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Cash rich, but unloved

Cash rich, but unloved
January 12, 2016
Cash rich, but unloved

However, with shareholders losing patience, the shares have drifted to such an extent that the cash pile is now almost three times the company's market value. In addition, the company owns property, plant and equipment valued at $22.3m on its balance sheet, so after deducting liabilities net asset value of $54.3m equates to £37.2m at current exchange rates, or four times the company's current market value.

When Global Energy reported its half-year results last September ('Cashed up for cash returns', 22 September 2015), chairman Mikel Faulkner clearly stated that options being considered by the board included paying a dividend to shareholders or making an acquisition in the energy sector. The board has done neither, albeit the slide in the oil price since then means that there will be even more distressed cash-strapped operators now than before, so their inaction may have worked in its favour.

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