Blog
All Leisure Group - small acquisition at a very nice price!
Posted 23/04/09
The AIM quoted cruise operator has announced the acquisition from the administrators of the cruise ship Hebridean Princess and other related assets for a cash consideration of £1.4m.
The Hebridean Princess carries 49 passengers and 37 crew and offers luxury cruises from March through to November around the Scottish Highlandsand Islands and Norwegian Fjords.
In the year to 30 November 2008 the Hebridean Princess generated revenue of c£7.0m and profit before taxation of c£1.2m. Consideration of £1.4 for a pre-tax contribution of £1.2m looks ararther good deal – good things come to those with cash!! The provisional fair value of net assets being acquired is £4.1m and on this basis management expect the overall contribution to profits in the current financial year to be broadly neutral.
On the basis of this information it sounds somewhat bizarre why the owners Hebridean International Cruises Ltd. and Leisure and Marine Holdings Ltd went into administration – clearly other parts of the group were not performing quite so successfully!
Since our commentary on 27th February 2009 shares in All Leisure have slid 30% and currently reside at the lowly level of 67.50p.
Last forecasts from the house broker forecast Profit before Tax of £4m for the current year and adjusted earnings per share of 6.2p with a fully year dividend of only 1.22p.
At 31st October 2008 net assets were £30.4m or £27.2m excluding intangibles which compares with the current market capitalisation of approx £42m. The ship mv Discovery has also recently been valued comfortably in excess of its balance sheet value with the outstanding balance scheduled to be repaid by May 2010, leaving the Group debt free.
The shares are starting to look interesting at these levels!
This entry was posted 1 year, 3 months ago and was filed under All Leisure.
