The most profitable company in the FTSE 250
The latest addition to our Income Boosters portfolio is going through a period of change. But it is still the most profitable company in the FTSE 250 and comes with a juicy yield.
A network effect is the name given when a product or service becomes more valuable as its user base expands. Well-known examples in the UK include Rightmove (LON: RMV) and Auto Trader (LON: AUTO) which operate the dominant classified listing sites for houses and used cars. Comprehensive market coverage means they're the first port of call for prospective buyers. In turn, this means that few sellers will take the risk of not listing their stock for sale on these sites. As a result, both companies enjoy strong pricing power and very high profit margins.
The company we're looking at this week…
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