Morning Brief – 10-Apr-2018

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Morning Brief Images 10-Apr-2018

UK Stock Market News Today – 10-Apr-2018

Morning all!

Eddie Stobart Logistics (ESL) – 125p – £447.4m – PER 10.5

Results For The 12 Months To End November 2017 – In-line (Revenue up 9.4%, PBT down -12%), new year started well and in-line with the Board’s expectations.

I can’t get excited here, the yield may be attractive to those seeking income.

M P Evans (MPE) – 744p – £407.8m – PER 22.1

Results For The 12 Months To End December 2017 – The highlight is the Operating Profit up 72% to US$34m. The FY Dividend is up 18% to 17.75p (27.75p if you also include the Special Dividend from April last year). Outlook remains positive.

There was a takeover bid here just over a year ago, at 640p it was rejected. That seems to have been the right course of action, now trading at 744p. I like a few things here (like the Net Cash and Operating Margin) but there’s also a few things I don’t like (the poor ROCE for example and the fact Revenues and Profits just seem erratic). I’m Neutral for now.

Robert Walters (RWA) – 700p – £527.1m – PER 15.3

Trading Update For The 6 Months To End March 2018 – Strong start with Net Fee Income up 17% (13% without FX), £88.5m. Net Cash up to £34.0m (from £13.3m) and current trading is in-line.

This is one that was on my Watchlist at 580p and another one where I missed the boat waiting for a pull-back. Bigger than my usual £500m Market Cap so will remove it from the Watchlist for now. Currently revising my Entry criteria due to missing a few too many boats including this one.

Mission Marketing (TMMG) – 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%.

Ramsdens Holdings (RFX) – 183.75p – £56.7m – PER 11.2

Trading Update – Trading in the second half of the year has remained strong and, as a result, anticipates reporting results for the year slightly ahead of expectations.

As a holder, that will do for me. EPS is forecast to go from 10.8 to 16.2 this year.

D4t4 Solutions (D4T4) – 108.59p – £41.3m – PER 9.45

Trading Update – Expects to report a very strong trading performance for the second half of the year alongside a record level of bookings, which underpins the Board’s confidence for financial performance in the current financial year ending 31 March 2019. Confident that Revenue and Adjusted PBT will be ahead of the comparatives for the year ended 31 March 2017.

This should help after a poor H1 but I will remain on the side-lines for now.

Hostelworld (HSW) – 366.5p – £350.3m – PER 19.3

Results For The 12 Months To End December 2017 – In-line. Market conditions, particularly in Europe, remain uncertain and while volume bookings are in line with expectations, weaker exchange rates, particularly for the US dollar, remain a significant headwind.

I still don’t believe in the long term outlook for Hostelworld and remain underwhelmed by the growth, considering the PER is almost 20.

As always, all comment most welcome – Have a great day!

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