Northamber – full value might emerge

PUBLISHED: 13 Sep 2016 @ 19:32 | Comments (0) |

I’ve sold some of my shares in Northamber (LSE:NAR) at 30.9p in fear that the 71-year old Chairman, David Phillips will never see the light, especially now that his son, Alex, is “Strategic Director”. He has been trying out new ideas for two years. Perhaps he has to make a few more attempts before being psychologically ready to throw in the towel.
Despite my fear, I’ve held onto to many of my shares because of the amazing strength of the balance sheet relative to the current market capitalisation of 28.16m shares x 31p = £8.7m.

Start with the net current asset value calculation – this, alone, is greater than market capitalisation.

£’000s	December 2015	June 2014	June 2013
Inventory	4,588	5,053	6,765
Receivables	14,393	11,689	8,475
Cash	3,805	5,076	6,136
Payables	-10,878	-8628	-7131
NCAV	11,908	13,190	14,245
NAV	19,920	21,523	22,846

If, to be conservative, we deduct one-third of inventory and one-fifth of receivables then NCAV falls to £7.5m or 26.6p per share.
There is even more value in the long-term asset part of the balance sheet.
With a net current asset value……….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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