Secondary Recommendation

Gibbs & Dandy - Builders merchant unwinds family control

March 2005

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.

The combination of a strong economy and a whiff of consolidation activity has triggered an impressive re-rating among shares in the builders merchants sub-sector. For example, old TMI favourite, Travis Perkins, 1934p, has risen over 160% since we tipped it at 743p in October 2001, with its latest upward spike being triggered by the audacious acquisition of Wickes, which makes it the second largest player in its market and has pushed the shares into the FTSE-100. While Travis will continue ticking over nicely, we believe that much richer pickings are to be had by focusing on smaller fry, which have the benefit of growing from a lower base. One with fantastic growth credentials is the family run Gibbs & Dand ...

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