We're adding a company in the security sector to our venture portfolio. This is the list of smaller, higher risk companies which we like and will keep until we feel they have reached our expectations in term of price action. It could be weeks, months or even years.
Today we're looking at a specialist in the security and surveillance sector. Like it or not, we are now watched more closely in the UK and abroad than we've ever been before.
Security is big business and we expect even smaller companies in this space will do well. This is a company that should be doing better than it is - the financials are solid, but we're looking for the management team to step up to the plate in 2023. The appointment of a new finance director is a step in the right direction, as is the completion of the disposal of non-core businesses.
We think this is an undervalued company with a PE ratio that is still at 13x approx but which sports some spectacular income metrics. We'd be looking to see the market wake up to its cash flow this year. It shapes up very well against peers in the sector as well.
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