Mallett Share Discussion Threads

[pj 1] 06/5/2014 10:41

hmmmm... volume..????

edit.apols, perhaps not, looks like an uncrossed trade so assume it could be froma few days ago?

[orinocor] 06/5/2014 10:19

I don't know whether rainmaker is just making up deliberate lies now or whether he just cant read a set of accounts but Mallet are not trading profitably.

The only reason Mallet posted a profit of £408,00 was because of a one-off exceptional gain of £594,000 when they sold the property.


Mallet are still trading at a loss.

[orinocor] 06/5/2014 10:17

Another one for the record.

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Rainmaker
6 May'14 - 01:29 - 6049 of 6051 0 0

Re Mallett Pat, I expect the share price to go through 100p after they have paid the 12.7p dividend because quite simply there're trading profitably

[rainmaker] 23/4/2014 12:28

If approved then 12.7p is paid on 13 June in approximately 7 weeks

[rainmaker] 23/4/2014 09:02

Hi HP, exactly, that's £12mln or 87p of liquid assets less all liabilities-a proxy for the Company's minimum liquidation value. Then you're got inventory that according to the Company, is way more than its stated value acting as another margin of safety.The last earnings forecast I saw for the current year was 3.2p and 7.1p for next.

Even though there is little change to the number of exhibitor stands at 151, look for the contribution from Mallett's 23.75% holding in the Masterpiece exhibition to rise at least 50% from last year's £87k due to a £5 hike in the admission price or perhaps even double if they have another 20% rise in visitor numbers leaving aside the financial contribution from their first ever headline sponsor for the exhibition-"in association with RBC wealth management". Surely Masterpiece must be collecting an annual six figure sum for this.



Incredibly despite turnover in the UK dropping by roughly a third, group sales rose some 16% due to turnover in New York doubling and some £1mln of sales to China.Surely Mallett can reverse the decline in London, one of the worlds cities for arts, antiques and collectables? I would expect London's profits to recover sharply as they are the next capital to enjoy bouyant trading as the worldwide cyclical upturn gathers steam but we shall see. I believe historically New York tends to lead London in this respect.

Anyway, I agree that I wouldn't expect the share price to drop much from current levels of 77p/80p when the 12.7p special dividend goes ex. I would also expect the share price to rise further between now and 27 May 2014 to somewhere around 85p/90p-ie liquidation value when the special dividend is sanctioned


AIMHO, DYOR

regards

[hugepants] 20/4/2014 18:31

So NAV = 106p
If you take out "property plant and equipment" there is 87.5p of good assets.

Anyone know what the £2.5M of "property plant and equipment" actually comprises?

After returning 12.7p cash Id hope the share price doesn't drop by more than 10p to maintain the same discount.

At 78.5p still looks pretty cheap to me. There cant be much downside unless trading falls of a cliff and if sales growth continues at this rate there could be decent profits this year.

[strange1] 03/4/2014 15:12

Debtors have gone from 6.5 from 2.9, which will include the property sale, but even removing this the business has almost a third of its annual turnover as a receivable. Re the dividend, i would have imagined a justification to distribute the profit on sale but to distribute the asset value seems an odd decision. Thats a bit like selling some of the inventory and then distributing that!

[deanowls] 03/4/2014 15:11

I would be expecting Pg to be hopping about the fd, growing debtors and the cost of the sales guy moving to London, the guy left in charge of New York should be getting asked what they need to do.

Also the website, will people really use this? I can't see it myself but will it reduce the cost of the catalogues?

[pj 1] 03/4/2014 14:37

Yes. I raised this a few months ago. I have also emailed and phoned the Co but to no avail

The position has worsened if I am reading the balance sheet correctly (im no accountant)

debtors have increased 20% from £3.2 to £3.8m (o.6m)
overdraft and loans increased from 1.4 to 2.2 (o.8m)

So mae are paying interest to fund their customers cash flow. Dangerous game.

Unless MAE are charging customers interest which I doubt

Does anyone know payment Terms?

[strange1] 03/4/2014 14:11

Well........I was 100% wrong re the dividend. Not convinced a business with fragile trading, net debt, a crazy level of sales in debtors, and that has not generated cash other than by property dealings for several periods should be looking to distribute this level of the sale proceeds though.

[baner] 03/4/2014 05:38

You never know with these guys - one thing is what they announce they will do, another what they actually and eventually do!

[rainmaker] 03/4/2014 00:19

Hi Baner-the head of the New York showroom left and returned to London to spearhead a sales drive. New York then enjoys a strong resurgence in sales and business in their London showroom collapses or have I got that wrong?

regards

[rainmaker] 03/4/2014 00:13

Hi Callum and EM, very happy that you decided to stick around

regards

[baner] 02/4/2014 08:44

re Inventory

it is only a couple of years since they wrote the b.v of the inventory down by ca £3m - it is highly unlikely the potential market value is higher than b.v even in an "orderly liquidation" scenario. this valuation is most likely referring to a "potential sales value assuming going concern" - in which case there will be continued massive costs (S&A) in order to realize these "values" - i much doubt these have been deducted in this valuation.

i totally agree that it would have been appropriate for the BOD to explain to the owners a. on what basis this valuation is made and b. how large this stated surplus is. but daresbury et al probably consider this to be none of our business.......

[cockerhoop] 02/4/2014 08:29

It does seem bizarre to get your inventory independently valued and then not disclose it to your shareholders.

[callumross] 02/4/2014 08:27

Yes, well done Rainmaker for predicting the inventory revaluation but why not tell us how much "substantial" means!

[eezymunny] 02/4/2014 08:06

Mixed trading but yes, well done Rainmaker on yr prediction of an uplift in inventory value. I wish they'd say how much!

[spob] 02/4/2014 07:56

Note inventory value is well in excess of balance sheet value

[baner] 02/4/2014 07:37

Awful results again - this company is clearly not run in the best interest of shareholders. Why do the major owners allow daresbury et al to continue this destruction of shareholder value? Twice have they announced the resignation of the very expensive cfo - now they say he will stay on! The new york premises were going to be reduced in size and cost - now they retain them as is, although profits are dismal. Sales in the dover st palace are ridiculously low and nothing but a fiasco. Only a change at the helm and a much stronger focus on profitability will allow this sinking ship to be saved. Sad story!

[fozzie] 02/4/2014 07:32

Special dividend slightly above the 8-12 range. Let's see what the market makes of it.

[pj 1] 01/4/2014 10:35

Results due, so will have to comment

[gary1966] 01/4/2014 10:33

This is starting to grate a little now. They have had over a month and still no announcement about what they intend to do with the money. Has anyone tried to contact the co?

[strange1] 13/3/2014 10:35

Might make more sense to distribute it before they spend it of course. Perhaps the directors are locked in the boardroom tossing a coin to decide............."heads?, right lets do best of 1500 then"

[strange1] 26/2/2014 00:10

I refer to my previous post........"given current working capital requirements and quality inventory opportunities the directors do not......"