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4 March 2020

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Thinksmart – H1 Results 

Share Price 17.5p

Mkt Cap £18.7m

Conflict Disclosure: No Holding

  • Results When a company has a market cap of £18.7m it is unusual for it to report PAT in a half year of £15.9m. Net assets are £29.1m, or 27p/share. The profit however is a revaluation of £16.4m of the 10% holding in Clearpay Finance Limited, the point of sale finance business which is growing strongly. Cash is £8.5m and the company is also persuing a £20m action against Carphone warehouse. The outlook says the company is well positioned to benefit from the growth of Clearpay while the remaining business is cash positive.
  • Estimates None.
  • Valuation 36% discount to NAV.
  • Conclusion This could be seen as a fintech investment company trading at a 36% discount.  With a 29% management holding it looks likely to make money.