- Company valued at a discount to peers
- Robust order book supports another year of growth.
It’s not often you get the opportunity to lock into a 14 per cent earnings yield when the risk to earnings is to the upside. However, a leading UK sports, leisure and cycle product provider offers exactly that.
The group not only has orders for cycles stretching well into the second half of next year, but offers potential to ramp up e-scooter sales if the UK government approves their use on public roads. It looks a near racing certainty that they will when trials complete next March. Trading on a PE ratio of seven and with the directors recently declaring a 10 per cent half-year dividend hike, the investment risk is skewed to the upside.