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Creston - Acquisition in Germany likely

July 2004

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.

Shares in Creston have recently been held back by the expiry of warrants issued at the time of Don Elgie's arrival at the group. The warrants, which have an exercise price of 131p, partly explain why market makers have been happy to pull back the shares to that level this month despite good results.  For the year to 31 March, including a five and a half month contribution from Nelson Bostock and a full year from EMO (four months last year), Creston reported pretax profit up 130% to £2.09m and earnings up 42% to 9p. Turnover increased by 58% to £29.5m. Marketing Science, providing quantitative and qualitative market research, grew sales by 16% to £9.4m with operating profit up 40% from the depressed le ...

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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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