NSB: 2005

Had a chuckle when I found this on an old thread earlier from Feb 2001...


Potts fills her trolley at NSB Retail Systems

When Katie Potts, the manager of Herald Investment Trust, buys a stock other investors do well to take a look at it, especially when she is not the only shrewd investor on board; Citywire has discovered she has recently taken a secret stake in NSB Retail Systems.

NSB (NSB) is the world’s largest supplier of software systems for use in-store and in the supply and distribution lines of retailers. Its UK customers, who make up three quarters of its trade, include Bhs, Debenhams, Harvey Nichols and House of Fraser. The rest of its market is in the US and Europe.

Herald (HRI) owns 900,000 NSB shares, which it bought at the end of 2000. The stake represents 0.28% of the £500 million company and at the current share price of 158.5p it is worth a little more than £1.4 million.

Another shrewd investor with a stake is Bob Brown, manager of the well-respected but little-known Matrix Quantock UK Growth fund. Brown says NSB is one of the most interesting investment opportunities this year. Andrew Buchanan’s top performing Beacon fund also has a stake.

NSB is on a price earnings ratio of 50.3 times, rather high but not abnormal for its sector. This is based on projected profits of £11.3 million for 2000 and £17.5 million for 2001. In 1999 it produced a profit of £4.61 million on a turnover of £21.3 million.