Wynnstay Properties

Wynnstay may not be one of AIM's better-known constituents, but it keeps on producing the goods for investors - its most recent final figures showed pre-tax profits raised 13% to £755,000 and net asset value increased 18% to 297p per share (after a property revaluation). Currently owning a fully-let portfolio of 44% industrial property, 31% offices and 25% retail space in southern England, the company has taken a very cautious and wise approach, making selective disposals of properties and being cautious about acquisitions. Indeed chairman Philip Collins says that 'we remain determined not to overpay, particularly at this mature stage of the cycle and with the economy continuing to appear very fragile'. Borrowings have also been reduced - gearing is now down at a very manageable 58%, leaving plenty of headroom to fund any purchases should presentable opportunities come to light. With a total dividend payout of 7.2p proposed, the shares yield a presentable 3.8% and trade on a historic p/e of just over ten, which looks reasonable value given that the discount to NAV is 37%. There are unlikely to be any fireworks with the share price, but on the basis of past performance you couldn't get much more of a safe, secure investment.

Sector: General Financial

Companies: Wynnstay Properties

Market cap: £5.9m

Share price: 187.5p

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