Ann: 31 December 2021 Interim Financial Report, page-3

Probably one of main challenges with this stock is to try to estimate a fair value.

The easy part is to recognise that it is really cheap with a free cash flow yield of more than 40 % and a PE of less than 2 x (based on H1 results annualised).
Really unusual to see this kind of valuation for a company which does not have a lot of one offs and which does not seem extremely cyclical.

Some elements can justify a rather low valuation :
- the company is paying a minimum level of tax (in their P&L, they have a large income tax benefit), so it would probably be fair to input a normal level of tax to try to assess a normalised profit after tax,
- this is an oyster farming business, with all the risks associated with this kind of business.
So we could probably use a PE of 10 to 12 x to assess this business.

Using the 2 elements above, the company could be assessed at least 47 m using a PE of 10 x and a normalised profit (based on H1 results*, annualised).
This would still correspond to a free cash flow yield of 13.4 % (if we annualise H1 results).

Obviously, this is very subjective like every valuation estimate and mainly depends on the main assumptions (as well as their ability to maintain results at existing level).
We have also to bear in mind that this stock is not very liquid, so it may be fair to put a discount to reflect this poor liquidity.

* excluding the impact of change in fair value for oysters.