CNCT (Connect) issued its interims today, reporting revenues up 1.2%, free cash flow inclrease of 34.2%, operating profit down 28.8% (including exceptionals) but up 3.3% excluding exceptions. Interim dividend is up 3.6%. Debt is also up.
I said in a recent post (http://is.gd/BMVanD) that I thought it was a pretty boring company, and wasn’t expecting it to do very much.
The share price yo-yo’d up and down in early trading, but closed up 4.0%.
It has a yield of 6.5%, so in retrospect, it is reasonable to suppose that provided nothing bad happens (that’s quite a presumption, of course), the dividend should underpin the share price.
CNCT also highlights the fact that although the market has had a great run, and price levels are hardly cheap, it is still possible to find value out there. CNCT has a PE of a measly 7.8, with a yield of 6.5%. I don’t think anyone would call CNCT a “great” company, of course.