Might be worth a look

Finweek English Edition - - INVESTMENT - MARC ASH­TON

AC­CEN­TU­ATE PRO­VIDES ser­vices into the con­struc­tion and in­fra­struc­ture sec­tor and it also han­dles some blend­ing-re­lated ac­tiv­i­ties through its chem­i­cals op­er­a­tions. At the time of writ­ing, you buy the shares at be­tween 68c and 73c/share, which is a sig­nif­i­cant dis­count to the 87c/share TNAV that the group had re­ported. One of the risks to the group is posed by the dom­i­nant con­tri­bu­tion (78%) from sub­sidiary Floor­worx, but on the f lip-side, Floor­worx owns 70% of the f loor­ing mar­ket.

Ac­cen­tu­ate has a mar­ket cap­i­tal­i­sa­tion of around R85m/share, but man­age­ment es­ti­mates that the re­place­ment value of the East Lon­don Floor­worx fac­tory is some­where nearer R500m, ac­cord­ing to Keith McLach­lan from Thebe Stock­broking. Ob­vi­ously the ac­coun­tants don’t share this view or it would be re­ported on in the au­dited fi­nan­cials – maybe they will ac­count for it dif­fer­ently for the full year – but there may be some value here.

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