pensions

Pensions Portfolio.

Note: I have purchased a further 292,723 shares in First Property Online.

Current Holdings

First Property Online

Company Website: fprop.com

The Management

The Business

Business: First Property Online is a business to business property auction site. The business has been reversed into Hansom Group in exchange for 50% of the enlarged company. The site concentrates on properties up to a maximum value of £5m and has only been trading since May 2000. The service charges 0.5% up to a maximum of £10k. The business is backed by industry partners like Savills, Donaldson's and Delancy Estates, who have taken 15% of the shares capital.

Reasoning: I acquired as many as I could in October '99 with a further quantity purchased in March'00. I paid just over net cash value in the first instance but more in the second when it was announced that the company had received the final cash payment from the sale of the remaining taxi business. I purchased another parcel of shares when the MD, Jonathan Mervis, sold his holding and gave up his position to Alasdair Locke. I increased my holding further just before the reverse takeover, which as it turns out was badly timed.

The business is in the early stages of development and has a number of question marks over its viability. The management have been very active in purchasing more shares as have their main backers, Edinburgh Smaller Companies Trust. The site is increasing the number of properties on display and there appears to be a healthy interest in the service. The investment is for the long term and should the price fall below my original price then I will be adding to my holding.

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