J Smart (LSE:SMJ), as well as holding a large portfolio of industrial units and offices to rent out has money stored in bank accounts, in stock market shares, in land and in half-finished buildings. I regard this capital allocation as if it were to a business largely separate from the core property holding division (see yesterday’s newsletter). Most of this money could be paid out to shareholders without much impact on the investment property holding division.
You can see from the table that the cash pile is very large, at £23.1m, for a business with a market capitalisation of £1.253 x 42.4 shares = £53m. It also has £0.9m in shares and another £4.2m in land. Working in progress property developments chip in another £1.9m.
Even after deducting an overdraft of £10.1m the company is left with £20m in these fully, or fairly, liquid assets.
£000s | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||
Cash | 23,118 | 25,699 | 23,586 | 26,524 | 26,785 | 26,047 | 16,802 | 15,157 | ||||||||
Less overdraft | -10,104 | -12,860 | -11,858 | -8,791 | -12,628 | -12,724 | -8,732 | -9,664 | ||||||||
Net funds | 13,014 | 12,839 | 11,728 | 17,733 | 14,157 | 13,323 | 8,070 | 5,493 | ||||||||
Deposits of cash | 48 | 48 | 48 | 2,536 | 5,519 | 3,502 | 0 | 0 | ||||||||
Listed company shares | 886 | 1,309 | 1,099 | 1,000 | 326 | 337 | 0 | 3,817 | ||||||||
Land held for development | 4,195 | 354 | 972 | 2,372 | 1,953 | 1,908 | 1,796 | 1,708 | ||||||||
Work in progress | 1,863 | 8,193 | 7,641 | 172 | 420 | 3,402 | 3,683 | 11,644 | ||||||||
TOTAL | 20,006 | 22,743 | 21,488 | 23,813 | 22,375 | 22,472 | 13,549 | 22,662 |
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