Blackfriar: Angry Clyde Process takes aim at the alternative market

At 46p and 18.6m respectively, they're the hallmarks of stagnation and underperformance.

A second glance would show the Doncaster-based engineer is anything but this. Clyde's management, who have ambitious plans to take their pneumatic conveying systems into fast-growing markets, went on the offensive this week to drive this message home.

In a strongly worded results statement, chairman Jim McColl expressed his "disappointment" at its low valuation despite "continuing strong performance".

Chief executive Alex Stewart, who along with Mr McColl is a major shareholder, said the rock bottom price means issuing new shares to acquire companies would be hugely dilutive. City institutions appear to be shunning the Alternative Investment Market, he added. Such is Clyde's frustration, that they are considering a merger.

"We think there are a number of other AIM companies that are struggling with valuations," said Mr Stewart.

"We are frustrated with the share price if you value it on any logical basis. We would, in a private equity type world, easily be looking at 85-90p a share."

He has a point. Clyde's annual operating profits were up six per cent to a record 6.7m. It has just reinstated its dividend at 0.8p a share. The growing markets of India and Australasia are within its sights. Meanwhile, less well-capitalised and well-run rivals are struggling. With a fairer valuation, Clyde knows it could turn predator.

But institutions appear to need more convincing. While shares lifted slightly on the results, they haven't been near the 85p level since early 2008.

Of course, despite Clyde's troubles, many companies have found success on AIM and continue to do so. In March Emis Group, a Leeds-based medical software company, raised 50m from a listing on AIM.

The London Stock Exchange didn't want to get involved in the row and declined to comment.

But markets will do what they want, and it will take more than compulsion to attract big investors. Unless Clyde can come up with some creative solutions to boost its valuation, opportunities will pass it by.

n On the same day that Pace announced it's become the world's biggest set top box maker, sausage maker Cranswick announced record profits.

At first sight there's not that much in common between these two top 10 Yorkshire PLCs apart from the fact they both trade in fun pastimes – watching high quality TV and eating good food.

However both companies have said the reason they're doing so well is diversification.

The UK now accounts for just two per cent of Saltaire-based Pace's sales.

And while Hull-based Cranswick is known as a posh sausage maker, a third of its business is at the other end of the market – bargain sausages and bacon for shoppers who are watching their budgets.

With months of uncertainty ahead of us amid looming tax rises and public spending cuts, these two companies have shown that the only way to survive is through diversity.

n Talking of Yorkshire PLCs that have managed not only to survive but thrive throughout the recession, it is time to get your entries in for the Yorkshire Post Excellence in Business Awards.

This year's judges include supermarket supremo Sir Ken Morrison and Paul Fullerton, the Bank of England's agent for Yorkshire and Humber.

PLCs can enter for several awards including companies with a turnover between 10m and 50m; companies with a turnover of more than 50m; best company to work for; innovation of the year; exporter of the year; and university spin-out of the year.

Entries need to be in by June 22. Enter online at www. yorkshirepost.co.uk/excellence