There are not many technology companies that combine forecasts of 25 per cent profit growth this year and a miserly rating of 11 times cash-adjusted prospective earnings. Yet that’s exactly what's on offer with this company, which is a beneficiary of the home broadband explosion and is poised to take advantage of the world's need to manage climate change.
This business is a rare breed among technology companies, paying a healthy, progressive and well covered dividend that provides investors with a 2020 prospective dividend yield of almost 5 per cent.
The shares are also lowly rated on a cash-adjusted price/earnings (PE) ratio of 11 for the 2020 financial year, even though the directors are guiding investors to expect 25 per cent profit growth. Prospects for 2021 are just as rosy, buoyed by ongoing structural growth in its markets. Trading on half the average rating for the UK small-cap technology sector, this is a hidden gem.