Catalyst Media Group (LON: CMX) trebled its net assets after unwinding a previous write-down. Even after an 8% increase in the share price to 129p, the market capitalisation of £27.1m is at a discount to NAV of £35.5m, or 168.9p a share.
A 20.5% shareholding in horseracing broadcaster Sports Information Services (SIS) is the only significant asset that Catalyst Media has, and it is valued at £35.4m. That is after a write-back of a previous impairment charge of £23.4m. This is due to improved performance and the resolution of litigation with The Racing Partnership.
After accounting for its share of SIS profit, Catalyst Media reported a 2021-22 pre-tax profit of £24.4m.
SIS returned to profit in the year to March 2022. Since then, Catalyst Media has received a £4.4m dividend. SIS still has £54m in the bank. Catalyst Media has announced a 3.3p a share dividend. SIS revenues are expected to increase this year.