Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

Network data Holdings - a nice little business, if only one could buy the shares

I see that Network Data Holdings (NDH) quietly announced their preliminary results today.

Turnover increased by 35% to £29.2m and profit before tax rose by 178% to £1.9m. A dividend of 0.35p per share is to be approved at the Annual General Meeting.

Business volumes have increased by 30%, 16 sales staff have been recruited for Hipstar (the Home Information Pack business) and 51 Home Inspector franchises have been sold-I can’t wait to see the official uniform for the Home Inspector! The Group continues to invest significantly in Hipstar ahead of 1st June when Home Information Packs become mandatory.

This looks a nice little business. With 572 Appointed Representative firms NDH has a 20% market share of AR firms and is the largest mortgage network in the UK.

If only one could buy the shares. Today’s positive news was greeted by the trading of a massive 12,200 shares equivalent in value to c£7,000.

I like the following comment from the results:

'We are delighted with the success of the listing on AIM and welcome all thosewho have become shareholders in the Group. We intend to keep shareholders informed of our progress and developments in particular in the HIPs market as HIPs come into force.'
With no new funds raised on float and no sellers from amongst senior management they must only have a handful of outside shareholders!

It's look like we will have to wait for them to make a significant acquisition requiring the raising of new funds thereby attracting new shareholders.


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