Secondary Recommendation

Highbury House - Consumer publishing doing well

April 2003

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.

In common with most of the media sector, shares in trade and consumer publisher Highbury House have taken a battering, falling from a peak of 85p in early 2000 to just 12p, before its recent results induced a partial recovery to 14.75p. Those results showed both pretax profit and earnings actually beating the 2001 numbers, helped by a reduction in the cost base the year before. Equally reassuring is the strong cash generative nature of the business, which pushed gearing down from 20% to 18%. Thevast majority of Highbury's profit comes from consumer publishing,which made 71% of the Â£12.8m operating profit last year and enjoyedstrong increases in circulation and cover prices. Hig ...

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Quarto - Prospective PE: 4.6

Paddy Power - Fast growing bookmaker

Highbury House - Cut losses (September 2004)

Highbury House (July 2004)

Highbury House - Sharp rise in gearing (May 2004)

Highbury House - Allays trading fears (March 2004)

Highbury House - Disposal still awaited (October 2003)

Highbury House - Increasing consumer publishing exposure driving re-rating (September 2003)

Highbury House - Cheap magazine publisher (May 2003)

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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