Morning Brief – 14-Nov-2018

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Morning Brief Images 14-Nov-2018

UK Stock Market News Today – 14-Nov-2018

Morning all!

AB Dynamics (ABDP) – 1387p – £271m – PER 32.2

Final Results For The 12 Months To End August 2018 – Revenue up 50.8%, PBT up 77.9%, Diluted EPS up 70% and the FY Total Dividend will be 10% higher than last year.  This is encouraging “progress continues to require ever greater investment in systems and our operational capability to ensure that we are fully capable of supporting current and future growth” although there may be an impact on margins as a result.

I am Neutral here (and have been kicking myself for not buying in much lower last year). I keep considering changing my view here and may well do after looking into additional updates this morning (just wary of this – it’s of course nice to have the issue of expansion but at what cost I wonder!).

Avon Rubber (AVON) – 1300p – £403.3m – PER 17.2

Unaudited Preliminary Results For The 12 Months To End September 2018 – Revenue up 8.7% (CC) to £165.5 with EPS down slightly (-1% or so). The Dividend though is up 30% (Net Cash bring up from £24.7m to £46.5m).

I am Neutral and remain of the view that this is fairly priced around the 1200p – 1400p mark.

Flybe (FLYB) – 11.7p – £25.3m – PER n/a

Results For The 6 Months To End September 2018 and – Formal Sale Process Announcement

I just can’t be bothered anymore (no idea what will happen here) – It’s finally going on my Avoid list and I will cease coverage.

Renold (RNO) – 34.6p – £78.0m – PER 6.73

Interim Results For The 6 Months To End September 2018 – Revenue up 6.3%, Underlying Adjusted Operating Profit up 36.7% – Looking forward to continuing momentum into H2.

I remain Neutral but will keep an eye out for Broker updates as this is starting to look more attractive given the current valuation.

Speedy Hire (SDY) – 58.2p – £304.9m – PER 11.5

Results For The 6 Months To End September 2018 – Revenue up 6.5%, PBT up 120%, Adjusted EPS up about 20%+ and ROCE up from 9.5% to 12.3%. Confident FY will be in-line with expectations.

This is looking much more reasonable now and seems to be well into recovery mode – I remain Neutral though as not sure there’s not perhaps still a bump or two to come.

Marshall Motor Holdings (MMH) – 147p – £114.5m – PER 6.15

Trading Update – 2018 Underlying PBT now expected to be ahead of last year.

I remain wary of the industry and remain Neutral here – Although this would probably be (will probably be) my pick of the options as and when we see some kind of improved sentiment in the industry as a whole (sound management it seems, decent well covered yield and £120m or so of property on the Balance sheet).  Almost talking myself into buying now!

Dods (DODS) – 10.3p – £35.2m – PER 22.2

Unaudited Interim Results For The 6 Months To End September 2018 – Revenue up 7%, PBT halved, Basic EPS 11p (from 27p). Ouch! There’s, probably rightly so, been a bit of a Board shuffle.

Still looks expensive on a PER of 22.2, I remain Neutral.

Seeing Machines (SEE) – 5.84p – £133.5m – PER n/a

AGM Statement – Moving to pure OEM (and Tier 1 supplier (whatever that means)) – Looking “forward to addressing the considerable market opportunities in all our businesses in 2019 and will continue to invest in engineering and sales resources to support all these activities”.

Still no idea if this is the next big thing or not, still too much of a cash burning gamble for me – The statement highlighted above makes me wonder if they’ll be needing even more Cash! I remain Neutral.

As always, all comment most welcome!

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