Morning Brief – 12-Jun-2018

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Morning Brief Images 12-Jun-2018

UK Stock Market News Today – 12-Jun-2018

Morning all!

CML Microsystems (CML) – 515p – £87.9m – PER 20.1

Preliminary Results For The 12 Months To End March 2018 – Revenue up 14% to £31.67m (2017: £27.74m), PBT up 9% to £4.58m (2017: £4.21m), Basic EPS up 6% to 24.52p (2017: 23.09p), FY Dividend will be 7.8p (2017: 7.4p). Confident the company is in good shape to deliver long term sustainable growth.

On a PER of 20 I just don’t see the value here at present, I’m Neutral.

Iomart (IOM) – 395p – £427.2m – PER 19.1

Final Results For The 12 Months To End March 2018 – Revenue up 9% to £97.7m (2017: £89.6m), Adjusted PBT up 7% to £24.0m (2017: £22.4m), Adjusted Diluted EPS up 6% to 17.96p (2017: 16.99p), FY Dividend to be 7.18p, 20% up from last year (6.00p). Looking forward with confidence.

The ROCE and Operating Margin are pretty good but there’s not enough elsewhere to get me more interested (although the CEO is delighted with “another year of excellent results”), I’m Neutral for now.

Motorpoint (MOTR) – 261p – £260.9m – PER 13.7

Final Results For The 12 Months To End March 2018 – Revenue up 20.6% from £822.0m to £991.2m, PBT up 70.9% to £20.0m (FY17: £11.7m) with Adjusted Basic EPS up 32.3% to 16.8p (FY17: 12.7p), the FY Dividend will be 6.6p (FY17: 4.2p) an increase of 57.1%.

There’s quite a lot to like here but enough not to like too. For me, for example, the sector (uncertainty), the Net Debt (it’s quite large), the Operating Margin (it’s very thin) – I remain Neutral.

Park (PKG) – 80.75p – £149.8m – PER 13.9

Preliminary Results For The 12 Months To End March 2018 – Mostly small increases all round here, seems in-line.

I am going to remain Neutral – These results for a gift vouchers and prepaid gift card company just don’t get me excited at all.

Trifast (TRI) – 272p – £330.2m – PER 19.3

Preliminary Results For The 12 Months To End March 2018 – Results seem OK but perhaps a little below forecasts. Current year has started well and confident of delivering on expectations (which are hardly inspiring to me).

The 5 year return here has been great but it looks like that growth is becoming a little more difficult. I am going to remain Neutral.

Warpaint London (W7L) – 214p – £164.2m – PER 14.3

AGM Statement – In-line, rest of the year encouraging.

It’s tempting this one. Touched my Watchlist Entry (flagged at 200p) last month but I failed to react – Kept it on the Watchlist though and will do so for now.

K3 Capital (K3C) – 337p – £142.2m – PER 28.3

Trading Update – Comfortably in-line, average fee levels continue to increase, seeking FCA approval for a wholly owned subsidiary to broaden services.

This was on my Watchlist back when it was half this price. Expectations are now very high here so I have decided to sit on the sidelines for now – Neutral.

As always, all comment most welcome!

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