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According to finance director, Paul Davis, Safeland has been busy over the past few weeks evaluating an increased number of buying opportunities. That’s welcome news for a beleaguered property sector, where a lack of deals since the summer has led to a mark-down in asset values.
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The company directly owns around 20 workplace properties at any one time. The properties produced £13m in revenue for the first six months, and a series of sales and up-scale acquisitions resulted in an increase in the value of trading properties from £14.6m to £31.1m. In addition, Safeland manages a Jersey-based property fund for venture capitalists Electra Partners and Babcock & Brown. The fund has £200m to invest in workplace buildings and, to date, has bought over £50m of property.
Safeland’s latest interim figures look disappointing, but it’s important to remember that the comparable 2006 results included a £3.57m gain on the sale of a 14 per cent stake in Bizspace. Safeland needs to think of ways to reduce the large discount to net asset value.
SAFELAND (SAF) |
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|---|---|---|---|---|
| ORD PRICE: | 72.5p | MARKET VALUE: | £ 13.4m | |
| TOUCH: | 70-75p | 12-MONTH HIGH: | 105.5p | LOW: 72p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 58 | |
| NET ASSET VALUE: | 114p | NET DEBT: | 75% | |
| Half-year to 30 Sep | Turnover (£m) | Pretax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|---|
| 2006 | 12.5 | 3.95 | 14.53 | nil |
| 2007 | 13.3 | 0.26 | 0.59 | nil |
| % change | +7 | -93 | -96 | - |
Ex-div:na Payment:na |
||||
Safeland seems to be operating in a relatively safe area of the UK property market but is still at a big discount to NAV. The company still rates good value.
Last IC Recommendation: 26 June 2007, 92p, Good Value
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-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
