Directors’ Dealings by David Russell

Former Lloyd’s underwriter John Robinson, executive director and chief underwriting officer at AIM-traded Omega Insurance, took the opportunity to acquire 110,000 shares in total (in tranches of 50,000 at 150p and 60,000 at 141.5p) as the share price fell during June.

Currently priced at 139.5p, shares in Omega, with business in Bermuda, the US and Europe, have suffered weakness despite a strong overall performance from the company, which has a 28-year unbroken record of profitable underwriting behind it and has recently completed a corporate reorganisation to bring its international operations in synch.

Robinson’s confidence appears well founded, with March’s results for 2007 displaying profit before tax of £30.2 million ($59.5 million) and Omega maintaining its policy of paying out 70 per cent of its earnings in dividends. Investors were treated to a final dividend payment of 16.3p, which together with the interim payment gave a total for the year of 24p.

Alcalay ups his stake
Elsewhere on AIM, Arik Alcalay, chief executive of Leadcom Integrated Solutions, the Israeli-based telecoms firm, bought 200,000 shares at 16p.

This followed a fall in the share price to a year’s low of 15p, from last year’s high of 73.5p in the wake of tough trading conditions in which Leadcom has struggled to make a profit.

Alcalay now speaks for a still modest 1.74 per cent of the company, having spent £32,000. Following the transaction, the share price has recovered somewhat to 20.25p, valuing Leadcom at £24.4 million.

The company has admitted difficulty in translating revenue growth into profits. Between
2006 and 2007, sales increased by 87 per cent to £102 million ($201 million), though profit before tax decreased almost a fifth to just over £4 million ($8.5 million.)

How takes a bow
Tim How, outgoing chief executive of successful AIM star Majestic Wine, has crystallised £198,762 through the sale of 94,200 shares in the wine warehouse chain at 211p, significantly below the 52-week peak of 390p. How, who steps down as CEO in August, is left with 0.38 per cent of the company, which recently announced robust annual numbers to March, with profits up from £16.2 million to £16.7 million. The latest sale follows the earlier disposal of a further 135,000 shares at 200p, as well as the selling of a 65,000 tranche by his wife Elizabeth at the same price.

Majestic has successfully weathered a tricky trading climate under How, credited as having created one of the most resilient business models in the retail sector and shortly to hand over the reigns to chief operating officer Steve Lewis.

Craig cashes in
Another AIM seller was Craig McGuckin, an executive director of oil and gas venture Rheochem. He sold one million shares in the company at 13.6p for £136,000 – the shares were held by Clemm Limited, his private investment vehicle. Clemm Limited still retains an interest in 2.5 million Rheochem shares and McGuckin owns a further 714,211 shares through Sarell Limited, meaning he still has an interest in 3.29 million Rheochem shares, or 1.51 per cent of the business.

Rheochem, valued at £33.6 million at the current 15.5p per share, provides drilling fluids to the buoyant oil and gas industries in Australia, New Zealand and India and recently renewed its contract with Australia’s largest domestic gas supplier, Santos, a deal running through until 2011.

The market has also been responding well to news that Zeus Petroleum, in which Rheochem has a 50 per cent stake, is expected to release almost 50 per cent more oil than previously realised, from its North Sea blocks.

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