Avesco - interims due mid-June

Avesco should be reporting interim results around the middle of June. This is an even year which includes the Winter Olympics, the World Cup and the Commonwealth Games. These events should boost earnings, and hopefully expectations for the full year will be in-line with management guidance.

I do expect some exceptional costs associated with their recent restructuring, but this is a cash generative company valued at a substantial discount to NAV which currently pays a generous 5% dividend. What the market may also have overlooked is that Avesco recently bought back 30% of its share capital. This should substantially boost future earnings, and indeed dividend payouts. I expect a hike in the interim and final dividend distribution. Please see my reasoning from a previous blog:-

http://michae1mouse.blogspot.co.uk/2013/12/proposed-share-buy-back-and.html

Other recent news items from Avesco's  website include "With CT around the world":-

http://www.ct-group.com/news/ct-around-world

"JVR and Creative Technology Holland Combine Their efforts:-

http://www.ct-group.com/news/%EF%BB%BF%EF%BB%BF%EF%BB%BFjvr-and-creative-technology-holland-combine-their-efforts

and

"CT Streamlines European Operational Structure":-

http://www.ct-group.com/news/ct-streamlines-european-operational-structure

For investors, it's worthwhile visiting their facebook page on a regular basis to keep abreast of the projects they are involved with on a global scale.

https://www.facebook.com/creativetechnologygroup

Avesco has been a fantastic investment for me since I first bought shares back in 2009. However, the company with a market cap. of less than £20m still looks incredibly cheap on all sorts of measures.

http://uk.advfn.com/p.php?pid=charts&symbol=LSE%3AAVS

Please note that the sudden dip on the chart from over £2 to the current price relates to a special dividend payout to shareholders of £1.10 per share.