You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Manx Telecom

Written by:
Graham Spooner, investment research analyst at The Share Centre, picks communications provider Manx Telecom as stock of the week.

One of the most recent additions to The Share Centre’s recommended shares to ‘buy’ list is the Isle of Man communications company Manx Telecom, a small-cap stock on the AIM market. It is the leading communication provider on the Isle of Man and its core business provides fixed line, broadband and data services to around 4,000 businesses and 37,000 homes, accounting for 41% of group revenues. This steady core business allows the group to explore investing into other areas and expand from its island base.

It launched Vannin Ventures in 2016, a business to support the company’s long-term growth strategy, which bought a majority shareholding in Goshawk Communications to help underpin expansion. The cohort has a focus on innovative software solutions to improve speech clarity and intelligibility over modern telecoms networks, in particular for those with addressable hearing needs.

Interim results in September were accompanied with news of an agreement with BT to promote its mobile network for people with hearing loss in the UK in 2019. While revenue for the period was slightly lower at £38.1m, leading to a 1.4% fall in profit to £6.6m, the dividend was raised to 4.1 pence (3.9p). Expectations for the year remain unchanged.

The shares are for investors looking for income and prepared to invest in a company with a rather unusual niche. The current yield, as a result of a decline in the share price year to date is now in the region of 6.8%. We would class the shares as a medium to higher risk ‘buy.’

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
‘I forgot about my son’s Child Trust Fund, what do I need to do?’

As the first 16-year-olds start taking control of their Child Trust Funds, many parents may have been reminded about holding...