Victory over the Footsie in a photo finish

OUR new year portfolio of share tips 12 months ago has produced a respectable 22.4 per cent increase in value (excluding dividends) - just beating the FT-SE index of leading stocks, which rose by 20.3 per cent, writes Patrick Hosking.

John Shepherd's choice of Regent Inns was inspired. The company had a fantastic year, more than doubling in value. It coped admirably with the rapidly changing pub scene, continuing to churn out better-than- expected profits growth.

Regent, which floated in May 1993 at 135p, has been a phenomenal success, adapting each pub to local conditions. Shepherd believes there is plenty more to come, though he has opted for a different share this year.

Bill Kay also delivered the goods. Stagecoach Holdings, the aggressive bus operator, was motoring well already and then enjoyed a late surge after it won the franchise to operate one of the privatised railway services. It is tipped again this new year.

My own tip, Burnfield, did respectably, growing by 38.9 per cent, although shareholders who sold out from the engineering company earlier in the year, when the shares hit 120p, would have done even better.

Richard Thomson had the wit to pick a regional electricity company, Swalec, and sure enough, a bid eventually materialised - from Welsh Water. Add in the National Grid distribution, and Swalec shareholders saw a 28.2 per cent capital gain.

Also-rans Bunzl, Wolseley, Marks & Spencer and Euro Disney all produced double-digit capital growth. We had three disappointments: Waverley, the coal mining concern, Redland, the building products group, and Fairline, the luxury yacht builder.

Our 1995 share tips

Tipster Share 1 Jan '94 31 Dec '95 Change

John Shepherd Regent Inns 309p 658p 112.9%

William Kay Stagecoach Hldgs 225p 354p 57.3%

Patrick Hosking Burnfield 72p 100p 38.9%

Richard Thomson Swalec 882p 1131p* 28.2%

David Hellier Bunzl 172.5p 199p 15.4%

James Bethell Wolseley 391.5p** 451p 15.2%

Nigel Cope Marks & Spencer 398p 450p 13.1%

Paul Rodgers Euro Disney 136p 152p 11.8%

Derek Pain Waverley Mining 108p 95p -12.0%

Tom Stevenson Redland 460p 389p -15.4%

Clifford German Fairline Boats 442p 360p -18.6%

AVERAGE INCREASE 22.4 PER CENT

* Adjusted to include 194p per share value of National Grid distribution.

** Adjusted for one-for-one scrip issue.