The results from TMMG seems to be 'more of the same',
increased sales, profit and eps.
now they are putting some effort behind the divi with a 25% increased
and a progressive divi in future - 5% + progressive is not too bad.
TMMG have always been a little unloved with a low rating
but this will gradually disipate with more years of good performance.
I do think the market seems to have missed their 3 year targets released in the results...
it does help explain why they wanted more shares at 75p!!
TMMG fcst t/o growth of at least 5% p.a. for the next 3 years,
and a big uplift in the margin from 11.5% to 14%
we know the max debt is capped from their covenants
so you can work this out to give EPS approaching 9p in 3 years time
which is 40% + growth from today, I.e. 12% p.a. + 5% p.a. divi
if that is achieved they will have increased EPS by 150% over 10 years,
surely at that point mgt will get a better rating.
I like their confidence for 2-17 and the fact that they have high visibility for growth in 2017.
analyst expectations are for eps of 7p in 2017and a divi of 1.8p
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