Morning Brief – 12-Mar-2018

Morning Brief Images 12-Mar-2018

UK Stock Market News Today – 12-Mar-2018

Morning all!

Hope you all had a great weekend.

Medica Group (MGP) – 157p – £174.4m – PER 20.5

Preliminary Results For The 12 Months To End December 2017 – Revenue up 18.2% to £33.7m,  Gross profit margin of 48.7% (2016: 49.8%) as expected, Net Debt down significantly to £5m (2016: £22m), Proposed maiden final dividend of 1.10p, 1.65p for the year. Adjusted PBT is up 48.6% to £8.8m, £5.9m last time and Adjusted EPS is up 39.0% to 6.92p, 4.98 last time. 2018 has started well, trading in line with the Board’s expectations. Expects to grow Revenue at a double-digit rate similar to that seen in 2017.

Not looked at this before and it seems there was a mild profit warning in January. Following this, these results don’t appear too bad at all. Will keep an eye out here for updates as there seems to be decent Quality here and arguably based on that Quality, Value too (even though Stockopedia does not agree, Value Rank 14).

Seeing Machines (SEE) – 4.95p – £110.9m – PER n/a

Results For The 6 Months To End December 2017 – Record Revenue for the half-year ended December 2017 of A$14.6m. Lower down the update, what also looks like a record loss, A$16,683,056 compared with A$14,138,699 last time. The fact it’s a record loss is not mentioned. The Board is confident in the prospects for the second half and expects the results for the full year to June 2018 to be in line with expectations (a huge loss).

A loss maker but followed by many and with a little spare time, decided to have a look. I really like what this company does but it just continues to burn cash (and surely looks like it will need even more, Again! – Shares in issue has trebled in 5 years). I remember them stating that they were in an “enviable position” and commenting that if they are they will not get a chance to become a 10/20 bagger, they’ll just get bought out instead. Really like what they do, wish them well but I just can’t make an investment case.

Eve Sleep (EVE) – 128p – £177.5m – PER n/a

Results For The 12 Months To End December 2017 – “2017 sales up 132%, targeting UK profitability in Q4 2018”. Gross profit margin is up (an impressive) 910 bps to 57.7%. Loss Before Tax is up a whopping 67% to -£19.0m. Trading for the current year has started strongly with sales for the first six weeks 94% above the same period last year. Group profitability targeting end of 2019.

A loss maker but seems to be ads everywhere I look (hence the huge loss I guess), so with a little spare time, decided to have a look. I checked my notes and I think I still have a similar view here. Just can’t see the fascination – It’s a mattress, something we replace every 10 years or so. I may be wrong and soon everyone will be using an Eve Sleep mattress. On the other hand the company may continue spending a fortune on advertising and end up dead in the water. It’s just not for me, I sleep well enough at night as it is, don’t need to potentially disrupt this (with the mattress or the holding)!

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

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