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Miton Group's active ethos continues to deliver
MITON GROUP (MGR:AIM) 58p
Gain to date: 38.9%
Original entry point: Buy at 41.75p, 5 April 2018
Fund management firm Miton Group (MGR:AIM) put in an impressive score-card this week sending the shares up 12% to 58p.
Thanks to £1bn of net inflows last year, assets under management at the end of December were £4.38bn while pre-tax earnings were £8.9m, an increase of 43%.
Chief executive David Barron puts the record inflows down to Miton’s ‘genuinely active approach’ to investing which allows
fund managers the freedom to pick stocks outside of their benchmarks to generate above-average returns.
The strategy clearly works with over 80% of Miton’s funds in the first or second quartile for the third year running and the European Opportunities Fund ranking first in its sector on its third anniversary.
Barron also hails the firm’s success on the sales and marketing front and the scalable nature of the platform, supported by good financial management.
Even after buying back and cancelling 5.5m shares last year at a cost of £2.6m, the group still ended 2018 with net cash of £25.5m.
Analysts at Liberum point out that prior to the results the shares were trading on 10 times 2019 forecasts excluding the cash pile which is a low multiple for a growing business.
SHARES SAYS: Miton is clearly getting it right and we can see further upside.