Thanks for your input, very useful.
I like that it is majority held by the owners and they take out the profit by dividends. You may like to also look at AGP which is a more extreme example of the same thing.
Apologies, I also meant to answer your question! On the down side, the company provides training films and 'live events', either as parts of training schedules or for 'team building' exercises. I know from experience that in the case of a recession this type of activity is among the first to be dispensed with. Also, that market is now very competitive and there are no real barriers to entry. More positively the company seems to have many returning customers,and feedback is excellent. They have important and substantial networks. The company is easily scalable: when the recession comes they simply dispense with the contract staff and freelancers. And finally the directors own nearly 80% of the company, and do NOT have massive slaries or benefit packages. They therefore seem to depend to some extent on their dividends. If nothing else there is no debt!
How risky? Probably a good bit, but what dividend isn't these days?
You summarise very well. It is hard to judge this as news is thin on the ground: no announcements since March and nothing due until the finals at the end of next month. I would point out the high yieldis dependent on repeated special dividends, but these have been strikingly regular. There were director buys in teh 50s, so at least one good sign!
I have just come across this share when researching for my high income portfolio and am finding it diificult to assess the risk. The profit margin appears to be rather shaky, one gets the impression that with a small change in their market place it would soon be in loss.On the other hand they have a massive amount of cash for the size of the company (how did they build that up?)
The price history is very strange when compared to the balance sheet. There must have been some good rumours around in 2014 that didn't materialise.
Do major companies really trust a brand called 'Cheerful Twentyone'? I suppose it is better than the unpronouncable Aeorema which appears to have been invented so that there are no other Google hits.
Overall I think there is significant potential upside, probably little downside, and excellent dividend potential, so I will start with a small buy and look to increase.
Whilst the figures will be good the Chairman's comments of the direction of the company over the next 5 years will be eagerly read by many investors including myself. And with a new CEO will bring new idea's, clients, products etc.
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