My choice to double (perhaps more!!!) is Network Data Holdings (NDH)...current offer price is 56p
Its an AIM listed financial intermediary company and in summary it announced the following results for the 6-month period ending 30 June 06.
* Turnover increased by 48% from £9.1 million to £13.4 million
* Pre-tax profit generated by the core business, Network Data
Limited, was £880,000 (H1 2005: £268,000)
* 573 appointed representative firms now exclusively contracted to the Company
* Cash flow positive: £293,000 increase in H1 2006.
* HIPSTAR launched to address the Home Information Pack market
The Chief Executive Richard Griffiths commented:
"Trading in the first half of 2006 has met our expectations and we are
continuing to enjoy strong levels of business. We believe our continued
investment in the emerging Home Information Pack market will produce long term
returns. In the meantime, our established position in the mortage, insurance and
valuations market will underpin our potential to drive shareholder value."
NDH has 3 100% owned operating subsidiaries as follows:
- Network Data Limited ("NDL")
- Network Surveyors Limited ("NSL")
- HIPSTAR Limited ("HIPSTAR").
All three companies provide services to intermediaries in the UK property,
mortgage, and insurance markets. The group itself is a totally focussed
business-to-business operation.
(1)Network Data Limited (NDL) - an FSA regulated company operating a network
through which mortgage and insurance brokers place mortage applications and
insurance proposals with lenders and insurers on behalf of their clients. NDL
retains a proportion of commissions that are paid by lenders and insurers to
such brokers.
NDL was founded in 1985 and is the core business. It has achieved an
unbroken record of sales growth year on year and since the onset of FSA
regulation in October 2004 has established the largest network of mortgage
brokers in the UK. NDL's network consists largely of smaller firms of advisers who, under FSA regulations, chose to be become Appointed Representatives (ARs) of a regulated network.
Currently there are 573 firms who are ARs of the NDL network, making it the
largest such network in the UK. Being predominantly small firms, many of whom
are sole traders, no single AR firm accounts for more than 1% of NDL's annual
turnover.
(2) Network Surveyors Limited (NSL) - started operations in March 2005 with the
objective of winning a share of the market for residential property valuations.
The rationale was that, in view of the large number of mortgage applications
processed by NDL, it would be possible to leverage off this exposure to the
mortgage lending market and secure a position as a panel manager for the
provision of valuation services to mortgage lenders.
Valuation instructions received from the lenders are outsourced to local
surveyors with NSL retaining a portion of the valuation fees paid by the
lenders. This strategy has been successful and NSL achieved just under £1m of revenue in the first half of 2006 and moved into profit. The number of valuation
instructions has grown consistently since the launch of the business.
(3) HIPSTAR started trading on 1 January 2006 with the aim of capturing a
significant share of the emerging market for Home Information Packs ("HIPs").
Housing Minister Yvette Cooper confirmed on 21 September 06, that vendors of residential properties will be required to produce a HIP, containing a Legal Condition Report and an Energy Performance Certificate, therefore HIPs are due to become a legal requirement for the sale of residential property
(with minor exceptions) in England and Wales from 1 June 2007.
The opportunity exists for HIPSTAR to leverage the industry expertise and relationships that NDL and NSL have established in their respective fields to attract business from estate agents who are seen as the main point of contact for property vendors requiring a HIP.
The estate agency market in England and Wales is highly fragmented with
approximately 12,500 estate agents offices, of which 50% are small firms with only 1-4 offices. It seams probable that a large proportion of these
independent estate agencies will place orders with HIPSTAR for the preparation
of the Home Information Packs. Total demand could be 1.5 million HIPs per annum in England and Wales......question is what % of this will come to NDH via HIPSTARS?
