Avesco released their half year results in early June. What's not to like about this company? I've said it all before about why I believe Avesco offers terrific value, and I continue to hold all of my shares.
If you were a buyer when the shares were languishing between 20p-30p in 2009 then you'd already have had your money back 4 to 5 times over with the special dividend alone (£1.10). Add in the capital growth and regular dividend payments and you'll gather why I'm a fan.
Even now though with the share price at £1.10 the company is undervalued. From the interim results TNAV is around £1.65 and I'd guess the prospective dividend yield is around 6%-7% given the 50% hike at the interim stage (from 1p to 1.5p) and the reduction in share capital from around 26m to 19m shares following the buyback from Taya.
Results at the half year exceeded management expectations and they expect to do the same for the full year given that results will include the World Cup, Ryder Cup, Commonwealth Games etc.
The restructuring that has been taking place throughout the group appears to have gone smoothly, and tellingly management expects this to produce more stable and less volatile trading results, not only in even years where they have the benefit of major sporting events, but also in the odd years which have traditionally been more challenging for the Group.
Avesco is a terrific little company that is cash generative and believes in rewarding its shareholders with generous payouts. It's still dirt cheap. What more is there to say!!
Talking of dividends I'd recommend reading this article from last week's Sunday Telegraph:-
http://www.telegraph.co.uk/finance/markets/10948379/Dividend-yield-is-better-guide-than-the-FTSE-100-at-7000.html
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