Secondary Recommendation

Filtrona - Could spin-off its technology to stop cigarette counterfeiting

May 2006

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.

Although FTSE-250 firm Filtrona, whose main products include self-adhesive tape and special filters for cigarettes, doesn’t sound like an obvious growth stock, its shares have enjoyed a strong run since they were de-merged from parent company Bunzl, 673p, last June. The main reason for the excitement relates to its 80% stake in Fracture Code, a new technology, which could one day make a fortune by smashing the smuggling of counterfeit cigarettes. The great thing is that Filtrona has very sound finances to fully fund Fracture Code’s development, with a pretax profit of £51m being generated by its core businesses last year. These include Fibre Technologies (42% profit), which makes filters for cigarettes and bonded ...

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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 - Strong growth in eps following de-merger from Bunzl (December 2012)

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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