24 November 2010 – final results
On the surface final results from Superglass were disappointing. A loss before tax of £696k was recorded, equating to a loss per share of 0.5p, and there was no final dividend. On those metrics it is unsurprising that the share price has dropped to 22p. However, looking deeper into the numbers the shares actually represent very good value. Cash of £8.1m was generated from operations (2009: £8.0m) and net debt was reduced by £4.5m to to £17.2m. The current market capitalisation is under £13m, so private equity players will no doubt be weighing up the potential rewards for buying the business. Adjusted earnings per share were 7.0p and we feel that that provides a better indication of performance. Although challenges remain, the level of cash being generated should ensure that the share price recovers from the current bargain basement level before too long. We retain our BUY rating.