Real Worth Stocks by Stephen Gamble

Real Worth Stocks by Stephen Gamble

Beaten down UK microcap with 15% free cash flow yield trading near all-time low multiple

Forecast 18% FCF yield for FY2025, with restructuring actions taken in FY2024

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RealWorthStocks-Stephen Gamble
Jul 20, 2025
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This month’s Real Worth Stocks pick reached an all-time low in Jul-25. I feel the selloff is overdone, as it is currently generating a 15% owner earnings yield, with potential for 18% in FY2025, due to significant debt reduction, and seeing the benefits of restructuring to exit unprofitable business lines and lower costs. With a business protected by IP, and a >50% global market share in its niche, it makes a small part of products for OEMs, and also has a recently acquired division of premium products that should spur growth. Relative to its historical valuation, it is now valued at an all-time low.

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