M.P. EVANS (LON:MPE) – good numbers but how on earth do you value this one?
M.P. Evans, the AIM quoted Indonesian palm oil and Australian beef cattle business (great mix!) announced seemingly outstanding results for the year ended 31st December 2008. However, this is a tough business to value in its changing state.
There was a record profit for the year US$53m (2007 US$46.6m), with earnings per share for both continuing and discontinued operations (note the unusual inclusion of both, that’s significant!) of US cents 96.26 (2007 US cents 82.32 cents). At the current share price of 306p and market capitalisation of US$160m, this all looks very rosy! However, the year on year comparison is hard assess given the changing nature of this business with Malaysian estates being sold (profits from discontinued operations amounted to US$24.5m), Indonesian estates being planted (gain on biological assets of US$11.1m) and Beef cattle investments being added. Add…