Caravans and motor homes retailer Discover Leisure says that its trading remains at the lower levels experienced at the end of the previous financial year.
Discover has achieved more than £2m of annual cost savings and interest charges are reducing.
Discover’s year-on-year market share has increased from 5.5% to 9.5% in the four months to December 2008. However, margins were lower than budgeted. Total vehicle stocks were reduced by £14.5m helping to reduce working capital and debt.
Net was £22.6m at the end of August 2008. Nearly half of that was repayable on demand. Further losses are likely to offset some of the working capital improvements.
The second half is crucial for Discover because the first few months of the financial year are relatively quiet.
Shares in Discover recovered 0.23p to 0.73p each, which values the company at £1.12m. The net tangible asset value was £6m at the end of August 2008 and there is potential uplift in the values of some of its land. However, the high borrowings worry investors and that is why the shares are at such a large discount to net asset value.
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