Trading Updates 25/06/2019
Bought: Countryside Properties and Experian. Sold: Keller
We have bought Countryside Properties and Experian and sold Keller for the risk managed fund range.
BOUGHT: Countryside Properties
We have bought Countryside Properties for the risk managed fund range. The business has two divisions, Housebuilding and Partnerships, and is active in the South East, the Midlands and the North of England. The Housebuilding division has a good book of business and continues to target further growth and margin expansion by leveraging investment in a state-of-the-art modular construction manufacturing plant which should reduce production times and construction costs, improve build quality and reduce health and safety risks for employees. The Partnerships division works with local authorities to regenerate brownfield land, providing mixed tenure housing for the private, affordable and PRS sectors. Demand for regeneration work has increased significantly in recent years as local authorities address the chronic shortage of both private and affordable housing. With 30 years of experience in the field, Countryside has accumulated a 9-year order book of projects and demand remains strong. The business is highly profitable and cash generative, pays an attractive dividend yield of over 5% and has net cash on its balance sheet.
We have bought Experian for the risk managed fund range. Experian is a global information services company which provides data and analytical tools across four broad divisions; Credit Services, Decision Analytics, Marketing Services and Consumer Services. Experian has a strong position in the global information services market, estimated to be $110bn in size and growing, with substantial proprietary data assets that have in many cases taken decades to develop and play an essential role in their customers’ operations. The business is highly cash generative and in recent years has been investing heavily in new product development which has enabled market share gains and expansion into adjacent markets and sectors. They have operations in North America, the UK & Ireland, LATAM and EMEA/APAC which should allow for many years of profits growth ahead.
We have sold our position in Keller for the risk managed fund range. Keller is the world’s largest geotechnical specialist contractor and has an excellent reputation within the niches that it operates. However, the shares have rallied circa. 30% over the last 4-months and we are comfortable with the exposure the funds have to the US infrastructure development story from other areas of the portfolio.
Cornelian Investment Team