Miton UK Microcap Trust plc (LON:MINI) Co-Fund Manager Gervais Williams caught up with DirectorsTalk to discuss their portfolio company Yu Group plc.
Q1: Are there certain companies in the Miton UK Microcap Trust portfolio that are well positioned to improve shareholder value in the near to medium term?
A1: The great advantage is that many of these companies are overlooked, valuations have come down, people have been more uncertain about the UK over recent months and that’s led to valuations falling to what I consider to be extraordinary low levels.
An example of this is utility provider Yu Group plc (LON:YU). It’s not like a broker, it’s a bit more like British Gas. It buys gas and sells it to its customers, not in the consumer sector but in the corporate sector. It’s growing very rapidly, its cash balances are rising very substantially and its share price has started to move up now actually in the last few weeks as people recognise it. It’s moved up to a market capitalisation of between £40 million to £50 million and yet its forecast, in turnover terms, from the brokers of over £200 million of sales and could be £300 million of sales in the next couple of years and
generating cash and profits as a result of that.
Just ridiculously overlooked share prices with the potential across the fund overall to hopefully give us some very good recovery potential and long term upside potential for the trust.
Miton UK Microcap Trust intends to invest primarily in the smallest companies, measured by their market capitalisation, quoted or traded on an exchange in the United Kingdom at the time of investment.
Yu Group PLC is driving innovation in energy and utility supply solutions for UK businesses. Yu Group offers a fresh approach to business utilities, delivered through a combination of user-friendly digital solutions and personalised, high quality customer service.