Floated at the end of 2003 with a valuation of £12m, having raised £1.5m on the promise of acquisitive growth.
Has since acquired and grown, but now worth little more than £4m @20p.
Why? The company has pretty much broken even since listing, although the recent interims trumpeted a £50k loss and horrible market conditions.
DIY retail sector is not very healthy at the moment - heavily dependent on consumer confidence and very closely related to house price fluctuations. House prices do not appear to be in an uptrend anymore so the tough market will most likely get tougher.
There is risk of heavy dilution if the board choose to continue with acquisitive growth while the shares are in the dumps. They have £950k cash in the bank but how much can this buy in the big world of retail?
With 950k cash, 630k tangibles, no profit and worsening market conditions I feel this should be valued sub-£1m (5p per share).
At 20p these are overvalued in my opinion.
6-month movement versus Volume, RSI, MACD and 200, 50 & 15 day moving averages.
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