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Hercules Property - Prospective PE of 7.2

June 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.

Hercules has announced that it is folding Deacon (the supplier of insurance for flats) into its Cadogan commercial property insurance division. The two accounted for 40%  of divisional profit at the interim stage. Farr, the specialist in the social housing sector, accounted for the remaining 60%.  The merger will facilitate the cross generation of business leads and enable duplicated overheads to be stripped out. The timing is good as both divisions are about to enter their quieter part of the year so the move should not be too disruptive. Separately, Hercules also reported good news for its commercial property agency business Dunlop Heywood Lorenz. The business, which had a tricky first half as a result of a cyclically ...

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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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