Value investor Peter Gyllenhammar has taken his stake in 1st Dental Laboratories to more than 10%.
Gyllenhammar has been building up a stake in the dental labs business and now owns 4.4m shares – equivalent to 10.5%.
1st Dental reported an increase in loss from £265,000 to £4.05m in the year to November 2009. That was mainly down to a goodwill write-off of £3.25m and termination costs of directors and other restructuring charges of £534,000. Revenues moved ahead from £10.1m to £10.6m.
Gyllenhammar normally likes asset-backed companies but this is not really true of 1st Dental. The company has a net asset value of £3.97m but nearly all of that figure is accounted for by intangible assets. Net debt was £1.19m at the end of November 2009.
At 4.125p a share, up 0.875p on the day, 1st Dental is valued at £1.73m.
Trading in the three months to February 2010 is said to be satisfactory with revenues 2% higher than the first quarter of the previous year. Cancelled dental patient appointments due to snow did hit demand at the turn of the year. All of the laboratories are trading under the 1st Dental brand.
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