UK Value Investor August 2012

August 2012

UK Value Investor

UK Value Investor is for investors who want to make their own investment decisions and are capable ofdoing so without professional advice. If you think you need advice then you should seek a professionaladvisor. Please see the important notes on the back page for further information.

Photo credit: David Catchpole

Contents

Market forecast and tactical asset allocation Page 2

Model portfolio review: Pulling ahead of the market Page 3

Buying: Another FTSE 100 company joins the portfolio Page 5

FTSE 350 Rankings: The easy way to find income and growth Page 8

Searching for high returns and low riskBy John Kingham, Editor

This month’s new investment for the model portfolio is a good reminder of the goals that thisnewsletter has set out to achieve. It is not about disappearing into the depths of the small-capworld or the AIM index in search of decent returns. It is about getting more income and moregrowth than what is available from the FTSE 100, but without taking much - if any - additional riskand for the most part, sticking with FTSE 100 companies.

Too many investors fail to do well simply because they believe that they can get outstandingresults, and that the way to get those results is to invest in high risk companies. Perhaps thisattitude is beginning to change though. The dot-com bubble has long since burst and investorshave had generally poor capital gains in the last decade. Add to that the financial crisis that wehave gone through, and are still going through, and investors are beginning to see once again thebenefits of a focus on quality and dividend income.

I doubt that it will last though. At some point in the future a new bull market will begin in earnestand any interest in dividends and steady, above average growth will be left behind. It would be apity, as this type of strategy has been used over many decades by some of the world’s bestinvestors to beat their respective market’s over and over again. In my opinion it is likely to remainan outstanding strategy for a long time yet.

Market forecast and tactical asset allocationThe UK market maintains its cheap valuation

At 5,600, the FTSE 100 continues to move in the 5,000 to 6,000 range that it has been in since2009. With a long enough time horizon (and investors should typically have a horizon of more thanfive years) then a cheap market is a good thing because it means companies can be bought athistorically attractive prices.

It’s always important to remember that future returns move in the opposite direction to historic pricemovements. So if the index (or a share) goes up then future returns will be lower than they werebefore. This is why the model portfolio sells out of positions where the share price has moved upconsiderably.

I'm not going to say anything about where the market is going in the next year or so because quitefrankly, neither I nor anybody else knows. We can all guess and, much like guessing which side atossed coin will land, many people will be right, but they will be right only through luck. In the

FTSE 100 Range Description 7 Year Forecast Annual Returns(including dividends)

11,600 - 13,900 Bubble -3% to 0%

9,300 - 11,600 Bull Top 0% to 3%

6,900 - 9,300 Expensive 3% to 8%

5,800 - 6,900 Normal 8% to 10%

4,600 - 5,800 Cheap 10% to 14%

3,500 - 4,600 Bear Bottom 14% to 19%

2,300 - 3,500 Depression 19% to 26%

longer-term though, it is possible to make sensible forecasts like the ones in the table, even if weknow in advance that they will not be completely accurate.

You may have also noticed that at 5,600, the FTSE 100 is at exactly the same level, to the nearesthundred, as it was in last month’s issue. This means that not only is the market still in the same‘cheap’ range as last month, the tactical asset allocation numbers are the same too.

With the market slightly below its long-term average valuation, the equity allocations are slightlyabove the default level of 66%, because the market’s future returns are expected to be slightlyhigher than usual. You can see the tactical asset allocation ranges below.

Stocks80%

Bonds20%

High Conviction

Stocks75%

Bonds25%

Med Conviction

Stocks71%

Bonds29%

Low Conviction

Page 3

Model portfolio reviewStaying ahead of the FTSE 100

Since the model portfolio began in March 2011 it has gained £1,250 in value beyond an equivalentFTSE 100 index tracker. That's 2.5% on the starting capital value of £50,000. As you wouldexpect from an income and growth portfolio, some of that has come from capital gains and somefrom income.

For example, in the last 12 months the model portfolio has generated an additional £562 fromdividends. That's an improvement of 33% over the yield of £1,705 from the index tracker. Thismeans that the portfolio is more or less on track with my expectations, which are to beat the FTSE100 by at least 3% a year in the medium and long-term.

Last month's sale of UTV Media netted a useful gain for the portfolio. With the shares purchasedat 104.75p on 6th December 2011 and sold for 148.42p on 5th July 2012, plus a dividend of 4.5pon 16th July, the total gain was around 43%, with annualised returns of almost 88%. Of course,annual returns of 88% are very welcome, but they are most definitely not normal. This was simplya case of being in the right place at the right time; luck in other words, with a helping hand from asensible strategy.

Performance (%) Yield 1y YTD 2011 From inceptionModel Portfolio 5.0 2.4 11.2 -6.9 3.5

Index Tracker 3.8 0.2 4.5 -3.4 1

Relative to Index Tracker 1.2 2.2 6.7 -3.5 2.5

Cash Results (£) Current Capital Value Rolling 12 Month IncomeModel Portfolio 51,726 2,267

Index Tracker 50,476 1,705

Relative to Index Tracker 1,250 562

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Mar

-11

Apr-1

1

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct-1

1

Nov-

11

Dec-

11

Jan-

12

Feb-

12

Mar

-12

Apr-1

2

May

-12

Jun-

12

Jul-1

2

Aug-

12

Model Portfolio Total Return FTSE 100 Tracker Total Return

Page 4

Model portfolio current holdings

Rank Weight Company Epic Index Sector Price Zone Growthrate PE10 Yield

10.3% CASH26 6.3% INTERSERVE IRV FTSE250 SUPPORT SERVICES 324.7 Hold 6% 9.6 6%14 5.3% VODAFONE GROUP VOD FTSE100 MOBILE TELECOMMUNICATIONS 190.2 Buy 16% 15.2 5.8%15 5.3% BALFOUR BEATTY BBY FTSE250 CONSTRUCTION AND MATERIALS 283 Buy 11% 10.7 5.1%61 5.2% MITIE GROUP MTO FTSE250 SUPPORT SERVICES 281.4 Sell 16% 19.9 3.5%

72 5.1% RECKITT BENCKISER RB. FTSE100 HOUSEHOLD GOODS AND HOMECONSTRUCTION 3578.2 Sell 16% 26.5 3.6%

39 5% UK MAIL GROUP UKM SMALLCAP INDUSTRIAL TRANSPORTATION 227.6 Hold 1% 11 8%22 4.8% BAE SYSTEMS BA. FTSE100 AEROSPACE AND DEFENCE 314.8 Buy 8% 11.1 6.2%40 4.7% BHP BILLITON BLT FTSE100 MINING 1917.6 Hold 22% 19.6 3.8%56 4.7% MEARS GROUP MER SMALLCAP SUPPORT SERVICES 269.9 Hold 22% 17.7 3%

10 4.6% ASTRAZENECA AZN FTSE100 PHARMACEUTICALS ANDBIOTECHNOLOGY 3096.5 Buy 14% 12.7 5.9%

33 4.6% SSE SSE FTSE100 ELECTRICITY 1327.7 Hold 9% 15.2 6.2%23 4.1% BP BP. FTSE100 OIL AND GAS PRODUCERS 437.9 Hold 8% 8.3 4.6%4 3.6% TULLETT PREBON TLPR FTSE250 FINANCIAL SERVICES 288.2 Buy 15% 9.2 5.9%12 3.4% BRAEMAR SHIPPING SERVICES BMS SMALLCAP INDUSTRIAL TRANSPORTATION 375.1 Buy 9% 10 6.9%31 3.4% TESCO TSCO FTSE100 FOOD AND DRUG RETAILERS 318.8 Hold 10% 12.7 4.7%27 3.3% JD SPORTS FASHION JD. FTSE250 GENERAL RETAILERS 692.9 Hold 15% 12.3 3.7%45 3.3% BROWN (N) BWNG FTSE250 GENERAL RETAILERS 264.3 Hold 8% 14.1 5%2 2.9% RSA INSURANCE RSA FTSE100 NONLIFE INSURANCE 111.4 Buy 22% 9.8 8.4%9 2.8% ICAP IAP FTSE100 FINANCIAL SERVICES 328.2 Buy 14% 12 6.8%8 2.7% GO-AHEAD GROUP GOG FTSE250 TRAVEL AND LEISURE 1262.9 Buy 14% 10.5 6.4%24 2.5% AVIVA AV. FTSE100 LIFE INSURANCE 306.4 Hold -1% 5.4 8.1%6 2% CHEMRING GROUP CHG FTSE250 AEROSPACE AND DEFENCE 290.4 Buy 28% 12.4 5.8%

Size Allocation

Large-cap, 55%

Medium-cap, 32%

Small-cap, 13%

Industry Allocation

Health Care, 5.2%

Financials, 13.5%

Industrials, 40.6%

Basic Materials, 5.3%

Oil & Gas, 4.6%

Consumer Services, 14.0%

Consumer Goods, 5.7%

Utilities, 5.1%

Telecommunications, 6.0%

Page 5

Buying: Centrica (CNA)The company behind British Gas becomes the latest addition to the portfolio.

Price

323.6p

Index

FTSE 100

Industry

Multi-utilitiesMarket Cap

£16.8 billion

Revenue

£22.8 billion

Profit before tax

£1.3 billion

“Centrica is a top 30 FTSE100 company. Our vision is to be the leading integratedenergy company in our chosen markets in the UK and North America” - centrica.com

OverviewWhen Warren Buffet recently announced that he had invested in IBM, the response from mostinvestment pundits was a yawn at best. Investing in one of the world’s best known companies, onethat has long since reached maturity, is unlikely to get anybody excited. In the same way, addingCentrica - owners of the British Gas brand - to the model portfolio is likely to elicit much the sameresponse. However, that doesn’t mean it is not a good idea.

If you need any further anecdotal evidence that ‘boring’ companies can be attractive investments,then you might be pleased to know that a certain Neil Woodford - head of two highly successfulInvesco Perpetual income funds - is also an investor in this company, along with several otherholdings of the model portfolio.

Initial screeningThe UK Value Investor strategy is based around the idea that there are certain features that anyhigh quality company is going to have. These include a high long-term growth rate, the ability togenerate growth in profits and dividends in most years, a low valuation relative to past earnings, ahigh dividend yield and low levels of debt.

10 Yr growth rate

14%

Dividend yield

5%

Valuation (PE10)

16.3Consistency

80%

Interest cover

16.5

UKVI Rank

25 (out of 197)

Not all good investments will have all these features, but they will typically have some of them.Shares that don’t show at least some of these features are unlikely to be suitable for a low risk,income and growth strategy.

You can see the results for Centrica, along with its UKVI Rank above. In terms of the FTSE 100,which is the benchmark the portfolio is trying to beat, it does better in terms of growth and income,but worse in terms of valuation and consistency.

However, overall the combination of factors is much more attractive than the index, and whencombined they result in Centrica ranking 25th out of 197 FTSE 350 companies, far above the indexwhich still manages to come 73rd.

Page 6

Investment checklistWith the quantitative factors looking attractive, it’s time to look at the business from a qualitativepoint of view.

Would this company be the first, or at most the second from this particularindustry in the portfolio?

Centrica would be the second energy utility business in the portfolio, joining SSE (formerly Scottishand Southern Energy).

Does the business generate earnings across multiple geographic regions?No, Centrica is mostly a UK business, so it is not particularly geographically diverse. However, it isnot in an economically sensitive industry so it is not particularly at risk from a UK based recessionlike the one we are currently in.

Does the business have diverse operations, including customers, suppliersand key staff?

The company has diverse operations in sourcing, recovering, generating, trading and supplying gasand energy and operates at all stages of the energy supply chain. It is not reliant on a small numberof suppliers, it has many millions of customers, and doesn’t have any obviously irreplaceablemembers of staff.

Is it in the leading group within its industry?Yes, centrica is the leading gas supplier in the UK and one of the leading energy companies.

Has the company been highly successful in the past?Yes, the growth and consistency numbers appear to be an accurate representation of the company’sfortunes; it has produced a good set of results over the last decade.

Does the company have any competitive advantages? Are they low cost anddurable?

Centrica’s main advantages appear to be size and brand. As the UK’s largest gas supplier and aleading energy company, it can use its size to produce economies of scale, and to gain access tohigh quality assets. In terms of brand, British Gas and Scottish Gas are very well known and arealmost the de facto choice for many people.

The size advantages is not low cost or durable; the company must continually work to maintain itssize advantage. The leading brands on the other hand are relatively low cost and durable

0

5

10

15

20

25

30

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Penc

e pe

r sha

re

Centrica 10 Year Per Share Results

Adjusted Earnings Dividends

Page 7

advantages. Although brands have to be advertised, the costs are nothing compared to the costs ofbuilding a leading brand in the first place.

Does the company have a consistent operating history within the sameindustry?

Yes, Centrica has been in the Gas and energy business for a long time (previously as British GasPLC).

Has the company been free of any major crises during the last decade? Ifthere were any, how were they solved and could they happen again?

There have been no major crises in the last decade.

Is the company free of obvious problems today which could materially impactits future prosperity?

This seems to be the case. Although the current economic climate is challenging, even for utilitycompanies, there are no obvious major threats at present.

Does it seem likely that the history of success can continue into the future formany years to come? Is there virtually no chance of its economic enginebecoming obsolete in the next decade?

Although there are many things changing in the energy industry today, from volatile commodityprices to decarbonisation on energy, there doesn’t seem to be an obvious reason why Centrica can’tcontinue much as it has in the past, growing at or above inflation for the foreseeable future.

As for obsolescence, that seems even less likely as power will be required in ever growing amountsfor as long as the population is growing in size and prosperity.

SummaryCentrica is the leading gas supplier in the UK through its Scottish Gas and British Gas brands. It hasoperations in the US and is active at every stage of the energy supply chain. It is a FTSE 100company in a defensive industry and so could be considered a relatively low risk equity investment.

It has grown earnings and dividends at around 14% a year over the last decade and has a currentdividend yield of about 5%, both of which are comfortably higher than the market average. Thedividend is well covered by earnings and the growth of both earnings and dividends has beenreasonably consistent over time.

Centrica will be added to the model portfolio shortly, with a weighting of approximately 1/30th of thetotal.

Higher ranking companies that were rejectedCompany Reason for rejectionCAPE, Carillion, Kier Group,Atkins (WS)

These companies operate in the design, engineering, construction and support services industries. The portfolio alreadyowns several similar companies (MITIE, Interserve, and Balfour Beatty).

Amlin, Hiscox These are insurance companies and the portfolio already owns two insurance companies (Aviva and RSA).Man Group, IntermediateCapital These are asset management businesses which are currently excluded from the portfolio.

Aquarius Platinum This mining company carries too much debt as interest cover is only 5.5 and mining is a volatile industry.

First Group It carries too much debt to get into the portfolio. It also has high interest payments relative to earnings with interestpayments covered only 2.7 times.

HomeServe This company is currently being investigated by the FSA.

Xstrata This company is a good candidate, but it is currently in takeover talks with Glencore and takeover situations are not a goodplace to start a long-term investment.

Page 8

FTSE 350 sorted by UKVI RankThe UKVI ranking system is designed so that the highest ranked shares have the best combinationof: high long-term growth rate, high earnings and dividend consistency, low valuation and highdividend yield.

UKVIRank

Company Epic Index Sector Lastprice

Growthrate

Yield Valuation(PE10)

Interestcover

1 CAPE CIU FTSE250 OIL EQUIPMENT - SERVICES ANDDISTRIBUTION

192.5 22.7% 7.5% 8.5 9.24

2 RSA INSURANCE RSA FTSE100 NONLIFE INSURANCE 111.4 21.7% 8.4% 9.83 AMLIN AML FTSE250 NONLIFE INSURANCE 383 44.4% 6.3% 11.74 TULLETT PREBON TLPR FTSE250 FINANCIAL SERVICES 288.2 15.2% 5.9% 9.2 12.075 CARILLION CLLN FTSE250 SUPPORT SERVICES 253.5 12.5% 6.8% 9.1 42.876 CHEMRING GROUP CHG FTSE250 AEROSPACE AND DEFENCE 290.4 27.5% 5.8% 12.4 8.77 MAN GROUP EMG FTSE250 FINANCIAL SERVICES 81.7 8.5% 15.9% 3.48 GO-AHEAD GROUP GOG FTSE250 TRAVEL AND LEISURE 1262.9 14.1% 6.4% 10.5 6.589 ICAP IAP FTSE100 FINANCIAL SERVICES 328.2 13.7% 6.8% 12 15.510 ASTRAZENECA AZN FTSE100 PHARMACEUTICALS AND

BIOTECHNOLOGY3096.5 13.9% 5.9% 12.7 26.43

11 KIER GROUP KIE FTSE250 CONSTRUCTION AND MATERIALS 1276.8 13.9% 5.2% 11.3 13212 BRAEMAR SHIPPING

SERVICESBMS SMALLCAP INDUSTRIAL TRANSPORTATION 375.1 9.3% 6.9% 10

13 FIRSTGROUP FGP FTSE250 TRAVEL AND LEISURE 235.3 6.6% 10.3% 6.6 2.7314 VODAFONE GROUP VOD FTSE100 MOBILE TELECOMMUNICATIONS 190.2 15.8% 5.8% 15.2 7.8115 BALFOUR BEATTY BBY FTSE250 CONSTRUCTION AND MATERIALS 283 10.8% 5.1% 10.716 INTERMEDIATE CAPITAL ICP FTSE250 FINANCIAL SERVICES 260.8 4.0% 7.4% 6.717 HOMESERVE HSV FTSE250 SUPPORT SERVICES 219.4 11.8% 5.1% 12.9 58.2718 XSTRATA XTA FTSE100 MINING 879.8 20.5% 3.1% 9.7 36.9819 HISCOX HSX FTSE250 NONLIFE INSURANCE 454.8 19.9% 4.0% 14.820 ATKINS (W S) ATK FTSE250 SUPPORT SERVICES 668.1 11.6% 4.6% 11.4 10.2321 AQUARIUS PLATINUM AQP FTSE250 MINING 35 11.9% 3.1% 3.5 5.5622 BAE SYSTEMS BA. FTSE100 AEROSPACE AND DEFENCE 314.8 8.0% 6.2% 11.1 17.7623 BP BP. FTSE100 OIL AND GAS PRODUCERS 437.9 8.0% 4.6% 8.3 63.5124 AVIVA AV. FTSE100 LIFE INSURANCE 306.4 -1.1% 8.1% 5.425 CENTRICA CNA FTSE100 GAS - WATER AND MULTIUTILITIES 323.6 14.1% 5.0% 16.3 16.5426 INTERSERVE IRV FTSE250 SUPPORT SERVICES 324.7 6.0% 6.0% 9.6 45.927 JD SPORTS FASHION JD. FTSE250 GENERAL RETAILERS 692.9 15.0% 3.7% 12.3 190.228 BT GROUP BT.A FTSE100 FIXED LINE TELECOMMUNICATIONS 216.2 11.0% 4.2% 11.1 4.5429 DAIRY CREST DCG FTSE250 FOOD PRODUCERS 338.6 1.6% 6.1% 7.2 4.7430 LADBROKES LAD FTSE250 TRAVEL AND LEISURE 159.8 4.4% 5.1% 6.8 5.7231 TESCO TSCOFTSE100 FOOD AND DRUG RETAILERS 318.8 9.8% 4.7% 12.7 14.9832 RIO TINTO RIO FTSE100 MINING 3030 16.4% 3.3% 12.4 59.7933 SSE SSE FTSE100 ELECTRICITY 1327.7 8.6% 6.2% 15.2 7.8634 COMPUTACENTER CCC FTSE250 SOFTWARE AND COMPUTER

SERVICES359.2 13.0% 4.5% 15.7

35 CRH CRH FTSE100 CONSTRUCTION AND MATERIALS 1184.9 9.6% 4.4% 11.4 3.836 AVOCET MINING AVM FTSE250 MINING 84.7 6.8% 6.2% 13.2 13.4837 NATIONAL GRID NG. FTSE100 GAS - WATER AND MULTIUTILITIES 677.5 8.7% 5.9% 16.5 3.8138 BREWIN DOLPHIN BRW FTSE250 FINANCIAL SERVICES 150.3 10.2% 4.7% 15.439 UK MAIL GROUP UKM SMALLCAP INDUSTRIAL TRANSPORTATION 227.6 0.6% 8.0% 1140 BHP BILLITON BLT FTSE100 MINING 1917.6 22.5% 3.8% 19.6 56.7141 MARSTONS MA

RSFTSE250 TRAVEL AND LEISURE 111.7 -0.1% 5.4% 8 2.09

42 OLD MUTUAL OML FTSE100 LIFE INSURANCE 165.2 0.7% 10.5% 1243 MARKS AND SPENCER MKS FTSE100 GENERAL RETAILERS 341 5.5% 5.1% 10.9 9.1544 SEGRO SG

ROFTSE250 REAL ESTATE INVESTMENT TRUSTS 241.1 -4.4% 6.2% 7.6 4.89

45 BROWN (N) BWNG

FTSE250 GENERAL RETAILERS 264.3 7.9% 5.0% 14.1 15.94

46 SAGE GROUP SGE FTSE100 SOFTWARE AND COMPUTERSERVICES

295 28.9% 3.6% 22.2 27.46

47 CLOSE BROTHERS CBG FTSE250 FINANCIAL SERVICES 758.8 4.2% 5.4% 12.448 MORRISON (WM)

SUPERMARKETSMRW FTSE100 FOOD AND DRUG RETAILERS 277.1 13.0% 4.1% 19.5 37.42

49 NATIONAL EXPRESS NEX FTSE250 TRAVEL AND LEISURE 211.7 -2.1% 4.7% 6 4.8550 ROYAL DUTCH SHELL RDSBFTSE100 OIL AND GAS PRODUCERS 2323.8 6.9% 4.6% 12.7

Page 9

UKVIRank


Growthrate


Interestcover

51 UBM UBM FTSE250 MEDIA 661.9 9.6% 4.2% 15.8 7.3252 BERENDSEN BRSN FTSE250 SUPPORT SERVICES 509.9 6.9% 4.8% 14.1 4.9953 LEGAL AND GENERAL LGEN FTSE100 LIFE INSURANCE 130 4.7% 5.2% 13.354 GALLIFORD TRY GFRD FTSE250 CONSTRUCTION AND MATERIALS 630.9 -1.1% 4.8% 8.9 21.6555 HSBC HOLDINGS HSBA FTSE100 BANKS 560.7 0.6% 4.8% 9.756 MEARS GROUP MER SMALLCAP SUPPORT SERVICES 269.9 21.7% 3.0% 17.7 15.6457 PREMIER FARNELL PFL FTSE250 SUPPORT SERVICES 178 2.9% 5.9% 13.7 5.6858 IMPERIAL TOBACCO IMT FTSE100 TOBACCO 2516.2 12.7% 4.1% 20.7 6.3759 GREENE KING GNK FTSE250 TRAVEL AND LEISURE 598.5 7.0% 4.2% 13.2 2.7460 LONDON STOCK EXCHANGE LSE FTSE250 FINANCIAL SERVICES 962.2 19.3% 3.0% 18 10.8361 MITIE GROUP MTO FTSE250 SUPPORT SERVICES 281.4 16.2% 3.5% 19.9 15.5162 ITE GROUP ITE FTSE250 MEDIA 197.5 23.4% 3.3% 22.8 56.1863 SAVILLS SVS FTSE250 REAL ESTATE INVESTMENT AND

SERVICES375.3 8.2% 3.8% 14.5

64 MENZIES (JOHN) MNZS FTSE250 SUPPORT SERVICES 648.6 7.6% 3.8% 14.2 12.2265 BARCLAYS BARC FTSE100 BANKS 171.4 -7.5% 4.0% 466 GREGGS GRG FTSE250 FOOD AND DRUG RETAILERS 509.5 9.0% 4.0% 17.267 BBA AVIATION BBA FTSE250 INDUSTRIAL TRANSPORTATION 185.1 -1.5% 4.8% 10.7 6.9368 PROVIDENT FINANCIAL PFG FTSE250 FINANCIAL SERVICES 1310.3 4.0% 5.9% 17.6 3.3369 BRITISH LAND CO BLND FTSE100 REAL ESTATE INVESTMENT

TRUSTS548.7 7.1% 4.8% 17.6 3.53

70 GLAXOSMITHKLINE GSK FTSE100 PHARMACEUTICALS ANDBIOTECHNOLOGY

1498.2 5.2% 4.8% 15.5 11.88

71 WPP GROUP WPP FTSE100 MEDIA 829.5 14.1% 3.3% 19.1 5.9672 RECKITT BENCKISER RB. FTSE100 HOUSEHOLD GOODS AND HOME

CONSTRUCTION3578.2 16.1% 3.6% 26.5 130.89

73 FTSE 100 5600 6.5% 3.8% 13.774 SHANKS GROUP SKS FTSE250 SUPPORT SERVICES 79.2 -2.4% 4.5% 9.8 3.6375 BRITISH SKY BROADCASTING BSY FTSE100 MEDIA 743 16.8% 3.5% 25.8 13.3776 ANGLO AMERICAN AAL FTSE100 MINING 1901.3 8.5% 2.7% 10.7 483.477 REED ELSEVIER REL FTSE100 MEDIA 565.3 7.8% 4.0% 16.9 6.9278 HAYS HAS FTSE250 SUPPORT SERVICES 76.5 1.2% 3.7% 10.1 15.2179 SCHRODERS SDR FTSE100 FINANCIAL SERVICES 1349.4 15.2% 3.0% 20.780 ELECTROCOMPONENTS ECM FTSE250 SUPPORT SERVICES 219.1 -1.7% 5.4% 14.4 22.0981 DOMINO PRINTING SCIENCES DNO FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT571.2 15.4% 3.5% 25.9 587.64

82 CAPITA GROUP CPI FTSE100 SUPPORT SERVICES 739.2 21.5% 3.1% 27.3 10.1883 CRANSWICK CWK FTSE250 FOOD PRODUCERS 857.9 8.9% 3.4% 16.1 46.684 LAIRD LRD FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT222.9 -2.4% 4.2% 10.9 8.37

85 PRUDENTIAL PRU FTSE100 LIFE INSURANCE 791.5 11.2% 3.3% 18.486 MORGAN CRUCIBLE COMPANY MGCR FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT254.3 5.9% 4.0% 16.1 6.58

87 UNITED UTILITIES UU. FTSE100 GAS - WATER ANDMULTIUTILITIES

686.2 -0.7% 4.8% 14.3 1.91

88 COOKSON GROUP CKSN FTSE250 GENERAL INDUSTRIALS 566.3 -1.5% 4.0% 11 10.1189 ANTOFAGASTA ANTO FTSE100 MINING 1089.7 21.0% 2.6% 22.5 43.9790 SAINSBURY (J) SBRY FTSE100 FOOD AND DRUG RETAILERS 323.1 -0.4% 5.1% 15.5 7.6691 STAGECOACH SGC FTSE250 TRAVEL AND LEISURE 280.7 12.5% 2.8% 18.4 6.0492 INCHCAPE INCH FTSE250 GENERAL RETAILERS 385.1 2.3% 3.1% 9 17.8493 IMI IMI FTSE100 INDUSTRIAL ENGINEERING 838.9 8.1% 3.8% 19.1 23.2494 COBHAM COB FTSE250 AEROSPACE AND DEFENCE 235.2 9.4% 3.3% 17.2 4.8295 RPC GROUP RPC FTSE250 GENERAL INDUSTRIALS 412.5 9.8% 3.6% 20.8 8.0696 BRITISH AMERICAN TOBACCO BATS FTSE100 TOBACCO 3486.7 12.7% 3.8% 30.1 1297 ULTRA ELECTRONICS ULE FTSE250 AEROSPACE AND DEFENCE 1450.6 13.1% 2.9% 21 15.1998 WH SMITH SMWH FTSE250 GENERAL RETAILERS 558.8 2.6% 4.6% 16.599 RESTAURANT GROUP RTN FTSE250 TRAVEL AND LEISURE 316 10.9% 3.5% 23.3 67.83100 INTERNATIONAL CONSOLIDATED

AIRLINESIAG FTSE100 TRAVEL AND LEISURE 151 10.4% 0.0% 10.1 3.59

Page 10

UKVIRank

Company Epic Index Sector Last price Growthrate


Interestcover

101 STANDARD CHARTERED STAN FTSE100 BANKS 1566.8 9.3% 3.3% 18.2102 SMITH (DS) SMDSFTSE250 GENERAL INDUSTRIALS 154.7 0.7% 3.9% 14.8 7.72103 BABCOCK INTERNATIONAL BAB FTSE100 SUPPORT SERVICES 886.4 21.2% 2.7% 27.9 6.07104 DE LA RUE DLAR FTSE250 SUPPORT SERVICES 1049.9 8.5% 4.0% 25.8 15.39105 WETHERSPOON (J D) JDW FTSE250 TRAVEL AND LEISURE 468 12.1% 2.7% 18.9 2.88106 RPS GROUP RPS FTSE250 SUPPORT SERVICES 239.5 12.3% 2.6% 18.7 23.76107 TELECOM PLUS TEP FTSE250 FIXED LINE

TELECOMMUNICATIONS840.1 16.6% 3.4% 49.6 339.31

108 SEVERN TRENT SVT FTSE100 GAS - WATER ANDMULTIUTILITIES

1738.6 5.7% 4.2% 21.3 2.2

109 F AND C ASSET MANAGEMENT FCAM FTSE250 FINANCIAL SERVICES 88.1 -9.9% 3.4% 8.9 3.58110 TATE AND LYLE TATE FTSE100 FOOD PRODUCERS 678 3.8% 3.7% 16.6 13.92111 DIPLOMA DPLM FTSE250 SUPPORT SERVICES 424.7 14.8% 3.1% 31.3 33.67112 PENNON GROUP PNN FTSE100 GAS - WATER AND

MULTIUTILITIES768 8.6% 3.6% 24.1 3.72

113 SIG SHI FTSE250 SUPPORT SERVICES 94.9 -13.2% 2.8% 2.5 6.93114 CAPITAL SHOPPING CENTRES CSCGFTSE100 REAL ESTATE INVESTMENT

TRUSTS330.2 -2.0% 4.6% 16.6 1.76

115 FIDESSA GROUP FDSA FTSE250 SOFTWARE AND COMPUTERSERVICES

1394.1 19.2% 2.7% 31.7

116 PEARSON PSON FTSE100 MEDIA 1238.1 8.7% 3.5% 24.9 13.27117 REXAM REX FTSE100 GENERAL INDUSTRIALS 436.6 0.4% 3.5% 13.5 7.96118 DOMINOS PIZZA UK AND IRL DOM FTSE250 TRAVEL AND LEISURE 510.5 34.3% 2.7% 57.9 195.27119 NEXT NXT FTSE100 GENERAL RETAILERS 3491.6 11.9% 2.7% 23.2 21.03120 PARAGON GROUP OF

COMPANIESPAG FTSE250 FINANCIAL SERVICES 175.9 -5.5% 2.5% 4.3

121 SYNERGY HEALTH SYR FTSE250 HEALTH CARE EQUIPMENT ANDSERVICES

916.1 20.9% 2.0% 28.5 8.82

122 BG GROUP BG. FTSE100 OIL AND GAS PRODUCERS 1259.6 17.4% 1.3% 24.9 48.04123 SMITHS GROUP SMIN FTSE100 GENERAL INDUSTRIALS 1094.2 3.8% 3.5% 17.3 8.84124 DEVRO DVO FTSE250 FOOD PRODUCERS 302.9 12.7% 2.8% 29.5 51.31125 LAND SECURITIES LAND FTSE100 REAL ESTATE INVESTMENT

TRUSTS808.1 -1.1% 3.7% 15.6 2.47

126 MICHAEL PAGE INTERNATIONAL MPI FTSE250 SUPPORT SERVICES 374.3 10.9% 2.7% 25.4127 MEGGITT MGGTFTSE100 AEROSPACE AND DEFENCE 390.5 7.8% 2.9% 18.7 9.85128 VICTREX VCT FTSE250 CHEMICALS 1279.1 14.7% 2.7% 32.7129 GKN GKN FTSE100 AUTOMOBILES AND PARTS 210.5 -2.1% 3.3% 12.5 11.14130 RATHBONE BROTHERS RAT FTSE250 FINANCIAL SERVICES 1289.9 5.4% 3.6% 22.4131 YULE CATTO AND CO YULC FTSE250 CHEMICALS 144 -2.8% 2.9% 11 8.33132 UNILEVER ULVR FTSE100 FOOD PRODUCERS 2334 6.6% 3.3% 21.6 17.06133 AMEC AMECFTSE100 OIL EQUIPMENT - SERVICES AND

DISTRIBUTION1135.3 10.8% 3.0% 30.9

134 CRODA INTERNATIONAL CRDA FTSE100 CHEMICALS 2408.4 17.4% 2.4% 51.4 1212135 TRAVIS PERKINS TPK FTSE250 SUPPORT SERVICES 1043.2 2.6% 2.2% 11.6 18.98136 KINGFISHER KGF FTSE100 GENERAL RETAILERS 276 1.2% 3.4% 17 81.9137 SPIRAX-SARCO ENGINEERING SPX FTSE250 INDUSTRIAL ENGINEERING 1991.8 10.7% 2.8% 28.8138 RENTOKIL INITIAL RTO FTSE250 SUPPORT SERVICES 76 -9.8% 2.4% 7.2 5.04139 BODYCOTE BOY FTSE250 INDUSTRIAL ENGINEERING 340.1 5.3% 3.4% 22.5 18.59140 MILLENNIUM AND COPTHORNE

HOTELSMLC FTSE250 TRAVEL AND LEISURE 473.7 7.3% 2.9% 21.9 29.82

141 SERCO GROUP SRP FTSE100 SUPPORT SERVICES 598.3 16.0% 1.5% 29.9 10.4142 DECHRA PHARMACEUTICALS DPH FTSE250 PHARMACEUTICALS AND

BIOTECHNOLOGY485.1 12.2% 2.4% 29 18.14

143 HAMMERSON HMSOFTSE100 REAL ESTATE INVESTMENTTRUSTS

474.5 3.5% 3.6% 22.6 2.32

144 COMPASS GROUP CPG FTSE100 TRAVEL AND LEISURE 702.5 9.9% 3.0% 30.2 15.28145 TED BAKER TED FTSE250 GENERAL RETAILERS 915.9 10.0% 2.7% 28.2 166.15146 BELLWAY BWY FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION827.1 -4.6% 2.0% 9.1 9.35

147 AVEVA GROUP AVV FTSE250 SOFTWARE AND COMPUTERSERVICES

1821.4 25.5% 1.2% 49.7

148 WOLSELEY WOS FTSE100 SUPPORT SERVICES 2385.8 -5.7% 2.4% 9.8 7.7149 EUROMONEY INSTITUTIONAL

INVESTORERM FTSE250 MEDIA 724.5 5.3% 2.9% 19.6 15.13

150 WEIR GROUP WEIR FTSE100 INDUSTRIAL ENGINEERING 1693.4 13.9% 2.1% 32.8 27.33

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150 WEIR GROUP WEIR FTSE100 INDUSTRIAL ENGINEERING 1693.4 13.9% 2.1% 32.8 27.33151 PERSIMMON PSN FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION639.7 -6.3% 1.8% 8.5 31.22

152 ABERDEEN ASSETMANAGEMENT

ADN FTSE100 FINANCIAL SERVICES 264.6 4.3% 3.9% 29.2 40.17

153 WHITBREAD WTB FTSE100 TRAVEL AND LEISURE 2133.5 9.6% 2.5% 25.9 8.62154 SMITH AND NEPHEW SN. FTSE100 HEALTH CARE EQUIPMENT AND

SERVICES675 9.9% 1.7% 22.3 121.12

155 SPECTRIS SXS FTSE250 ELECTRONIC AND ELECTRICALEQUIPMENT

1579.2 10.5% 2.3% 28.5 20.35

156 BARR (A G) BAG FTSE250 BEVERAGES 432 10.3% 2.7% 31.4157 RENISHAW RSW FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT1514.4 11.3% 2.6% 35.7

158 DIXONS RETAIL DXNS FTSE250 GENERAL RETAILERS 16.1 -16.4% 0.7% 3 3.5159 BUNZL BNZL FTSE100 SUPPORT SERVICES 1145.9 8.7% 2.4% 25.1 11.34160 JOHNSON MATTHEY JMAT FTSE100 CHEMICALS 2184.1 7.6% 2.6% 24.8 17.98161 JARDINE LLOYD

THOMPSONJLT FTSE250 NONLIFE INSURANCE 760.9 3.0% 3.3% 23.1 32.24

162 SABMILLER SAB FTSE100 BEVERAGES 2848.1 12.6% 2.1% 36.9 7.09163 HUNTING HTG FTSE250 OIL EQUIPMENT - SERVICES AND

DISTRIBUTION778.1 11.7% 2.3% 33.7 36.82

164 ROTORK ROR FTSE250 INDUSTRIAL ENGINEERING 2309 13.1% 1.8% 46.9165 AGGREKO AGK FTSE100 SUPPORT SERVICES 2204.1 17.6% 1.0% 59.2 18.31166 SHAFTESBURY SHB FTSE250 REAL ESTATE INVESTMENT TRUSTS 542.2 13.0% 2.2% 73.5 2.05167 LONMIN LMI FTSE250 MINING 725.9 -12.5% 1.3% 8.4 62.2168 FENNER FENR FTSE250 INDUSTRIAL ENGINEERING 366.8 7.4% 2.8% 27.4 7.09169 BOVIS HOMES BVS FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION461.8 -11.8% 1.4% 9.5 8.07

170 RANK GROUP RNK FTSE250 TRAVEL AND LEISURE 120 -10.1% 1.8% 10.1 10.86171 ROLLS-ROYCE RR. FTSE100 AEROSPACE AND DEFENCE 856.9 9.7% 2.2% 30.5 14.12172 EASYJET EZJ FTSE250 TRAVEL AND LEISURE 572.4 7.9% 1.8% 23.7 12.81173 PZ CUSSONS PZC FTSE250 PERSONAL GOODS 320.2 8.8% 2.2% 29.1 84.91174 ASSOCIATED BRITISH

FOODSABF FTSE100 FOOD PRODUCERS 1273.8 6.8% 2.1% 23.4 10

175 HALMA HLMA FTSE250 ELECTRONIC AND ELECTRICALEQUIPMENT

405.6 7.5% 2.5% 28.6 84.57

176 SENIOR SNR FTSE250 AEROSPACE AND DEFENCE 197.6 7.6% 2.1% 27 8.09177 DERWENT LONDON DLN FTSE250 REAL ESTATE INVESTMENT TRUSTS 1994.1 10.5% 1.6% 35.9 2.2178 SOCO INTERNATIONAL SIA FTSE250 OIL AND GAS PRODUCERS 335.7 15.4% 0.0% 55.6 97.85179 PREMIER OIL PMO FTSE250 OIL AND GAS PRODUCERS 382.2 13.4% 0.0% 35.2 2.58180 AEGIS GROUP AGS FTSE250 MEDIA 236.9 9.4% 1.5% 31.1 4.77181 TULLOW OIL TLW FTSE100 OIL AND GAS PRODUCERS 1305.1 12.8% 0.8% 93.1 13.09182 BERKELEY GROUP

HOLDINGSBKG FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION1429.8 0.4% 0.5% 15.1 20.8

183 DIAGEO DGE FTSE100 BEVERAGES 1707.5 5.6% 2.5% 29.7 7.82184 GENUS GNS FTSE250 PHARMACEUTICALS AND

BIOTECHNOLOGY1257.5 10.3% 1.1% 47.5 6.7

185 ARM HOLDINGS ARM FTSE100 TECHNOLOGY HARDWARE ANDEQUIPMENT

570 12.0% 0.7% 104.2

186 INVENSYS ISYS FTSE250 SOFTWARE AND COMPUTERSERVICES

245 -6.7% 1.9% 16.9 20.9

187 ELEMENTIS ELM FTSE250 CHEMICALS 206.6 5.9% 2.2% 35 52.73188 DIALIGHT DIA FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT1045 9.4% 1.0% 75.1

189 CARPETRIGHT CPR FTSE250 GENERAL RETAILERS 604.9 -10.6% 0.2% 14 2190 DAEJAN DJAN FTSE250 REAL ESTATE INVESTMENT AND

SERVICES2994.7 1.6% 2.5% 29.6 2.4

191 OXFORD INSTRUMENTS OXIG FTSE250 ELECTRONIC AND ELECTRICALEQUIPMENT

1250.7 8.4% 0.8% 64.6 52.62

192 HOWDEN JOINERY HWDNFTSE250 SUPPORT SERVICES 138.3 -4.2% 0.7% 18.4 95.25193 SHIRE SHP FTSE100 PHARMACEUTICALS AND

BIOTECHNOLOGY1958.4 7.1% 0.5% 43.3 31

194 ASHTEAD GROUP AHT FTSE250 SUPPORT SERVICES 264.7 4.5% 1.4% 38.3 3.58195 ANITE AIE FTSE250 SOFTWARE AND COMPUTER

SERVICES125 -2.0% 1.3% 27.6 36.01

196 SPIRENTCOMMUNICATIONS

SPT FTSE250 TECHNOLOGY HARDWARE ANDEQUIPMENT

144.7 0.3% 1.4% 31.6

197 GREAT PORTLANDESTATES

GPOR FTSE250 REAL ESTATE INVESTMENT TRUSTS 443.5 0.1% 1.9% 46.9 1.58

Page 12

FTSE 350 sorted by company nameIf you want to know how a particular company’s shares rank using the UK Value Investor system,just look them up in the table below.

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152 ABERDEEN ASSETMANAGEMENT

ADN FTSE100 FINANCIAL SERVICES 264.6 4.3% 3.9% 29.2 40.17

180 AEGIS GROUP AGS FTSE250 MEDIA 236.9 9.4% 1.5% 31.1 4.77165 AGGREKO AGK FTSE100 SUPPORT SERVICES 2204.1 17.6% 1.0% 59.2 18.31133 AMEC AMEC FTSE100 OIL EQUIPMENT - SERVICES AND

DISTRIBUTION1135.3 10.8% 3.0% 30.9

3 AMLIN AML FTSE250 NONLIFE INSURANCE 383 44.4% 6.3% 11.776 ANGLO AMERICAN AAL FTSE100 MINING 1901.3 8.5% 2.7% 10.7 483.4195 ANITE AIE FTSE250 SOFTWARE AND COMPUTER

SERVICES125 -2.0% 1.3% 27.6 36.01

89 ANTOFAGASTA ANTO FTSE100 MINING 1089.7 21.0% 2.6% 22.5 43.9721 AQUARIUS PLATINUM AQP FTSE250 MINING 35 11.9% 3.1% 3.5 5.56185 ARM HOLDINGS ARM FTSE100 TECHNOLOGY HARDWARE AND

EQUIPMENT570 12.0% 0.7% 104.2

194 ASHTEAD GROUP AHT FTSE250 SUPPORT SERVICES 264.7 4.5% 1.4% 38.3 3.58174 ASSOCIATED BRITISH

FOODSABF FTSE100 FOOD PRODUCERS 1273.8 6.8% 2.1% 23.4 10

10 ASTRAZENECA AZN FTSE100 PHARMACEUTICALS ANDBIOTECHNOLOGY

3096.5 13.9% 5.9% 12.7 26.43

20 ATKINS (W S) ATK FTSE250 SUPPORT SERVICES 668.1 11.6% 4.6% 11.4 10.23147 AVEVA GROUP AVV FTSE250 SOFTWARE AND COMPUTER

SERVICES1821.4 25.5% 1.2% 49.7

24 AVIVA AV. FTSE100 LIFE INSURANCE 306.4 -1.1% 8.1% 5.436 AVOCET MINING AVM FTSE250 MINING 84.7 6.8% 6.2% 13.2 13.48103 BABCOCK

INTERNATIONALBAB FTSE100 SUPPORT SERVICES 886.4 21.2% 2.7% 27.9 6.07

22 BAE SYSTEMS BA. FTSE100 AEROSPACE AND DEFENCE 314.8 8.0% 6.2% 11.1 17.7615 BALFOUR BEATTY BBY FTSE250 CONSTRUCTION AND MATERIALS 283 10.8% 5.1% 10.765 BARCLAYS BARC FTSE100 BANKS 171.4 -7.5% 4.0% 4156 BARR (A G) BAG FTSE250 BEVERAGES 432 10.3% 2.7% 31.467 BBA AVIATION BBA FTSE250 INDUSTRIAL TRANSPORTATION 185.1 -1.5% 4.8% 10.7 6.93146 BELLWAY BWY FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION827.1 -4.6% 2.0% 9.1 9.35

52 BERENDSEN BRSN FTSE250 SUPPORT SERVICES 509.9 6.9% 4.8% 14.1 4.99182 BERKELEY GROUP

HOLDINGSBKG FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION1429.8 0.4% 0.5% 15.1 20.8

122 BG GROUP BG. FTSE100 OIL AND GAS PRODUCERS 1259.6 17.4% 1.3% 24.9 48.0440 BHP BILLITON BLT FTSE100 MINING 1917.6 22.5% 3.8% 19.6 56.71139 BODYCOTE BOY FTSE250 INDUSTRIAL ENGINEERING 340.1 5.3% 3.4% 22.5 18.59169 BOVIS HOMES BVS FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION461.8 -11.8% 1.4% 9.5 8.07

23 BP BP. FTSE100 OIL AND GAS PRODUCERS 437.9 8.0% 4.6% 8.3 63.5112 BRAEMAR SHIPPING

SERVICESBMS SMALLCAPINDUSTRIAL TRANSPORTATION 375.1 9.3% 6.9% 10

38 BREWIN DOLPHIN BRW FTSE250 FINANCIAL SERVICES 150.3 10.2% 4.7% 15.496 BRITISH AMERICAN

TOBACCOBATS FTSE100 TOBACCO 3486.7 12.7% 3.8% 30.1 12

69 BRITISH LAND CO BLND FTSE100 REAL ESTATE INVESTMENTTRUSTS

548.7 7.1% 4.8% 17.6 3.53

75 BRITISH SKYBROADCASTING

BSY FTSE100 MEDIA 743 16.8% 3.5% 25.8 13.37

45 BROWN (N) BWNGFTSE250 GENERAL RETAILERS 264.3 7.9% 5.0% 14.1 15.9428 BT GROUP BT.A FTSE100 FIXED LINE


159 BUNZL BNZL FTSE100 SUPPORT SERVICES 1145.9 8.7% 2.4% 25.1 11.341 CAPE CIU FTSE250 OIL EQUIPMENT - SERVICES AND

DISTRIBUTION192.5 22.7% 7.5% 8.5 9.24

82 CAPITA GROUP CPI FTSE100 SUPPORT SERVICES 739.2 21.5% 3.1% 27.3 10.18114 CAPITAL SHOPPING

CENTRESCSCG FTSE100 REAL ESTATE INVESTMENT

TRUSTS330.2 -2.0% 4.6% 16.6 1.76

5 CARILLION CLLN FTSE250 SUPPORT SERVICES 253.5 12.5% 6.8% 9.1 42.87189 CARPETRIGHT CPR FTSE250 GENERAL RETAILERS 604.9 -10.6% 0.2% 14 225 CENTRICA CNA FTSE100 GAS - WATER AND

MULTIUTILITIES323.6 14.1% 5.0% 16.3 16.54

6 CHEMRING GROUP CHG FTSE250 AEROSPACE AND DEFENCE 290.4 27.5% 5.8% 12.4 8.747 CLOSE BROTHERS CBG FTSE250 FINANCIAL SERVICES 758.8 4.2% 5.4% 12.494 COBHAM COB FTSE250 AEROSPACE AND DEFENCE 235.2 9.4% 3.3% 17.2 4.82144 COMPASS GROUP CPG FTSE100 TRAVEL AND LEISURE 702.5 9.9% 3.0% 30.2 15.2834 COMPUTACENTER CCC FTSE250 SOFTWARE AND COMPUTER

SERVICES359.2 13.0% 4.5% 15.7

88 COOKSON GROUP CKSN FTSE250 GENERAL INDUSTRIALS 566.3 -1.5% 4.0% 11 10.11

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83 CRANSWICK CWK FTSE250 FOOD PRODUCERS 857.9 8.9% 3.4% 16.1 46.635 CRH CRH FTSE100 CONSTRUCTION AND MATERIALS 1184.9 9.6% 4.4% 11.4 3.8134 CRODA INTERNATIONAL CRDA FTSE100 CHEMICALS 2408.4 17.4% 2.4% 51.4 1212190 DAEJAN DJAN FTSE250 REAL ESTATE INVESTMENT AND

SERVICES2994.7 1.6% 2.5% 29.6 2.4

29 DAIRY CREST DCG FTSE250 FOOD PRODUCERS 338.6 1.6% 6.1% 7.2 4.74104 DE LA RUE DLAR FTSE250 SUPPORT SERVICES 1049.9 8.5% 4.0% 25.8 15.39142 DECHRA PHARMACEUTICALS DPH FTSE250 PHARMACEUTICALS AND

BIOTECHNOLOGY485.1 12.2% 2.4% 29 18.14

177 DERWENT LONDON DLN FTSE250 REAL ESTATE INVESTMENTTRUSTS

1994.1 10.5% 1.6% 35.9 2.2

124 DEVRO DVO FTSE250 FOOD PRODUCERS 302.9 12.7% 2.8% 29.5 51.31183 DIAGEO DGE FTSE100 BEVERAGES 1707.5 5.6% 2.5% 29.7 7.82188 DIALIGHT DIA FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT1045 9.4% 1.0% 75.1

111 DIPLOMA DPLM FTSE250 SUPPORT SERVICES 424.7 14.8% 3.1% 31.3 33.67158 DIXONS RETAIL DXNS FTSE250 GENERAL RETAILERS 16.1 -16.4% 0.7% 3 3.581 DOMINO PRINTING SCIENCES DNO FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT571.2 15.4% 3.5% 25.9 587.64

118 DOMINOS PIZZA UK AND IRL DOM FTSE250 TRAVEL AND LEISURE 510.5 34.3% 2.7% 57.9 195.27172 EASYJET EZJ FTSE250 TRAVEL AND LEISURE 572.4 7.9% 1.8% 23.7 12.8180 ELECTROCOMPONENTS ECM FTSE250 SUPPORT SERVICES 219.1 -1.7% 5.4% 14.4 22.09187 ELEMENTIS ELM FTSE250 CHEMICALS 206.6 5.9% 2.2% 35 52.73149 EUROMONEY INSTITUTIONAL

INVESTORERM FTSE250 MEDIA 724.5 5.3% 2.9% 19.6 15.13

109 F AND C ASSET MANAGEMENT FCAM FTSE250 FINANCIAL SERVICES 88.1 -9.9% 3.4% 8.9 3.58168 FENNER FENR FTSE250 INDUSTRIAL ENGINEERING 366.8 7.4% 2.8% 27.4 7.09115 FIDESSA GROUP FDSA FTSE250 SOFTWARE AND COMPUTER

SERVICES1394.1 19.2% 2.7% 31.7

13 FIRSTGROUP FGP FTSE250 TRAVEL AND LEISURE 235.3 6.6% 10.3% 6.6 2.73

73 FTSE 100 5600 6.5% 3.8% 13.754 GALLIFORD TRY GFRD FTSE250 CONSTRUCTION AND MATERIALS 630.9 -1.1% 4.8% 8.9 21.65184 GENUS GNS FTSE250 PHARMACEUTICALS AND

BIOTECHNOLOGY1257.5 10.3% 1.1% 47.5 6.7

129 GKN GKN FTSE100 AUTOMOBILES AND PARTS 210.5 -2.1% 3.3% 12.5 11.1470 GLAXOSMITHKLINE GSK FTSE100 PHARMACEUTICALS AND

BIOTECHNOLOGY1498.2 5.2% 4.8% 15.5 11.88

8 GO-AHEAD GROUP GOG FTSE250 TRAVEL AND LEISURE 1262.9 14.1% 6.4% 10.5 6.58197 GREAT PORTLAND ESTATES GPOR FTSE250 REAL ESTATE INVESTMENT

TRUSTS443.5 0.1% 1.9% 46.9 1.58

59 GREENE KING GNK FTSE250 TRAVEL AND LEISURE 598.5 7.0% 4.2% 13.2 2.7466 GREGGS GRG FTSE250 FOOD AND DRUG RETAILERS 509.5 9.0% 4.0% 17.2175 HALMA HLMA FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT405.6 7.5% 2.5% 28.6 84.57

143 HAMMERSON HMSO FTSE100 REAL ESTATE INVESTMENTTRUSTS

474.5 3.5% 3.6% 22.6 2.32

78 HAYS HAS FTSE250 SUPPORT SERVICES 76.5 1.2% 3.7% 10.1 15.2119 HISCOX HSX FTSE250 NONLIFE INSURANCE 454.8 19.9% 4.0% 14.817 HOMESERVE HSV FTSE250 SUPPORT SERVICES 219.4 11.8% 5.1% 12.9 58.27192 HOWDEN JOINERY HWDN FTSE250 SUPPORT SERVICES 138.3 -4.2% 0.7% 18.4 95.2555 HSBC HOLDINGS HSBA FTSE100 BANKS 560.7 0.6% 4.8% 9.7163 HUNTING HTG FTSE250 OIL EQUIPMENT - SERVICES AND

DISTRIBUTION778.1 11.7% 2.3% 33.7 36.82

9 ICAP IAP FTSE100 FINANCIAL SERVICES 328.2 13.7% 6.8% 12 15.593 IMI IMI FTSE100 INDUSTRIAL ENGINEERING 838.9 8.1% 3.8% 19.1 23.2458 IMPERIAL TOBACCO IMT FTSE100 TOBACCO 2516.2 12.7% 4.1% 20.7 6.3792 INCHCAPE INCH FTSE250 GENERAL RETAILERS 385.1 2.3% 3.1% 9 17.8416 INTERMEDIATE CAPITAL ICP FTSE250 FINANCIAL SERVICES 260.8 4.0% 7.4% 6.7100 INTERNATIONAL

CONSOLIDATED AIRLINESIAG FTSE100 TRAVEL AND LEISURE 151 10.4% 0.0% 10.1 3.59

26 INTERSERVE IRV FTSE250 SUPPORT SERVICES 324.7 6.0% 6.0% 9.6 45.9186 INVENSYS ISYS FTSE250 SOFTWARE AND COMPUTER

SERVICES245 -6.7% 1.9% 16.9 20.9

62 ITE GROUP ITE FTSE250 MEDIA 197.5 23.4% 3.3% 22.8 56.18161 JARDINE LLOYD THOMPSON JLT FTSE250 NONLIFE INSURANCE 760.9 3.0% 3.3% 23.1 32.2427 JD SPORTS FASHION JD. FTSE250 GENERAL RETAILERS 692.9 15.0% 3.7% 12.3 190.2

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160 JOHNSON MATTHEY JMAT FTSE100 CHEMICALS 2184.1 7.6% 2.6% 24.8 17.9811 KIER GROUP KIE FTSE250 CONSTRUCTION AND MATERIALS 1276.8 13.9% 5.2% 11.3 132136 KINGFISHER KGF FTSE100 GENERAL RETAILERS 276 1.2% 3.4% 17 81.930 LADBROKES LAD FTSE250 TRAVEL AND LEISURE 159.8 4.4% 5.1% 6.8 5.7284 LAIRD LRD FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT222.9 -2.4% 4.2% 10.9 8.37

125 LAND SECURITIES LAND FTSE100 REAL ESTATE INVESTMENTTRUSTS

808.1 -1.1% 3.7% 15.6 2.47

53 LEGAL AND GENERAL LGEN FTSE100 LIFE INSURANCE 130 4.7% 5.2% 13.360 LONDON STOCK EXCHANGE LSE FTSE250 FINANCIAL SERVICES 962.2 19.3% 3.0% 18 10.83167 LONMIN LMI FTSE250 MINING 725.9 -12.5% 1.3% 8.4 62.27 MAN GROUP EMG FTSE250 FINANCIAL SERVICES 81.7 8.5% 15.9% 3.443 MARKS AND SPENCER MKS FTSE100 GENERAL RETAILERS 341 5.5% 5.1% 10.9 9.1541 MARSTONS MARS FTSE250 TRAVEL AND LEISURE 111.7 -0.1% 5.4% 8 2.0956 MEARS GROUP MER SMALLCAP SUPPORT SERVICES 269.9 21.7% 3.0% 17.7 15.64127 MEGGITT MGGT FTSE100 AEROSPACE AND DEFENCE 390.5 7.8% 2.9% 18.7 9.8564 MENZIES (JOHN) MNZS FTSE250 SUPPORT SERVICES 648.6 7.6% 3.8% 14.2 12.22126 MICHAEL PAGE

INTERNATIONALMPI FTSE250 SUPPORT SERVICES 374.3 10.9% 2.7% 25.4

140 MILLENNIUM AND COPTHORNEHOTELS

MLC FTSE250 TRAVEL AND LEISURE 473.7 7.3% 2.9% 21.9 29.82

61 MITIE GROUP MTO FTSE250 SUPPORT SERVICES 281.4 16.2% 3.5% 19.9 15.5186 MORGAN CRUCIBLE COMPANYMGCR FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT254.3 5.9% 4.0% 16.1 6.58

48 MORRISON (WM)SUPERMARKETS

MRW FTSE100 FOOD AND DRUG RETAILERS 277.1 13.0% 4.1% 19.5 37.42

49 NATIONAL EXPRESS NEX FTSE250 TRAVEL AND LEISURE 211.7 -2.1% 4.7% 6 4.8537 NATIONAL GRID NG. FTSE100 GAS - WATER AND MULTIUTILITIES 677.5 8.7% 5.9% 16.5 3.81119 NEXT NXT FTSE100 GENERAL RETAILERS 3491.6 11.9% 2.7% 23.2 21.0342 OLD MUTUAL OML FTSE100 LIFE INSURANCE 165.2 0.7% 10.5% 12191 OXFORD INSTRUMENTS OXIG FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT1250.7 8.4% 0.8% 64.6 52.62

120 PARAGON GROUP OFCOMPANIES

PAG FTSE250 FINANCIAL SERVICES 175.9 -5.5% 2.5% 4.3

116 PEARSON PSON FTSE100 MEDIA 1238.1 8.7% 3.5% 24.9 13.27112 PENNON GROUP PNN FTSE100 GAS - WATER AND MULTIUTILITIES 768 8.6% 3.6% 24.1 3.72151 PERSIMMON PSN FTSE250 HOUSEHOLD GOODS AND HOME

CONSTRUCTION639.7 -6.3% 1.8% 8.5 31.22

57 PREMIER FARNELL PFL FTSE250 SUPPORT SERVICES 178 2.9% 5.9% 13.7 5.68179 PREMIER OIL PMO FTSE250 OIL AND GAS PRODUCERS 382.2 13.4% 0.0% 35.2 2.5868 PROVIDENT FINANCIAL PFG FTSE250 FINANCIAL SERVICES 1310.3 4.0% 5.9% 17.6 3.3385 PRUDENTIAL PRU FTSE100 LIFE INSURANCE 791.5 11.2% 3.3% 18.4173 PZ CUSSONS PZC FTSE250 PERSONAL GOODS 320.2 8.8% 2.2% 29.1 84.91170 RANK GROUP RNK FTSE250 TRAVEL AND LEISURE 120 -10.1% 1.8% 10.1 10.86130 RATHBONE BROTHERS RAT FTSE250 FINANCIAL SERVICES 1289.9 5.4% 3.6% 22.472 RECKITT BENCKISER RB. FTSE100 HOUSEHOLD GOODS AND HOME

CONSTRUCTION3578.2 16.1% 3.6% 26.5 130.89

77 REED ELSEVIER REL FTSE100 MEDIA 565.3 7.8% 4.0% 16.9 6.92157 RENISHAW RSW FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT1514.4 11.3% 2.6% 35.7

138 RENTOKIL INITIAL RTO FTSE250 SUPPORT SERVICES 76 -9.8% 2.4% 7.2 5.0499 RESTAURANT GROUP RTN FTSE250 TRAVEL AND LEISURE 316 10.9% 3.5% 23.3 67.83117 REXAM REX FTSE100 GENERAL INDUSTRIALS 436.6 0.4% 3.5% 13.5 7.9632 RIO TINTO RIO FTSE100 MINING 3030 16.4% 3.3% 12.4 59.79171 ROLLS-ROYCE RR. FTSE100 AEROSPACE AND DEFENCE 856.9 9.7% 2.2% 30.5 14.12164 ROTORK ROR FTSE250 INDUSTRIAL ENGINEERING 2309 13.1% 1.8% 46.950 ROYAL DUTCH SHELL RDSB FTSE100 OIL AND GAS PRODUCERS 2323.8 6.9% 4.6% 12.795 RPC GROUP RPC FTSE250 GENERAL INDUSTRIALS 412.5 9.8% 3.6% 20.8 8.06106 RPS GROUP RPS FTSE250 SUPPORT SERVICES 239.5 12.3% 2.6% 18.7 23.762 RSA INSURANCE RSA FTSE100 NONLIFE INSURANCE 111.4 21.7% 8.4% 9.8162 SABMILLER SAB FTSE100 BEVERAGES 2848.1 12.6% 2.1% 36.9 7.0946 SAGE GROUP SGE FTSE100 SOFTWARE AND COMPUTER

SERVICES295 28.9% 3.6% 22.2 27.46

Page 15

UKVIRank


Growthrate


Interestcover

90 SAINSBURY (J) SBRY FTSE100 FOOD AND DRUG RETAILERS 323.1 -0.4% 5.1% 15.5 7.6663 SAVILLS SVS FTSE250 REAL ESTATE INVESTMENT AND

SERVICES375.3 8.2% 3.8% 14.5

79 SCHRODERS SDR FTSE100 FINANCIAL SERVICES 1349.4 15.2% 3.0% 20.744 SEGRO SGRO FTSE250 REAL ESTATE INVESTMENT

TRUSTS241.1 -4.4% 6.2% 7.6 4.89

176 SENIOR SNR FTSE250 AEROSPACE AND DEFENCE 197.6 7.6% 2.1% 27 8.09141 SERCO GROUP SRP FTSE100 SUPPORT SERVICES 598.3 16.0% 1.5% 29.9 10.4108 SEVERN TRENT SVT FTSE100 GAS - WATER AND MULTIUTILITIES 1738.6 5.7% 4.2% 21.3 2.2

166 SHAFTESBURY SHB FTSE250 REAL ESTATE INVESTMENTTRUSTS

542.2 13.0% 2.2% 73.5 2.05

74 SHANKS GROUP SKS FTSE250 SUPPORT SERVICES 79.2 -2.4% 4.5% 9.8 3.63193 SHIRE SHP FTSE100 PHARMACEUTICALS AND

BIOTECHNOLOGY1958.4 7.1% 0.5% 43.3 31

113 SIG SHI FTSE250 SUPPORT SERVICES 94.9 -13.2% 2.8% 2.5 6.93102 SMITH (DS) SMDS FTSE250 GENERAL INDUSTRIALS 154.7 0.7% 3.9% 14.8 7.72154 SMITH AND NEPHEW SN. FTSE100 HEALTH CARE EQUIPMENT AND

SERVICES675 9.9% 1.7% 22.3 121.12

123 SMITHS GROUP SMIN FTSE100 GENERAL INDUSTRIALS 1094.2 3.8% 3.5% 17.3 8.84178 SOCO INTERNATIONAL SIA FTSE250 OIL AND GAS PRODUCERS 335.7 15.4% 0.0% 55.6 97.85155 SPECTRIS SXS FTSE250 ELECTRONIC AND ELECTRICAL

EQUIPMENT1579.2 10.5% 2.3% 28.5 20.35

137 SPIRAX-SARCOENGINEERING

SPX FTSE250 INDUSTRIAL ENGINEERING 1991.8 10.7% 2.8% 28.8

196 SPIRENTCOMMUNICATIONS

SPT FTSE250 TECHNOLOGY HARDWARE ANDEQUIPMENT

144.7 0.3% 1.4% 31.6

33 SSE SSE FTSE100 ELECTRICITY 1327.7 8.6% 6.2% 15.2 7.8691 STAGECOACH SGC FTSE250 TRAVEL AND LEISURE 280.7 12.5% 2.8% 18.4 6.04101 STANDARD CHARTERED STAN FTSE100 BANKS 1566.8 9.3% 3.3% 18.2121 SYNERGY HEALTH SYR FTSE250 HEALTH CARE EQUIPMENT AND

SERVICES916.1 20.9% 2.0% 28.5 8.82

110 TATE AND LYLE TATE FTSE100 FOOD PRODUCERS 678 3.8% 3.7% 16.6 13.92145 TED BAKER TED FTSE250 GENERAL RETAILERS 915.9 10.0% 2.7% 28.2 166.15107 TELECOM PLUS TEP FTSE250 FIXED LINE


31 TESCO TSCO FTSE100 FOOD AND DRUG RETAILERS 318.8 9.8% 4.7% 12.7 14.98135 TRAVIS PERKINS TPK FTSE250 SUPPORT SERVICES 1043.2 2.6% 2.2% 11.6 18.984 TULLETT PREBON TLPR FTSE250 FINANCIAL SERVICES 288.2 15.2% 5.9% 9.2 12.07181 TULLOW OIL TLW FTSE100 OIL AND GAS PRODUCERS 1305.1 12.8% 0.8% 93.1 13.0951 UBM UBM FTSE250 MEDIA 661.9 9.6% 4.2% 15.8 7.3239 UK MAIL GROUP UKM SMALLCAP INDUSTRIAL TRANSPORTATION 227.6 0.6% 8.0% 1197 ULTRA ELECTRONICS ULE FTSE250 AEROSPACE AND DEFENCE 1450.6 13.1% 2.9% 21 15.19132 UNILEVER ULVR FTSE100 FOOD PRODUCERS 2334 6.6% 3.3% 21.6 17.0687 UNITED UTILITIES UU. FTSE100 GAS - WATER AND MULTIUTILITIES 686.2 -0.7% 4.8% 14.3 1.91

128 VICTREX VCT FTSE250 CHEMICALS 1279.1 14.7% 2.7% 32.714 VODAFONE GROUP VOD FTSE100 MOBILE TELECOMMUNICATIONS 190.2 15.8% 5.8% 15.2 7.81150 WEIR GROUP WEIR FTSE100 INDUSTRIAL ENGINEERING 1693.4 13.9% 2.1% 32.8 27.33105 WETHERSPOON (J D) JDW FTSE250 TRAVEL AND LEISURE 468 12.1% 2.7% 18.9 2.8898 WH SMITH SMWH FTSE250 GENERAL RETAILERS 558.8 2.6% 4.6% 16.5153 WHITBREAD WTB FTSE100 TRAVEL AND LEISURE 2133.5 9.6% 2.5% 25.9 8.62148 WOLSELEY WOS FTSE100 SUPPORT SERVICES 2385.8 -5.7% 2.4% 9.8 7.771 WPP GROUP WPP FTSE100 MEDIA 829.5 14.1% 3.3% 19.1 5.9618 XSTRATA XTA FTSE100 MINING 879.8 20.5% 3.1% 9.7 36.98131 YULE CATTO AND CO YULC FTSE250 CHEMICALS 144 -2.8% 2.9% 11 8.33

Page 16

IMPORTANT DISCLAIMER: The author is not registered as an investment advisor or as an independent financialadvisor and does not provide individual investment advice. Neither the author nor this document are regulated by theFinancial Services Authority. No information provided in this document should ever be construed as investment advice.It is prepared for education and information only. The specific needs, investment objectives and financial situation of anyparticular reader have not been taken into consideration and the investments mentioned may not be suitable for anyindividual. The information contained in this document is not intended to be an offer to buy or sell or a solicitation of anoffer to buy or sell any securities. Readers must not base any investment decision solely on the basis of this document;instead they should seek independent financial advice. The information in this document and any expression of opinionby the author have been obtained from or are based on sources believed to be reliable but the accuracy or completenessof any such sources or the author’s interpretation of them cannot be guaranteed although the author believes thedocument to be clear, fair and not misleading. The author receives no compensation from and is not affiliated with anycompany mentioned in this document other than possibly receiving advertising revenue via a third party. The viewsreflected in this document may be wrong and may change without notice. To the maximum extent possible at law, theauthor does not accept any liability whatsoever arising from the use of the material or information contained herein.

INVESTMENT RISK: The value of shares can fall as well as rise. Dividend payments can fall as well as rise. Anyinformation relating to past performance of an investment or investment service is not necessarily a guide to futureperformance. There is an additional risk of making a loss when you buy shares in certain smaller companies. There isa big difference between the buying price and the selling price of some shares and if you have to sell quickly you mayget back much less than you paid. Share prices may go down as well as up and you may not get back the originalamount invested. It may be difficult to sell or realize an investment. You should not buy shares with money you cannotafford to lose.

DISCLOSURE RULES: When content is published about a company and the author has a position or beneficialinterest in it, that fact will be disclosed.

In addition to the above disclosure requirement, the author follows additional trading restrictions and guidelines. Theserestrictions require that the author:

· Hold any stocks owned for at least 10 full market business days.

· Cannot write about a stock for 2 business days before and after purchasing or selling the stock.

DISCLOSURE: The author owns shares in all of the companies in the model portfolio and intends to buy shares in anynew model portfolio investments, and sell the shares of any model portfolio holdings which are sold.

CONFIDENTIALITY: This document is for subscribers only. Please retain it for your own exclusive use and treat it asconfidential.

Published by John Kingham, 2012. Offices at Unit 5, Pluto House, 19-33 Station Road, Ashford, Kent, TN23 1PP.

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UK Value Investor August 2012