The latest results from Mallett confirm that better times may be ahead for the antique dealer as losses are almost eliminated. Note, however, that Mallett also warns that fragile financial markets are likely to continue to restrain investor demand.
Both the UK and US antique operations performed strongly in the six months to end-June thanks to the sale of more expensive objects. In the UK, the major sale was a pair of George I gilt gesso armchairs made for the 1st Duke of Chandos. At the same time, a showroom move saved £200,000 in rent and provided the company with a magnificent Mayfair town house to hang mega chandeliers and display other large items of furniture. It's also a showcase for vendors to sell their furniture and so avoid gobsmacking auction fees. Mallett's other antique interests produced mixed trading results.
To drum up business, Mallett is increasing its contacts in the Far East and Brazil and emerging markets will become increasingly important in time. For the full year, broker Singer is sticking with its estimate of sales of £13.3m, adjusted pre-tax profits of £200,000 and EPS of 1.7p. For 2013, profits are forecast to quadruple to £0.8m on sales of £14.1m to deliver EPS of 5.9p.
MALLETT (MAE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 81p | MARKET VALUE: | £11.2m | |
| TOUCH: | 78-84p | 12-MONTH HIGH: | 81p | LOW: 64p |
| DIVIDEND YIELD: | nil | PE RATIO: | 14 | |
| NET ASSET VALUE: | 111p | NET CASH: | £620,000 | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£000) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 6.43 | -280 | -1.97 | nil |
| 2012 | 6.94 | -16 | 0.31 | nil |
| % change | +8 | - | - | - |
