Morning Brief – 1-Mar-2019

Morning Brief Images 1-Mar-2019

UK Stock Market News Today – 1-Mar-2019

Morning all!

AFH Financial Group (AFHP) – 336p – £142.8m – PER 10.3

AGM Statement – 5th year of improved profitability, record Revenue of £50.7m (up 51%), EPS up 43%, the Dividend is up 50%. Complete 16 accertive acquisitions, continuing to implement operational efficiencies through scale. Current year trading remains in-line with expectations with 4 acquisitions in the first 4 months.

I am Long here and in-line will do for me, forecasts for in Revenue and EPS to increase again 40%+ this year (on almost a single digit PER!).

Revolution Bars (RBG) – 79.5p – £40m – PER 12.7

Interim Results For The 26 Weeks To The 29th December 2018 – Lots or words here but basics are LFL Revenue is down -4%, Operating Loss of £3.1m (£3.7m Profit last time – Exceptional costs of £5.2m blamed) and the Interim Dividend is suspended. Slow start to H2 means Adjusted EBITDA of £11m – £12m (no idea what it should be but assume higher than this). Focusing on refurbishments not new openings.

Yes, I am still guilty of holding here on potential take-over talks – I remain close to the Sell button albeit way too late! Lesson learnt, again, hopefully the last time ever – Never continue to hold a share purely based on the potential for a take-over.

Robert Walters (RWA) – 526p – £398m – PER 10.7

Results For The 12 Months To End December 2018 – Revenue up 7% (CC) to £1.23bn, PBT, up ahead of expectations, 23% (CC) to £49.1m, EPS up 17% and the Dividend is up 15%. Net Cash stands at £74.3m. 2019 has started well, in-line with the Board’s expectations, 73% of net fee income outside of the UK, should help balance any Brexit type disruption.

I still see some potential for upside here but just not enough for me to get involved at this level.

Vertu (VTU) – 38.5p – £145m – PER 7.2

Trading Update For The 12 Months To End February 2019 – Expects FY to be in-line. 5 months to end January 2019 has seen Revenue up 5.2%, mainly helped by, it seems, Used sales and after sales – New sales down. Strong balance sheet but confident enough in a cautious market.

I still remain cautious myself here about the industry as a whole so I am not tempted here at present.

As always, all comment most welcome!

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