Leeds Share Discussion Threads

[arthur_lame_stocks] 10/5/2006 18:19

I thought the results were excellent at first glance. Hemmers turned in a pre tax profit of over 600k. That´s after charging interest of 100k. Hemmers order books are still at record levels so it looks as though the underlying pre tax profit of the company could be as much as 1.4-1.5m. After tax that would leave 800-900k profit. Turnover is up to 8.75m. For the whole year it looks like a record 17.5m.

plus net cash of 3.3m and this looks like an easy 35p a share value. Still too cheap but will the market ever wake up to it?

[cg1953] 10/5/2006 10:01

so much for any cash distribution as they are now looking for 'acquistion opportunities' !!!! ? with there record; BETTER NOT.
better to sell the remaining trading operations whilst conditions are good and improving, and wind this thing up.

[hugepants] 10/5/2006 08:34

jhan, I think they term they used was "net funds". So taking off some debt out of the 4.8M cash I assume. Isnt this a pretty meaningless number though since it doesnt take into account the stocks on the balance sheet.

Checking back Hemmers profit in H2 last year was double that of H1. Prob optimistic expecting the same but id be fairly confident H2 will be better.

[jhan66] 10/5/2006 08:23

HP, i was only looking at the £465K operating Profit. Figured to discount the exchange rate gains from that figure, hence 800k -tax
I'm interested in your 13.8p cash. didn't they say 9.2p cash somewhere?

[hugepants] 10/5/2006 08:20

jhan, Is that 800K after tax?

"Profit before tax and exceptional items in the continuing operations was
significantly higher than the comparative period last year, up from £63,000 to
£493,000"

Doubling H1 gets you 1M for the full year and 0.7M after tax or eps of 2p. Anyone know if H2 is the better/worse half year?

I make balance sheet:

13.8p cash
28p net liquid assets
NAV = 31p

[jhan66] 10/5/2006 08:15

a small dividend now would have raised the company profile & added instutional interest for income trusts.

glossing over exceptionals & interest charges, the company looks set to make £800k in a clean year. add that to the debt free balance sheet and you have to think it's under priced.
may yet get 30p price at full year

[nchls] 10/5/2006 08:03

Very encouraging that they attribute increased turnover to their new strategy of targetting "...manufacturers of ready-made items" in addition to a market upturn amongst their "...traditional customer base of fabric retailers".

Even a hint at a possible divi later this year!

[jhan66] 10/5/2006 08:02

happy about positive trading statements. not thrilled about £837K exceptionals & can never work out how there's always net interest to pay. If I had £3.3M in the Bank I'd want them to pay me £57K. £124K currency gain was a pleasant surprise.
£7.2M co. - £3.3M petty Cash = about £4M equity. Looks very good value

[cockneyrebel] 10/5/2006 07:55

My thoughts too - looks like profit growth in remaining business running at about 100%?

9p cash.

I think 1.8p eps could be on the cards - cheap with all that cash on the balance sheet.

Underware dept, second floor, going up :-)

CR

[langland] 10/5/2006 07:49

On first glance results look solid with 1mn for the full year on the cards as many on here have forecast.

[langland] 09/5/2006 15:14

I think this could be poised for a bit of a run..famous last words.

[hugepants] 09/5/2006 10:27

Wonder where all the shares are coming from though.

[cockneyrebel] 08/5/2006 20:00

I've been grabbing more too - picked up another 20K on Friday.

This month is the month imo.

Get the feeling this has an undervaluation on it similar to YSP and could see a similar chart at some point.

CR

[arthur_lame_stocks] 08/5/2006 19:43

Good man, buy even more!!!

[poacher45] 08/5/2006 16:55

Ihave bought some more Arthur having now sold 80% of my Lupus.

[arthur_lame_stocks] 08/5/2006 15:25

A Bit of volume today. Looks like somebody may have bought 100k, although it´s hard to tell. there´s usually a trade of 100k before some news, since there is always some insider trading with this stock. Hopefully there´s some good news on the way.

[cockneyrebel] 05/5/2006 14:40

In for some more before the results in a few weeks.

Claesson buying 275K at 20p says they won't disappoint imo.

Then there's the share buy backs at 21p.

CR

[cg1953] 05/5/2006 10:38

with possibly a few 'lucky' exceptions; we have all been screwed on this one.
since 2000 this company has persistently mislead and confused.
never has caveat emptor been more applicable !!!
make a cash offer mr G & mr C, as you were obligated to do at -50pence plus several years ago.

[hugepants] 04/5/2006 12:46

Yeah hope so. Also these results should hopefully highlight the value here because it will show a cash-rich balance sheet with most of the debtors and creditors removed now Leeds Leasing has gone.
Wonder whose selling though since share price unchanged and all the big players have been buying as can be seen from the recent RNS's

[arthur_lame_stocks] 04/5/2006 12:33

I agree Hugepants. Give back 10p a share to shareholders. That´s 3.5m quid. That should still leave 2m in the kitty to help out Hemmers if it ever needs it. Not that it should mind you. Hopefully they can start paying back some of the 800k they owe to the holding company.

jhan66

Gyllenhammar and Claesson own about 40% between them. Hopefully they can´t conspire to screw us because they have claimed in the past that they aren´t acting in concert which is how they managed to pass the 30% mark without making a bid.

I do worry a bit about what they will do with the cash. Gyllenhammar is a bit hit and miss and i´d prefer to have the cash in my pocket to invest as I see fit rather than have him invest it in some dog for me. With a spot of luck they will sell off Hemmers and give us back the cash. This is what they originally intended and I imagine they would like to see a return on their investment in this some time soon.

[jhan66] 04/5/2006 09:21

Been a lot of Director comment about returning funds (AGM & accounts) but small beer so far.
March this year LDSG bought 800K for £158000.
June last year bought 450K for £61000
Directors & major shareholders buying though. Johan Claesson +Emslie's now add up to >30% added together.

Assume interims will be in next 2 weeks so trying to figure out if I should top-up. Restoration of divi must be likely, but it's the usual conundrum of small/illiquid share + heavy % internally controlled by board versus good balance sheet & prospects.
At least director holding keeps risk down on some of the more lunatic (sorry I mean enterprising) ideas for spending company funds.

"Just spent the Bibby money on a Internet division for Hemmers. It's massively loss-making just now but we're very keen on the prospects......"

[hugepants] 04/5/2006 08:45

Arthur,
They could easily return 10p of cash to shareholders. This is excess and shouldn't even affect the current share ie. NAV would drop to 21p , cash of 5p, net liquid assets 18p and eps approx 2p (and Hemmers on a rising trend). So current price of 20p would be fine even AFTER returning 10p to shareholders.

[arthur_lame_stocks] 03/5/2006 15:40

Hopefully only 2-3 weeks until the results are out. I´m hopeful that the underlying performance will be very good. The company and directors have been buying back shares at this level so presumably they´re confident too.

But it would be nice to think we will soon get a result with this.