Morning Brief – 12-Oct-2017

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Morning Brief Images 12-Oct-2017

Morning All!

Reasonably quiet out there this morning.

Elegant Hotels (EHG) – 80.25p – £70.8m

Trading Update For The 12 Months To End September 2017 – An in-line update with a couple of positives – Only 12 days into the new financial year, bookings are (LFL) ahead and the Treasure Beach hotel is on track to reopen for business at the start of the peak tourist season.

Quite like the look of this (huge Dividend 8%+) and held until recently. It just wasn’t doing much and I decided that perhaps a Hotel group is unlikely to grow very fast – In a down turn or with the continued rise of Airbnb.

Norcros (NXR) – 168.13p – £104m

Trading Update For The 6 Months To End September 2017 – An in-line update which actually seems to be slightly ahead of expectations – Revenue up to £144.9m versus £128.8m last time – 12.5%higher (7.1% on a CC basis). The board is confident it will meet its expectations for the year to end March 2018.

On a PER of less than 6 this is quite interesting – There’s even a reasonably well covered Dividend of 4%+. But, there is Net Debt (20% of Mkt Cap) and a large pension deficit (pointed out here in the most recent SCVR). This is perhaps holding it back.

Tarsus (TRS) – 301p – £338.4m

Trading Update For The Second Half Of The Year – In-line and perhaps a little upbeat too, the MD states “We expect good performances from our remaining shows in 2017 and the Group remains confident of delivering a strong result for the year as a whole”. TRS looks OK on the face of it although but I don’t like the Net Debt of £84m (25%+ of Mkt Cap).

The fact it’s on a PER of 15 the market may have been expecting a little more in this update.

And that’s it for today, nothing much to excite!

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