Total receivables at Advantage fell only modestly and they grew by nearly 50pc at Aspen Bridging, suggesting the company is primed to benefit from any sustained upturn in property refurbishment market.
The company dates back to 1938 and the founding family still has a major stake, so any risks taken by the current board are likely to be considered ones where the potential returns are deemed to be sufficient compensation.
This all helps to underpin analysts’ forecasts of a healthy rebound in profits in the year to January 2026 which, should it come to pass, would end a run of three consecutive decreases in annual profit.
A prospective price-to-earnings ratio of 10.8 times with a dividend yield of 6.6pc also suggest there may be some value to be had, after a 40pc slide in the share price from 2021’s all-time high.
Questor says: Buy
Ticker: SUS
Share price at close: £18.45
Update: Lancashire
It feels more than a little trite to be writing about share prices when people in Florida are facing the damage done by a Category 5 hurricane, but the stock market valuation of non-life insurer Lancashire (LRE) is gyrating, and we therefore have capital at risk.
As the manager of Lloyd’s of London syndicate 2010 Lancashire has insurance, and reinsurance, exposure to property and marine (and thus catastrophe) risk in the USA. Profitability took a big hit in 2020 and 2021, thanks to Winter Storm Uri and Hurricane Ida in America and floods in Europe, causing a stream of special dividends to dry up and the share price stumbled.
Hurricanes Beryl, Helene and now Milton could mean 2024 is a tough year, too. But Lancashire’s history since its initial public offering in 2005 shows its underwriting and risk management prowess and the company has a history of using difficult times to its advantage.
The company was founded in the wake of the carnage wrought in America by Hurricane Katrina in 2005 and raised cash in 2020, as industry-wide payouts reduced available capacity for underwriting risk and ultimately drove up premiums and prices, to the benefit of the better-financed participants who came through and had capital to deploy.
We may find out more at the scheduled trading update on 6 November.
Questor says: Hold
Ticker: LRE
Share price at close: 663p
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