Brand Architekts PLC (BAR)

[WickedLester]

Well here's an AIM on for you.

Brand Architekts was previously known as Swallowfield but following the disposal of their manufacturing business renamed themselves.

https://www.investegate.co.uk/brand-arc ... 00230510O/

I think they're a cheap and rock solid contrarian play on a return to consumer confidence.

The market cap at the current price is about £31m yet following the sale of their contract manufacturing business they had net cash of £24m at 31st August so the EV is about £7m.

The remaining business, the owned brands business made an underlying profit from operations of £3.6m in the year just gone (although this was down from last year) so this business is on an EV of just two times underlying op profit assuming no further deterioration.

Now they have a substantial cash pile to invest in this business, hopefully on earnings accretive acquisitions, I feel the sum of the parts valuation should be in excess of £40m.

They pay a dividend (6.5p this last year) so the yield is not bad.

Any views?