A quick month end round up of recent results from companies held in the Compound Income Scores Portfolio (CISP). Last week we had interim results from Hays (HAS) which showed strong growth and material investment in their growth markets with 22 countries growing net fees by more than 10%. These are overseas as the UK continued to lag so they are investing and increasing their International consultant headcount by 18% to reflect this.
Looking at the numbers which showed 18% profits and earnings growth and a 10% increase in the dividend leaves them well placed to hit and probably exceed full year forecasts in my view. I say this as even if they were flat in H2 I calculate they would exceed current forecasts and given the momentum and investment they are putting in I'd bee surprised if they were flat in h2, although I guess they will be up against tough comparatives.
Thus I was surprised that the shares came off after the numbers despite on going upgrades. Perhaps this was a behavioural bias coming into play as they were trading around 12 month highs and looked like breaking into new high ground. They have however found support above the previous 12 month high so personally I think this may be a good buying opportunity as they still score reasonably well too.
This week we have had more good results from Croda (CRDA) the high quality chemical company which is therefore relatively expensive on about 24x this coming years earnings and a yield of barely 2%. The results were there or there about but probably not sufficient to push it ahead from here given the rating and especially in the absence of a special dividend which some nay have been looking for.
While Jupiter Asset Management (JUP) the high performing fund manager which has 81% of mutual fund AUM with investment performance above median over three years also came in around forecasts as the earnings level although the dividend in total up 20% was better than expected thanks to the (usual) special dividend. This leaves them on a reasonable looking 14x with a 6%+ dividend yield, assuming markets continue to progress allowing them to pay another special dividend next year. If you are still bullish on markets then it could be of interest down here as it has come back sharply in the recent correction.
That's it for now but back soon with a month end update on the portfolio and the UK market timing indicators.