RE: Sum of the parts7 Jun 2021 12:53
Have seen Mr Hill's sum of parts analysis - interesting but not exactly taken by it as is.
I posted 22nd February 2021 (share price then 318p )following a Simon Thompsom ( Investor Chronicle) mention. "I have not yet seen it but thanks for alerting me to the latest Investor Chronicle mention. The sum of parts argument is worth considering over and above a share price of 300p. First, the property development potential at Luton providing around 1000 good quality flats whilst allowing for relocation of the existing factory-say £30k a flat less moving costs etc say at least £15m net. Second, the crystallisation of value within 18 months of the 60% interest in their Australian subsidiary Magnetica maybe by a listing could be worth between £30m and £50m. Thirdly, the possibility of new near term waste treatment orders from Sellafield & medium/long term extensions to
the successful 3M box contracts. Capitalised value £?m
At 300p the company has market capital value of about £100m well supported by their two pronged energy
business. Each £10m of additional value from sources (1), (2) & (3) above equates to 30p/share. Do your own
calculations as to where the share price could be heading! Would be interested to see any details of Simon
Thompson's perhaps similar figure work"
Since then they have sold very well for £35m cash the Peter Brotherhood business., obtained a major £20m extension to their box contract, separated out the future potential of Booth Industries, and formally tendered via Savills their Luton (1000 flats + Commercial too) development site. Add those to the above (February 2021) sum of parts and you can get a better feel for the potential this year for >400p - to what extent will perhaps be influenced by any announcements as to progress at Magnetica. To some extent the above has cleared the decks for what next out of the hat?
argument is worth considering over and above a share price of 300p. First, the property development potential at
Luton providing around 1000 good quality flats whilst allowing for relocation of the existing factory-say £30k a flat
less moving costs etc say at least £15m net. Second, the crystallisation of value within 18 months of the 60%
interest in their Australian subsidiary Magnetica maybe by a listing could be worth between £30m and £50m.
Thirdly, the possibility of new near term waste treatment orders from Sellafield & medium/long term extensions to
the successful 3M box contracts. Capitalised value £?m
At 300p the company has market capital value of about £100m well supported by their two pronged energy
business. Each £10m of additional value from sources (1), (2) & (3) above equates to 30p/share. Do your own
calculations as to where the share price could be heading! Would be interested to see any details of Simon
Thompson's perhaps similar figure work