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Retail Decisions - Buys UK fuel card business from DHL

November 2005

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:
  • RTD
  • Price:
  • 21.5p
Explaining the recent share price weakness is the fundraising associated with an acquisition  to expand Retail Decision’s largest division in payment cards for fuel purchase.That division already accounts for 90% of the group's operating profits and 50% of its revenues under the Motorpass and Motorcharge charge card brands in Australia. This month’s acquisition of Fuelserv adds a presence in the issuing and operation of payment cards for fuel purchase in Europe. In total, Fuelserv has 65,000 cards in issue and 6,300 live customer accounts in the UK, Ireland and Europe.Retail Decisions is paying £21.5m for Fuelserv to DHL, a division of Deutsche Post for which the business is non-core. To fund it, ther ...

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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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