Updates

One Savings Bank / Aldermore

September 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.

The budget brought unexpected developments to the challenger banking sector, affecting Aldermore and One Savings Bank. Harsher of the changes is an 8% surcharge on bank profit above a £25m threshold as from 1 January 2016, although this will be mitigated by a reduction in UK corporation tax to 19% in 2017 and 18% in 2020. The rise not only affects eps but also retained profits, reducing banks’ ability to lend and is therefore counter-productive to the Government’s determination to help SMEs.There are also two changes affecting buy-to-let landlords (BTL) who own property in their own name. Those who pay the higher (40%) or top (45%) rate of income tax will in future only be able to claim mortgage interest relief to ...

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Hays - Q4 net fee income growth beats expectations

Sports Direct - Big reduction in net debt

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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