Updates and Ideas

National World - Reach copy-cat with £19m cash for M&A

November 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Over the month I met with Vijay Vaghala, CFO of AIM-listed National World, originally a cash shell that bought the Johnston Press Newspaper titles in January. National World is hoping to repeat the success of Reach (RCH; 344p) (a TMI recommendation in Feb ‘21 at 191p, now up 80%), which has significantly increased its proportion of higher margin digital sales in place of dead tree printing and early signs are encouraging. First half results for the six months ended 30 June were well ahead of expectations and broker Dowgate Capital has upgraded National World’s pretax profit forecast by 21% to £5.7m for new eps of 2.3p.National World was set up by Vaghela and David Montgomery in May 2019 to pursue opportunities in the news publishin ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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