Sunday share tips: Greencore, Round Hill

(Sharecast News) - The Sunday Times's Lucy Tobin tipped shares of Greencore to readers.

The sandwich maker's share price had been pummeled in the wake of workers' exodus from the office during and after the pandemic.

They had fallen from £2.60 a share in January 2020 to 80p at present.

Yet commodity prices were easing and according to the British Sandwich and Food To Go Association, Britons' consumption of sandwiches had since recovered to 85% of their pre-pandemic level.

Homeworkers were also said to be spending more on easy lunches, predicting that the overall food-to-go market would be worth £19.8bn by the end of 2023 or 8% more than in 2019.

Furthermore, its net debt had been trimmed and the company was now returning capital and buying back shares.

The trend in operating profits was also pointing higher.

"Sarnies might not improve with age, but Greencore should see tasty growth over the next few years: buy."

Music royalties outfit Round Hill were offering attractive dividend income and long-term growth prospects, the Financial Mail on Sunday's Midas column said.

Hence, the shares were a 'buy', the tipster told readers.

The company owned 51 catalogues that included over 120,000 songs on which it collected fees each time that they were played again.

At the company's request, two firms had valued its portfolio at approximately $600m, implying a net asset value of $1.27, against a current share price of US 78 cents (63p).

That had prompted its chief executive officer, Josh Gruss, to spend almost £9m during the past month alone, taking his family's stake in Round Hill to 6.3%.

Sales were up by 32% across 2022 to $32.4m and the divi was raised by 13% to US4.88 cents per share.

And analysts were expecting a payout of at least 4.5p per share over the next three years.

"The music industry is vast, vibrant and expanding fast. Round Hill Music Royalty Fund is small in this £75 billion market but Gruss is a smart operator and the shares, at 78 cents (63p), offer attractive dividend income and long-term growth prospects. Buy."

Greencore