CEPS plc
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Description
CEPS is an AIM-quoted, industrial trading group, incorporating businesses ranging from sports trophies and engraving to construction services, that aims to achieve capital growth through steadily growing operating profits. The group seeks to acquire growing, profitable, and cash-generative companies, using private equity-style financial structuring to focus the businesses on cash generation and the steady repayment of CEPS’ capital investment. Group companies benefit from CEPS financial backing and the entrepreneurial drive and flair of incentivised management teams.
Our view
Restructuring of the group was undertaken during 2019 and 2020, with CEPS’ more streamlined business and significantly reduced cost base helping it to navigate successfully through the COVID-19 crisis. Group businesses are expected to recover during 2021 and into 2022, with improving cash flow generation enabling the group to re-focus on lower-risk bolt on acquisitions and CEPS’ medium-term objective to provide shareholders with a robust, steadily growing dividend stream.