A company with a market value of £114 million that has just reported net assets more than three times that level at £357 million should not see its shares drop 15 per cent.

Nevertheless, this fate affected Langbar International when chairman Stuart Pearson delivered a £14.77 million interim pre-tax profit for this investment company, previously called Crown Corporation. He reckons last week’s 12p fall in the share price to 66p reflects profit-taking by those who bought the shares when the corporate financier joined the venture in early June. At that point the shares, after initially doubling from their 370p starting price, stood at 11.5p.

Previous chief executive Marius Rybak had sold the group’s interests in Argentinian construction contracts for €280 million in term deposits with Brazil’s central bank. Clearly the market believed Crown would be unable to realise them. Last week though Pearson confirmed that he has arranged to use $200 million of the funds to develop a property venture in Portugal and transferred the remaining $300 million from Brazil to Holland.

He wants to appoint a renowned property professional to develop the Portugal site and eventually spin it off. With the remaining assets he plans to acquire an established cash generative business.

Meanwhile, he is undertaking smaller transactions, such as last week’s £2.6 million bid for marketing services outfit Real Affinity. Pearson is starting to attract long-term investors to back him and at a 68% discount to net asset value of 205p a share, others should follow this lead.