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.