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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Connect Group - Acquires Tuffnells Parcels

January 2015

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.

  • Epic Code:
  • CNCT
  • Price:
  • 155.25p
Connect, the former Smiths News, has acquired Tuffnells Parcels, a leading national distributor of next day B2B packages, specialising in irregular items in terms of dimension and weight, for an initial £113m. The transaction represents 7.1x trailing EV / EBITDA, falling to 6.3x, once £2m of cost synergies are included. The deal is to be financed via extended debt facilities and an underwritten 2:7 rights issue at 102p to raise £55m.Tuffnells, which was founded 100 years ago in Sheffield, operates from a nationwide network of 34 depots and handles over 10m parcels annually. It also gives Connect access to a new network with core markets worth an estimated £740m out of a total parcels market of £5bn. Tu ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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