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Black Arrow Group

  • BY: Andrew Hore |
  • POSTED: 14/08/2009 |

Black Arrow Group reported lower revenues and an increased underlying loss in the year to March 2009 but the disposal of its furniture business means that Black Arrow is a different company now.

In July 2009, Black Arrow sold its furniture and fit out business for a written down book value of £835,000 and a 9% stake in the acquirer. There could be more payable depending on profitability. The acquirer of the furniture business will pay rent of £135,000 a year on its Rotherham manufacturing site and £66,000 for space in Black Arrow’s office in Hounslow.

Black Arrow lent the acquirer £1.25m so there was no effective cash inflow from this disposal.

Revenues, including the furniture business, fell from £13.7m to £8.97m to March 2009. The loss was £2.62m, including a £1.36m drop in the value of investment properties. Last year, a profit of £6.24m was reported but, if the property disposal gain of £7.79m is excluded, there was a £1.54m loss.

Despite the loss there is £9.45m of cash in the bank and plenty of distributable reserves. The final dividend has been cut from 4p to 1p a share.

At 77.5p a share, Black Arrow is valued at £14.5m. The NAV is £19.5m at the end of March 2009.

Black Arrow will concentrate on equipment leasing and property.

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