For investors that have found themselves dreaming of escaping to an island bolt hole during recent market ruction, we may have found the next best thing: shares in Manx Telecom (MANX). The dominant provider of landline, mobile and data services to consumers and enterprises on the Isle of Man has a strong growth record, looks poised to cash in on recent network investments and offers a bumper 5.4 per cent forward yield.
- Forward yield of 5.4 per cent
- Organic growth record
- Exposed to 'big data'
- Favourable local regulation
- Weakness in global solutions
- High level of gearing
The company's launch of superfast broadband helped to drive first-half turnover up a healthy 1.5 per cent in the key fixed-line, broadband and data division, which accounts for two-fifths of sales. It also benefited from the renewal of its five-year contract with the Isle of Man government for an array of services including landline, mobile and wide-area networks. Meanwhile, sales in the data division - which makes up a tenth of group turnover - soared 30 per cent as customers clamoured for managed hosting, cloud and disaster recovery services. And revenues leapt 12 per cent in the mobile business, which accounts for a quarter of sales, as the roll out of high-speed 4G attracted more customers.