It has become a habit to start a year with Nu-World Holdings as one of our company reviews. But continued coverage is justified as it continues to offer extraordinary value for patient investors content with steady profit growth and a generous yield underpin. How a business with an unblemished record of profitability, a well-reinforced balance sheet and stout cash flows can trade on an earnings multiple of less than five times is mind-boggling. Then again, sentiment in the JSE’s small-cap space has rarely been this jaundiced. Nu-World’s share price suggests the market is anticipating a tough year to end-August 2019 — a reasonable assumption judging by retail sales over Christmas, the poor prognosis for consumer spending and the confidence-sapping resumption of load-shedding. Interim results will be published in late April — with possibly a trading update earlier. In the last financial year Nu-World reported that its core local business performed well — increasing revenue 11.4% and a...

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