Still worth a nib­ble

Finweek English Edition - - INVESTMENT - MARC ASH­TON

RE­CENTLY it was an­nounced con­struc­tion group Protech Khuthele se­cured more than R350m in con­tracts in the roads, con­struc­tion and water­works sec­tors. Th­ese are sig­nif­i­cant wins for the group.

With that in mind, we re-visit the in­vest­ment case for small-cap turn­around Ac­cen­tu­ate, a stock I have been slowly adding to my port­fo­lio. While con­struc­tion groups like Protech grab the head­lines for the big projects, Ac­cen­tu­ate f lies be­neath the radar with their f loor­ing so­lu­tions. They also have an in­ter­est- ing wa­ter treat­ment joint ven­ture, which is still in its in­fancy but of­fers some se­ri­ous po­ten­tial in the long run.

With a net as­set value of R1.21/share – a sig­nif­i­cant pre­mium to the 80c/share where the counter is cur­rently trad­ing – Ac­cen­tu­ate looks like a busi­ness that could un­lock solid value should cap­i­tal ex­pen­di­ture pick up.

Projects are start­ing to pick up across the board and this should ul­ti­mately trans­late into rev­enue for Ac­cen­tu­ate.

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