One for the patient investor?25 Sep 2023 11:56
Personally, I’m quite drawn to this stock for long term income.
Based on their forward dividend philosophy (30% of adjusted PAT) we could see yields grow to >10% relative to todays market cap if they deliver on their 3y plan.
Of course, hinges on the ability to achieve their debt repayment metrics as well as the macro but seems like a decent risk:reward for the patient investor?
“Adjusted profit after tax was £5.7m (H1 2022: £11.6m)…The Group now anticipates Q3 adjusted profit after tax of £6.5m and for the full year to be in excess of £21m”.
“Going forward the Group will implement a payout ratio of 30% of adjusted profit after tax which will enable sustainable returns to be delivered to our shareholders. Over the medium term, Strix has a clear plan to reduce net debt / EBITDA to below 1.5x and will then have the ability to return excess capital to shareholders subject to their future requirements and the prevailing macro environment.”