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SSP - Gain: 56% following bid

August 2008

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.

  • Epic Code:
  • SSPH
  • Price:
  • 190p
SSP, the provider of IT systems and services to the general insurance industry, has received a 190p cash offer from H&F Private Equity valuing the company at £161m. The offer represents a premium of 68p or 56% on the 122p at which we made the shares a main recommendation in April ‘07. Together with the bid news, SSP also released preliminary results for the year to 31 March with a profit before tax of £10.3m (eps 15.8p).The 190p offer therefore values it on a PE of 12x. Gain: 56%. ...

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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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