Basepoint Share Discussion Threads

[cockneyrebel] 05/5/2004 11:13

Well your tip confirms all I thought and more spider1.

Nice to see they regognise the continuous earnings growth over 5 years.

I expect these to get tipped further after the results, should get a boost from BIZ results this Monday too.

CR

[spider1] 05/5/2004 07:10

Recent Tip Details - TRENDWATCH
One of several small AIM-listed companies currently in the TrendWatch portfolio that has quietly performed very nicely is Bizspace, up 64% in just over a year. Now my analysis has identified a similar company, Basepoint, which should give you a repeat performance.

Company Activities

Basepoint floated on AIM in June 2000 at 123p. It's a fast-growing provider of managed facilities for growing businesses. It runs what it snappily calls "managed business, innovation and enterprise centres", 10 to date, with another 3 being developed. It plans to open two or three new sites a year. All of its current sites except Swindon are in the south of England. The units are rented out on 2-week licences and offer a full range of services included in the rent, including meeting rooms, lounges, CCTV, on-site management, 24/7 access and state-of-the art broadband telecoms.

Developing new centres is expensive for a small company. Basepoint has hit upon a strategy to overcome this problem. It has decided that it doesn't necessarily need to fully own its centres. Its expertise is in building and operating them. Accordingly, it seeks to form partnerships with other organisations who are willing to buy the land. For example, it recently formed a partnership with the Trustees of the Kodak Pension Fund, under which the Fund will have 75% ownership of the land and buildings. The Fund will pay a fee to Basepoint to manage the centres.



The Market

Indeed, the company is also prepared to develop and manage centres for other organisations such as local authorities or government agencies for a fee. According to government figures, there are now close to 4 million businesses in the UK. 99% of these are sole traders or employ fewer than 50 people. These companies provide an astonishing 44% of all the jobs in the UK. This is a clear indication of the scale of Basepoint's potential market.

Given that fact, the really surprising thing about Basepoint is that its shares should be trading at a discount to net asset value (Bizspace is afflicted by the same curse). You'd expect this of a pure property company, but Basepoint is certainly not one of those, especially since it is distancing itself from full ownership of its sites.

Valuation

At the end of its last business year, which ended in February, expect NAV to be over 180p a share (you'll be able to confirm that on May 20, when its full-year results are due). You can see from the price chart that only today have the shares reached that value.





It isn't because of poor profits either. Profits have grown without interruption from 0.27 million pounds in 2000 to 0.88 million pounds in 2003, with 1.5 million pounds forecast for its next set of results to be announced next month. The forward PE of 13.5 is very low for its sector, despite delivering double-digit earnings growth. Furthermore, the company has a progressive dividend policy and has pushed up the dividend every year since it floated.

For all of these reasons, the shares should push ahead steadily, helped by the restricted supply - institutions or directors hold about 60% of them. Basepoint is only about a third of the size of Bizspace in terms of the number of centres it has open; but if it performs anything like as well as Bizspace has, you'll be well satisfied. Buy.

Key Data

EPIC: BNT
NMS: 500
Spread: 178p - 185p
Market Cap: 20.3 million pounds

TrendWatch is unique. It is the only publication that gives you complete listings of shares in uptrends and downtrends - vital information for investors and traders alike. Based on this, we make three fully researched share recommendations per fortnight. We have never failed to outperform the market by a substantial margin. Our current portfolio is up 57%. Our most successful recent picks include Peter Hambro Mining +410%, Patsystems +291% Telecom Plus +283% and Savills +191%. For more details click here

[cockneyrebel] 04/5/2004 11:46

Moving up nice.

43% earnings growth in H1, trading below NAV.

Forward PE and forecast going to look cheap come the results in a couple of weeks imo.

5 years solid earnings growth history despit the past market trauma.

eps 1999 = 3.1p, 2000 = 3.5p, 2001 = 3.84p, 2002 = 4p, 2003 = 6.9p, 2004 10.3p forecast.

Earnings growth has accelerated nicely. A takeover of this company at the current price would mean you buy the assetts at book value and get a fast growing business for free.

Results due around May 21.

CR

[cockneyrebel] 13/4/2004 13:04

Look at all the good things said above.

Now look at the earnings growth in H1 - +45%

Still trading below NAV !

2 directors bought over 20K each at 164p recently - today's price give or take tuppence.

I'd have thought these might get a nice lift from BIZ results due May 6 perhaps.

PE for this year 16, falling to 15 and a good chance they will beat backed by those directort buys just after the year end.

And a divi of 1.5% too.

Nice dip to have today imo - so I did.

CR

[cambium] 26/2/2004 13:10

Looking good I am going to follow thge directors.

If its good enough for the FD it is good enough for me.

[washbrook] 19/12/2003 07:32

How could I have missed this gem.A solid buy.

[maxinvestor] 10/6/2003 14:38

Took slighly more than a few days but yet another example of a no-brainer - well done all.

Max

[cockneyrebel] 06/6/2003 20:19

Tipped in the IC I guess - just what i was waiting for.

Seems a bit boring stock when it isn't tipped tho - might sell and hunt some action - get itchy feet with stocks like this.

CR

[mykai] 06/6/2003 19:46

not a lot goes of on this board we all had a good day today and its good to talk

[cockneyrebel] 24/5/2003 17:24

I never had trouble buying. I'd stick to 2.5K to 5K myself but they look a nice little diversification.

Just replied to you on iii actually. Investors Chronicle tipped these in November. I guess we'll se a nice update this Friday with a bit of luck.

PS - they were my city friends until the last three years got here D - now they are my city frieds!

D

[diogenesj] 24/5/2003 16:08

Go easy on those city frieds, CR: terribly high in carbohydrates.

Just stumbled on this: looks interesting, though I am a bit nervous about holding microcaps. Is it actually possible to buy them (there seem to be no trades most days)? And what about selling?

[cockneyrebel] 23/5/2003 09:51

Not a problem of the share, a problem of communication.

Will have to alert my city frieds on this one, that will get it moving.

CR

[maxinvestor] 23/5/2003 09:46

They will begin to move but the trouble as you have pointed out is that this share is only traded 9% of the trading days so it tends to move ssslllooowwlllyy.

Happy to hold till the next results and it should be tipped, and mo ve, a few times in that period.

Max

[cockneyrebel] 23/5/2003 09:38

Looks like the market sleeps - don't think them releasing results mid day yeserday helps.


Might have to wait for the magazine tips like the IC to wake investors up.

CR

[maxinvestor] 22/5/2003 23:29

LONDON (AFX) - Basepoint PLC year to February 28 2003
Sales - 3.69 mln stg vs 2.43 mln
Pretax profit - 876,000 stg vs 628,000
Operating profit - 1.22 mln stg vs 727,000
NAV - 1.77 stg vs 1.64
EPS - 8.62 pence vs 6.25
Final div - 2.2 pence
Total div - 2.2 pence, up 10 pct
vjt/

[maxinvestor] 22/5/2003 23:08

Missed the tick upwards so I'll say 'ping' now for the next one in advance.

Max

[maxinvestor] 22/5/2003 23:06

Excellent results and the organic growth and profit continues.

Max

[cockneyrebel] 22/5/2003 20:41

I think they are deserving of 150p as you say Simon. Perhaps with the investment climate getting better then these will re-rate somewhat, seens the investing weariness has stiffled the appreciation of many tidy investments of late. I'd have thought short term (7 weeks) we'll see 120p+, probably come the AGM mid July. They were up at 115p a year ago - don't half get their clogs on when they get going too I seem to remember.

Nicely underpinned at this level tho - don't see these staying below a £1 or falling back below it once they breach that level.

I'd expect the likes of Investors Chronicle to tip these next week and alert a lot more less aware investors - really chuffed at catching them this afternoon, should have grabbed more :-(


CR

[simonevans] 22/5/2003 20:32

They are probably worth £1.50plus, but will not get near that - I think they should move over a £ though. Solid business concept this one and a very impressive revaluation uplift.

[cockneyrebel] 22/5/2003 16:39

Are these cheap or what?

PE 11, trading at half NAV, superb earnings growth, decent yield.

Give it a few days, has to go well over a quid imo.

CR

[cockneyrebel] 22/5/2003 10:40

Nice results just out:



BASEPOINT PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED 28th FEBRUARY 2003



Basepoint Plc, the AIM listed specialist provider of Managed Business,
Innovation & Enterprise Centres (MBECs), today announces its preliminary results
for the year ended 28th February 2003.

HIGHLIGHTS

*Continuing high occupancy at MBECs

*Operating profit increased by 68% to #1.23m

*Profit for the year up by 45% to #696,000

*EPS improved by 37%

*Dividend increased by 10% to 2.2p

*Increases in portfolio valuation #3.9m

*Net assets at #1.77 per share at year-end

*#3m new capital raised to fund expansion strategy

*Partnership formed with Kodak Pension Plan (a client of LaSalle
Investment Management) to fund development of new MBECs

CHAIRMAN'S STATEMENT

Results

I am pleased to report another year of record financial results. Operating
profit at #1.23m is up by 68% on last year with profits available to
shareholders, after both tax and minority interests, up by 45%. Earnings per
share increased by 37% to stand at 8.6p basic and 8.4p fully diluted. Improved
profitability arose through consistently high occupancy at mature centres,
rental improvements and increased capacity following the opening of two new
centres during the year.

The value of the Group's portfolio has increased to #26.77m following additions
of #2.9m, disposals of #400,000 and increases on valuation of #3.9m. Towards the
end of the financial year we successfully raised #3m in new capital increasing
the number of shares in issue by 46%. I am particularly pleased to report that
notwithstanding the greater number of shares in issue, net assets per share
increased by 8% to stand at #1.77 at the year end.

Dividend

The Board is recommending a dividend of 2.2p per share, an increase of 10% over
last year. This will be paid on 22nd July, in the form of a single annual
dividend, subject to confirmation at the Annual General Meeting. Dividends have
been increased each year since our admission to the Alternative Investment
Market and it remains our intention to pursue a progressive dividend policy. The
increase in issued capital late on in the financial year means that we are
proposing a dividend from profits largely earned before the benefit of the
additional capital is felt.

[maxinvestor] 22/5/2003 10:38

Cracking results and beginning to motor - watch it.

Max

[profitaker] 10/11/2002 00:51

ttg100

They aren't very specific with occupancy rates and I agree it would be useful info. But the business model means that the occupancy rate will always be fluid. Clearly they manage to charge a substantial premium – 2001 accounts – property value £ 20.4m – turnover (rent) £ 2.4m – Net yield (after voids) 11.7% - NAV £1.67 p/s.

The provision you refer to came about when the company adopted FRS 19 – deferred tax. Basically if you're going to re-value an asset (in this case property) in the balance sheet to fair value, you must now include the tax liability that would arise from the sale. If for example your property portfolio in 2001 was worth £ 1 m and the following year it was re-valued at
£ 2 m, net assets would have increased by £ 1m, except this isn't really the case because you would incur a tax liability if the assets were to be sold. The accounts to Feb 2001 were re-stated to include the tax liability that would arise if the assets were sold.

It's not a very liquid stock and certainly not for some of the MT screamers. But it represents excellent value underpinned by a substantial market / NAV discount.

It's not my industry, but it's one of the pies I have my finger poked into.