Valued to go bust at just under one million pounds TRD just might be the recovery stock of the year. Market Cap £1M
Results to Feb 2011 came in with a £900,000 loss
Results to Feb 2012 came in with a £200,000 profit
Results to Feb 2013 are due [based on last year] this week.
If one extrapolates those numbers to trend, investors might see profits that equal todays companies valuation for a p/e of one.
TRD reported a loss at the half way stage but turnover did go up a tad.
Turnover in the first half was £8M, £16M for a full year so a 6% - 7% margin is all that is required to make one million pounds profit.
The company could make a loss for the year Feb 2013 and if it does it will require cash [and fast ] to keep going.
This stock is far from risk free, however that risk just might disappear on results day.
For what is worth, I am going for a profit of around £300,000 , that would mean the last £70,000 of debt from the half year could be cleared and put some cash in the bank.
I will update the post on results day.
The results RNS is out this morning.
Not the £300,000 profit I had been looking for but going in the right direction for sure.
New orders won.
"The year end cash balance improved to GBP0.3m (2012: net borrowings of GBP0.5m). Cash management and credit control continue to be tightly managed."
The chance of this £900,000 fully listed company going bust has been much reduced.
Remove the cash and for £600,000 you get just short of £20M turnover.
One can never rule out an RTO at this valuation.
