There was an interesting post on Slimma last week on Motley Fool anybody any views ?

Slimma write up

I ran a search query on sharelockholmes.com for companies with similar characteristics to Victoria PLC.

The search criteria was
PER =< 10.5
Yield > 3%
EPS growth >=35%
Gearing < =45%
PTBV <= 1.25

Strangely it did not return Victoria, but gave Albion, Coral products, Dewhurst, Holders Technology, Slimma and Swallowfield.

I already held Dewhurst and was interested in Albion (sadly never bought last week).

However the company that really stuck out was Slimma

This is my latest purchase and one I hope will do well despite the spread setting me off at a nearly 6% loss. (the price of dealing in tiny caps.)

Price 55.5 pence
Market CAP 6 million
EPS (historic) 6.29
EPS (2004) = 9.10
EPS (2005) = 11.03

PER = 8.82
PER(04) = 6.1
PER (05) = 5

Yield historic = 5.4%%
Yield (04) = 6.3%
Yield (05) = 7.2%

Gearing 26%

PTBV 1.18
PSR = 0.2 (for those who use it I generally do not)

Cash flow per share 20.6
Free cash flow per share 19.38

P/CF = 2.7
P/FCF = 2.87

After recent broker forecasts for 04 and 05 the price spiked up but as since dropped back and settled at present levels.

These forecasts were made after the AGM statement which was generally positive although with a slight concern about interest rates.

'I am pleased to report that, as a direct result of the re-organisation carried
out in our last financial year, we have had a successful first quarter's
trading.

Despite having a lower sales level than last year, the planned reductions in
overheads and maintenance of margin have resulted in trading results being ahead
of both our internal budget and the last financial year.

Spring/Summer 2004 orders books are healthy although it remains to be seen
whether the expected interest rate increase will have a negative effect on
consumer spending.'


http://www.uk-wire.com/cgi-bin/articles/200401301018308212U.html

It seems the reorganization has been successful and with less overheads going forward risk has been reduced. In spite of the reorganisation the board have managed to use the huge cash inflow to substantially reduce debt from 2002 levels and I would expect this to continue given current prospects. Interest cover is at a healthy 9.5 by earnings and a lot more by cash flow, so the debt is hardly a concern in my opinion.

So overall a retailer generating large amounts of cash with trading improving after reorganisation and giving a yield substantially better than you get at smile.com.

No upside seems to be factored into the price and downside is backed by strong cash flow the dividend and a reasonable book value.

I thing this could be the peacock of this year. However the Caveats are obvious with this been a tin pot and the spread been enormous.

http://boards.fool.co.uk/Message.asp?mid=8519404&sort=whole#8521639

Obviously nobody interested in this but me.
Intrims out today and look good

http://www.uk-wire.com/cgi-bin/articles/200405180700087693Y.html