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So far in the N Brown (LSE:BWNG) analysis (see last few Newsletters) we have a dividend yield of 5.5%, an average EPS over 12 years using the statutory reported “basic” numbers of 17.9p (giving a CAPE of 7.3), and an average EPS over 12 years “adjusted” profits of 24.5p (giving a CAPE of 5.3).
We also estimated profit after tax and after deduction of a reasoned level of exceptional items which could well be recurring of £55m.
And we have an owner earnings estimate of £57m leading to an intrinsic value estimate of £713m.
The market capitalisation of the firm is £415m at 146p per share. I bought last month at 130p (MCap £369m)
Today I’ll add to the canvas by estimating share value using return on net tangible asset figures.
Selected data from the income statements and balance sheets
| £’000s | 2019 | 2018 | 2017 | 2016 | ||||
| INCOME STATEMENT | ||||||||
| Profit after tax | -58.3 | 12.5 | 44.3 | 54.3 | ||||
| Amortisation charge this year for accounting goodwill following acquisitions | 0 | 0 | 0 | 0 | ||||
| Exceptional items distorting profits (positive or negative) | 122.7 | 46.0 | 20.2 | 7.8 | ||||
| Profit for shareholders | 64.4 | 58.5 | 64.5 | 62.1 | ||||
| CURRENT ASSETS AND LIABILITIES | ||||||||
| Inventories | 99.8 | 110.6 | 105.5 | 101.5 | ||||
| Receivables | 621.0 | 652.7 | 575.4 | 553.4 | ||||
| Cash needed for operations (assumed) | 43.7 | 58.2 | 64.1 | 45.3 | ||||
| Other current assets | 2.5 | 7.5 | ||||||
| Payables | -140.9 | -131.7 | -98.9 | -99.7 | ||||
| Short-term debt | -11.4 | 0 | 0 | 0 | ||||
| Other current liabilities | -33.4 | -9.3 | -13.4 | 0 | ||||
| Working capital for operations | 578.8 | 680.5 | 635.2 | 608 | ||||
| Surplus cash (assumed) | 0 | 0 | 0 | 0 | ||||
| NON-CURRENT ASSETS AND LIABILITIES | ||||||||
| Property, Plant and Equipment | 59.4 | 67.4 | 73.5 | 76.7 | ||||
| Goodwill in BS | 0 | 0 | 0 | 0 | ||||
| Previously written-off acquired goodwill – add back | 0 | 0 | 0 | 0 | ||||
| Other acquired intangible assets in BS | 0 | 0 | 0 | 0 | ||||
| Previously written-off other acquired intangibles – add back | 0 | 0 | 0 | 0 | ||||
| Long-term debt | -500.2 | -405 | -355 | -335 | ||||
| Other non-current liabilities | 0 | 0 | 0 | 0 | ||||
| Net non-current assets for operations | -440.8 | -337.6 | -281.5 | -258.3 | ||||
| OTHER ITEMS TO CONSIDER | ||||||||
| Defined benefit pension deficit | surplus | surplus | surplus | surplus | ||||
| Internally generated intangible assets capitalised to BS | 145.2 | 156.0 | 141.9 | 124.9 | ||||
| Investments (in shares, bonds, etc.) | 0 | 0 | 0 | 0 | ||||
| Operating lease non-cancellable commitments | 8 | 18 | 24 | 26.3 | ||||
| Preference share capital | 0 | 0 | 0 | 0 | ||||
| Minority interests in profit | 0 | 0 | 0 | 0 | ||||
| Minority interests in net assets | 0 | 0 | 0 | 0 |
| £’000s Year end April | 2015 | 2014 | 2013 | 2012 | |||
| INCOME STATEMENT | |||||||
| Profit after tax | 49.4 | 75.9 | 79.4 | ||||
| Amortisation charge this year for accounting goodwill following acquisitions | 0 | 0 | 0 | ||||
| Exceptional items distorting profits (positive or negative) | 17 | -5.6 | 0 | ||||
| Profit for shareholders | 66.4 | 70.3 | 79.4 | ||||
| CURRENT ASSETS AND LIABILITIES | |||||||
| Inventories | 94.8 | 89.9 | 86.5 | 82.6 | |||
| Receivables | 609.9 | 599.0 | 548.7 | 522.0 | |||
| Cash needed for operations (assumed) | 40.4 | 45.3 | 61.3 | 57.5 | |||
| Other current assets | 0 | 0 | 1.2 | 0 | |||
| Payables | -108.9 | -98.0 | -109.7 | -106.6 | |||
| Short-term debt | -7.0 | -9.0 | 0 | 0 | |||
| Other current liabilities | -13.9 | -20.4 | -19.0 | -23.0 | |||
| Working capital for operations | 615.3 | 606.8 | 569.0 | 532.5 | |||
| Surplus cash (assumed) | 0 | 0 | 0 | 0 | |||
| NON-CURRENT ASSETS AND LIABILITIES | |||||||
| Property, Plant and Equipment | 70.5 | 63.2 | 66.4 | 62.8 | |||
| Goodwill in BS | 0 | 0 | 0 | 0 | |||
| Previously written-off acquired goodwill – add back | 0 | 0 | 0 | 0 | |||
| Other acquired intangible assets in BS | 0 | 0 | 0 | 0 | |||
| Previously written-off other acquired intangibles – add back | 0 | 0 | 0 | 0 | |||
| Long-term debt | -280.0 | -250.0 | -250.0 | -250.0 | |||
| Other non-current liabilities | 0 | 0 | 0 | 0 | |||
| Net non-current assets for operations | -209.5 | -186.8 | -183.6 | -187.2 | |||
| OTHER ITEMS TO CONSIDER |
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