Sutton Harbour Discussion

Re: Good results?

TX2 — Tue, 13 Dec 2011 11:50:00 GMT

I have bought back a modest holding.Sutton has an interesting property portfolio.The present price which represents about 60% discount to NAV is probably about right until it can show it can produce net revenue if this happens and the company continues to sell surplus assets to pay down debt we may see an uplift at yearend.

Not so sure its a "value trap" its been more of a drain into which money has been flowing in from its Airline & airport disaster.I think it is still required to build a new access road to the latter but hopefully sales should continue to produce some cashflow to pay down debt. By TX2

Good results?

loafofbread — Thu, 08 Dec 2011 10:34:00 GMT

Must be some value looking at the results.

By loafofbread

Is Sutton Harbour a value trap ?

adex01 — Fri, 02 Dec 2011 13:42:00 GMT

I've been looking at SUH.L for a while now and done some digging as they do, on the face of it seem undervalued compared to Net Assets.

According to their last Accounts they are pretty indebted and there are loan covenants. They are closing Plymouth Airport due to losses and claim to be working with the Council, who own the freehold, on other uses. However according to the Council's website, at the same meeting the Council agreed to the airport closure, they reaffirmed its planning status as an airport, so it seems the chances of redevelopment are remote. Plymouth is pretty isolated so it's hard to believe the Council will let its airport be built on. The local newspaper website also reports a group of business people in Plymouth are campaigning to stop its change of use and get it reopened.

Finally, SUH.L Accounts show they made quite a lot of money from sale of surplus airport land for housing, but (again according to local newspaper reports) this money was supposed to pay for airport improvements, so maybe some of the profit may have to be paid back now the airport is closing ? There is a £2.5 million provision they have capitalised, which looks a bit odd and I wonder what that's all about ?

Add to this they lost their Chief Executive very suddenly in September and I start to wonder if this share is a value trap ?

Its very thinly traded and the price trend is downward, so despite first appearances I won't be buying.
By adex01

New CEO

TX2 — Mon, 28 Nov 2011 15:09:00 GMT

I noticed Sutton were advertising in yesterdays Sunday Times for a new Group CEO.

I agree with you the shares are probably now cheap based on NAV although the company may be fairly cash strapped at the moment but in theory the worst is now behind them.

I now no longer hold shares having sold my fairly small holding earlier in the year.Crystal Amber do not be seem to be having a profitable time with many of their holdings apart from this they have a fair interest in JJB & Trading Emissions.

These must surely be a hold at this price I had n't realised they had fallen so far. By TX2

slinger932 — Fri, 18 Nov 2011 17:01:00 GMT

What is Mr MacCauley & Chrystal Amber going to do now. They obviously drove out the CEO & other Directors but we have seen no improvement in the price whatsoever, the reverse seems to be true. Is this just a ploy to pick up shares on the cheap? The assets of SH are surely well above the current share price. By slinger932

FT..

SpikeyDT — Tue, 11 Oct 2011 22:01:00 GMT

http://www.ft.com/cms/s/0/0609e03e-f428-11e0-bdea-00144feab49a.html#ixzz1aVcQmto1

Demand for TT Electronics speeds up

By Neil Hume and Bryce Elder
Published: October 11 2011 20:53 | Last updated: October 11 2011 20:53
TT Electronics, which makes electronic accelerator pedals and uninterruptible power systems, was in demand on Tuesday, rising 5.6 per cent to 165¾p. Shortly before the market closed Crystal Amber, the activist investment fund run by former securities analyst Richard Bernstein, declared a 3.3 per cent holding.

The fund, which backed a rescue refinancing at JJB Sports, is agitating for change at Sutton Harbour Holdings, off 3.3 per cent to 29p. It’s not clear at this time what its plan for TT might be. However, Mr Bernstein has had some success in picking companies that attract predatory attention. And TT is certainly cheap, according to analysts.

EDITOR’S CHOICE
UK dividends set to rise by 12% plus - Oct-10
Lombard: Ladbrokes / Michael Page / Wisden - Oct-10
Small caps: Miner Sierra Rutile in focus - Oct-10
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Moody’s downgrades 12 UK lenders - Oct-07
Premier Foods falls on debt fears - Oct-07
“The shares trade at a lowly 0.4 times sales and price/earnings ratio of 11.9, 9.1 and 7.6 across the forecast period. Current trading is good and there is order visibility almost to year end now. Determined self help – the benefits of moving from a conglomerate structure to focused electronics business – can drive sustained organic growth even in a lower growth environment,” Charles Stanley wrote in a recent note.

Rockhopper Exploration advanced 12.7 per cent to 191¼p as news of a dry well was offset by an increased resource estimate. “Rockhopper Exploration has refined its methodology for the depth conversion of seismic data over the Sea Lion oilfield offshore the Falkland Islands,” explained Canaccord Genuity. “As a result, the group has increased its oil in-place estimates for the Sea Lion Main Complex by up to 39 per cent. If we apply a 30 per cent recovery factor to the new numbers, then the field could contain reserves of more than 250m even in Rockhopper’s low case,” the broker continued.

Elsewhere in the exploration sector, Gulf Keystone Petroleum dipped 1.6 per cent to 135½p in spite of news that drilling had started at the Ber Bahr-1 well in Kurdistan.

Sierra Rutile eased 0.8 per cent to 29.9p after hostile bidder Pala Investments said it would not increase its 30p a share offer for the miner. Separately, Pala disclosed an increased holding of just over 40 per cent.

Harvard International, which makes set-top boxes under the Goodmans brand, jumped 34.5 per cent to 38¾p on news of a conditional 45p a share cash offer from Chinese rival Chengdu Geeya Technology.

Pursuit Dynamics added 1.4 per cent to 192¾p as the fluid technology group held an investor day at its Cambridgeshire headquarters. Fund managers from BlackRock, Scottish Widows and Toscafund were all rumoured to have attended. Traders were surprised, however, that Pursuit had decided not to issue a trading statement to coincide with the presentations. By SpikeyDT

Re: Investors Chronicle

TX2 — Wed, 15 Jun 2011 17:13:00 GMT

I understand from press reports that major shareholder Crystal Amber who are also involved in JJB rescue are trying to "improve shareholder value".It certainly needs something!Interestingly AIM listed Crystal Amber following their sale of shares in Pinewood have lots of cash.

I have a few shares but I think it is too early to buy more until things get moving even though there is considerable value to be realised from its properties. By TX2

Investors Chronicle

SpikeyDT — Wed, 15 Jun 2011 12:29:00 GMT

Sutton Harbour looks for safe port
Created: 15 June 2011 Written by: Julian Hofmann
http://www.investorschronicle.co.uk/Companies/ByEvent/Results/Analysis/article/20110615/ccf0087a-972d-11e0-b8d9-00144f2af8e8/Sutton-Harbour-looks-for-safe-port.jsp

Sutton Harbour looks set to return to property development after its disastrous foray into the airline business resulted in an £8.41m hit - that reflected the loss from selling its Air Southwest airline and the intended closure of Plymouth city airport. Exclude exceptional items, though, and Sutton Harbour made a small £2.3m operating profit, down from £6.8m in 2010.
Sutton Harbour needs to re-organise both its finances and strategic direction after exiting the airline business. The first problem has been partly solved by a new £25m three-year banking facility from NatWest. The second will need more work, but the immediate priority will be to build up the waterside development business - which boasts projects in Sutton Harbour, Exeter Quays and Portland - and to find some value in the land that it currently holds for development. Management emphasises that it will not begin any new construction until units have been pre-let or sold. The biggest issue on the land development side is what to do with the 143-year lease it still holds for Plymouth city airport. The freeholder, Plymouth City Council, is currently carrying out a feasibility study on what to do with the site and will report in July.
SUTTON HARBOUR HOLDINGS (SUH)
ORD PRICE: 39p MARKET VALUE: £24.5m
TOUCH: 38-40p 12-MONTH HIGH: 49p LOW: 35p
DIVIDEND YIELD: nil PE RATIO: 13
NET ASSET VALUE: 57p NET DEBT: 58%
Year to 31 Dec Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2007 30.2 4.21 6.04 2.02
2008 29.2 5.46 9.10 2.40
2009 29.3 -3.45 -4.86 1.90
2010 17.6 6.01 7.79 1.90
2011 12.3 1.71 3.11 nil
% change -31 -72 -60 -100
Ex-div: na
Payment: na
Guide to the terms used in IC results tables.
More analysis of company results
IC VIEW:
FairlyPriced
Admittedly, the shares - trading well below net assets - do look cheap. But until the group has made tangible progress on its future direction, following its painful exit from the airline business, it's hard to see a catalyst for a re-rating. Fairly priced.
Last IC view: Good value, 37.5p, 20 December 2010 By SpikeyDT

Anyone still holding?

loafofbread — Wed, 25 May 2011 18:41:00 GMT

No posts for 6 months.

Anyone got a view on Sutton Harbour?

A dog so far but still has some useful assets, and a nice part of the world to be in. By loafofbread

Big mistake?

mrsbearbull — Wed, 22 Sep 2010 12:49:00 GMT

Was it a big mistake to let south west airlines go? or was it a big mistake to set it up in the first place?

anyway its now sold to a company who have named one of its aircraft after Ken Dodd how funny is that, not as funny as suh graph for the last year.

Hopefully this has now bottomed out and the only way is up By mrsbearbull

Re: ASW sale & NAV

TX2 — Tue, 21 Sep 2010 10:26:00 GMT

SP may be 40p but NAV was around 68p at yearend.Could have been worse at least selling will mean lesser loss than closure & there should be continuing landing fees etc. By TX2

ASW sale & NAV

Norman Allday — Mon, 20 Sep 2010 10:40:00 GMT

Anyone any thoughts yet on the hit to NAV and cashflow of the airline sale? ASW's £3.5m operating loss equates to about 6p per share (63m shares in issue?), plus there's the loss on the sale itself (presumably sold at < book), then the c. £2million(?) of customer deposits that get handed over with the sale.....all big stuff compared with a SP of 40p. By Norman Allday

Toy Town Airways!!

langage — Mon, 20 Sep 2010 10:22:00 GMT

It's over three and a half years since I flagged the parlous state of Air South West! It's now been sold at a wacking loss! Now there are activist shareholders in SUH is,nt it about time that the management responsoble for the ASW debacle are cleared out?

What about the BBC project is the Board nuturing another nasty not so little loss on this one?

Time for a change in management IMHO! By langage

Re: Crystal Amber.

TX2 — Thu, 27 May 2010 15:23:00 GMT

I assume this includes the 150 or so working at Air Southwest + those at Plymouth Airport.Who will buy or take off their hands the former remains to be seen.
Cheap on book NAV basis but work to be done before we see any uplift. By TX2

Re: Crystal Amber.

Norman Allday — Thu, 27 May 2010 10:09:00 GMT

CA have their work cut out with SUH. Some great assets, but but far too many self-serving chiefs who slept-walked SUH into the credit crisis. Last time I looked there were 244 employees - completely mad for a property business with assets of just c£50m. By Norman Allday