Good morning, all. Hoping for some positive RNS announcements from some quality companies today!

Today we have:

Graham




Sutton Harbour Holding (LON:SUH)

  • Share price: 33p (unch.)
  • No. of shares: 105.6 million
  • Market cap: £35 million

Preliminary Results

Sutton Harbour Holdings plc ("Sutton Harbour", "the Company"), the AIM listed waterfront regeneration and destination specialist, announces preliminary results for the year ended 31 March 2018.

This stock has always been a bit unusual. It's primarily a property play, with the potential for some additional income on top.

It now has a majority owner with 73% of shares, which it purchased at 29.5p.

The free float excluding that investor is only worth about £10 million. There are a couple of other large holders, too. So it's not too liquid.

Official net assets are £39.3 million or 37.2p per share, so the market cap offers you a small discount to that figure.

The property values are up-to-date but are falling, according to the latest valuations. Maybe a discount in the market cap makes sense, under the assumption that property values still have further to fall?

Worth noting that it is leveraged, using £24 million of bank loans on today's balance sheet.

Plymouth Airport

Some "hidden value" could be released from the company's lease on Plymouth Airport (now closed).

The Airport has been closed since 2011,  and nothing has been done with the site yet. Various government bodies have been deciding what is to be done with it:

The Company currently awaits the outcome of the hearing and specifically whether the Government Inspectors will uphold Local Planning Authority's proposal to safeguard the Former Airport Site for 5 years for potential general aviation use (which includes private aircraft and other non-commercial passenger services), following which, the local planning authority proposes a review of the policy. The Company maintains that far greater social and economic benefit for the city will result from the development of the site for an appropriate mixture of residential and other uses which can…

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