Northamber Share Discussion Threads

[hugepants] 14/11/2019 15:21

They are probably looking at acquisitions.

[arthur_lame_stocks] 14/11/2019 13:55

Until it all disappears in operating losses.

[spob] 14/11/2019 13:36

free money

[hugepants] 14/11/2019 11:04

My estimates

NAV = 90p
Cash = 64p
Net working capital = 84p
Loss per share = 2p

Fixed assets contain more property (probably undervalued)

[hugepants] 14/11/2019 10:57

Finals out.

Looks pretty much more of the same operationally. However assuming CJohn is correct with the £2M estimate of the cgt liability on the property sale then discount to cash alone is about 25% now?

[cjohn] 22/10/2019 10:54

A tax credit, you mean?

[ntv] 24/9/2019 21:44

Excuse the fact that I act a bit dim at times but can anyone explain why this company doesn't get a tax refund when it makes a loss?
TIA

[spob] 13/9/2019 21:07

Final results were September 20 last year

[cjohn] 04/7/2019 16:30

One factor none of us have mentioned is tax. Ugh.


GBP10 million profit on warehouse sale. So around GBP2m to go to HMRC.

[tokyojoe007] 04/7/2019 15:41

Not investment advice, there is no mention of cash return, but David Phillips owns most of the company, runs it prudently, despite the difficult market conditions in their niche area, from memory he barely even pays himself a salary. His words do not seem to be in support of shareholders, but maybe his actions are... anyway, each to their own, we’ll find out eventually.

[rndm355] 04/7/2019 15:13

What does NIA mean - now invest aggressively?

If there was a capital return then this would be worth approximately book value. No evidence of a capital return, so it’s not. Funds here are tied up for an unknown length of time.

[spob] 04/7/2019 11:39

So given they have specifically mentioned these two freehold properties, i guess there is significant value in that office

perhaps a few more million to add on to the real NAV

[cjohn] 04/7/2019 11:36

Fixed assets at book value of GBP7.8 million at 31st December, including two unencumbered freehold properties.

One of these properties - the warehouse - with a book value of GBP6.0 million has been sold.


So the máximum book value of the other is GBP1.8m.


This suggests it's an office.

[spob] 04/7/2019 09:42

it must be significant or they wouldn't of mentioned it

[spob] 04/7/2019 09:41

Good point, i'm not sure

will see if i can find out

if anyone else knows for sure, please share

[hybrasil] 04/7/2019 08:47

Spob
Is it another warehouse or is the other property the head office?

[spob] 03/7/2019 09:57

In the last interim report they said ....


Financial position

Maintaining our prudence in financial matters, our working capital management is reflected in the Net Current Assets ratio which at 2.6 times (2018: 2.0 times) is a healthy improvement.

Free Cash was GBP2.9 million at 31 December 2018 compared with GBP2.2 million at 31 December 2017. With Fixed Assets at book value at GBP7.8 million, including two unencumbered freehold properties whose value is, in the Board's strong view, in excess of book, the Company's overall financial position is sound.

[cjohn] 03/7/2019 09:39

Yes, they've struggled for years to break even as a distributor. Then make thumping profits flogging off their warehouse.

[spob] 03/7/2019 09:15

They also have another warehouse which they have previously said is worth significantly more than as recognised on the balance sheet

I too have increased my holding at approx 46p

[hybrasil] 03/7/2019 08:27

They should probably give up PCs and go into property trading. That is a stunning return in the period since 2012.
They have consistently made losses in the core business in that time.
I had a look this morning at the RNS when they bought it.At that time they were paying rent of £601,000.
They are only paying £175,000 pa for the next two.

What is their other property worth? Very substantially more than book.

The business has completely changed. Look at their 1999 turnover compared to today.

I suspect they will buy back some more shares. Over the last 19 years they have bought back about 5 million shares.

[cjohn] 02/7/2019 16:31

hi, hybrasil, given that there's around 70 p net cash per share, I've bought some more today at prices around 44-45p ie at just under 2/3rds net cash.



I'm amazed to see the price back down to what I paid yesterday.


This valuation is very miserly to say the least; it really does heavily discount the management's failures at capital allocation.

At the very least, we could hope for a special dividend.

(45p for example would still leave a large amount of net cash on the balance sheet.)

[profdoc] 02/7/2019 09:36

If anyone spots any indication of rational capital allocation by the directors please let me know - in the meantime trust is in low supply.

[hybrasil] 02/7/2019 08:16

I have been a shareholder for about 15 years.
Value will out was one of my main reasons for investing.

How wrong I was

Even today after yesterday's news you can buy this for about 65%?of asset value.
How rare is that

[cjohn] 01/7/2019 17:01

Yes, quite right, Eezy Munny