70p / 80p mid-long term - £142m cash / £142m mcap

A risky play of course but after losing over 80% of it's value due to JPMorgan selling, Covid 19 & a slowdown in sales, company has sold 2 assets & have at present around £142m in cash
I believe a lot of the turmoil is already priced in ahead of results.

Mcap is at £142m which means their business is valued at cash level.

Very undervalued considering their cash level & staff coming back to work. This business should be worth at least 60-70p I believe based on their previous numbers. Nethertheless a slight risk at present period due to covid 19 but mid- long term this company should recover well as sales move back up.

I will start scaling out around 40-50p to protect profits but will leave some shares to ride the rest of the way. 70p - 80p ULTIMATE TARGET
New CEO to turnaround the company with experience of doing so to others.

Dividend most likely will also be back to attract new investors in months to come.

April 30th:

In the last week, as demand started to increase across the industry, the Group has commenced re-opening selected sites across its Distribution and Roofing businesses to provide greater support to our customers and offer increased access to our products and services. 15 sites are now open across our Distribution business and 20 sites are open across our Roofing business. The Group is currently planning for the majority of its sites to be open by mid-May.
Trade active: Still holding all my shares & will be until at least 45p-50p for 1st slice of profit
Trade active: Continue to hold all my shares & targets remain as previously.
After placing at 30p we are at moment at strong support level.

Also a few institutions buying into the company for the long term.


Any new thoughts on this? Personally I don't see it recovering. It's done very little in the past few years and was even at a low point before covid.

However, the Open Ofer this morning of 30p might create an artificail spike, though I epxect it to plummet back down.
vcm11 nit2wynit
@nit2wynit, Completely disagree. I look at the numbers and the company fall is priced in on weak performance already, CEO known for recovering & turning companies around. He has a big plan going forward. Plenty of cash in the bank & plenty of institutions buying into the plan.

SHI doing a LIVE event 7th of July where every contractor in UK invited to online video confeences to hear the changes being made since new management. Changing back to locally managed branches to avoid issues with stock over last few years. All aimed at pulling back old business an cranking up sales. Market is really busy especially in specialty fire protection.
The current pipeline of work which was confirmed before covid all seems to be taking off, other than Scotland and Wales slightly slower. Think They are making all the right noise as industry leader. Some really strong KPIs around customer service that really will be industry significant change.
Great analyses
vcm11 CFDStephenwood
@CFDStephenwood, thanks!
Thanks for sharing
vcm11 AllisonCooke
@AllisonCooke, no problem.
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