Leaders of the pack?27 Sep 2010 11:29
Led by David Barker, an entrepreneur of boundless energy, consultancy company Strontium – itself worth a meagre £1.7 million – helps to develop smaller companies with high growth potential. Last year to June, it battened down the hatches and restructured to conserve its cash, offloading one subsidiary to management in order to focus on MiAD, a fast-growing, NHS-dedicated training and education business and The Learning Eye, a research, education and communications agency. Both are generating cash, are profitable and offer the prospect of greater returns.
‘We did a complete clean out last year,’ the no-nonsense Barker tells me, adding that Strontium still carved out a small £22,692 profit as the recession roared around it, closing the year with ‘adequate’ cash of £291,000.
Sensibly, acquisitions have been put on the back burner, but Barker still plans to utilise his network of contacts to source and transform small/medium sized companies and says Strontium can fill a current equity gap. ‘We sit between the angels and the turnaround specialists’, he states.
An investment in Strontium is a bet on Barker, but I believe him when he says ‘we are trying to build a long-term and sustainable business, one that will still be here in 20 years’. Strontium shares, at 13p, are worth buying and locking away.