 11.4 1.8% 54% 3.1 £9,366

94 Domino Printing Sciences PLC DNO FTSE 250 Electronic & Electrical Equipment £7.78 22.2 2.8% 28.7 11.3% 83% 0.7 £50

95 Diageo PLC DGE FTSE 100 Beverages £19.19 18.1 2.5% 28.9 8.1% 92% 3.2 £3,149

96 Victrex PLC VCT FTSE 250 Chemicals £18.05 21.2 2.4% 32.5 14.2% 92% 0.0 £85

97 Mucklow (A & J) Group PLC MKLW Small Cap Real Estate Investment Trusts £4.38 19.4 4.5% 15.4 0.6% 71% 3.1 £24

98 Diploma PLC DPLM FTSE 250 Support Services £6.54 21.3 2.4% 37.8 16.1% 92% 0.1 £36

99 Melrose Industries PLC MRO FTSE 100 Industrial Engineering £2.80 24.4 2.8% 39.2 20.3% 79% 3.2 £107

100 Darty PLC DRTY Small Cap General Retailers £0.86 20.2 3.5% 6.6 -10.6% 50% 2.6 £70

101 NCC Group PLC NCC Small Cap Software & Computer Services £1.81 25.5 1.7% 44.1 23.9% 100% 1.8 £17

102 Jardine Lloyd Thompson Group PLC JLT FTSE 250 Nonlife Insurance £10.37 18.1 2.6% 27.7 9.7% 79% 3.6 £128

103 Investec PLC INVP FTSE 250 Financial Services £5.18 14.9 3.7% 12.7 -0.4% 67% 0.0 £394

104 Pearson PLC PSON FTSE 100 Media £11.71 19.8 4.1% 23.2 5.3% 79% 3.5 £634

105 PZ Cussons PLC PZC FTSE 250 Personal Goods £3.52 20.8 2.1% 27.5 10.3% 88% 1.0 £96

106 Intertek Group PLC ITRK FTSE 100 Support Services £29.18 22.5 1.6% 37.6 18.9% 100% 2.9 £250

107 Vedanta Resources PLC VED FTSE 250 Mining £11.00 -62.5 3.4% 11.7 3.3% 67% 25.6 £427

108 De La Rue PLC DLAR FTSE 250 Support Services £8.59 13.3 4.9% 17.2 6.2% 58% 1.5 £69

109 Babcock International Group PLC BAB FTSE 100 Support Services £12.14 21.4 1.9% 34.5 19.1% 88% 3.7 £188

110 Anglo-Eastern Plantations PLC AEP Small Cap Food Producers £7.16 5.0 0.4% 10.8 12.2% 67% 0.6 £35

111 Informa PLC INF FTSE 250 Media £5.16 17.4 3.7% 24.3 8.8% 75% 4.7 £175

112 Weir Group PLC WEIR FTSE 100 Industrial Engineering £26.20 16.5 1.6% 32.4 21.9% 88% 2.7 £301

113 Synergy Health PLC SYR FTSE 250 Health Care Equipment & Services £12.68 23.0 1.6% 35.7 16.4% 96% 5.7 £36

114 Dairy Crest Group PLC DCG FTSE 250 Food Producers £4.67 16.8 4.6% 12.2 -1.0% 58% 5.8 £61

115 RPS Group PLC RPS FTSE 250 Support Services £2.91 20.7 2.5% 21.5 9.0% 83% 1.1 £48

116 Morgan Sindall PLC MGNS Small Cap Construction & Materials £8.14 65.1 3.3% 11.1 -0.2% 50% 0.9 £32

117 KCOM Group PLC KCOM FTSE 250 Fixed Line Telecommunications £0.93 11.3 4.8% 16.3 8.3% 63% 2.9 £36

118 Speedy Hire PLC SDY Small Cap Support Services £0.55 48.2 1.1% 8.7 -22.3% 67% 4.6 £16

119 Provident Financial PLC PFG FTSE 250 Financial Services £20.92 18.8 4.1% 26.2 8.5% 71% 7.7 £167

120 Unilever PLC ULVR FTSE 100 Food Producers £26.80 21.5 3.4% 23.4 7.0% 79% 1.8 £5,269

121 Fisher (James) & Sons PLC FSJ FTSE 250 Industrial Transportation £13.21 21.7 1.5% 29.7 11.1% 96% 1.8 £43

122 Segro PLC SGRO FTSE 250 Real Estate Investment Trusts £3.69 23.2 4.0% 6.8 -11.4% 46% 8.4 £202

123 Tate & Lyle PLC TATE FTSE 250 Food Producers £6.93 12.6 4.0% 15.1 3.5% 63% 3.4 £262

124 Interserve PLC IRV FTSE 250 Support Services £6.47 20.8 3.3% 21.8 4.9% 79% 2.0 £59

125 Prudential PLC PRU FTSE 100 Life Insurance £13.85 24.6 2.4% 27.1 9.6% 83% 0.0 £2,135

126 McKay Securities PLC MCKS Small Cap Real Estate Investment Trusts £2.22 3.0 3.9% 7.1 -9.6% 46% 9.0 £11

127 Headlam Group PLC HEAD Small Cap Household Goods & Home Construction £4.53 19.0 3.4% 16.1 -2.9% 75% 0.9 £36

128 Renishaw PLC RSW FTSE 250 Electronic & Electrical Equipment £16.98 18.0 2.4% 32.7 12.9% 83% 0.0 £63

129 Bloomsbury Publishing PLC BMY Small Cap Media £1.67 14.5 3.5% 15.1 0.8% 71% 0.0 £12

130 United Drug PLC UDG FTSE 250 Food & Drug Retailers £3.44 15.8 2.3% 21.3 7.3% 79% 5.5 £60

131 Premier Farnell PLC PFL FTSE 250 Support Services £2.13 14.7 4.9% 15.7 3.8% 46% 4.5 £46

132 Keller Group PLC KLR FTSE 250 Construction & Materials £9.54 16.3 2.5% 14.6 2.6% 75% 3.0 £65

133 Aveva Group PLC AVV FTSE 250 Software & Computer Services £22.39 25.1 1.2% 40.4 20.7% 92% 0.0 £60

134 Go-Ahead Group (The) PLC GOG FTSE 250 Travel & Leisure £22.00 17.7 3.7% 15.5 5.1% 58% 4.5 £75

135 Smiths Group PLC SMIN FTSE 100 General Industrials £13.21 13.9 3.0% 18.6 6.0% 67% 2.8 £407

136 Burberry Group PLC BRBY FTSE 100 Personal Goods £15.33 20.3 2.1% 32.9 17.4% 83% 0.4 £319

137 Halma PLC HLMA FTSE 250 Electronic & Electrical Equipment £5.92 25.7 1.8% 38.6 9.8% 100% 1.4 £115

138 RPC Group PLC RPC FTSE 250 General Industrials £6.09 16.1 2.4% 24.5 11.5% 75% 4.1 £52

139 DCC PLC DCC FTSE 250 Support Services £35.10 21.4 2.2% 25.5 10.9% 75% 4.9 £167

140 Rolls-Royce Group PLC RR. FTSE 100 Aerospace & Defense £10.40 17.5 2.1% 25.3 10.4% 79% 3.9 £1,214

141 Fidessa Group PLC FDSA FTSE 250 Software & Computer Services £23.15 30.2 1.6% 41.0 17.5% 88% 0.0 £36

142 Bunzl PLC BNZL FTSE 100 Support Services £16.72 23.9 1.9% 34.1 9.1% 100% 2.9 £323

143 Centaur Media PLC CAU Small Cap Media £0.65 19.0 3.7% 14.4 -4.0% 67% 2.6 £9

144 Fuller Smith & Turner PLC FSTA Small Cap Travel & Leisure £9.53 21.7 1.4% 31.3 10.5% 96% 4.0 £35

145 Charles Taylor PLC CTR Small Cap Financial Services £2.75 19.6 3.6% 13.0 -2.6% 58% 4.2 £10

146 Low & Bonar PLC LWB Small Cap Construction & Materials £0.80 16.8 3.3% 15.0 0.8% 63% 7.2 £15

147 Management Consulting Group PLC MMC Small Cap Support Services £0.29 14.0 2.8% 6.3 -1.0% 54% 3.3 £16

148 St Ives PLC SIV Small Cap Support Services £2.11 15.4 3.1% 11.9 -10.6% 46% 1.8 £17

149 Millennium & Copthorne Hotels PLC MLC FTSE 250 Travel & Leisure £5.72 7.7 2.4% 15.0 6.8% 67% 2.2 £158

150 Communisis PLC CMS Small Cap Support Services £0.60 13.6 3.0% 9.9 -6.9% 50% 5.1 £9

151 Tarsus PLC TRS Small Cap Media £2.27 14.1 3.2% 21.8 7.2% 67% 4.2 £10

152 Spectris PLC SXS FTSE 250 Electronic & Electrical Equipment £22.96 26.6 1.9% 31.4 12.6% 83% 1.0 £145

153 Whitbread PLC WTB FTSE 100 Travel & Leisure £41.86 22.2 1.6% 39.8 13.3% 92% 1.2 £354

154 Workspace Group PLC WKP FTSE 250 Real Estate Investment Trusts £5.73 44.1 1.7% 3.1 -20.2% 58% 5.7 £60

155 FTSE 100 6,845 14.1 3.5% 14.5 2.2% 58%

156 Electrocomponents PLC ECM FTSE 250 Support Services £2.86 17.4 4.1% 19.2 1.2% 54% 2.6 £70

157 SABMiller PLC SAB FTSE 100 Beverages £33.11 23.2 1.9% 33.4 11.9% 83% 5.1 £2,417

158 IMI PLC IMI FTSE 100 Industrial Engineering £15.97 23.9 2.2% 30.5 8.0% 88% 1.0 £301

159 Carr's Milling Industries PLC CRM Small Cap Food Producers £18.85 15.1 1.7% 25.4 10.1% 79% 4.4 £10

160 Brammer PLC BRAM Small Cap Support Services £4.86 22.2 2.1% 30.8 11.3% 79% 2.9 £24

161 ARM Holdings PLC ARM FTSE 100 Technology Hardware & Equipment £9.20 83.3 0.6% 157.7 21.6% 88% 0.0 £140

162 S & U PLC SUS Small Cap Financial Services £19.10 17.0 2.8% 28.4 7.0% 79% 2.6 £13

163 United Utilities Group PLC UU. FTSE 100 Gas, Water & Multiutilities £8.68 10.0 4.2% 18.0 -2.4% 63% 16.2 £381

164 Chime Communications PLC CHW Small Cap Media £3.53 45.1 2.1% 23.1 7.6% 79% 3.8 £15

165 Genus PLC GNS FTSE 250 Pharmaceuticals & Biotechnology £10.70 29.0 1.5% 34.3 11.0% 88% 2.3 £32

166 Hikma Pharmaceuticals PLC HIK FTSE 250 Pharmaceuticals & Biotechnology £17.05 23.3 0.7% 56.9 23.1% 83% 2.8 £96

167 Hammerson PLC HMSO FTSE 100 Real Estate Investment Trusts £5.94 18.0 3.2% 8.9 -5.4% 58% 6.1 £383

168 Carclo PLC CAR Small Cap Chemicals £1.10 15.8 2.3% 13.5 5.3% 63% 4.3 £6

169 Henderson Group PLC HGG FTSE 250 Financial Services £2.49 24.2 3.2% 31.3 8.2% 75% 1.3 £116

170 Dignity PLC DTY FTSE 250 General Retailers £14.10 19.5 0.8% 30.3 10.6% 88% 9.7 £50



PricePE Ratio

(Value)

Div.Yield

(Value)

PE10

(Growth)

Rate

(Growth)

Quality

Debt

Ratio

Earnings

Power (m)

171 Paragon Group of Companies (The) PLC PAG FTSE 250 Financial Services £3.76 11.6 1.9% 5.7 -15.6% 63% 79.0 £119

172 British Land Co PLC BLND FTSE 100 Real Estate Investment Trusts £7.15 14.6 3.8% 7.4 -11.2% 42% 3.9 £564

173 Berendsen PLC BRSN FTSE 250 Support Services £9.94 21.5 2.8% 28.5 5.3% 79% 5.0 £95

174 Kingfisher PLC KGF FTSE 100 General Retailers £3.92 13.1 2.5% 20.3 5.4% 67% 0.5 £610

175 Ted Baker PLC TED FTSE 250 Personal Goods £19.18 27.5 1.8% 45.7 11.1% 92% 1.1 £33

176 Barr (A G) PLC BAG FTSE 250 Beverages £6.25 25.3 1.8% 38.3 8.1% 96% 0.4 £40

177 Schroder Real Estate Investment Trust LtdSREI Small Cap Real Estate Investment & Services £0.54 -18.0 6.5% 15.0 -16.2% 29% 18.8 £7

178 F&C UK Real Estate Investment Ltd FCRE Small Cap Real Estate Investment & Services £0.83 47.2 8.0% 18.4 -2.4% 29% 38.0 £3

179 Land Securities Group PLC LAND FTSE 100 Real Estate Investment Trusts £10.68 16.6 2.9% 10.9 -13.5% 46% 6.9 £544

180 Aviva PLC AV. FTSE 100 Life Insurance £5.24 14.6 2.9% 14.6 -13.7% 42% 0.0 £1,056

181 Close Brothers Group PLC CBG FTSE 250 Financial Services £13.27 16.5 3.4% 20.4 1.5% 67% 0.0 £128

182 Town Centre Securities PLC TCSC Small Cap Real Estate Investment Trusts £2.44 17.6 4.3% 14.8 -6.1% 50% 16.6 £10

183 Legal & General Group PLC LGEN FTSE 100 Life Insurance £2.30 14.1 4.0% 20.0 1.9% 67% 0.0 £953

184 Smith & Nephew PLC SN. FTSE 100 Health Care Equipment & Services £10.46 23.5 1.6% 28.9 12.3% 75% 0.5 £491

185 Lavendon Group PLC LVD Small Cap Support Services £2.25 14.3 1.6% 12.8 -2.4% 71% 5.8 £20

186 Galliford Try PLC GFRD FTSE 250 Construction & Materials £11.30 16.4 3.3% 19.1 3.0% 71% 1.5 £47

187 Laird PLC LRD FTSE 250 Technology Hardware & Equipment £3.00 20.2 4.0% 22.2 -1.8% 71% 3.7 £44

188 Old Mutual PLC OML FTSE 100 Life Insurance £2.02 13.9 4.0% 15.2 -2.4% 63% 0.0 £723

189 CRH PLC CRH FTSE 100 Construction & Materials £16.37 32.9 3.2% 17.4 -0.3% 63% 5.4 £860

190 Reed Elsevier PLC REL FTSE 100 Media £9.51 18.8 2.6% 27.6 6.3% 71% 3.2 £539

191 Dialight PLC DIA Small Cap Electronic & Electrical Equipment £9.01 27.1 1.6% 44.7 16.2% 79% 0.2 £10

192 Goodwin PLC GDWN Small Cap Industrial Engineering £41.00 19.4 0.9% 43.0 13.9% 83% 1.7 £11

193 St James's Place PLC STJ FTSE 100 Life Insurance £7.82 22.7 2.0% 46.5 13.8% 83% 0.0 £139

194 Shanks Group PLC SKS Small Cap Support Services £1.07 20.1 3.2% 16.8 -2.5% 58% 13.8 £26

195 Associated British Foods PLC ABF FTSE 100 Food Producers £30.18 31.4 1.1% 48.3 9.5% 96% 1.2 £945

196 4imprint Group PLC FOUR Small Cap Media £6.80 26.9 2.5% 33.9 5.1% 83% 0.7 £9

197 Hays PLC HAS FTSE 250 Support Services £1.51 29.5 1.7% 20.8 0.2% 63% 1.1 £133

198 Bodycote PLC BOY FTSE 250 Industrial Engineering £7.46 17.9 1.8% 29.3 8.1% 79% 0.0 £95

199 Marshalls PLC MSLH Small Cap Construction & Materials £1.69 24.9 3.1% 16.6 -10.6% 42% 3.7 £14

200 Clarkson PLC CKN Small Cap Industrial Transportation £26.70 28.2 2.1% 23.6 4.3% 75% 0.0 £31

201 BT Group PLC BT.A FTSE 100 Fixed Line Telecommunications £3.97 15.6 2.7% 21.3 -2.6% 71% 4.5 £2,177

202 UK Mail Group PLC UKM Small Cap Industrial Transportation £6.22 19.0 3.4% 28.5 5.3% 63% 0.1 £14

203 Johnson Matthey PLC JMAT FTSE 100 Chemicals £32.12 22.7 1.8% 31.6 11.1% 71% 3.2 £296

204 F&C Commercial Property Trust Ltd FCPT FTSE 250 Real Estate Investment & Services £1.22 10.0 4.9% 20.1 -3.6% 38% 0.0 £0

205 Schroders PLC SDR FTSE 100 Financial Services £25.86 19.1 2.2% 30.1 8.2% 75% 36.6 £367

206 Ricardo PLC RCDO Small Cap Support Services £6.88 19.1 2.0% 25.9 5.4% 71% 0.0 £19

207 Hunting PLC HTG FTSE 250 Oil Equipment, Services & Distribution £8.20 16.0 2.1% 26.3 4.8% 79% 3.3 £69

208 London Stock Exchange Group PLC LSE FTSE 100 Financial Services £19.58 28.5 1.6% 31.9 9.4% 75% 3.4 £237

209 Euromoney Institutional Investor PLC ERM FTSE 250 Media £11.89 21.6 1.9% 29.5 5.9% 75% 0.3 £68

210 Savills PLC SVS FTSE 250 Real Estate Investment & Services £6.35 14.6 1.7% 21.0 -0.5% 71% 0.2 £55

211 Vp PLC VP. Small Cap Support Services £6.33 26.4 1.9% 32.8 7.6% 75% 4.3 £13

212 British Polythene Industries PLC BPI Small Cap General Industrials £6.70 15.1 2.2% 16.3 -1.6% 54% 2.6 £12

213 Rathbone Brothers PLC RAT FTSE 250 Financial Services £20.61 27.3 2.4% 31.6 3.4% 75% 0.0 £43

214 Dechra Pharmaceuticals PLC DPH FTSE 250 Pharmaceuticals & Biotechnology £6.95 43.8 2.0% 44.4 5.7% 88% 6.0 £19

215 Porvair PLC PRV Small Cap Alternative Energy £3.04 24.6 1.0% 45.0 8.6% 88% 1.2 £5

216 Essentra PLC ESNT FTSE 250 Support Services £7.89 23.0 2.0% 38.8 8.6% 79% 3.7 £70

217 QinetiQ Group PLC QQ. FTSE 250 Aerospace & Defense £2.09 14.1 2.2% 18.2 2.6% 63% 2.0 £88

218 Tullow Oil PLC TLW FTSE 100 Oil & Gas Producers £8.43 12.1 1.4% 30.9 15.3% 63% 3.9 £334

219 Michael Page International PLC MPI FTSE 250 Support Services £4.59 31.7 2.3% 26.7 3.4% 67% 0.0 £75

220 Bellway PLC BWY FTSE 250 Household Goods & Home Construction £13.80 15.5 2.2% 19.5 -8.1% 71% 0.4 £117

221 Robert Walters PLC RWA Small Cap Support Services £3.14 38.4 1.7% 26.7 2.6% 75% 0.8 £14

222 Wilmington Group PLC WIL Small Cap Media £1.97 26.1 3.6% 27.6 1.6% 42% 8.1 £5

223 Elementis PLC ELM FTSE 250 Chemicals £2.86 20.2 1.7% 30.7 10.6% 63% 0.1 £53

224 Cable & Wireless Communications PLC CWC FTSE 250 Fixed Line Telecommunications £0.53 -12.6 4.6% 29.2 -13.6% 42% 15.2 £78

225 Consort Medical PLC CSRT Small Cap Health Care Equipment & Services £8.64 22.3 2.3% 21.2 0.9% 42% 0.0 £10

226 Brewin Dolphin Holdings PLC BRW FTSE 250 Financial Services £3.19 24.9 2.7% 31.2 3.0% 63% 0.1 £29

227 Greencore Group PLC GNC FTSE 250 Food Producers £2.91 14.8 1.6% 25.8 -0.3% 63% 5.8 £43

228 Wood Group (John) PLC WG. FTSE 250 Oil Equipment, Services & Distribution £7.87 24.4 1.7% 26.2 8.5% 63% 5.2 £288

229 Great Portland Estates PLC GPOR FTSE 250 Real Estate Investment Trusts £6.51 5.3 1.4% 15.4 -1.0% 58% 7.4 £95

230 Smith (DS) PLC SMDS FTSE 250 General Industrials £3.17 20.2 2.5% 32.3 3.7% 67% 10.7 £90

231 Daejan Holdings PLC DJAN FTSE 250 Real Estate Investment & Services £48.87 8.9 1.6% 27.0 2.6% 67% 7.3 £39

232 Derwent London PLC DLN FTSE 250 Real Estate Investment Trusts £27.37 31.8 1.3% 24.5 1.9% 75% 7.3 £131

233 Xaar PLC XAR FTSE 250 Electronic & Electrical Equipment £8.64 20.6 0.9% 67.2 16.3% 63% 0.0 £12

234 Tribal Group PLC TRB Small Cap Support Services £1.75 13.8 0.9% 16.0 -7.0% 54% 1.2 £10

235 Boot (Henry) PLC BHY Small Cap Construction & Materials £2.00 25.0 2.6% 29.8 -1.0% 63% 3.7 £14

236 Oxford Instruments PLC OXIG FTSE 250 Electronic & Electrical Equipment £13.09 30.5 0.9% 63.2 16.9% 54% 0.0 £12

237 Standard Life Investments Property Inc Trust LtdSLI Small Cap Real Estate Investment & Services £0.76 9.6 6.0% 80.1 -10.2% 25% 0.0 £0

238 Helical Bar PLC HLCL Small Cap Real Estate Investment & Services £4.00 5.5 1.7% 22.4 -1.7% 58% 20.9 £12

239 Shaftesbury PLC SHB FTSE 250 Real Estate Investment Trusts £6.70 26.0 1.9% 36.8 -0.9% 58% 15.7 £39

240 3i Group PLC III FTSE 250 Financial Services £4.32 7.9 3.7% 98.7 -13.5% 50% 0.0 £0

241 Grainger PLC GRI FTSE 250 Real Estate Investment & Services £2.17 15.2 0.9% 3906.0 -6.3% 46% 310.2 £3

Stock Screen - Sorted by NameColour key: Green = better than FTSE 100, Light Red = worse than FTSE 100, Dark Red = Debt ratio over 5


PricePE Ratio

(Value)

Div.Yield

(Value)

PE10

(Growth)

Rate

(Growth)

Quality

Debt

Ratio

Earnings

Power (m)

240 3i Group PLC III FTSE 250 Financial Services £4.32 7.9 3.7% 98.7 -13.5% 50% 0.0 £0

196 4imprint Group PLC FOUR Small Cap Media £6.80 26.9 2.5% 33.9 5.1% 83% 0.7 £9

66 Aberdeen Asset Management PLC ADN FTSE 100 Financial Services £4.45 15.8 3.6% 37.1 19.7% 88% 0.4 £209

5 Admiral Group PLC ADM FTSE 100 Nonlife Insurance £14.58 14.0 6.8% 22.3 15.1% 100% 0.0 £351

67 Aggreko PLC AGK FTSE 100 Support Services £16.67 18.5 1.6% 27.8 23.1% 92% 1.4 £289

43 AMEC PLC AMEC FTSE 250 Oil Equipment, Services & Distribution £12.08 15.8 3.5% 26.0 16.9% 83% 0.5 £252

27 Amlin PLC AML FTSE 250 Nonlife Insurance £4.70 8.1 5.5% 10.6 3.4% 75% 0.0 £328

87 Anglo Pacific Group PLC APF Small Cap Mining £1.81 -156.0 5.6% 15.1 5.6% 54% 0.0 £14

110 Anglo-Eastern Plantations PLC AEP Small Cap Food Producers £7.16 5.0 0.4% 10.8 12.2% 67% 0.6 £35

35 Antofagasta PLC ANTO FTSE 100 Mining £7.89 16.4 7.2% 12.7 19.5% 67% 1.0 £872

161 ARM Holdings PLC ARM FTSE 100 Technology Hardware & Equipment £9.20 83.3 0.6% 157.7 21.6% 88% 0.0 £140

33 Ashley (Laura) Holdings PLC ALY Small Cap General Retailers £0.26 12.1 7.7% 18.7 9.0% 67% 0.0 £14

195 Associated British Foods PLC ABF FTSE 100 Food Producers £30.18 31.4 1.1% 48.3 9.5% 96% 1.2 £945

59 AstraZeneca PLC AZN FTSE 100 Pharmaceuticals & Biotechnology £42.83 37.4 4.1% 15.4 7.2% 71% 1.1 £5,678

72 Atkins (W S) PLC ATK FTSE 250 Support Services £13.13 14.0 2.4% 18.6 9.2% 79% 1.0 £112

133 Aveva Group PLC AVV FTSE 250 Software & Computer Services £22.39 25.1 1.2% 40.4 20.7% 92% 0.0 £60

180 Aviva PLC AV. FTSE 100 Life Insurance £5.24 14.6 2.9% 14.6 -13.7% 42% 0.0 £1,056

109 Babcock International Group PLC BAB FTSE 100 Support Services £12.14 21.4 1.9% 34.5 19.1% 88% 3.7 £188

14 BAE Systems PLC BA. FTSE 100 Aerospace & Defense £4.23 13.0 4.8% 13.2 8.0% 83% 1.6 £1,807

11 Balfour Beatty PLC BBY FTSE 250 Construction & Materials £2.36 11.8 6.0% 8.8 6.9% 75% 4.8 £211

79 Barclays PLC BARC FTSE 100 Banks £2.47 28.3 2.6% 9.7 -11.0% 67% 0.0 £3,267

176 Barr (A G) PLC BAG FTSE 250 Beverages £6.25 25.3 1.8% 38.3 8.1% 96% 0.4 £40

64 BBA Aviation PLC BBA FTSE 250 Industrial Transportation £3.13 2.8 3.0% 12.0 9.6% 54% 14.9 £86

24 Beazley PLC BEZ FTSE 250 Nonlife Insurance £2.45 7.5 3.6% 12.6 7.9% 79% 0.0 £143

220 Bellway PLC BWY FTSE 250 Household Goods & Home Construction £13.80 15.5 2.2% 19.5 -8.1% 71% 0.4 £117

173 Berendsen PLC BRSN FTSE 250 Support Services £9.94 21.5 2.8% 28.5 5.3% 79% 5.0 £95

71 BG Group PLC BG. FTSE 100 Oil & Gas Producers £12.21 10.3 1.5% 15.6 11.8% 83% 2.4 £4,445

6 BHP Billiton PLC BLT FTSE 100 Mining £18.68 12.6 4.1% 12.9 18.3% 83% 1.7 £13,485

129 Bloomsbury Publishing PLC BMY Small Cap Media £1.67 14.5 3.5% 15.1 0.8% 71% 0.0 £12

198 Bodycote PLC BOY FTSE 250 Industrial Engineering £7.46 17.9 1.8% 29.3 8.1% 79% 0.0 £95

235 Boot (Henry) PLC BHY Small Cap Construction & Materials £2.00 25.0 2.6% 29.8 -1.0% 63% 3.7 £14

93 BP PLC BP. FTSE 100 Oil & Gas Producers £5.03 63.0 4.6% 11.4 1.8% 54% 3.1 £9,366

58 Braemar Shipping Services PLC BMS Small Cap Industrial Transportation £5.27 17.2 4.9% 12.9 3.3% 67% 0.0 £11

160 Brammer PLC BRAM Small Cap Support Services £4.86 22.2 2.1% 30.8 11.3% 79% 2.9 £24

226 Brewin Dolphin Holdings PLC BRW FTSE 250 Financial Services £3.19 24.9 2.7% 31.2 3.0% 63% 0.1 £29

16 British American Tobacco PLC BATS FTSE 100 Tobacco £36.01 16.5 4.0% 23.4 12.0% 96% 2.0 £5,874

172 British Land Co PLC BLND FTSE 100 Real Estate Investment Trusts £7.15 14.6 3.8% 7.4 -11.2% 42% 3.9 £564

212 British Polythene Industries PLC BPI Small Cap General Industrials £6.70 15.1 2.2% 16.3 -1.6% 54% 2.6 £12

31 British Sky Broadcasting Group PLC BSY FTSE 100 Media £8.82 14.7 3.4% 24.8 10.8% 96% 1.9 £1,542

44 Brown (N) Group PLC BWNG FTSE 250 General Retailers £4.69 17.4 3.0% 20.4 8.7% 88% 2.3 £110

201 BT Group PLC BT.A FTSE 100 Fixed Line Telecommunications £3.97 15.6 2.7% 21.3 -2.6% 71% 4.5 £2,177

142 Bunzl PLC BNZL FTSE 100 Support Services £16.72 23.9 1.9% 34.1 9.1% 100% 2.9 £323

136 Burberry Group PLC BRBY FTSE 100 Personal Goods £15.33 20.3 2.1% 32.9 17.4% 83% 0.4 £319

224 Cable & Wireless Communications PLC CWC FTSE 250 Fixed Line Telecommunications £0.53 -12.6 4.6% 29.2 -13.6% 42% 15.2 £78

77 Capita Group (The) PLC CPI FTSE 100 Support Services £11.07 26.5 2.4% 33.7 13.4% 96% 5.0 £398

168 Carclo PLC CAR Small Cap Chemicals £1.10 15.8 2.3% 13.5 5.3% 63% 4.3 £6

15 Carillion PLC CLLN FTSE 250 Support Services £3.54 9.3 4.9% 12.3 9.2% 75% 3.8 £164

159 Carr's Milling Industries PLC CRM Small Cap Food Producers £18.85 15.1 1.7% 25.4 10.1% 79% 4.4 £10

30 Catlin Group Ltd CGL FTSE 250 Nonlife Insurance £5.24 8.8 5.9% 11.9 2.9% 75% 0.0 £214

143 Centaur Media PLC CAU Small Cap Media £0.65 19.0 3.7% 14.4 -4.0% 67% 2.6 £9

9 Centrica PLC CNA FTSE 100 Gas, Water & Multiutilities £3.36 8.7 5.1% 13.5 7.9% 88% 2.7 £2,167

145 Charles Taylor PLC CTR Small Cap Financial Services £2.75 19.6 3.6% 13.0 -2.6% 58% 4.2 £10

2 Chemring Group PLC CHG Small Cap Aerospace & Defense £2.24 9.6 3.2% 8.1 18.6% 79% 3.4 £78

8 Chesnara PLC CSN Small Cap Life Insurance £3.26 8.0 5.5% 14.1 6.9% 88% 0.0 £43

164 Chime Communications PLC CHW Small Cap Media £3.53 45.1 2.1% 23.1 7.6% 79% 3.8 £15

200 Clarkson PLC CKN Small Cap Industrial Transportation £26.70 28.2 2.1% 23.6 4.3% 75% 0.0 £31

181 Close Brothers Group PLC CBG FTSE 250 Financial Services £13.27 16.5 3.4% 20.4 1.5% 67% 0.0 £128

45 Cobham PLC COB FTSE 250 Aerospace & Defense £3.19 14.6 3.0% 21.7 11.9% 83% 2.4 £274

150 Communisis PLC CMS Small Cap Support Services £0.60 13.6 3.0% 9.9 -6.9% 50% 5.1 £9

69 Compass Group PLC CPG FTSE 100 Travel & Leisure £9.95 21.2 2.4% 36.1 14.7% 96% 2.2 £1,008

39 Computacenter PLC CCC FTSE 250 Software & Computer Services £6.12 13.5 2.9% 20.1 11.4% 83% 0.3 £72

26 Connect Group PLC CNCT Small Cap Support Services £2.05 10.1 4.5% 13.7 6.7% 79% 2.1 £52

225 Consort Medical PLC CSRT Small Cap Health Care Equipment & Services £8.64 22.3 2.3% 21.2 0.9% 42% 0.0 £10

38 Cranswick PLC CWK FTSE 250 Food Producers £12.66 14.7 2.5% 19.8 9.1% 92% 0.6 £52

189 CRH PLC CRH FTSE 100 Construction & Materials £16.37 32.9 3.2% 17.4 -0.3% 63% 5.4 £860

82 Croda International PLC CRDA FTSE 250 Chemicals £26.33 20.0 2.4% 36.7 22.1% 92% 1.3 £182

231 Daejan Holdings PLC DJAN FTSE 250 Real Estate Investment & Services £48.87 8.9 1.6% 27.0 2.6% 67% 7.3 £39

114 Dairy Crest Group PLC DCG FTSE 250 Food Producers £4.67 16.8 4.6% 12.2 -1.0% 58% 5.8 £61

100 Darty PLC DRTY Small Cap General Retailers £0.86 20.2 3.5% 6.6 -10.6% 50% 2.6 £70

139 DCC PLC DCC FTSE 250 Support Services £35.10 21.4 2.2% 25.5 10.9% 75% 4.9 £167

108 De La Rue PLC DLAR FTSE 250 Support Services £8.59 13.3 4.9% 17.2 6.2% 58% 1.5 £69

214 Dechra Pharmaceuticals PLC DPH FTSE 250 Pharmaceuticals & Biotechnology £6.95 43.8 2.0% 44.4 5.7% 88% 6.0 £19

232 Derwent London PLC DLN FTSE 250 Real Estate Investment Trusts £27.37 31.8 1.3% 24.5 1.9% 75% 7.3 £131

40 Devro PLC DVO Small Cap Food Producers £2.57 12.3 3.4% 19.1 12.0% 75% 1.2 £33

95 Diageo PLC DGE FTSE 100 Beverages £19.19 18.1 2.5% 28.9 8.1% 92% 3.2 £3,149

191 Dialight PLC DIA Small Cap Electronic & Electrical Equipment £9.01 27.1 1.6% 44.7 16.2% 79% 0.2 £10

170 Dignity PLC DTY FTSE 250 General Retailers £14.10 19.5 0.8% 30.3 10.6% 88% 9.7 £50

98 Diploma PLC DPLM FTSE 250 Support Services £6.54 21.3 2.4% 37.8 16.1% 92% 0.1 £36

94 Domino Printing Sciences PLC DNO FTSE 250 Electronic & Electrical Equipment £7.78 22.2 2.8% 28.7 11.3% 83% 0.7 £50

57 Domino's Pizza UK & IRL PLC DOM FTSE 250 Travel & Leisure £5.63 25.1 2.8% 40.6 22.6% 100% 1.1 £44

156 Electrocomponents PLC ECM FTSE 250 Support Services £2.86 17.4 4.1% 19.2 1.2% 54% 2.6 £70

223 Elementis PLC ELM FTSE 250 Chemicals £2.86 20.2 1.7% 30.7 10.6% 63% 0.1 £53

216 Essentra PLC ESNT FTSE 250 Support Services £7.89 23.0 2.0% 38.8 8.6% 79% 3.7 £70

209 Euromoney Institutional Investor PLC ERM FTSE 250 Media £11.89 21.6 1.9% 29.5 5.9% 75% 0.3 £68

204 F&C Commercial Property Trust Ltd FCPT FTSE 250 Real Estate Investment & Services £1.22 10.0 4.9% 20.1 -3.6% 38% 0.0 £0



PricePE Ratio

(Value)

Div.Yield

(Value)

PE10

(Growth)

Rate

(Growth)

Quality

Debt

Ratio

Earnings

Power (m)

178 F&C UK Real Estate Investment Ltd FCRE Small Cap Real Estate Investment & Services £0.83 47.2 8.0% 18.4 -2.4% 29% 38.0 £3

25 Fenner PLC FENR FTSE 250 Industrial Engineering £3.50 14.4 3.2% 19.6 12.6% 83% 4.1 £53

141 Fidessa Group PLC FDSA FTSE 250 Software & Computer Services £23.15 30.2 1.6% 41.0 17.5% 88% 0.0 £36

121 Fisher (James) & Sons PLC FSJ FTSE 250 Industrial Transportation £13.21 21.7 1.5% 29.7 11.1% 96% 1.8 £43

155 FTSE 100 6,845 14.1 3.5% 14.5 2.2% 58%

144 Fuller Smith & Turner PLC FSTA Small Cap Travel & Leisure £9.53 21.7 1.4% 31.3 10.5% 96% 4.0 £35

60 G4S PLC GFS FTSE 100 Support Services £2.50 18.9 3.6% 19.4 9.6% 75% 8.5 £265

186 Galliford Try PLC GFRD FTSE 250 Construction & Materials £11.30 16.4 3.3% 19.1 3.0% 71% 1.5 £47

165 Genus PLC GNS FTSE 250 Pharmaceuticals & Biotechnology £10.70 29.0 1.5% 34.3 11.0% 88% 2.3 £32

61 GlaxoSmithKline PLC GSK FTSE 100 Pharmaceuticals & Biotechnology £16.01 15.6 4.9% 17.3 3.4% 79% 2.4 £7,727

134 Go-Ahead Group (The) PLC GOG FTSE 250 Travel & Leisure £22.00 17.7 3.7% 15.5 5.1% 58% 4.5 £75

192 Goodwin PLC GDWN Small Cap Industrial Engineering £41.00 19.4 0.9% 43.0 13.9% 83% 1.7 £11

241 Grainger PLC GRI FTSE 250 Real Estate Investment & Services £2.17 15.2 0.9% 3906.0 -6.3% 46% 310.2 £3

229 Great Portland Estates PLC GPOR FTSE 250 Real Estate Investment Trusts £6.51 5.3 1.4% 15.4 -1.0% 58% 7.4 £95

227 Greencore Group PLC GNC FTSE 250 Food Producers £2.91 14.8 1.6% 25.8 -0.3% 63% 5.8 £43

85 Greene King PLC GNK FTSE 250 Travel & Leisure £8.55 16.7 3.1% 17.4 5.5% 79% 9.7 £152

49 Greggs PLC GRG Small Cap Food & Drug Retailers £5.22 15.4 3.7% 15.8 5.5% 79% 0.0 £55

76 Halfords Group PLC HFD FTSE 250 General Retailers £4.87 16.5 2.9% 15.2 3.2% 75% 1.1 £103

137 Halma PLC HLMA FTSE 250 Electronic & Electrical Equipment £5.92 25.7 1.8% 38.6 9.8% 100% 1.4 £115

167 Hammerson PLC HMSO FTSE 100 Real Estate Investment Trusts £5.94 18.0 3.2% 8.9 -5.4% 58% 6.1 £383

197 Hays PLC HAS FTSE 250 Support Services £1.51 29.5 1.7% 20.8 0.2% 63% 1.1 £133

127 Headlam Group PLC HEAD Small Cap Household Goods & Home Construction £4.53 19.0 3.4% 16.1 -2.9% 75% 0.9 £36

238 Helical Bar PLC HLCL Small Cap Real Estate Investment & Services £4.00 5.5 1.7% 22.4 -1.7% 58% 20.9 £12

169 Henderson Group PLC HGG FTSE 250 Financial Services £2.49 24.2 3.2% 31.3 8.2% 75% 1.3 £116

166 Hikma Pharmaceuticals PLC HIK FTSE 250 Pharmaceuticals & Biotechnology £17.05 23.3 0.7% 56.9 23.1% 83% 2.8 £96

37 Hill & Smith Holdings PLC HILS Small Cap Industrial Engineering £5.52 14.4 2.9% 17.9 8.8% 88% 2.4 £41

50 Homeserve PLC HSV FTSE 250 Support Services £3.38 19.2 3.3% 18.4 8.6% 79% 1.4 £96

62 HSBC Holdings PLC HSBA FTSE 100 Banks £6.29 14.6 4.8% 11.7 -0.6% 67% 0.0 £11,177

207 Hunting PLC HTG FTSE 250 Oil Equipment, Services & Distribution £8.20 16.0 2.1% 26.3 4.8% 79% 3.3 £69

41 Huntsworth PLC HNT Small Cap Media £0.51 8.9 6.9% 7.8 4.3% 58% 2.4 £17

23 Hyder Consulting PLC HYC Small Cap Support Services £4.28 9.1 2.8% 13.4 22.7% 79% 0.4 £19

42 ICAP PLC IAP FTSE 250 Financial Services £4.00 13.7 5.5% 14.2 6.6% 67% 2.4 £244

158 IMI PLC IMI FTSE 100 Industrial Engineering £15.97 23.9 2.2% 30.5 8.0% 88% 1.0 £301

19 Imperial Tobacco Group PLC IMT FTSE 100 Tobacco £26.92 14.0 4.3% 19.5 12.5% 79% 5.4 £2,049

111 Informa PLC INF FTSE 250 Media £5.16 17.4 3.7% 24.3 8.8% 75% 4.7 £175

47 Inmarsat PLC ISAT FTSE 250 Mobile Telecommunications £7.32 20.9 4.0% 23.8 19.7% 67% 6.4 £187

51 Intermediate Capital Group PLC ICP FTSE 250 Financial Services £4.18 11.7 5.0% 9.4 -4.4% 71% 6.8 £171

124 Interserve PLC IRV FTSE 250 Support Services £6.47 20.8 3.3% 21.8 4.9% 79% 2.0 £59

106 Intertek Group PLC ITRK FTSE 100 Support Services £29.18 22.5 1.6% 37.6 18.9% 100% 2.9 £250

103 Investec PLC INVP FTSE 250 Financial Services £5.18 14.9 3.7% 12.7 -0.4% 67% 0.0 £394

32 ITE Group PLC ITE FTSE 250 Media £2.34 16.8 3.0% 22.4 11.0% 88% 0.5 £46

102 Jardine Lloyd Thompson Group PLC JLT FTSE 250 Nonlife Insurance £10.37 18.1 2.6% 27.7 9.7% 79% 3.6 £128

34 JD Sports Fashion PLC JD. FTSE 250 General Retailers £16.13 13.6 1.7% 19.3 18.2% 92% 0.4 £75

203 Johnson Matthey PLC JMAT FTSE 100 Chemicals £32.12 22.7 1.8% 31.6 11.1% 71% 3.2 £296

117 KCOM Group PLC KCOM FTSE 250 Fixed Line Telecommunications £0.93 11.3 4.8% 16.3 8.3% 63% 2.9 £36

132 Keller Group PLC KLR FTSE 250 Construction & Materials £9.54 16.3 2.5% 14.6 2.6% 75% 3.0 £65

92 Kier Group PLC KIE FTSE 250 Construction & Materials £16.98 16.5 4.0% 14.5 4.7% 67% 1.8 £58

174 Kingfisher PLC KGF FTSE 100 General Retailers £3.92 13.1 2.5% 20.3 5.4% 67% 0.5 £610

78 Ladbrokes PLC LAD FTSE 250 Travel & Leisure £1.53 12.5 5.8% 6.5 -3.1% 58% 1.7 £247

187 Laird PLC LRD FTSE 250 Technology Hardware & Equipment £3.00 20.2 4.0% 22.2 -1.8% 71% 3.7 £44

179 Land Securities Group PLC LAND FTSE 100 Real Estate Investment Trusts £10.68 16.6 2.9% 10.9 -13.5% 46% 6.9 £544

185 Lavendon Group PLC LVD Small Cap Support Services £2.25 14.3 1.6% 12.8 -2.4% 71% 5.8 £20

183 Legal & General Group PLC LGEN FTSE 100 Life Insurance £2.30 14.1 4.0% 20.0 1.9% 67% 0.0 £953

208 London Stock Exchange Group PLC LSE FTSE 100 Financial Services £19.58 28.5 1.6% 31.9 9.4% 75% 3.4 £237

146 Low & Bonar PLC LWB Small Cap Construction & Materials £0.80 16.8 3.3% 15.0 0.8% 63% 7.2 £15

89 Man Group PLC EMG FTSE 250 Financial Services £1.00 17.4 4.9% 4.7 -10.0% 50% 1.4 £391

147 Management Consulting Group PLC MMC Small Cap Support Services £0.29 14.0 2.8% 6.3 -1.0% 54% 3.3 £16

84 Marks & Spencer Group PLC MKS FTSE 100 General Retailers £4.49 13.9 3.8% 12.8 -0.2% 67% 3.0 £773

199 Marshalls PLC MSLH Small Cap Construction & Materials £1.69 24.9 3.1% 16.6 -10.6% 42% 3.7 £14

63 Marston's PLC MARS FTSE 250 Travel & Leisure £1.51 11.2 4.2% 10.0 -1.2% 67% 13.4 £96

126 McKay Securities PLC MCKS Small Cap Real Estate Investment Trusts £2.22 3.0 3.9% 7.1 -9.6% 46% 9.0 £11

56 Mears Group PLC MER Small Cap Support Services £4.72 19.7 1.9% 25.6 14.4% 96% 2.8 £29

70 Meggitt PLC MGGT FTSE 100 Aerospace & Defense £4.84 16.6 2.6% 22.4 11.1% 79% 2.8 £241

99 Melrose Industries PLC MRO FTSE 100 Industrial Engineering £2.80 24.4 2.8% 39.2 20.3% 79% 3.2 £107

55 Menzies (John) PLC MNZS Small Cap Support Services £6.65 12.9 4.0% 14.3 3.7% 79% 3.2 £44

219 Michael Page International PLC MPI FTSE 250 Support Services £4.59 31.7 2.3% 26.7 3.4% 67% 0.0 £75

149 Millennium & Copthorne Hotels PLC MLC FTSE 250 Travel & Leisure £5.72 7.7 2.4% 15.0 6.8% 67% 2.2 £158

20 MITIE Group PLC MTO FTSE 250 Support Services £3.35 18.6 3.3% 19.9 10.6% 92% 2.7 £105

73 Morgan Advanced Materials PLC MGAM FTSE 250 Electronic & Electrical Equipment £3.39 14.8 3.1% 16.8 8.8% 75% 3.1 £86

116 Morgan Sindall PLC MGNS Small Cap Construction & Materials £8.14 65.1 3.3% 11.1 -0.2% 50% 0.9 £32

1 Morrison (Wm) Supermarkets PLC MRW FTSE 100 Food & Drug Retailers £2.02 20.4 6.4% 12.3 12.6% 88% 4.0 £751

97 Mucklow (A & J) Group PLC MKLW Small Cap Real Estate Investment Trusts £4.38 19.4 4.5% 15.4 0.6% 71% 3.1 £24

68 National Grid PLC NG. FTSE 100 Gas, Water & Multiutilities £8.90 16.5 4.7% 16.4 5.3% 71% 11.3 £2,489

101 NCC Group PLC NCC Small Cap Software & Computer Services £1.81 25.5 1.7% 44.1 23.9% 100% 1.8 £17

188 Old Mutual PLC OML FTSE 100 Life Insurance £2.02 13.9 4.0% 15.2 -2.4% 63% 0.0 £723

236 Oxford Instruments PLC OXIG FTSE 250 Electronic & Electrical Equipment £13.09 30.5 0.9% 63.2 16.9% 54% 0.0 £12

171 Paragon Group of Companies (The) PLC PAG FTSE 250 Financial Services £3.76 11.6 1.9% 5.7 -15.6% 63% 79.0 £119

83 PayPoint PLC PAY FTSE 250 Support Services £10.55 20.5 3.3% 29.4 9.3% 88% 0.0 £40

104 Pearson PLC PSON FTSE 100 Media £11.71 19.8 4.1% 23.2 5.3% 79% 3.5 £634

21 Pennon Group PLC PNN FTSE 250 Gas, Water & Multiutilities £7.84 14.2 3.6% 23.1 10.9% 92% 11.8 £223

17 Petrofac Ltd PFC FTSE 100 Oil Equipment, Services & Distribution £12.62 11.3 3.2% 20.1 35.0% 88% 2.1 £386

4 Phoenix IT Group PLC PNX Small Cap Software & Computer Services £1.04 7.1 7.4% 4.5 11.3% 75% 3.6 £24

215 Porvair PLC PRV Small Cap Alternative Energy £3.04 24.6 1.0% 45.0 8.6% 88% 1.2 £5

131 Premier Farnell PLC PFL FTSE 250 Support Services £2.13 14.7 4.9% 15.7 3.8% 46% 4.5 £46

54 Primary Health Properties PLC PHP Small Cap Real Estate Investment Trusts £3.52 15.9 5.5% 13.9 -0.4% 71% 37.8 £16



PricePE Ratio

(Value)

Div.Yield

(Value)

PE10

(Growth)

Rate

(Growth)

Quality

Debt

Ratio

Earnings

Power (m)

119 Provident Financial PLC PFG FTSE 250 Financial Services £20.92 18.8 4.1% 26.2 8.5% 71% 7.7 £167

125 Prudential PLC PRU FTSE 100 Life Insurance £13.85 24.6 2.4% 27.1 9.6% 83% 0.0 £2,135

105 PZ Cussons PLC PZC FTSE 250 Personal Goods £3.52 20.8 2.1% 27.5 10.3% 88% 1.0 £96

217 QinetiQ Group PLC QQ. FTSE 250 Aerospace & Defense £2.09 14.1 2.2% 18.2 2.6% 63% 2.0 £88

213 Rathbone Brothers PLC RAT FTSE 250 Financial Services £20.61 27.3 2.4% 31.6 3.4% 75% 0.0 £43

28 Reckitt Benckiser Group PLC RB. FTSE 100 Household Goods & Home Construction £51.00 22.0 2.7% 28.4 15.3% 96% 1.1 £2,522

190 Reed Elsevier PLC REL FTSE 100 Media £9.51 18.8 2.6% 27.6 6.3% 71% 3.2 £539

128 Renishaw PLC RSW FTSE 250 Electronic & Electrical Equipment £16.98 18.0 2.4% 32.7 12.9% 83% 0.0 £63

80 Restaurant Group (The) PLC RTN FTSE 250 Travel & Leisure £5.98 20.8 2.3% 31.3 11.4% 100% 0.7 £77

206 Ricardo PLC RCDO Small Cap Support Services £6.88 19.1 2.0% 25.9 5.4% 71% 0.0 £19

36 Rio Tinto PLC RIO FTSE 100 Mining £30.57 8.9 3.9% 9.1 13.6% 63% 2.3 £7,444

221 Robert Walters PLC RWA Small Cap Support Services £3.14 38.4 1.7% 26.7 2.6% 75% 0.8 £14

140 Rolls-Royce Group PLC RR. FTSE 100 Aerospace & Defense £10.40 17.5 2.1% 25.3 10.4% 79% 3.9 £1,214

91 Rotork PLC ROR FTSE 250 Industrial Engineering £26.03 22.8 1.8% 37.0 16.7% 100% 0.0 £122

46 Royal Dutch Shell PLC RDSB FTSE 100 Oil & Gas Producers £24.35 11.9 4.6% 11.0 6.9% 63% 1.6 £17,364

138 RPC Group PLC RPC FTSE 250 General Industrials £6.09 16.1 2.4% 24.5 11.5% 75% 4.1 £52

115 RPS Group PLC RPS FTSE 250 Support Services £2.91 20.7 2.5% 21.5 9.0% 83% 1.1 £48

88 RSA Insurance Group PLC RSA FTSE 100 Nonlife Insurance £4.80 11.5 2.1% 7.5 -1.8% 46% 0.0 £435

162 S & U PLC SUS Small Cap Financial Services £19.10 17.0 2.8% 28.4 7.0% 79% 2.6 £13

157 SABMiller PLC SAB FTSE 100 Beverages £33.11 23.2 1.9% 33.4 11.9% 83% 5.1 £2,417

65 Sage Group (The) PLC SGE FTSE 100 Software & Computer Services £4.10 20.6 2.8% 25.8 10.0% 88% 1.3 £343

7 Sainsbury (J) PLC SBRY FTSE 100 Food & Drug Retailers £3.46 7.5 5.0% 14.4 9.6% 88% 4.1 £682

210 Savills PLC SVS FTSE 250 Real Estate Investment & Services £6.35 14.6 1.7% 21.0 -0.5% 71% 0.2 £55

177 Schroder Real Estate Investment Trust LtdSREI Small Cap Real Estate Investment & Services £0.54 -18.0 6.5% 15.0 -16.2% 29% 18.8 £7

205 Schroders PLC SDR FTSE 100 Financial Services £25.86 19.1 2.2% 30.1 8.2% 75% 36.6 £367

122 Segro PLC SGRO FTSE 250 Real Estate Investment Trusts £3.69 23.2 4.0% 6.8 -11.4% 46% 8.4 £202

81 Senior PLC SNR FTSE 250 Aerospace & Defense £2.96 14.6 1.7% 23.4 17.6% 83% 1.3 £86

10 Serco Group PLC SRP FTSE 250 Support Services £3.72 10.3 2.8% 14.7 14.6% 92% 3.8 £230

74 Severn Trent PLC SVT FTSE 100 Gas, Water & Multiutilities £19.68 7.9 4.1% 19.4 4.9% 79% 15.5 £310

239 Shaftesbury PLC SHB FTSE 250 Real Estate Investment Trusts £6.70 26.0 1.9% 36.8 -0.9% 58% 15.7 £39

194 Shanks Group PLC SKS Small Cap Support Services £1.07 20.1 3.2% 16.8 -2.5% 58% 13.8 £26

184 Smith & Nephew PLC SN. FTSE 100 Health Care Equipment & Services £10.46 23.5 1.6% 28.9 12.3% 75% 0.5 £491

230 Smith (DS) PLC SMDS FTSE 250 General Industrials £3.17 20.2 2.5% 32.3 3.7% 67% 10.7 £90

135 Smiths Group PLC SMIN FTSE 100 General Industrials £13.21 13.9 3.0% 18.6 6.0% 67% 2.8 £407

152 Spectris PLC SXS FTSE 250 Electronic & Electrical Equipment £22.96 26.6 1.9% 31.4 12.6% 83% 1.0 £145

118 Speedy Hire PLC SDY Small Cap Support Services £0.55 48.2 1.1% 8.7 -22.3% 67% 4.6 £16

75 Spirax-Sarco Engineering PLC SPX FTSE 250 Industrial Engineering £28.59 21.6 2.1% 30.2 11.7% 100% 0.7 £142

18 SSE PLC SSE FTSE 100 Electricity £15.56 17.1 5.6% 17.2 7.9% 83% 4.2 £1,463

148 St Ives PLC SIV Small Cap Support Services £2.11 15.4 3.1% 11.9 -10.6% 46% 1.8 £17

193 St James's Place PLC STJ FTSE 100 Life Insurance £7.82 22.7 2.0% 46.5 13.8% 83% 0.0 £139

53 Stagecoach Group PLC SGC FTSE 250 Travel & Leisure £3.90 13.5 2.2% 21.8 14.3% 83% 3.7 £221

12 Standard Chartered PLC STAN FTSE 100 Banks £13.43 11.1 3.9% 13.0 10.4% 79% 0.0 £3,451

237 Standard Life Investments Property Inc Trust LtdSLI Small Cap Real Estate Investment & Services £0.76 9.6 6.0% 80.1 -10.2% 25% 0.0 £0

113 Synergy Health PLC SYR FTSE 250 Health Care Equipment & Services £12.68 23.0 1.6% 35.7 16.4% 96% 5.7 £36

151 Tarsus PLC TRS Small Cap Media £2.27 14.1 3.2% 21.8 7.2% 67% 4.2 £10

123 Tate & Lyle PLC TATE FTSE 250 Food Producers £6.93 12.6 4.0% 15.1 3.5% 63% 3.4 £262

175 Ted Baker PLC TED FTSE 250 Personal Goods £19.18 27.5 1.8% 45.7 11.1% 92% 1.1 £33

90 Telecom plus PLC TEP FTSE 250 Fixed Line Telecommunications £15.28 39.0 2.3% 64.0 24.4% 92% 0.1 £28

13 Tesco PLC TSCO FTSE 100 Food & Drug Retailers £3.04 10.8 4.9% 11.2 7.0% 79% 3.2 £3,451

182 Town Centre Securities PLC TCSC Small Cap Real Estate Investment Trusts £2.44 17.6 4.3% 14.8 -6.1% 50% 16.6 £10

234 Tribal Group PLC TRB Small Cap Support Services £1.75 13.8 0.9% 16.0 -7.0% 54% 1.2 £10

22 Tullett Prebon PLC TLPR FTSE 250 Financial Services £2.90 7.5 5.8% 7.2 7.5% 63% 2.0 £116

218 Tullow Oil PLC TLW FTSE 100 Oil & Gas Producers £8.43 12.1 1.4% 30.9 15.3% 63% 3.9 £334

202 UK Mail Group PLC UKM Small Cap Industrial Transportation £6.22 19.0 3.4% 28.5 5.3% 63% 0.1 £14

86 Ultra Electronics Holdings PLC ULE FTSE 250 Aerospace & Defense £18.50 17.6 2.3% 25.2 12.0% 79% 0.9 £80

120 Unilever PLC ULVR FTSE 100 Food Producers £26.80 21.5 3.4% 23.4 7.0% 79% 1.8 £5,269

130 United Drug PLC UDG FTSE 250 Food & Drug Retailers £3.44 15.8 2.3% 21.3 7.3% 79% 5.5 £60

163 United Utilities Group PLC UU. FTSE 100 Gas, Water & Multiutilities £8.68 10.0 4.2% 18.0 -2.4% 63% 16.2 £381

107 Vedanta Resources PLC VED FTSE 250 Mining £11.00 -62.5 3.4% 11.7 3.3% 67% 25.6 £427

96 Victrex PLC VCT FTSE 250 Chemicals £18.05 21.2 2.4% 32.5 14.2% 92% 0.0 £85

52 Vitec Group (The) PLC VTC Small Cap Industrial Engineering £5.80 11.4 4.0% 13.4 7.0% 67% 3.0 £25

3 Vodafone Group PLC VOD FTSE 100 Mobile Telecommunications £2.10 3.0 5.2% 9.5 10.4% 88% 2.9 £14,435

211 Vp PLC VP. Small Cap Support Services £6.33 26.4 1.9% 32.8 7.6% 75% 4.3 £13

112 Weir Group PLC WEIR FTSE 100 Industrial Engineering £26.20 16.5 1.6% 32.4 21.9% 88% 2.7 £301

153 Whitbread PLC WTB FTSE 100 Travel & Leisure £41.86 22.2 1.6% 39.8 13.3% 92% 1.2 £354

48 William Hill PLC WMH FTSE 100 Travel & Leisure £3.56 14.3 3.3% 14.9 -0.5% 88% 3.2 £279

222 Wilmington Group PLC WIL Small Cap Media £1.97 26.1 3.6% 27.6 1.6% 42% 8.1 £5

228 Wood Group (John) PLC WG. FTSE 250 Oil Equipment, Services & Distribution £7.87 24.4 1.7% 26.2 8.5% 63% 5.2 £288

154 Workspace Group PLC WKP FTSE 250 Real Estate Investment Trusts £5.73 44.1 1.7% 3.1 -20.2% 58% 5.7 £60

29 WPP Group PLC WPP FTSE 100 Media £12.87 10.1 2.7% 20.7 15.3% 92% 3.0 £1,471

233 Xaar PLC XAR FTSE 250 Electronic & Electrical Equipment £8.64 20.6 0.9% 67.2 16.3% 63% 0.0 £12

IMPORTANT DISCLAIMER: The author is not registered as an investment adviser or as an independent financialadviser and does not provide individual investment advice. As no advice is provided, neither the author nor this documentare regulated by the Financial Services Authority. This document contains the opinions of the author and should neverbe construed as investment advice; it is for information only. The information contained in this document is not an offeror recommendation to buy or sell or a solicitation of an offer to buy or sell any securities.

The specific needs, investment objectives and financial situation of any particular reader have not been taken intoconsideration and the investments mentioned may not be suitable for any individual. You should not base anyinvestment decision solely on the basis of this document. You should carry out your own independent research andverification of facts and data. If you are unsure of any investment and need advice you should seek professional financialadvice.

The information in this document and any expression of opinion by the author have been obtained from or are based onsources believed to be reliable, but the accuracy or completeness of any such sources or the author’s interpretation ofthem cannot be guaranteed although the author believes the document to be clear, fair and not misleading.

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DISCLOSURE: The author owns shares in all of the companies in the model portfolio and intends to buy shares in anynew model portfolio investments, and sell the shares of any model portfolio holdings which are sold, according to thetrading restrictions noted above.

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© John Kingham 2012. Offices at Suite N, Regency House, 6-7 Elwick Road, Ashford, Kent, TN23 1PD

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june 2014 uk value investor...john kingham, 1st june 2014 “this is my quest, to follow that star -...

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