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Homestyle

August 2003

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.

Continuing difficulties in the Harveys furniture division showed through in Homestyle’s results for the 14 month period to 26 April, following the change in its year end from 28 February. A few days earlier, it had finally sold its old non core upholstery fabric distribution business, Rexmore, after a long wait (mostly to do with Stock Exchange red tape). Rexmore has been sold to its management for £7m to be received in stage payments, with a further £2m to come from unwinding working capital (debtors and creditors were not sold with the acquisition).  For the 14 month period, profit before tax and a non-cash write-down of £22.6m in respect of Rexmore, was £28m. This split £32.5m profit in the 12 months to 28 February ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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