Sector backdrop may be less supportive to FTSE 250 housebuilder
Brightside (BRT:AIM) 26.2p Gain to date: 6.5% TAKE PROFITS
Insurance broker Brightside’s (BRT:AIM) trading update last week (31 Jul) highlighted management’s growth concerns. Numbers moved in the right direction with annual policy sales up 20%. However, the company’s underwriting capacity is likely to restrict online growth, hitting this year’s results. A week after we recommended the company it received a potential 27p a share takeover offer from insurance underwriter Markerstudy. This has limited the correction following last week’s disappointing trading update, but should the potential offer from Markerstudy disappear there could be a sharp correction.