The technology-embraced marketing communications and advertising group.
25-Jan-2018 – 45.48p – £38.3m – PER 5.79
Trading Update For The 12 Months To End December 2017 – In-line, Revenue up 6% and PBT up10%. Net Debt below £7.5m is better than market expectations. The chairman states “Alongside our drive to identify operating efficiencies, embracing technology will improve our margins and continue to fuel our core growth through 2018”.
Got quite a bit going for it here now the Net Debt is a bit more manageable. The Operating Margin and ROCE are OK for the sector and the 3.5% or so Dividend is well covered. I’m going to put it on my Watchlist, 40p.
10-Apr-2018 – 46p – £38.7m – PER 5.90
Results For The 12 Months To End December 2017 – Revenue up 6% to £70.0m (2016: £65.9m), PBTup 10% to £7.7m (2016: £7.0m), Diluted EPS up by 11% to 7.12p (2016: 6.41p), FY Dividend up by 13% to 1.7p (2016: 1.5p). Net Debt is now down even further to, a much more manageable £7.2m. 2018 has started well and is expected to be a year of strong growth. Also announced an immediately earnings enhancing acquisition (Cash £2.75m) this morning.
This is on my Watchlist at 40p and it remains there for now. However, on a PER of 5.90 I may well consider paying up here – Looks cheap for a company growing at circa 10%.
23-Jul-2018 – 47.5p – £40.1m – PER 5.22
Trading Update For The 6 Months To End June 2018 – A rather strange update. This statement “we again expect to report strong double digit growth in headline profit before tax for the first half of 2018 and a continued increase in profit margins” which sounds very positive is followed with “In common with recent years, we expect our results for the year to 31 December 2018 to again have a significant bias towards the second half and we look forward to further progress over the remainder of the year”.
This seems to suggest the Interim Results due in September will disappoint so although I quite like this I am going to take it off my Watchlist for now (was there at 40p) and go Neutral. Will keep an eye on those results though because a company on a PER of 5.22 with double digit growth is impressive enough.
19-Sep-2018 – 50p – £42.2m – PER 5.41
Interim Results For The 6 Months To End June 2018 – Revenue up 10% to £37.0m (2017: £33.8m), PBT up 23% to £3.5m (2017: £2.9m), Headline Diluted EPS up 25% to 3.22p (2017: 2.58p) and the Interim Dividend is up 27%. Expect to deliver on 2018 forecasts and beyond.
This is looking much more interesting here – Double Digit growth on a PER of 6 or so. It’s going back on my Watchlist if I don’t get involved in the sessions ahead.
Subsequent note: I bought in here today (as not only was it attractive, it was also already on my Tech Screen).
12-Nov-2018 – 54p – £45.6m – PER 5.76
Disposal – Gets rid of the BroadCare business for £4.4m in Cash (contributed £0.5m to Profits (let’s say 10%)) to be used to pay down Debt.
I am Long here and this should not have a material impact on the double digit Profit and EPS growth, for a company on a PER <6. I will of course (as always) keep an eye on the market reaction to this news.
9-Apr-2019 – 64p – £54m – PER 7.1
Results For The 12 Months To End December 2018 – Revenue up 13% (to £78.8m), PBT up 22% (to £9.5m), EPS up 22% to 8.7p (7.1p last time). The FY Dividend is up 24% and Net Debt is down from £7.2m to £4m.
I am Long here and on a single digit PER (with a 3%+ Yield thrown in) this looks good for now.