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Each month we trawl through hundreds of RNS statements from AIM companies. In this column we highlight an exceptional company announcement, particularly where we feel the market may not have taken full account of recent news.

For this month’s Snippet article I want to draw attention to a changing situation at Sutton Harbour (SUH).  Rather than highlighting one particular RNS I have listed five from the last three months which highlight some these changes:

08/12/11           Interim results confirming the exit from Plymouth Airport

23/12/11           Placing to raise £6 million

18/01/12           Five directors taking up shares in the placing

31/01/12           New CEO Appointed

28/02/12           CEO buying shares

Sutton Harbour Holdings joined AIM in 1996 as the owner and operator of Sutton Harbour, the historic harbour of Plymouth. Then in 2000 the Company purchased Plymouth City Airport and later in 2003 it set up its own airline, Air Southwest. These ventures into air transport finally proved to be heavily loss making. The airline was sold in 2010 and the airport finally closed in December 2011.

The promise and then disappointment from the air transport activities can be seen in Sutton Harbour’s share price graph over the last 10 years:

Now, with the airport venture finally behind it, the Group is turning its focus on to its core activities of property management, development and regeneration. Sutton Harbour’s assets include a 550 berth marina, Plymouth fish market (the third largest in England), some Plymouth car parks and various other property investments in the South West of England.

At 25 pence, the shares stand at a 40% discount to the Group’s Net Asset Value. Furthermore, the Group has further plans, including a new marina development, to enhance its assets.

It should be noted that much of Sutton Harbour’s estate generates good revenues from long leases and thus has a lower risk profile than many property groups.

Finally, I was encouraged to see that the Chief Executive and Chairman were in the City recently presenting their story to the media. This is a Group that has been through a very difficult time, during which the shares were heavily sold. Perhaps today could be a good time to look again as the Group returns to its roots where it has undoubted skill and experience.

As always, the purpose of this Snippet column is to highlight a particular situation worthy of further research and monitoring.

Sutton Harbour Plymouth                         

the promise and then disappointment from the air transport activities

Plymouth Fish Market                              

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