Mallett is slowly recovering from recession. The reduced loss in 2009 coupled with a movement from net debt of £2.3m to a net cash position of £0.8m over the year reflects a £2m cost-cutting programme and a sharp decline in working capital. The average number of employees fell from 53 to 43 and there was also a reduction in marketing expenditure.
Interestingly, at end-December, the company held £8m (£250,000) of antiques in its showrooms, which it's selling on behalf of owners. High auction fees are encouraging vendors to sell privately because they always have the option of going to auction at a later date.
Mallett is currently half-way through its restructuring programme. In the age of the internet it no longer needs big and imposing premises in Bond Street or Manhattan. Nearly a third less people now visit its showrooms and, when they do, they normally pop in to sign a deal not view its 18th and 19th century English and continental furniture. So Mallett is hunting for new, less prime, central London premises and wants to give up a 20-year lease on the Bond Street store, which is in the books at around £350,000.
MALLETT (MAE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 67.5p | MARKET VALUE: | £9.3m | |
| TOUCH: | 65-70p | 12-MONTH HIGH: | 93.5p | LOW: 52p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 134p | NET CASH: | £819,000 | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 14.9 | 2.01 | 10.2 | 9.20 |
| 2006 | 16.6 | 12.67 | 72.8 | 9.20 |
| 2007 | 17.5 | 1.32 | 6.4 | 8.40 |
| 2008 | 12.1 | -5.97 | -31.5 | nil |
| 2009 | 14.0 | -1.77 | -11.9 | nil |
| % change | +16 | - | - | - |
