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2 February 2020 - Joanne Hart at the Daily Mail said on Saturday that shares in food manufacturing company Bakkavor looked set to increase in price "this year and beyond".
Hart credited the "ambitious, experienced and highly innovative" group for its ability to create products that were "big earners" for supermarkets and its recently launched series of dishes for plant enthusiasts - such as butternut squash nut roast and mushroom stroganoff.
In her Midas share tips column, Hart acknowledged that the past few years had been "particularly difficult" for food manufacturers, with inflation being rife across the industry as prices of dairy products, meat, fruit and vegetables have steadily risen since 2016.
However, Hart said there were now signs of change, with food inflation seemingly beginning to subside and consumer sentiment appearing to be improving.
"Bakkavor has held its own through the hard times, using its scale to secure the best deals with suppliers, improving operations wherever possible and working with supermarkets to limit price increases for consumers. Looking ahead, however, the company is set to benefit as conditions improve," said Hart.
Hart also highlighted Bakkavor's expansion into America and China as another catalyst for positive change and noted that it should not be "overly affected" by the Wuhan coronavirus either, as China accounts for little more than 2% of annual profits.
"Bakkavor is a strong, established business, making food that consumers love. Rising consumer confidence should boost growth in the UK, the international operations offer long-term potential and the dividend provides a tidy income. Buy and hold."
19 January 2020 - Over in the Mail on Sunday, Joanne Hart was looking at regeneration specialist Harworth Group, and its transformation of a gritty northern mining strike hotspot Orgreave into the much more contemporary Waverley.
She said that, gone is the colliery and coking plant that once employed 700 miners, and in its place were 850 new homes, a huge business park, and more than 2,000 jobs.
It was an exemplar of the kind of regeneration Harworth put its effort into - the kind of places in the Midlands and the North of England where Boris Johnson has signalled serious investment.
But the success of Waverley was no accident, either, given the company's track record of regenerating coal mines - it was initially spun out of UK Coal, and then listed in 2015.
Hart said chief executive Owen Michaelson had spent his career transforming neglected brownfield land into in-demand places, and recently had restructured Harworth's portfolio, by selling off farmland with limited potential and buying new sites in the Midlands and the North West.
It now owns 120 sites across the residential and commercial sectors, spread over 20,000 acres, and was "constantly" looking for new opportunities, making further expansion likely.
Hart said property developers often found they had a "bad name", but Harworth had been working in the North for a number of years, meaning local authorities trusted the business.
She noted that Michaelson had planning permission for 10,000 new homes, with another 10,000 in the permission pipeline, while there was also some serious commercial development underway for tenants ranging from Amazon and Lidl to hundreds of smaller businesses on a local scale.
The company's residential plots are sold to housebuilders once they had received planning permission and the sites were ready for building.
It did retain ownership of its commercial developments, however, bringing in income for the group once tenants take the keys.
That process could sometimes take years, Hart wrote, meaning political uncertainty made 2019 a somewhat challenging year for the firm, adding that Boris Johnson's election victory and promise to invest in the North helping to stoke the flames of confidence.
Harworth is due to release a trading statement on Tuesday, with the markets expecting an upbeat tone, and revenues of around £80m for 2019 and £86m for the current year.
And while Harworth did pay a nominal dividend - likely to be 0.9p in 2019 and 1p for 2020 - it remained mainly a growth stock, given its shares had doubled since listing.
"The UK needs more homes and it needs to boost productivity. Harworth helps on both fronts and its regional focus is a further plus.
"The company is well managed, finances are sound and prospects are fair.
"At 154p the shares are a buy."
18 January 2020 - Peter Egan was a student on the west coast of Ireland when he took a summer job as a nightshift worker, sorting hospital linen. Today, 27 years later, he is chief executive of Johnson Service Group, one of Britain's top laundering firms.
Egan is a laundry man through and through. He has been at Johnsons since 1998 and his commitment is yielding results.
The group has made impressive progress since Midas recommended the shares at 19p in 2010. They had soared to £1.14 when we looked again in 2017. Now they are £2.06 and there should be further gains.
The company provides uniforms for 1.3million workers at firms including Jaguar Land Rover, Morrisons and several big food manufacturers. There is a thriving hotel, restaurant and catering division too.
Each week the group supplies 8.5million towels, linen, napiery and uniforms to customers ranging from the Premier Inn chain to Wembley stadium to the fashionable Wolseley restaurant in Mayfair, west London.
All these customers need to know that their items will be delivered on time and ready for use and Johnson prides itself on service.
The company has invested heavily in equipment and IT, so kit is state of the art, water and energy use is minimised and automation is on the rise, including machines that can iron shirts and fold napkins.
Egan is highly focused on Johnson's 6,000 employees too and an award-winning training academy helps staff to learn new skills, feel part of the company and move up the ladder.
Johnsons is not the cheapest in the market but it tries to be the best. Customers rarely leave and the group is steadily winning new business.
A recent trading update was optimistic and brokers forecast a 10 per cent increase in 2019 profits to £46million, rising to £49million this year. A dividend of 3.4p is expected for 2019, moving to 3.6p in 2020.
Midas verdict: Johnsons has grown organically and through acquisition and that trend should continue, as Egan snaps up smaller operators. Given the more than tenfold increase in the share price since 2010, investors may want to sell some stock and bank profits at £2.06. But, as we suggested in 2017, they should not sell out completely as this business has further to run.
Yes, they are a more difficult bunch for sure. I wrote off Harworth Group for the reason you gave. I didn't see the kind of upward scope for Johnson Service Group I'd like to see for the kind of investments we are making now, so wrote them off too.Beachboy wrote: ↑Sat Feb 08 2020 5:21pmI have been away so only just had a proper chance with this. Really struggling as all the suggestions are close to their year highs and can't find anything through (albeit quick) research to indicate why any of them will rise significantly. Anyone else found anything worth reading?
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