Town Centre Securities (TOWN)

Sector:

Property Investment Trusts

Index:

FTSE Fledgling

87.00p
   
  • Change Today:
    -0.50p
  • 52 Week High: 232.00
  • 52 Week Low: 81.50
  • Currency: UK Pounds
  • Shares Issued: 53.07m
  • Volume: 20,423
  • Market Cap: £46.17m

Sunday share tips: Capita, Town Centre Securities

By Alexander Bueso

Date: Sunday 26 Feb 2017

LONDON (ShareCast) - (ShareCast News) - A "dizzying" acquisition spree since 2006 at Capita saw revenues more than double, but left behind a balance sheet so complex that the firm would need to go much farther to convince investors it was now on the right path than just promising a 'simpler Capita', The Times's Tempus said.
The company brought on board Sir Ian Powell, who ran PwC UK, in September 2016 and he took over as Chairman last month.

Not soon after Powell arrived, the support services giant launched a first profit warning, which it blamed on Brexit, sending its shares diving.

Capita - which had also been left with "dangerously" high debt - was now also facing its ouster from the Footsie, Tempus pointed out.

Its acquistion spree over the past decade had also resulted in a complex company in operating terms, with business units ranging from managing mortgages for the Co-op Bank to tagging criminals, the tipster added.

Even worse, signs had appeared recently that its biggest client, Westminster, was losing patience following criticism from Whitehall's accounting watchdog.

"It will take more than the company's "Simpler Capita" strategy to convince the City the company is back on track. Powell will likely need a new top team to do it. Sell," Tempus said.



Midas touted Town Centre Securities's long-term outperformance and generous dividends, telling readers they could expect the same in coming years.

The family-owned and run regional property business's focus was centred on Leeds and Manchester.

It's popular Merrion Centre in Leeds, its flagship development, received more than 10.0m visitors per year and included tenants such as Morrisons, Sainsbuty's and Boots.

Town Centre was also selectively buying some properties in the less flashier parts of London's suburbs as part of the shift in its portfolio away from Glasgow and Edinburgh, the paper pointed out.

The company run by Edward Ziff, the founder's son, was also involved in various development projects which Midas said would boost property valuations and income over the next few years.

True, the business derived over 75% of its income from the North, which had not enjoyed the boom seen in the South East.

Nonetheless, the North was expected to be more resilient in the next few years, Midas said.

Furthermore, brokers were forecasting full-year profits would be 20% ahead in 2017 with more growth seen in 2018 and beyond.

"The company has outperformed larger rivals over the past five and ten years, combining conservatism with a determination to deliver sustainable growth and generous dividends. Looking ahead, that combination makes the shares a strong, long-term bet," The Mail on Sunday's Midas column said.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

TOWN Market Data

Currency UK Pounds
Share Price 87.00p
Change Today -0.50p
% Change -0.57 %
52 Week High 232.00
52 Week Low 81.50
Volume 20,423
Shares Issued 53.07m
Market Cap £46.17m

TOWN Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
57.81% above the market average57.81% above the market average57.81% above the market average57.81% above the market average57.81% above the market average
22.22% above the sector average22.22% above the sector average22.22% above the sector average22.22% above the sector average22.22% above the sector average
Price Trend
89.6% below the market average89.6% below the market average89.6% below the market average89.6% below the market average89.6% below the market average
94.74% below the sector average94.74% below the sector average94.74% below the sector average94.74% below the sector average94.74% below the sector average
Income
27.57% above the market average27.57% above the market average27.57% above the market average27.57% above the market average27.57% above the market average
25% below the sector average25% below the sector average25% below the sector average25% below the sector average25% below the sector average
Growth
74.76% below the market average74.76% below the market average74.76% below the market average74.76% below the market average74.76% below the market average
88.89% below the sector average88.89% below the sector average88.89% below the sector average88.89% below the sector average88.89% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

TOWN Dividends

  Latest Previous
  Final Interim
Ex-Div 03-Dec-20 28-May-20
Paid 05-Jan-21 26-Jun-20
Amount 1.75p 3.25p

Trades for 23-Oct-2020

Time Volume / Share Price
15:28 1,590 @ 85.66p
13:51 5,621 @ 88.34p

Top of Page