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Cost-cutting aids Premier Farnell to dividend rise
SUNDAY TELEGRAPH
Electronic components company Premier Farnell saw fourth quarter trading down eight per cent as the recession continues to bite. But that is factored into the price and the firm has undertaken a programme of cost cutting measures.
And while revenues could fall by 10 per cent in the current year, Premier has increased its full-year dividend payment. Investors should hold on at 120p.
Gaming software producer Playtech provides services for online casino, poker and bingo which is holding up well in the recession. It posted an excellent set of results and announced a 49 per cent rise in its dividend in euro terms.
Although the gaming sector is likely to be hit by the economic gloom at some point, Playtech's diversified portfolio should stand it in good stead. The shares have outperformed recently but are still trading at a discount and investors should buy at 425p.
Energy and mining support services firm Cape has seen its shares slump over fears about its debt burden. Cape's market capitalisation is 70m, whereas its net debt stands at 165m.
But the company, which offers industrial cleaning services for storage vessels and pipelines, posted a better-than-expected set of results and gave significant reassurance on its debt.
The firm is managing to pay down the debt at a reasonable rate and has already secured 70 per cent of 2009 budgeted revenues. Shares are a buy at 65.5p.
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Investors worried about finding a home for their money should look for firms with cash in the bank and some confidence about the future. Defence and aerospace group BAE Systems is one recommendation.
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Weather for Yorkshire
Wednesday 23 May 2012
Today
Sunny
Temperature: 12 C to 25 C
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Wind direction: North
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