Morning Brief – 12-Dec-2017

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Morning Brief Images 12-Dec-2017

Morning All!

Servoca (SVCA) – 63.5p – £34.2m – PER 15.9

Preliminary Results For The 12 Months To End September 2017 – Revenue up 15.9% to £80.2m (2016: £69.2m), PBT flat at £2.9m, adjusted basic EPS up 13.8% to 2.56p (2016: 2.25p), Dividend up14.3% to 0.40p per share (2016: 0.35p).

Looks OK, probably priced about right – A higher yield and I would be more tempted here.

Driver (DRV) – 63.5p – £34.2m – PER 15.9

Final Results For The 12 Months To End September 2017 – Revenue (on continuing operations) up15% to £60.2m (2016: £52.4m), reported PBT of £0.3m (2016: loss £5.2m).

Looks like a corner has been turned here but I will be watching from the stands for now.

Begbies Traynor (BEG) – 67.38p – £72.2m – PER 17.2

Interim Results For The 6 Months To End October 2017 – In-line and well placed to deliver current market expectations for the full year. Confident enough to also declare an increased Interim Dividend (the first in 6 years).

I still have little conviction here. Revenues are quite stagnant, Profit/Loss can be hit and miss, Operating Margins and ROCE are generally low. Even the Dividend is not particularly great, or well covered.

Zytronic (ZYT) – 517.5p – £81.0m – PER 16.9

Preliminary Results For The 12 Months To End September 2017 – Revenue up 9% to £22.9m (2016: £21.1m), PBT up 27% to £5.4m (2016: £4.3m). The focus though is on the Dividend, the final Dividend is up 39%. Current year has started with Revenue and Orders similar to last year.

Seems like a quality company but this update and the forecasts just don’t seem to make it worthy of investment at this level. Keeping it on my Watchlist as much more interesting around 450p.

Tristel (TSTL) – 250p – £107.4m – PER 28.5

AGM Statement And Notice Of Results – In-line.

Seems to be performing well. It’s down 20% from recent highs but still for me, seems expensive for a company forecast to grow about 20% in the next couple of years.

Carpetright (CPR) – 185p – £120.6m – PER 9.43

Interim Results For The 26 Weeks To 28 October 2017 – A mixed headline “Significant progress made in core UK flooring business – first half performance impacted by short term UK beds clearance and losses in Rest of Europe. Current trade encouraging but taking a more cautious view of second half prospects”. And this also seems mixed – Revenue up 2.6% to £228.1m (H1 FY17: £222.3m), statutory PBT £0.3m (H1 FY17: £4.1m), Net debt £22.8m (H1 FY17: net cash £0.4m) reflecting the continued investment in the store refurbishment programme. And “Underlying pre-tax profits for the second half of the year expected towards the bottom end of the current range of market expectations”.

Remains on my Avoid list.

Joules (JOUL) – 263p – £231.4m – PER 21.4

Trading Update For The 26 Weeks To 26 November 2017 – Revenue up 17.5% (CC) to £96.2m (H1 FY17: £81.4m), Gross Margins in-line with H1.

There’s a lot to like here. Recent growth looks good as do forecasts. ROCE and Operating Margin well above industry norms. There’s Cash and a tiny Dividend (<1% – Why bother?). Down 20% from recent highs – Another 20% and I would be much more interested here. I’ll put it on my Watchlist.

Robert Walters (RWA) – 551p – £414.5m – PER 14.5

Trading Update – PBT for the full year ending 31 December 2017 is expected to be materially ahead of current market expectations.

A short and sweet update which follows the previous “PBT for the full year will be ahead of current market expectations” statement. Remains on my “buy on a general market pullback list” as I just don’t want to be paying up here for a recruitment company.

Synectics (SNX) – 205p – £37.4m – PER 11.2

Trading Update For The Year Ending November 2017 – In-line, Revenue flat, PBT up 10%. Cash is upfrom £2.2m to £3.9m.

Not sure this is “in-line” but there’s still quite a lot to like here, except that Spread of 10% or so. Will have a further look at this.

K3 Business Technology (KBT) – 165.5p – £71.1m – PER 18.2

Trading Update – In-line.

Drifting North since the collapse in May this year. I will remain on the side-lines for now.

Sorry for the late post – HUGE amount to get through there this morning!

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