03/01/2006
Formerly cash shell Cater Barnard, Mercury has transformed itself into a property services play through acquisitions and boasts the backing of Iranian property magnate Vincent Tchenguiz.
Chairman David Williams reported encouraging full year figures to September, revealing a turnover of £3.9m – overwhelmingly delivered from acquisitions – and a swing to operating profits of £100,000 from losses of £574,000. During the year, Mercury acquired three ventures – facilities manager Navitas Hemway, project manager TelCo Solutions and estate agency SMPA – that now form its core. The numbers included only nine-month contributions from both TelCo and Navitas, and just seven from SMPA. Nevertheless, pre-tax losses, stripping out exceptional costs related to an aborted acquisition, were culled from £1m to £84,000.
And recent contract wins provide optimism, with Navitas having snared new work worth more than £1.7m since its acquisition in December 2004 and TelCo recently clinching a deal with Harrell Hotels to manage the roll-out of its new hotels.
Having reorganised its share capital Mercury is now in a position to consider dividends. It sported £1.44m of year-end cash, buoyed by share placements in both July (bringing on board the Tchenguiz Family Trust as a 25% shareholder) and September. Williams will consider dividends during the current year.
It is still early days but there is a huge need for consolidation in the property services sector, Mercury has the backing of respected real estate industry backers, and could prove a winner over the long haul.
| Market cap: | £7.27m |
| PE Forecast: | n/a |
| Share price: | 9.88p |
| AIM | 0pm |
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