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Standard Life UK Smaller Companies and FRC Meetings

Yesterday I attended two meetings in the City of London. Here are brief reports on each. Standard Life UK Smaller Companies Trust Plc (SLS) held a meeting for investors to “meet the manager” in London as their AGM was in Edinburgh this year – only about 10 people attended the latter so there were more in London. I have held this trust for some years and the manager, Harry Nimmo, who has been with the company for 33 years has been a ...

VCTs and the Budget

It looks like VCTs have escaped, but there is some tightening of the qualifications. We will need to read this in detail to see the outcome. There has however...

The belly of the beast – Con Keating and the Investment Association

I am not a great fan of the Investment Association, the trade body that represents UK investment managers. Its 200 members collectively manage over £6.9 trillion on behalf of clients in the UK and around the world. Regular readers will recall my pleasure when Chris Sier was appointed to improve the disclosure of fund manager fees, https://www.fnlondon.com/articles/an-audience-with-chris-sier-the-fcas-new-pit-bull-on-fund-fees-20170804 and my displeasure when the Investment Association were asked by HM Government to maintain the naughty register of companies with more than 20% of their ...

Halma (HLMA) and Return on Capital

Recently, I talked about Diploma (DPLM) and their calculation of adjusted return on capital. This morning Halma (HLMA) published their half year results and they also have a strong emphasis on return on capital, but in this case they call it “ROTIC” (Return On Total Invested Capital). This was down slightly at 13.4% and they define it as Adjusted Profit After Tax divided by Total Invested Capital. The latter is shareholders funds, plus retirement benefit obligations, less deferred tax assets, plus ...

Diploma (DPLM) and Return on Capital

Diploma Plc, a supplier of specialist technical products, issued its preliminary results for the year to the end of September today (20/11/2017). This company may not be a household name and hence can fall under the radar of investors. But it has demonstrated a consistent track record in recent years. Today was no exception. Adjusted earning per share were up 19%, and revenue was up 18%, although a significant proportion of the improvement was down to currency movements (they are a ...