Indeed, the biggest difficulty to face the company is overcoming the effects of a decline in real incomes prompted by rising inflation. This could cause a further worsening in consumer confidence, which has already declined to its lowest level in 16 months.
The end result could be lower spending on discretionary items, which may hold back the stock’s recovery prospects in the short run.
Since they joined Questor’s IHT Portfolio in October 2017, Young’s shares have proved to be a disappointment. They have declined by 31pc, which is largely due to the virus: they currently trade 39pc lower than their pre-pandemic level. They have also come under pressure, along with the wider sector, in recent weeks as the consumer outlook has deteriorated.
Given that this column generally takes a long-term view of its holdings, and the company has made substantial progress in strengthening its balance sheet, it will remain part of our portfolio. Hold.
Questor says: hold
Ticker: YNGN
Share price at close: 725p
Update: TinyBuild
The most recent addition to our Inheritance Tax Portfolio, TinyBuild, released annual results last month that were well received by the market. The video games publisher and developer reported a 39pc rise in revenues and a 63pc increase in pre-tax profits. This has prompted a 25pc rise in its share price in the past month.
The company also announced an “acquihire” earlier this week of Demagic Games, which operates in Ukraine and Russia and with which TinyBuild has been working for more than a year. An “acquihire” is an acquisition that is made primarily to recruit a firm’s employees.
Clearly, TinyBuild’s exposure to Ukraine means that it faces a very uncertain future. As a result, further share price volatility seems likely after its 27pc decline since it joined our portfolio in May 2021.
We will continue to hold the stock thanks to its long-term growth opportunities. But we view it as a relatively high-risk investment. Hold.
Questor says: hold
Ticker: TBLD
Share price at close: 191p
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