The anticipated half yearly results from some of our Key Holdings were announced in the past week and all are as anticipated.
Intercontinental Hotels produced another good increase in profits and a 10% dividend increase but no indication of what the surplus £900 million from property sales will be used for except to say shareholders will be advised after the year end next February. However this weekend's Sunday Times suggests the acquisition of either Fairmont Hotels from Canada or Movenpick from Switzerland is on the cards. Both these companies could benefit from IHG management and the acquisition of one or both of these groups would be great for IHG.
Whatever transpires, seven months from now this holding could be an even more successful Key Investment.
Another of our catering industry holdings COMPASS GROUP announced good trading figures but subject to costs of reducing activities in the oil and mining industries of £25million in each of the next two years.The rest of the business should continue to grow,and our only reservation with this holding is why the CEO spends time as a non exec at bombed out Tesco when Compass should have his full time involvement.We remain invested here as this is a group with great potential.

The third and best announcement of the month came from TAYLORWIMPEY with another record turnover and number of house completions, the interim maintenance dividend for the half year doubled and the announcement of another special dividend next July increased by 20% from £250 to £300 million. With the aim of steadily increasing the range and quality of its homes the future looks exciting when one considers the demand for new homes is at least 250,000 p a and the industry is only building 150,000.

AUGUST will bring figures from Persimmon Homes our largest KEY Investment in housebuilding and more than justify our holding where the shareprice continues to rise in expectation of another record year from our largest house builder.