One of the UK’s leading specialist waste management businesses.
16-Oct-2017 – 27.25p – £28m
Trading Update – This doesn’t sound positive – “The impact of the HMRC assessment, which the board believes will not be resolved imminently, as well as a continued weaker trading performance, is expected to lead to full year profit being below the level of 2016 with 2018 also expected to be lower than previous expectations”.
I would be concerned that this company may not even be around in 2018!
18-Sep-2018 – 45.5p – £46.6m – PER 6.49
Interim Results For The 6 Months To End June 2018 – Adjusted Revenue (before landfill tax) up 6% to £32.9m (2017: £30.9m), Adjusted PBT up 36% to £4.5m (2017: £3.3m), Net debt improved to £2.7m (December 2017: £10.8m) – The rate of cash generation will slow in H2 as the capital spend to maintain landfill capacity will increase. Basic Adjusted EPS is up 21% to 3.18 pence (2017: 2.62p).
That outstanding landfill liability issue with HMRC means I will remain Neutral for now.
21-Nov-2018 – 42.5p – £44.1m – PER 5.48
Trading Update – FY Adjusted PBT to materially ahead of market expectations – Moved to a cash positive position with all bank debt repaid.
Attractive enough but there’s still that unknown – Outstanding landfill liability issue with HMRC (in this update it states “no further update on the assessment notifications from HMRC recently), I remain Neutral.
9-Jan-2019 – 70p – £72.7m – PER 7.69
Trading Update For The 12 Months To End December 2018 – Expects to be in-line with previously upgraded expectations with higher Net Cash than expected (£8.2m).
I still cannot be tempted here whilst that outstanding issue with HMRC remains.