Secondary Recommendation

Filtrona - Strong growth in eps following de-merger from Bunzl

December 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The de-merger of speciality plastic and fibre products business, Filtrona from FTSE-100 firm, Bunzl in June 2005 is a second example (we've also featured Smiths News and WH Smith on page 4) of how such a transaction can unlock huge value for shareholders. While Bunzl, a distributor of food packaging, cleaning and hygiene supplies, has more than doubled from 520p to a peak of 1160p last August Filtrona has soared from 270p to a new high of 586p. The share price strength reflects a strong run of growth in which pretax profit has increased from Â£50m to Â£76m in the past six years, with eps rising from 15p to 24.3p. Filtrona started life back in the 1940s when Bunzl began manufacturing cigarette filters in the UK and by the tim ...

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Smiths News - Early contract renewals could trigger re-rating for newspaper distributor

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Filtrona - Well placed to achieve Vision 2015 objectives (June 2013)

Filtrona - Acquisition of Contego Healthcare drives shares over Â£7 (May 2013)

Filtrona - Vision 2015 on track (April 2013)

Filtrona - Maker of essential components forecast to increase eps 62% in three years (February 2013)

Filtrona - Could spin-off its technology to stop cigarette counterfeiting (May 2006)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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