Here’s a £2bn Aim stock whose market value has increased more than 10-fold since the beginning of 2015. Its asset base is comprised almost entirely of outstanding invoices, stock, cash, and intangible assets. It has basically created a niche market and has consistently beaten analysts' sales and profit estimates, including ours.
We thought Fevertree Drinks (FEVR) a good thematic bet when it was trading at 215p in March 2015. The stock duly increased by 165 per cent and then we bottled it when it was trading at 40 times forecast earnings.
The shares are up another 12 per cent on half-year figures detailing a surge in revenues and net cash, with adjusted cash profits and the dividend more or less doubling from a year ago. Chief executive Tim Warrillow now expects full-year results to be “materially ahead of expectations”.
Investec guides for December 2017 adjusted pre-tax profit of £49m and EPS of 33.6p, against £35m and 24.2p in 2016.
| FEVERTREE DRINKS (FEVR) | ||||
| ORD PRICE: | 1,949p | MARKET VALUE: | £2.25bn | |
| TOUCH: | 1,949-1,951p | 12-MONTH HIGH: | 1,955p | LOW: 762p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 60 | |
| NET ASSET VALUE: | 90p* | NET CASH: | £40.5m | |
| Half-year to | Turnover | Pre-tax | Earnings per | Dividend |
| 30 Jun | (£m) | profit (£m) | share (p) | per share (p) |
| 2016 | 40.6 | 11.8 | 8.18 | 1.54 |
| 2017 | 71.9 | 24.1 | 16.9 | 3.01 |
| % change | +77 | +104 | +106 | +95 |
| Ex-div: | 10 Aug | |||
| Payment: | 08 Sep | |||
| *Includes intangible assets of £42.8m, or 37p a share | ||||
