Data centres and telecoms infrastructure services provider Mountfield Group believes that it will benefit from 5G investment in 2020 and it is already growing its profit.
Annual revenues improved from £12.7m to £16.2m, while pre-tax profit increased from £864,000 to £1.11m. There is a small net cash position at the end of 2018.
There was a change in the mix of profit contribution. The flooring business contributed less and the construction services business more than doubled its contribution as it won new upgrade contracts.
Additional data centre capacity will be required by 5G, Internet of Things and automated vehicles. Mountfield is in a good position to win work from existing and new clients.
The share price has recovered in the past couple of months. Even so, at 2.1p, the shares are trading on eight times historic earnings.
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