Our opinion on the current state of NICTUS(NCS)Nictus (NCS) is a furniture and electrical appliance retailer with three stores in South Africa. It also sells short-term insurance through Corporate Guarantee. In its financials for the six months to 30th September 2023, the company reported revenue of R15 million, down from the previous period's R16.6 million, and earnings per share (EPS) of 6.93c compared with a loss of 0.71c in the previous period. The company stated, "We are fortunate to have a strong capital base to carry the group during times of uncertainty and adverse economic conditions. The group has no external debt financing."
In a trading statement for the year to 31st March 2024, the company estimated that headline earnings per share (HEPS) would increase by between 57.43% and 77.43%. The enduring problem with this company is that its shares are far too thinly traded to be practical for private investors.
Overall, while Nictus shows financial stability and a significant improvement in earnings, the low liquidity of its shares poses a challenge for private investors. The company's strong capital base and lack of external debt are positives, but the thin trading volume limits the practicality of investment for those seeking more liquid opportunities.