Here's an interesting link for Avesco shareholders:-
http://www.tpimagazine.com/company-profile/1893448/creative_technology_in_profile.html
A very worthwhile an informative read regarding Creative Technology's development in recent years and their current operations.
As a shareholder, I found the whole article very interesting, but a couple of highlights going forward might be :-
"Dimension (also Avesco) has grown steadily over the years. 2012, however, saw a huge increase in both inventory and staff on the back of the company’s involvement in Sports Technology - the joint venture business between CT and Delta, which supplied the majority of the audio and wired comms for the Olympics. “This puts us in a really good place going forward. We have a great team, up to date inventory and you’ll hear more from Dimension going forward,” said Crump.
“Similarly, CT has seen a huge shot in the arm on the back of the Olympics. Our contracts to deliver the video systems for all of the sports venues alongside Ceremonies and several pavilions have allowed us to upgrade and replace much of our inventory at a time when many competitors are struggling for cash and making do with ageing equipment.”
The long forward visibility of the Olympics also allowed the company to focus development of its people resource, adding around 30 full-time positions in the UK, most of which are on-site technical people that have been developed and trained in-house. “Legacy is a massively overused word when applied to Olympics, but I really believe in our case we are a much better equipped and stronger business as a result of the investments we have been able to make on the back of our Olympic contracts,” he continued.""
"Following an impressive run of major ceremonies over the last few years - Doha, Beijing, Delhi and London, Creative Technology’s music and live event work is currently on the increase."
"Further afield, the businesses in Asia and the US are structured in much the same way. In Asia the main operation is in Shanghai and Creative Technology has been active there for around six years and is one of the only Western players to have a real operation on the ground. “It’s been very tough, but we are now really starting to see the fruits of our endeavours. We are well established and are finally seeing a positive financial contribution coming from the region,” said Crump."
“I believe, however, that the real legacy that companies like ours can get from London 2012 is to take what we did and show the world that we really do this well in England. The Australians built an entertainment business on the back of their Olympics and they have given many of us a run for our money over the years. Now is our chance to go out and do the same, not just in Sochi and Rio but also at major events throughout Europe and the rest of the world.”
Avesco should release their interim results in two to three weeks which I am hoping will paint a positive picture going forward. If so, I expect they will further increase the interim dividend. Of course we may get news regarding the Disney settlement. If Avesco get anything near the £1.50 per share payout they are expecting then the current share price is effectively around 70p. At that price a full year dividend around 5p is a yield of 7%, the p/e ratio falls to single digits and the shares will be trading at less than half NTAV(around £1.50).
A growing company with major events in 2014 suggests that Avesco remains considerably undervalued in my opinion.
As ever no advice is intended or given.
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https://twitter.com/michae1mouse
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