RE: Investors Chronicle Buy Rec5 Feb 2026 22:06
Moreover, Goldplat’s net cash of £6.1mn (30 June 2025) is forecast to increase to £8.4mn by the same point this year, buoyed by the improved operating performance and cash generation. That sum equates to 42 per cent of the company’s market capitalisation of £20.1mn. On this basis, Goldplat’s enterprise valuation of £11.7mn equates to twice operating profit estimates of £5.9mn
The shares offer a decent income, too. The board has started paying dividends and declared an interim payout of 0.117p per share in December 2025. Based on Zeus’ full-year dividend per share estimate of 0.2p, the shares offer a prospective dividend yield of 1.7 per cent.
Sum-of-the-parts valuation
If you value Goldplat’s recovery operations on a more sensible multiple of five times operating profit estimates of £5.9mn for the current financial year, this implies a standalone valuation of £29.5mn (17.25p). Then there is the net cash, which is forecast to rise to £8.4mn (4.9p) by mid-year, or possibly even higher if the company exceeds analysts’ earnings expectations.
On this basis, a fair valuation of 22p for the equity – or almost double the share price – is a reasonable target. Zeus’ conservative fair valuation of 15.1p (pre-upgrades) still offers material upside to the current share price. Buy.