Insider: three CEOs exploit weak share prices

The chief executives of PayPoint (LSE:PAY) and winter portfolio stock FirstGroup (LSE:FGP) have countered the post-results slide for their shares by making investments worth more than £200,000.

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Graham Sutherland spent £89,300 on FirstGroup shares at their cheapest price since May, while the £135,000 of PayPoint dealings by Nick Wiles were at a level not seen for 18 months.

Shares in bus and rail operator FirstGroup ended last week at 180.6p, having fallen from July’s multi-year peak of 240p and the 200p seen prior to last week’s interim results.

FirstGroup disappointed investors with its guidance that 2026/27 earnings per share will be broadly flat as it continues with portfolio diversification and pursuit of strategic growth opportunities in bus and rail.

Sutherland hailed the company's robust performance in the half year as adjusted operating profit of £103.6 million came in slightly higher than last year’s level and City forecasts.

Acquisitions such as February’s landmark move into the London bus sector boosted the result, offset by the impact of the new £3 bus fare cap on demand, higher National Insurance contributions and transfer of South Western Railway operations.

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The results-day reverse is a setback for a stock that usually thrives in the winter months.

It has risen in every 1 November-30 April period of the past decade apart from the Covid year of 2019/20, with an average share price gain of 14.3%.

That record has ensured a rare double entry in both the consistent and aggressive selections in this year’s edition of Wild’s Winter Portfolios.

Broker Peel Hunt is a supporter of the stock after reiterating a price target of 245p. It said after the results: “Given the challenges in the bus division from the fare cap and rising national insurance contributions, this is a promising performance.”

Board chair Lena Wilson also spent £19,635 on shares last week at a price of 178.5p.

Wiles pays up

PayPoint shares lost a fifth of their value on Thursday after the payments and community services provider reported continued progress towards its 2026 goal of £100 million underlying earnings but that it will take longer to deliver on its aim.

It highlighted disruption to its Collect+ parcels network following the merger of InPost and Yodel, as well as slower-than-expected pace of growth and monetisation of opportunities at its open banking investment obconnect.

Wiles said PayPoint highlighted progress in the delivery of major projects key to long-term growth. He added: “Against the background of a generally weak economy and some specific business challenges, we remain confident in delivering further progress in the current year.”

The group, which includes the gift vouchers business Love2Shop, is on course to return £90 million to shareholders in the current year. This is through ordinary dividend, buybacks and last month’s special dividend of 50p a share following Royal Mail’s investment in Collect+.

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Wiles, who joined the board in 2009 and has been chief executive since 2020, spent £135,000 on shares on Thursday at a price of 538p. They had been above 900p in June.

Panmure Liberum maintained its Buy recommendation and 1,100p following the results.

It said: “PayPoint is differentiated by its position on the high street, where physical cash meets digital, and where physical services are provided like PayPoint One, Click and Collect, and vouchers.

“The network, the client relationships and the ability to offer a one-stop shop solution for payments makes PayPoint unique in the crowded payment space.”

The broker said a multiple of 8.3 times 2026 earnings was attractive given the cash generation and growth opportunities, adding that the company offers a projected dividend yield of 8%.

Boss keeps buying

A spending spree by B&M European Value Retail SA (LSE:BME) chief executive Tjeerd Jegen has highlighted his confidence that he will oversee a turnaround of the FTSE 250-listed discounter.

He swooped for shares on four consecutive days leading up to last Wednesday, spending about £50,000 each time. Prices ranged from a record low 155.2p to the 163.3p seen in his most recent purchase.

The recent investments by Jegen, who has been a regular buyer of shares since taking on the role in June, have grown in value after the shares closed last week at 168.1p.

They are down from the 335p seen in the summer, a decline that accelerated following two profit warnings in as many weeks in early October.

Interim results earlier this month showed a 31.5% drop in adjusted operating profit to £177 million, alongside a 34% cut to the dividend at 3.5p a share.

It announced a shake-up to its leadership team and reiterated confidence that a Back to Basics strategy will improve retail execution and restore financial performance. Management still sees the potential for 1,200 B&M stores in the UK.

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Deutsche Numis, which has a price target of 235p, said: “B&M is sitting at an interesting point for investors. A new strategy has been outlined but will take time to be fully implemented with the current trading picture negative.”

It said a valuation of seven times forecast earnings indicates that there is very little investor belief that the strategic changes are sufficient to offset the weaker consumer and a lack of a differentiated offer.

The bank added: “The "secret sauce" for B&M used to be its sourcing operation but this has been competed away. This leaves a much greater focus on retailing execution and this is where B&M management now has to deliver.”