Avesco released their 1st quarter results this morning which held no surprises given their update in the January finals. Whilst results from the company are more informative viewed on a twelve month basis, I do like the fact that they report quarterly since it allows you to keep a careful eye on current trading and future projections.
I see nothing in the results or outlook that dissuades me from believing that this company is anything but a long term buy and hold. Management are focussed on cash generation, debt reduction and increasing dividends to shareholders whilst pursuing growth.
With the expected payment from Disney and the tangible NAV making the shares look cheap as a pure asset play, you then have to remind yourself that this is a growing company with unrecognised intangible assets. As the company states,
"The Avesco Group's businesses continue to be widely regarded as leaders in their fields".
I also note with interest that
"The Group's underlying trading since the start of the second quarter has shown encouraging signs, and, with our operations in China now trading profitably, we remain positive regarding the outlook for the year as a whole."
I do like the fact that operations in China have now turned profitable. Potentially a huge market for them to exploit.
The shares re-traced slightly today on slim volumes. No doubt short term traders booking profits, but I fully expect the shares to go far higher in the medium to long term.
As ever, no advice intended or given.
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