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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Howden Joinery - Shares hit new high

September 2012

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.

As we had anticipated when we made Howden a main write-up last month it duly announced interims ahead of expectations. In the 24 weeks to 9 June revenue rose almost 7% to £365m while pretax profit increased 8% to £25.4m. Eps went up 14% to 3.2p.Like-for-like sales in UK depots rose 5% in H1, implying 7% growth in the past eight weeks, while two price rises helped gross margins jump from 59.3% to 60.1%. Seasonal working capital outflows, the opening of 8 new depots (taking the UK total to 517) and further payments to eliminate  legacy property leases and alleviate the pension deficit reduced net cash from £57.1m last December to £37.4m. Encouragingly, management say they now intend to distribute up to one thi ...

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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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