Primary Recommendations

Essentra - Outperforms early in a new cycle

January 2023

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.

Just five years ago Essentra was a sprawling conglomerate with five operating divisions but that pretty much buried its one world class business, which provides essential industrial components such as caps, plugs and cable ties. However, a change in strategy has led to a mass disposal program, which recently culminated in its final two non-core divisions, healthcare packaging and parts for cigarette filters, being disposed for a combined £574m. The strength of industrial components shone through with attractive EBIT margins of 18.9% in FY’21 compared with Filters (9.5%) and Packaging (4.2%) and investors now have a clear line of sight for better times ahead. But what really set my adrenaline pumping was a new set of targets launc ...

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DX Group - Eps to double over three years; prospective PE just 5.3 (ex net cash)

2023 New Year NAPS - 11 selections

Essentra (December 2023)

Essentra - New acquisition for just 5.3x EBITDA post synergies (November 2023)

Essentra - £5m reduction in costs (October 2023)

Essentra - Huge dividend growth expected from FY’24 (July 2023)

Essentra - Cluster buying by directors (May 2023)

Essentra (March 2023)

Essentra (December 2022)

Essentra - Announces sale of filters; special dividend planned (November 2022)

Essentra (October 2022)

Essentra - Disposal of Packaging division (August 2022)

Essentra (July 2022)

Essentra - Strong start to 2022 (May 2022)

Essentra - Trading update drives chart breakout (February 2022)

Essentra - Industrial components and healthcare packaging firm to double eps by FY’23 (January 2022)

Essentra - Components and healthcare packaging firm on cusp of dramatic turnaround (December 2021)

Essentra (September 2015)

Essentra - Shares break through £10 (April 2015)

Essentra - Acquires Clondalkin for US$455m (December 2014)

Essentra - New strategy to be unveiled in November (October 2014)

Essentra - Further acquisitions expected (April 2014)

Essentra - £200m borrowing facility available for potential acquisitions (December 2013)

Essentra (September 2013)

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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