Leeds Group- leading to a capital return

Nice to see one of my shares doing well!

"After a strong second half to the year, Hemmers-Itex, the
successful German-based fabric trading business, produced a full year profit
before tax of £573,000 (2004: £882,000). The reduction in profitability relates
chiefly to the costs of changing agents and successfully relocating our
multi-site activities in Nordhorn to a single facility."

I agree Hemmers looks like it will do about 1M pre-tax for 2006. Can we assume head office costs will be cancelled out by interest on the now signficant pile of cash?

Im a bit annoyed they didnt give a pro-forma balance sheet so we can get a better idea what the new asset position is. Most of the debtors and creditors should be gone now.


Heres my guess to what the reamining business looks like.

Cash = 5.5M (15.2p per share)
Net Current Assets = 10.5M (29p per share)
NAV = 11.5M (31.7p per share)

Doing say 0.65M (1.8 eps) after tax per annum.

I dont think worth selling at less than 25p