Engaged in designing, manufacturing and marketing products that connect, monitor and control, operating in two segments: Connectivity, and Instrumentation, Monitoring and Control (IMC).
8-Feb-2018 – 22.7p – £42.2m – PER 59.4
Trading Update For The 12 Months To End January 2018 – No mention of it but trading wise this seems in-line at best. The outlook is impressive though, the Order book is in excess of £9m (compared with £5.9m last year) and there’s Net Cash of £5.1m versus £1.0m last time (£1.9m from a disposal). Up over 8% yesterday, either this update is better than I can work out or the cleaner’s got hold of the wrong emails.
I just cannot see how this has been driven up to the valuation it has been (3 bagger in the past 12 months). I am obviously missing something!
3-May-2018 – 28p – £52.1m – PER 73.3
Final Results For The 12 Months To End January 2018 – Net cash £5.2m (2017: £1.0m), Revenues up 11.2% to £29.8m (2017: £26.8m), Operating Profit £2.6m (2017: loss £0.6m).
I’m still not getting the story here for some reason. No mention of forecasts in this update and no broker notes either (that I can find). There is this statement “The Board’s visibility does not extend beyond the first half and so remains cautious on second half performance due to potential economic uncertainty”. I just find it hard to pull the trigger on a stock with a PER of 73.3 with so little information.
9-Aug-2018 – 41.5p – £77.2m – PER 30.4
Trading Update For The 6 Months To End July 2018 – Revenue up 16.9% (ahead of expectations) with Net Cash at £6.8m (up from £2.0m in July 2017), £5.2m in January 2018). FY to be ahead of market expectations.
I still just can’t make my mind up here (spidey senses or something), it looks like a great growth opportunity but it also seems priced for this on a PER of 30+. I am going to remain Neutral for now.
19-Sep-2018 – 48.5p – £90.3m – PER 30.7
Interim Results For The 6 Months To End July 2018 – Revenue up 17% to £15.9m, Operating Profit up 180% to £1.4m (H1 FY18: £0.5m), Net Cash at £6.8m (31 July 2017: £2.1m; 31 January 2018: £5.2m). Positive outlook for H2 and beyond, FY to be in-line with recently upgraded expectations.
I am tempted here, it’s going on my Watchlist – Forecasts look good, even on a PER of 30 or so, perhaps it’s time to take the plunge!
Subsequent note: Further research suggests 2 year upside of 200% or so but 1 year downside of 50% or so, I am now Neutral awaiting updates or a much better price.
1-Nov-2018 – 36p – £67.0m – PER 21.8
Trading Update For The 3 Months To End October 2018 – Trading strong with Revenue up 16.5% LFL (YTD up 17%). FY to be significantly ahead of market expectations.
This upgrade is enough for me to put this on my Watchlist now and may even consider a purchase.
5-Feb-2019 – 44p – £81.9m – PER 17.6
Trading Update For The 12 Months To End January 2019 – FY to be in-line with forecasts notified in the November 2018 Trading Update. Net Cash up from £5.2m to £10.1m. Although cautious on the outlook, expects the strong momentum to continue across the business.
This looks reasonable enough, I continue to hold (after buying last month) – I see great 2 Year upside here if forecasts are met.
12-Jun-2019 – 44p – £82m – PER 15.6
Results For The 12 Months To End January 2019 – Revenue up 13.1% (from £29.8m to £33.7m), Operating Profit up 77%, Net Cash of £10.1m (£5.2m last time).
I am Long here and there’s a lot to take in here, will have to look in more details later – High level view is it seems OK. Great 2 Year upside here if existing forecasts are met.
31-Jul-2019 – 49p – £91m – PER 15
Bulgin Sale – Sells Bulgin for circa £94m (to be returned to shareholders) and will rename as Checkit.
I am Long here and am just a little concerned on the remaining business in that it will be loss making. Based on the last results Bulgin contributed Revenue of £30.1m with Operating Profit of £9.0m, Group Revenue was £33.7m with Operating Profit of £4.6m. Let’s see what happens!