Company background at a brief:
The Group's main activities can be categorised into 4 main operations: hose & marine specilaists, measuring instruments/metrology, uPVC pipes & fittings, and industrial property. The customer base is predominantly oil and gas related, both on and offshore.

Why it is attractive:
- Average of 9% yield
- Positive free cash flow over the years
- Net cash position
- Historically, on average, stable dividend payout over the past 3 years

Summary of disadvantages:
- Limited and boring growth prospects
- Margins may be indirectly affected through the industries via their customer base
- A case of too much cash being idle, waiting for acquisition which may not materialize?
- Lack of substantial interest - a case of not being noticed? undervalued?

Dividend table - 2006 to 2010
Source: ShareInvestor

Financial snapshot
Source: ShareInvestor

For growing my passive income via dividends, my first investment foray into GRP Ltd starts in Jan 2011. Remain vested.


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