Time to look at the balance sheet.
I bought into Titon at 37.9p largely because its net current asset value was significantly more than its MCap and its qualitative indicators were OK.
Let’s see if the rolling-in of profits has boosted the BS sufficiently, so that NCAV is still greater than MCap., even though the share price is now 67p.
Here are the September 2014 numbers:
Market Capitalisation = 10.75m shares x 67p = £7.2m
Deferred tax -£0.162m
Non-current liabilities -£0.020m
Crude NCAV £6.303m
Less non-controlling interest -£0.682m
However to build in a margin of safety we should not take at face value the inventory or receivables. I’ll knock 33% off inventory (£1.159m) and 20% off receivables (£0.918m). thus NCAV is reduced to £3.544m.
But, I think that there is more BS value than this because the company owns over £2m of property in the UK, including a large factory in Haverhill, Suffolk (please tells us if you know more about this, e.g. has it been valued recently?). Thus we could add £2m to NCAV, to give us £5.544m, or 51.6p per share.
And there are still considerable risks with this company: