Directors’ Dealings

Bailey’s purchase of shares in SPMG (which publishes the Sunday Sport and the Daily Sport newspapers), at 34p and 29.75p, increases his holding to 0.27 per cent. It followed strong interim results to January that showed underlying profits rising 48 per cent to £3.2 million and turnover up 180 per cent to £14.4 million. The results were tainted by the news that management is adopting a more cautious view on its full-year performance – a profit warning in short – news that knocked the shares from 42p to 30p. This follows the delayed relaunch of the Daily Sport, as well as ‘the deteriorating macro economic climate.’

The relaunch formed part of a complete reorganisation of advertising, sales and branding across the various media platforms of the new enlarged group, which has drafted in Barry McIlheney, who was involved in the launches of FHM, Zoo and Heat, as editor-in-chief.

Meanwhile, the current share price values the entire company – formed through the reverse takeover of Sport Newspapers by AIM-traded ‘adult’ content provider Interactive World (following a 75p placing that pulled in just under £44 million) – at only £29.1 million.

Bate spots the talent
Elsewhere in the media sector, recently appointed Talent Group chairman Terry Bate has added to his shareholding in the talent development company. Buying £50,000 worth of shares at 5p, his stake in the business has increased to 24.83 per cent and follows the recent sale by former chairman John Cooper of 2,991,900 shares in a move leaving him with a five per cent stake in the group.

The AIM-quoted company had a difficult 2007, during which turnover reduced by more than £2 million to £3.3 million and the share price waned to 6.5p, valuing the business at just over £1 million.

Talent has encountered
challenges such as a decrease in commissioning due to the ban on advertising HFSS foods (high in fat sugar and salt) that came into force in March last year. Also significant were the several high-profile malpractice incidents surrounding telephone competitions in the entertainment sector – none of which involved Talent – which forced several internal reviews at the major broadcasters, stalling several major projects. However, with several commissions at home and abroad in process and a new chairman in place, Talent will be looking to impress investors with a more upbeat 2008.

Profit-taking at Hardy
At Hardy Oil & Gas, the India- and Nigeria-focused resources counter quoted in the FTSE 250, CEO Sastry Karra has sold 500,000 shares at 726p, with COO Yogeshwar Sharma disposing of two million shares at the same price, raking in some £1.45 million. The sales come on the back of a share price performance that has been strong in 2008, with the price advancing from £5 at the start of the year to a high of 846p, before a recent pull-back to 798p.

Vaughan sees the value
Clearly believing shares in construction materials provider Ennstone to be undervalued, chairman Vaughan McLeod has acquired 200,000 shares in the company at 27.5p, just below the current 31p and some way south of a mid-2007 high of 54.25p.

His purchase followed strong full-year results from the small-cap company, which operates in the UK, Poland and through three US subsidiaries, displaying growth on all fronts and matching market forecasts. Following a year in which pre-tax profits improved 24 per cent to just under £17 million, McLeod cheered investors with a 3.5 per cent hike in the dividend to 1.49p.

Ennstone sees huge value in its unrealised, very valuable mineral assets, currently estimated at 300 million tonnes, with access to these resources almost completely secured. The company is planning to double extraction rates to take full advantage of these resources, while diversifying into other related products such as concrete and various building supplies.