Brough pick CSR soars 21% on trading update
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Technology company CSR, which is owned by Andrew Brough in the Schroder UK Mid 250 fund, has seen its share price jump by more than one-fifth after issuing a better-than-expected trading update.
The Cambridge-based chipmaker, which specialises in wireless technologies such as Bluetooth and WiFi, says it will embark in share buyback of up to $50m (£31.6m) and proposes a final dividend of $0.071 a share.
As of 1627 GMT, the company’s shares were trading up 21.17% at 275.9p on the FTSE 250. The shares had dropped as low as 154.1p in December when the firm posted weaker-than-anticipated results.
Today’s boost comes even though the latest update shows the company made a $4.9m loss in the fourth quarter of 2011. However, the business reports a $36.8m profit for the whole of the year.
CSR is owned by Brough’s £1.2 billion Schroder UK Mid 250 fund, where it accounts for 3% of the portfolio.
In the fund’s update for the fourth quarter, the holding was flagged as one of the main detractors of performance, taking 30 basis points of the portfolio’s return after its poor third-quarter results.
“However, given the synergies between the businesses and CSR’s valuation relative to its sector peers, there is strong potential for the shares to re-rate over the medium term,” Brough argued at the time.
CSR is also owned by Mark Costar and Alex Savvides in the £284.9m JOHCM UK Growth fund* and by the £189.8m Aberforth UK Small Companies fund*, which is run on a team basis.
*As of January 31 2012
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