At first glance, Noble Investments' (NBL) latest six months look disappointing. However, add back a variety of acquisition-linked one-offs and a bumper commission payout of £2.2m in the comparable half year, and the fine art dealer and auctioneer's profits were not down much. That bumper commission was booked following an auction in New York where a wealthy Qatari bought $20m (£13.3m) worth of rare Greek coins. But he did not pay for them. Fortunately, Noble held onto the coins and has just reached a settlement with the Qatari miscreant.
The current half year will produce much better trading figures. This month alone (May), Noble completes four major sales ranging from Islamic coins to British India coinage. Looking further ahead, there will be an increasing contribution from The Fine Art Auction Group (TFAAG). Noble bought the business for up to £5.5m six months ago and it extends the company's expertise into paintings, antique furniture, jewellery, rare books and even fine wine. But, because TFAAG's four most important trading months are in the autumn, its best results won't be seen until the next financial year.
For the year to August 2013, broker WH Ireland forecasts sales up from £12.4m to £15m, profits down £0.5m to £3.3m and EPS of 17.5p (from 19.4p in 2012). But for 2013-14, the comparable numbers are sales of £20m, profits of £4.1m and EPS of 20.3p.
| NOBLE INVESTMENTS (NBL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 222p | MARKET VALUE: | £36.5m | |
| TOUCH: | 220-225p | 12-MONTH HIGH: | 226p | LOW: 164p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 26 | |
| NET ASSET VALUE*: | 118p | NET CASH: | £3.2m | |
| Half-year to 28 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 7.00 | 2.42 | 12.3 | 2.25 |
| 2013 | 8.08 | 0.50 | 2.0 | 2.50 |
| % change | +15 | -79 | -84 | +11 |
Ex-div: 26 Jun Payment: 19 Jul *Includes intangible assets of £8m, or 49p a share | ||||
