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TAKE PROFITS: M.P. Evans (MPE)

Close M.P. Evans (MPE) at market (1,495p)

M.P. Evans has been a textbook example of what AIM Investor is designed to do. We highlighted the shares back in 2023 when they were trading on a modest valuation despite a high-quality asset base, strong cash generation and a clear pathway to improving profitability. Since then, the business has delivered consistently, with revenues and profits scaling, margins expanding and returns on capital pushing above 20%. The balance sheet has moved into a net cash position, free cash flow has strengthened materially and the dividend has grown steadily, all of which has underpinned a 100%+ return for clients. It’s been a quiet compounder that has simply done what it said it would do.

At this stage, the share price reflects that progress. The stock is trading close to its highs, momentum remains strong and the valuation now captures much of the operational improvement and supportive pricing environment. Looking ahead, earnings are expected to moderate slightly and, as is often the case with commodity-linked businesses, the cycle can turn when conditions are favourable. Taking profits here is about recognising that the easy gains have been made and managing risk after a strong run. After delivering a standout result for AIM Investor, this feels like a sensible point to lock in gains while keeping the business on the radar for future opportunities.

Proft = +104%

MPE Daily Candle Chart