iPortfolio
Buying Hargreaves
Nephew Wilde
I found myself getting rather neurotic last week. Every night I had vivid dreams about impending financial crises, each one ending With me searching for scraps of food in the dustbin. A most unsavoury thought, I admit, and as a result of my growing anxiety I made two appointments. The first Was with Madame Prudence and the second with my broker, Wotherspool. The former party was recommended to me as a sagacious soothsayer — if somewhat delphic in her pronouncements — Whose rates were reasonable. Well after half an hour and lighter by three pounds I felt that all my burdens were about to be shed, for the old girl, after firmly pressing My palm, said that very shortly I should be .leaving the country for an extended period. With no plans
for foreign travel (especially with currency problems to contend with) I am now nervously awaiting to hear which of my overseas cronies is about to get married, has died or is in need of bail.
Of rather more comfort was my visit to Wotherspool. I had almost forgotten what the City looked like when I went to his office and, indeed, after the bad name that the financial community has been attracting was half expecting to find this manifested by my being mugged or pickpocketed. On safe arrival at Wotherspool's office, however. I hastily forgot these distractions as we got down to the business of examining my portfolio.
Certainly I am rather more sanguine about my affairs. And what is comforting is that longterm holdings such as Guthrie are proving so rewarding. Manchester Liners had been on my mind recently after I read that an arms haul had been found on one of the fleet's ships but Wotherspool has little fears on this score. His views on Burmah Oil were also valuable since although the Middle East situation looks remarkably unhealthy, he feels that the group's other interests — with the North Sea yielding more finds — will hold the group in good respect.
In fact the dilemma has been what share to sell. And we have finally decided, albeit reluctantly, that Martin-Black has to go. This leaves way to purchase Hargreaves Group, a Yorkshire-based concern with a gamut of interests spreading from fertilisers and quarrying to fuel distribution and commercial vehicles. Last year all the divisions pulled their weight and produced overall profits of £2.4 million pre-tax. The current prospects also look encouraging and for the longer term with a lively acquisition policy and internal reorganisation producing benefits there should be plenty of good news in store.
Hargreaves is selling at under ten times last earnings and yields
about 414. per cent. Well down from the year's high price, it now looks an excellent opportunity for investment.
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