By Alexander Bueso
Date: Sunday 20 Aug 2023
LONDON (ShareCast) - (Sharecast News) - The Financial Mail on Sunday's Midas column tipped shares of retirement products specialist, Just Group, to readers, pointing to the likelihood of a period of sustained growth in the business and its boss's track record.
First half results showed sales more than doubled year-on-year to £1.9bn, with the lion's share coming from 149% growth in the bulk annuity unit to reach £1.4bn.
Companies were keen to offload pensions liabilities given the cost and difficulty of managing them and in order to focus on their core business.
Just Group chief executive officer, David Richardson's decision to focus on schemes for smaller and mid-sized companies.
Under his watch, the company had also developed clever technology that allowed it to provide competitive pricing for any deal size.
Richardson expected an annual rate of growth in profits of 15%, the interim dividend had been raised by 15% and the company hoped to keep raising it.
"Just Group shares have had their ups and downs but the mood under David Richardson is upbeat - and deservedly so," Midas said.
"The company is making strides, winning new customers and delivering results. A period of sustained growth is in sight and, at 83p, the shares are a buy."
The Sunday Times's Lucy Tobin argued that shares of Warpaint had further to rise despite their 63% run year-to-date.
Tobin emphasised the "high regard" the company's customers had for its make-up, as well as growing margins, "cheap" prices and prudent management.
Warpaint's management was also very focused on cost control and had outsourced all manufacturing.
Furthermore, the company had £7.5m in cash on its balance sheet, no debt and a global customer base.
It was also diversifying its product range even as it expanded into the U.S. and China.
The shares on the other hand remained "relatively inexpensive", Tobin judged, trading on 16 times estimated earnings but with sharp growth likely ahead.
She also noted ShoreCap analyst Darren Shirley's view on the company, which he said was in the foothills of its UK and international growth opportunity.
"It should get even prettier. Buy."
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