12 September 2019
This weak pound together with weak markets is stimulating M&A activity. Yesterday the Hong Kong Exchange makes an offer for the LSE (LON:LSE), the same day as the south African Growthpoint (JO:GRTJ) launches a partial offer for Capital & Regional (LON:CAL). On Tuesday this week Galliford Try (LON:GFRD) and Bovis announced they are in talks to merge their housebuilding business. I don’t remember feeling so relaxed that markets are weak.
Value
Brooks Macdonald (LON:BRK) – FY Results
Share Price 1960p
Mkt Cap £273m
Conflict Disclosure: No Holding
Conclusion it is two years the new CEO has been in place over which time the shares are down 10%. There have been a significant number of issues to deal with around the Spearpoint business as well as streamlining the operations and eliminating overlap. I get the sense this is drawing to a close as the company is now looking at acquisitions again while there is margin upside potential. With a low (ish) valuation this looks like a good time in the companies lifecycle