Pittards - Net current asset value

PUBLISHED: Apr 10 2017 @ 05:12 | Comments (0) |

We saw in the last Newsletter that Pittards’ (LSE:PTD) operating performance has been pitiful. While the boardroom walked away with £0.5m – £0.6m per year the shareholders saw a half decade with an overall loss and no dividends.

But, perhaps there is a sufficiently high net current asset value to justify an investment? After all, many NCAV shares have poor recent profit histories, but if the asset base is strong they can move to a position where they are turn around either by an improvement in industry economics (e.g. more pricing power due to rivals giving up) or by the application of revived managerial talent. Alternatively, they might get taken over, or liquidate to release value for shareholders.

Net current asset value

£000s	December 2016	December 2015	December 2014
Inventories	17,353	18,872	17,796
Receivables	4,388	4,017	4,896
Cash	206	485	529
Other	38	116	164
CURRENT ASSETS	21,985	23,490	23,385
Less current liabilities	-11,143	-8,470	-12,209
Less non-current liabilities	-3,717	-3,229	-1,253
NET CURRENT ASSET VALUE	7,125	11,791	9,923
Net current asset value per share	51.4p

To be conservative, we should not take the value of the inventories and receivables at face value. Perhaps…………………..To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1

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Pittards – Strategy and Managers by Professor Glen Arnold