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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Logistics Development Group Plc | LSE:LDG | London | Ordinary Share | GB00BD8QVC95 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
|
|
|---|---|---|---|---|---|
| 0.50 | 3.45% | 15.00 | 1,273,315 | 11:14:58 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| 14.50 | 15.50 | 15.25 | 14.50 | 14.50 | |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Management Consulting Svcs | -9.54M | -10.12M | -0.0193 | -7.77 | 76.03M |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| 16:25:11 | O | 1,358 | 14.67 | GBX |
| Date | Time | Source | Headline |
|---|---|---|---|
| 22/5/2025 | 22:42 | ALNC |  EARNINGS AND TRADING: Block Energy loss narrows; TruFin starts buyback |
| 22/5/2025 | 07:00 | UK RNS | Logistics Development Group PLC Final Results for the 13 Months to 31 Dec.. |
| 24/4/2025 | 07:00 | UK RNS | Logistics Development Group PLC Results of Tender Offer |
| 22/4/2025 | 12:28 | UK RNS | Logistics Development Group PLC Results of General Meeting |
| 28/3/2025 | 07:00 | UK RNS | Logistics Development Group PLC Proposed Tender Offer, Circular, & GM.. |
| 17/3/2025 | 12:17 | ALNC | Logistics Development to return GBP21 million via tender offer |
| 17/3/2025 | 07:00 | UK RNS | Logistics Development Group PLC Portfolio NAV and Distribution Update |
| 10/1/2025 | 11:59 | UK RNS | DBAY Advisors Limited Form 8 (OPD) - Alliance Pharma PLC |
| 10/1/2025 | 09:24 | ALNC | Alliance Pharma agrees GBP350 million takeover by largest shareholder |
| 10/1/2025 | 07:29 | UK RNS | Logistics Development Group PLC Alliance Pharma Investment - Update |
Logistics Development (LDG) Share Charts1 Year Logistics Development Chart |
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1 Month Logistics Development Chart |
Intraday Logistics Development Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 22/5/2025 | 15:22 | Legacy Distribution::::: Candy Truckers | 965 |
| 10/5/2025 | 09:22 | Logistics Development Group | 14 |
| 08/5/2024 | 15:51 | LDG | 10 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
|---|---|---|---|---|
| 2025-05-23 15:25:11 | 14.67 | 1,358 | 199.22 | O |
| 2025-05-23 14:33:02 | 14.75 | 60,998 | 8,997.21 | O |
| 2025-05-23 14:32:35 | 14.75 | 51,296 | 7,566.16 | O |
| 2025-05-23 13:57:25 | 15.20 | 30,195 | 4,589.64 | O |
| 2025-05-23 13:36:33 | 15.18 | 51,634 | 7,838.04 | O |
| Top Posts |
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Posted at 24/5/2025 09:20 by Logistics Development Daily Update Logistics Development Group Plc is listed in the Management Consulting Svcs sector of the London Stock Exchange with ticker LDG. The last closing price for Logistics Development was 14.50p.Logistics Development currently has 524,350,394 shares in issue. The market capitalisation of Logistics Development is £78,652,559. Logistics Development has a price to earnings ratio (PE ratio) of -7.77. This morning LDG shares opened at 14.50p |
Posted at 08/5/2025 12:41 by spob .Written on April 1st A tender offer too good to miss Simon Thompson: Investors can tender shares and buy them back at a discount • £21mn tender offer at 19p a share • NAV of £116.9mn (22.3p) at 31 December 2024 Logistics Development Group (LDG:14.75p), an investment company managed by asset management firm DBay, has announced a year-end portfolio update and provided details of a capital distribution (‘A tender offer worth exploiting’, 6 January 2025). Qualifying shareholders on LDG’s share register on the tender record date (6pm on 22 April 2025) have a basic entitlement to submit a tender application for 21.08 per cent of their existing holdings, which will be accepted in full. In addition, LDG is offering all shareholders the opportunity to submit excess tenders for more than their basic entitlement. That’s worth doing as some shareholders may not tender their full allocation even though the tender price is 29 per cent higher than the market price. You have nothing to lose by submitting an excess tender application. The year-end portfolio update confirmed that LDG held £44mn of cash and three investments on 31 December 2024, the largest of which is a 13.2 per cent stake in Alliance Pharma (APH:64.75p), a distributor of consumer healthcare and pharmaceutical products. Alliance Pharma is in the process of being acquired by funds managed by DBay on a multiple of 10 times cash profit to enterprise valuation. The offer price of 64.75p values LDG’s stake at £46.1mn, or £13.4mn higher than the valuation used in the company’s balance sheet on 31 December 2024. In addition, LDG holds two unlisted investments: a 27.5 per cent stake in Finsbury Foods, a bakery manufacturer and a 9.1 per cent stake in SQLI, a leading pan-European digital transformation business. Both companies were acquired by funds managed by DBay in the past two years. LDG reports that Finsbury has delivered year-on-year growth in cash profit in the latest quarter and that SQLI’s management accounts will show an improved trading performance in 2024. The two stakes have a combined valuation of around £36.5mn. So, assuming LDG purchases 110mn shares at 19p in the tender offer, and factoring in the £13.4mn valuation uplift on the Alliance holding since LDG’s financial year-end, I estimate the investment company will have proforma net asset value (NAV) of £109mn. Based on a reduced share count of 414mn shares, this implies a proforma NAV per share of 26.3p, or 18 per cent higher than the last reported figure. So, with shares in my 2023 Bargain Shares Portfolio constituent trading on a 43 per cent discount to my proforma NAV estimate (post the tender and Alliance Pharma takeover), I would advise tendering your shares and using the proceeds to repurchase them at the lower market price. Tender your shares. |
Posted at 16/4/2025 21:20 by spob .A tender offer too good to miss Investors can tender shares and buy them back at a discount Simon Thompson / Investors Chronicle 1 April 2025 • £21mn tender offer at 19p a share • NAV of £116.9mn (22.3p) at 31 December 2024 Logistics Development Group (LDG:14.75p), an investment company managed by asset management firm DBay, has announced a year-end portfolio update and provided details of a capital distribution (‘A tender offer worth exploiting’, 6 January 2025). Qualifying shareholders on LDG’s share register on the tender record date (6pm on 22 April 2025) have a basic entitlement to submit a tender application for 21.08 per cent of their existing holdings, which will be accepted in full. In addition, LDG is offering all shareholders the opportunity to submit excess tenders for more than their basic entitlement. That’s worth doing as some shareholders may not tender their full allocation even though the tender price is 29 per cent higher than the market price. You have nothing to lose by submitting an excess tender application. The year-end portfolio update confirmed that LDG held £44mn of cash and three investments on 31 December 2024, the largest of which is a 13.2 per cent stake in Alliance Pharma (APH:64.75p), a distributor of consumer healthcare and pharmaceutical products. Alliance Pharma is in the process of being acquired by funds managed by DBay on a multiple of 10 times cash profit to enterprise valuation. The offer price of 64.75p values LDG’s stake at £46.1mn, or £13.4mn higher than the valuation used in the company’s balance sheet on 31 December 2024. In addition, LDG holds two unlisted investments: a 27.5 per cent stake in Finsbury Foods, a bakery manufacturer and a 9.1 per cent stake in SQLI, a leading pan-European digital transformation business. Both companies were acquired by funds managed by DBay in the past two years. LDG reports that Finsbury has delivered year-on-year growth in cash profit in the latest quarter and that SQLI’s management accounts will show an improved trading performance in 2024. The two stakes have a combined valuation of around £36.5mn. So, assuming LDG purchases 110mn shares at 19p in the tender offer, and factoring in the £13.4mn valuation uplift on the Alliance holding since LDG’s financial year-end, I estimate the investment company will have proforma net asset value (NAV) of £109mn. Based on a reduced share count of 414mn shares, this implies a proforma NAV per share of 26.3p, or 18 per cent higher than the last reported figure. So, with shares in my 2023 Bargain Shares Portfolio constituent trading on a 43 per cent discount to my proforma NAV estimate (post the tender and Alliance Pharma takeover), I would advise tendering your shares and using the proceeds to repurchase them at the lower market price. Tender your shares. |
Posted at 17/3/2025 07:44 by leedsu36 I’ve been loading up on this penny share,I generally invest in medium- and large-sized companies with proven business models. But I own the odd penny share. One I am particularly excited about has soared 28% in the past month, although over five years it has fallen 90%.But some recent developments led me to buy more shares in this company – here’s why.A nice problem: lots of cash getting dusty The company in question is Logistics Development Group (LSE: LDG). With a market capitalisation of £75m, this is a fairly modest operation. It also has significant shareholders that have specific (and competing) visions of how the company ought to be run. I see that as a risk for a small shareholder like me, but it is also a potential opportunity. Last year, an activist investor launched a campaign — ultimately unsuccessfully — seeking to wind down the company and distribute its assets to shareholders. The reason for that is interesting in my view. LDG is basically sitting on a large pile of cash. The group’s cash position last month was about £44m, almost 60% of its entire current market capitalisation.Unloc Not only that, but the company owns stakes in a number of other firms. For example, it is a shareholder in Alliance Pharma. Last week, it was announced that Alliance had agreed to a takeover bid at a price 41% higher than its share price the day before the takeover was made public.LDG indirectly owns 13% of Alliance. It will receive an equivalent stake in the new private company. Last month, LDG also announced that it had redeemed a £10m debt note it held in another company for £13.1m. At that point, the company also laid out a plan I think is aimed at mollifying its activist shareholder, proposing a tender offer at 19p per share to return up to £21m to shareholders. If that is approved by shareholders (which I expect it will be), LDG will buy back a certain amount of shares for 31% higher than they can be bought for on the open market right now.Why I’ve been buying That news led me to increase my stake in this penny share. The sizeable discount of the share price versus the proposed tender offer points to ongoing risks. The tender offer may not complete, for example. Even if it does, its scale is capped, so there is no guarantee of how many shares I may be able to sell back to the company at the 19p price.Even considering that though, I continue to see potential deep value here. LDG is sitting on a large cash pile it has explicitly set out to reduce by buying back some shares at well above their current price. It is also sitting on a number of investments that, as the debt note sale and Alliance takeover illustrate, could ultimately turn out to be worth more than their current carrying value on the company’s balance sheet. They may not, of course. But on balance, I reckon LDG is a share that could ultimately be worth substantially more than its current price suggests. |
Posted at 27/2/2025 22:38 by lpavlou Keep an eye on APH. share price is now at the bid price. Could be another bidder in the wings. Would Dbay/LDG sell out to another bidder or will they have the raise their bid price. I'd prefer a sale as they could use the cash to tender for more shares. Most investors here would sell for 19p if it was on offer, leaving Dbay with 10% profit |
Posted at 06/1/2025 14:42 by boystown Re-tipped by Simon ThompsonA tender offer worth exploiting - Investment company will buy back 21 per cent of its shares at a 31 per cent premium - Investment sold at 31 per cent premium to book value - £21mn tender offer pitched at premium to share price - Spot net asset value (NAV) around £113.4mn (21.6p) - 33 per cent discount to NAV Logistics Development Group (LDG:14.5p), an investment company managed by asset management firm DBay, has sold an investment at a 31 per cent premium to book value and plans to return £21mn of cash to shareholders, subject to their approval. The distribution will be made through a tender offer at 19p a share, representing a 31 per cent premium to the current share price. In February 2024, LDG acquired a £10mn (1.9p) high-interest payment in kind (PIK) fixed-rate unsecured loan note issued to The Power of Talent Midco, a special-purpose vehicle that owns the operating companies of unlisted company Nash Squared Group, a recruitment and consultancy business. Following the sale of Nash Squared's NashTech division a fortnight ago, the loan note was redeemed for £13.1mn to generate an internal rate (IRR) of 36 per cent during LDG’s 46-week holding period. LDG now holds £44mn (8.4p) of cash, of which half will be returned through the tender offer, details of which will be announced shortly. Moreover, the board intends to return 50 per cent of net cash profits from future divestments as additional distributions. Bearing this in mind, the portfolio includes a 13.2 per cent stake in Alliance Pharma (APH:45.7p), a distributor of consumer healthcare and pharmaceutical products. The holding was worth £25.2mn (4.8p) when I last suggested buying LDG’s shares at 11.75p (‘Wind-down request could narrow this stock's discount’, 5 September 2024), but is now worth £32.5mn (6.2p). Effectively, cash and the holding in Alliance Pharma back up 100 per cent of LDG’s market capitalisation of £76mn (14.5p). Unlisted holdings in the price for free In addition, LDG holds two unlisted investments: a 27.5 per cent stake worth £17.8mn (3.4p) in Finsbury Foods, a bakery manufacturer that was acquired in 2023 for £143mn by funds managed by DBay; and a 9.1 per cent stake in SQLI, a leading pan-European digital transformation business. In November 2024, funds managed by DBay bought out the minority shareholders of SQLI at €54 per share. The takeover valued SQLI at €252mn (£209mn) and implies a £19mn (3.6p) read-through valuation of LDG’s retained holding, representing a 32 per cent premium to the carrying valuation in LDG’s last accounts. LDG’s board now plans to publish quarterly net asset value (NAV) estimates, so offering investors greater transparency. In the meantime, I estimate that spot NAV of £113.3mn (21.6p) is 14.4 per cent higher than in the 2024 interim accounts and almost 50 per cent higher than the current share price. Furthermore, the tender offer will redeem 21 per cent of the 524.3mn shares in issue at a 31 per cent premium to the share price, so it should placate shareholders who failed in their attempt to wind down the company last year. Also, pro-forma NAV per share rises to 22.3p post the tender offer, so there should be further capital upside potential for this constituent of my 2023 Bargain Shares Portfolio. Buy. |
Posted at 24/12/2024 11:09 by manual dexterity 24 December 2024Logistics Development Group plc ("LDG", the "Company" or, together with its subsidiaries, the "Group") Redemption of Nash Squared investment Distribution Policy Update The Board of Logistics Development Group plc, the AIM-quoted investing company, announces that on 23 December 2024 the Nash Squared group completed the disposal of its NashTech division. As a result of the disposal, the £10 million investment by Fixtaia Limited, LDG's wholly owned subsidiary, for fixed rate unsecured Series A loan notes and payment in kind (PIK) notes issued by The Power of Talent Midco Limited has been redeemed, realising a cash distribution to the Group of c. £13.1 million and generating a net IRR of c. 36% over the holding period. No fees are payable by the Group on the realisation proceeds. Following receipt of the redemption funds, the Group's cash position is approximately £44 million. The Board, together with its investment manager, has been reviewing the Company's distribution policy. Since becoming an investing company in December 2020, LDG has already distributed c. £27 million to shareholders, primarily through share buyback mechanisms. The Board now plans a further distribution and is contemplating a tender offer to return up to £21 million to shareholders. it is proposed that the tender offer would be effected at a price of 19p per share. Any tender offer would be subject to, inter alia, shareholder approval. In the future, the Board is planning to make additional distributions as investments are realised. These will be based on 50% of net cash profits realised from each asset sale, though timings will remain contingent on market conditions. In addition, from December 2024, LDG intends to publish unaudited NAV estimates on a quarterly basis, with unaudited NAV estimates expected to be announced within two months of the relevant quarter end. Further enquiries: Logistics Development Group plc Via FTI Consulting FTI Consulting +44 (0) 20 3727 1340 Nick Hasell / Alex Le May Strand Hanson Limited (Financial and Nominated Adviser) James Dance / Richard Johnson / Abigail Wennington +44 (0) 20 7409 3494 Investec Bank plc (Broker) Gary Clarence / Harry Hargreaves +44 (0) 20 7597 5970 |
Posted at 20/9/2024 20:04 by spob Wind-down request could narrow this stock's discountThe cash-rich investment company trades on a 38 per cent discount to NAV and has received a request for an orderly wind-down to return cash to shareholders - Shareholder calls for wind-down of company - NAV of £99mn (18.9p) - 38 per cent discount to NAV Logistics Development Group (LDG:11.75p) has received a requisition notice to convene a meeting to vote on an orderly wind-down of the Aim-traded investment company. Huntress (CI) Nominees, a Jersey-registered investment vehicle which holds 6.86 per cent of the shares, wants the investment manager, DBay, to cease making new investments and prioritise the timely return of capital to shareholders. In results for the six-month period to 31 May 2024, the debt-free company held cash of £32mn (6.1p) and an investment portfolio worth £66.7mn (12.7p). Since the accounting date, LDG has invested £2.4mn to raise its stake from 11.9 to 13.2 per cent in Alliance Pharma (APH: 35.4p), a distributor of consumer healthcare and pharmaceutical products. The holding is worth £25.2mn (4.8p). In addition, LDG has realised £1.65mn and banked a £0.6mn profit from the sale of its stake in Mission Group (TMG :24p), a UK advertising and marketing specialist. It means that LDG’s current cash pile, which is placed on deposit with Investec at an interest rate of 3.75 per cent, is around £31.5mn (6p), or half its market capitalisation of £61.6mn. Other notable listed investments include a 9.1 per cent stake in SQLI (FR:SQI), a leading pan-European digital transformation business, which has a current value of €17.1mn (£14.4mn, or 2.7p). LDG also holds two non-listed investments: a 27.5 per cent stake worth £17.8mn (3.4p) in Finsbury Foods, a bakery manufacturer that was acquired last year for £143mn by funds managed by DBay; and a £10mn (1.9p) high interest payment in kind (PIK) fixed-rate unsecured loan note issued to The Power of Talent Midco, a special purpose vehicle that owns the operating companies of unlisted Nash Squared Group, a recruitment and consultancy group. Deep share price discount to book value As has been the case since I included LDG in my 2023 Bargain Shares Portfolio, the shares are in deep value territory as highlighted by NAV being 60 per cent higher than the company’s market capitalisation. This has not gone completely unnoticed as Richard Griffiths, the founder of investment bank Evolution and boutique finance house ORA Capital, has been stake-building. Known in the City of London as the 'Welsh Wizard' due to his stockpicking ability, the Jersey-based investor raised his holding in LDG from 10.9 to 15.3 per cent at the end of May (‘Welsh wizard' sees value in this stock – and so do we’, 28 May 2024). The board is cognisant of the fact that LDG’s share price fails to reflect the value of the company’s assets, so requested and were granted authority to repurchase up to 15 per cent of the 524mn shares in a buyback programme that should enhance net asset value (NAV) per share. However, a concert party owns a 34 per cent stake, and the resolution for a Takeover Panel waiver failed to receive enough backing, so the buyback cannot proceed. In its absence, an orderly wind-down of the company would undoubtedly narrow the 38 per cent share price discount to NAV in double-quick time. The board is now considering Huntress’ request and is advising shareholders to take no action at this stage. However, I can now see the activist’s resolutions garnering support from other shareholders. Buy. |
Posted at 20/9/2024 19:41 by lpavlou It's Dbay doing the acquiringSQLI, a European group dedicated to digital services, announces that DBAY Advisors, its reference shareholder since 2019, has announced its intention to acquire all the SQLI shares not held by the Offeror at a price of €54.00 per share in the context of a public offer followed by a possible squeeze-out.In order to achieve this, Synsion BidCo (the "Offeror"), a company indirectly controlled by DBAY Advisors, which holds 83.5% of SQLI's share capital and 80.9% of the theoretical voting rights, has today filed with the AMF a simplified public tender offer (the "Offer") for all the shares of SQLI not held by the Offeror.CAPITAL CONTROLLED AT OVER 83% AND A STOCK MARKET LISTING THAT IS NO LONGER JUSTIFIEDThis Offer is based on the observation that the operational functioning of the Company in the event of delisting would be simplified in view of the provisions to which companies whose shares are admitted to trading on a regulated market are subject. Furthermore, given the current shareholder structure and the low trading volume of SQLI shares, listing is of limited benefit to SQLI. In this regard, the average daily trading volume in SQLI shares declined by 39% between 2023 and 2024 [1].The Offeror therefore believes that the Offer presents a liquidity opportunity for SQLI's shareholders. The Offeror has also indicated that, if the results of the Offer so permit, it intends to implement a squeeze-out on the Company's shares.The terms of the Offer are more fully described in the draft offer document available on SQLI's website and on the AMF website (www.amf-france.org) |
Posted at 05/9/2024 17:03 by value hound Re-tipped by Simon Thompson:Wind-down request could narrow this stock's discount The cash-rich investment company trades on a 38 per cent discount to NAV and has received a request for an orderly wind-down to return cash to shareholders - Shareholder calls for wind-down of company - NAV of £99mn (18.9p) - 38 per cent discount to NAV Logistics Development Group (LDG:11.75p) has received a requisition notice to convene a meeting to vote on an orderly wind-down of the Aim-traded investment company. Huntress (CI) Nominees, a Jersey-registered investment vehicle which holds 6.86 per cent of the shares, wants the investment manager, DBay, to cease making new investments and prioritise the timely return of capital to shareholders. In results for the six-month period to 31 May 2024, the debt-free company held cash of £32mn (6.1p) and an investment portfolio worth £66.7mn (12.7p). Since the accounting date, LDG has invested £2.4mn to raise its stake from 11.9 to 13.2 per cent in Alliance Pharma (APH: 35.4p), a distributor of consumer healthcare and pharmaceutical products. The holding is worth £25.2mn (4.8p). In addition, LDG has realised £1.65mn and banked a £0.6mn profit from the sale of its stake in Mission Group (TMG :24p), a UK advertising and marketing specialist. It means that LDG’s current cash pile, which is placed on deposit with Investec at an interest rate of 3.75 per cent, is around £31.5mn (6p), or half its market capitalisation of £61.6mn. Other notable listed investments include a 9.1 per cent stake in SQLI (FR:SQI), a leading pan-European digital transformation business, which has a current value of €17.1mn (£14.4mn, or 2.7p). LDG also holds two non-listed investments: a 27.5 per cent stake worth £17.8mn (3.4p) in Finsbury Foods, a bakery manufacturer that was acquired last year for £143mn by funds managed by DBay; and a £10mn (1.9p) high interest payment in kind (PIK) fixed-rate unsecured loan note issued to The Power of Talent Midco, a special purpose vehicle that owns the operating companies of unlisted Nash Squared Group, a recruitment and consultancy group. Deep share price discount to book value As has been the case since I included LDG in my 2023 Bargain Shares Portfolio, the shares are in deep value territory as highlighted by NAV being 60 per cent higher than the company’s market capitalisation. This has not gone completely unnoticed as Richard Griffiths, the founder of investment bank Evolution and boutique finance house ORA Capital, has been stake-building. Known in the City of London as the 'Welsh Wizard' due to his stockpicking ability, the Jersey-based investor raised his holding in LDG from 10.9 to 15.3 per cent at the end of May (‘Welsh wizard' sees value in this stock – and so do we’, 28 May 2024). The board is cognisant of the fact that LDG’s share price fails to reflect the value of the company’s assets, so requested and were granted authority to repurchase up to 15 per cent of the 524mn shares in a buyback programme that should enhance net asset value (NAV) per share. However, a concert party owns a 34 per cent stake, and the resolution for a Takeover Panel waiver failed to receive enough backing, so the buyback cannot proceed. In its absence, an orderly wind-down of the company would undoubtedly narrow the 38 per cent share price discount to NAV in double-quick time. The board is now considering Huntress’ request and is advising shareholders to take no action at this stage. However, I can now see the activist’s resolutions garnering support from other shareholders. Buy. |
Posted at 27/10/2023 10:04 by spob .2023 Bargain Share Portfolio constituent 10/Feb/2023 (peak offer 16.4p) This investment fund's NAV is holding up yet the share price is taking an unwarranted hit October 23, 2023 by Simon Thompson Proforma cash of £44.4mn (8.3p) in price for free Four listed holdings worth £59.1mn (11p) Finsbury Foods in a takeover situation 41 per cent share price discount to NAV Investor risk aversion is so extreme right now that there have been some disproportionate de-ratings of quality companies in the small and micro-cap hunting ground. For instance, the share price of Logistics Development Group (LDG:11.4p), an investment company managed by asset management firm DBay and one of my 2023 Bargain Share Portfolio constituents, has fallen 18 per cent since I reiterated my buy call, at 13.9p, at the recent interim results (‘Exploit this double-discounted small-cap fund’, 7 September 2023). I estimate that LDG has net cash of £44.4mn (8.3p) after factoring in £0.8mn spent on net asset value (NAV) per share accretive share buy-backs since last month’s article as well as the purchase of a further £4.8mn of shares in Finsbury Foods (FIF) (pictured). The speciality bakery manufacturer of cake, bread and morning goods is in the process of being acquired for £143mn by funds managed by Dbay. LDG now holds a 12.5 per cent stake in Finsbury worth £17.8mn (3.3p), or 29 per cent above cost. It’s not as if Dbay is overpaying. The offer is pitched on a price-to-book value of 1.13 times and values Finsbury on an enterprise valuation of £165mn. It equates to 5.2 times cash profit and 8.3 times operating profit reported in the financial year to 1 July 2023, low multiples for a business that has just reported double-digit annual profit growth and is forecast to continue growing. LDG also holds three other listed investments: 10.5 per cent stake valued at £21.2mn (4p) in Alliance Pharma (APH), a distributor of consumer healthcare and pharmaceutical products; 9.5 per cent holding worth £17.2mn (3.2p) in SQLI S.A. (FR:SQI), a leading pan-European digital transformation business; and a 2.8 per cent stake in Trifast (TRI), an international distributor of industrial fasteners, that has an open market value of £2.9mn (0.5p). -------------------- Portfolio companies, Sector and description, Group interest, Consideration paid, Fair value of stake, Fair value per LDG share. Finsbury Foods Food and cake maker 12.4 per cent equity stake £13.8mn £17.8mn 3.3p Alliance Pharma Distributor of healthcare and pharmaceutical products 10.5 per cent equity stake £33.4mn £21.2mn 4.0p Synsion Pan-European digital transformation business 9.5 per cent read through equity stake in SQLI S.A. (FR:SQI) €15mn (£12.8mn) £17.2mn 3.2p Trifast International distributor of industrial fasteners 2.8 per cent equity stake £2.7mn £2.9mn 0.5p Total holdings £62.7mn £59.1mn 11.0p Proforma cash £44.4mn 8.3p Spot NAV estimate £103.5mn 19.3p Source: LDG interim results at 31 May 2023 and subsequent London Stock Exchange RNS filings. Latest share prices for portfolio companies correct on 23 October 2023. -------------------- Strip out the group’s proforma net cash of £44.4mn (8.3p) from its market capitalisation of £61.1mn (11.4p), and the four listed holdings are in the price for £16.7mn, or 71 per cent less than their latest market valuations of £59.1mn (11p). Frankly, that’s absurd given that LDG’s NAV per share has only declined 4 per cent from 20.1p to 19.3p since the start of last month, so the portfolio is hardly taking a beating, unlike LDG’s share price. Moreover, the latest valuation of the four holdings is only slightly below the £62.7mn cost. Or put it another way, the four holdings back up almost all of LDG’s share price of 11.4p, so you are getting nearly all the 8.3p a share cash pile thrown in for free. |
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