Potter & Moore PLC Update
A new name and new strategic initiatives seek to revitalize the company amid some concerning developments. Mid-single digit P/E and 40% discount to BV.
Disclosure: Long PAM.LON
Highlights
Flat revenue at £53.8 million (down 0.4%) masks a meaningful shift in the business
Gross margin reached a 4-year high at 44.9%
Operating profit fell 24% to £2.87 million. Operating margin fell from 6.5% to 5.0%.
Net cash position (including all lease liabilities) of £1.05 million.
Shares trade at a nearly 40% discount to book value and just 7.5x earnings.
