Morning Brief – 15-Jan-2019

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Morning Brief Images 15-Jan-2019

UK Stock Market News Today – 15-Jan-2019

Morning all!

Dignity (DTY) – 720p – £360m – PER 10.4

Trading Update For The 12 Months To End December 2018 – Expects to report Operating Profit circa £79m, ahead of current market expectations, expectations for 2019 are unchanged.

I don’t see much reason to be “bottom picking” here.

Elegant Hotels (EHG) – 68p – £60.4m – PER 7.72

Results For The 12 Months To End September 2018 – Revenue up 5% to $62.9m, PBT up 3.5% to $9.5m, Adjusted Diluted EPS up 15.9% to 11.3c (9.8c last time). Year End Net Debt is $72.2 ($73.1m last time) and the new year has started in-line.

I still can’t get excited here.

Forterra (FORT) – 242p – £485m – PER 9

Trading Update For The 12 Months To End December 2018 – FY PBT to be in-line with the Board’s expectations. Net Debt down from £61m to £39m. Brick market seems to be holding up well.

Looks like the uncertainty of “you know what” is built into the price here – Probably the only thing preventing me getting closer to the Buy button at present.

Franchise Brands (FRAN) – 64.5p – £50m – PER 26.6

Trading Update For The 12 Months To End December 2018 – In-line, 2019 trading has started positively.

More attractive at this price but still not quite enough to get me involved just yet.

Gym (GYM) – 225p – £310.4m – PER 17.7

Trading Update For The 12 Months To End December 2018 – Members up 19.3%, Revenue up 35.6%, Net Debt £46m (£37.5m last time) and some EBITDA figure is included. Confident for continued growth in 2019.

Looking perhaps reasonably priced here.

Kape Technologies (KAPE) – 110p – £156m – PER 20.2

Trading Update For The 12 Months To End December 2018 – EBITDA to be slightly above market expectations on lower Revenue (due to the “divestment of the Media business, enabling the Group to fully focus on delivery of cybersecurity solutions”). Pleased with performance this year and expects to continue the growth trajectory in the medium term.

Would have liked to see a little more detail (like real profits info) – Will continue to hold but monitor reaction.

Mears (MER) – 345p – £381m – PER 9.5

Trading Update For The 12 Months To End December 2018 – In-line, expect further progress in 2019 and into 2020.

Will keep an eye out for improvements here as 2019 progresses into what seems could be a more exciting 2020.

Tax Systems (TAX) – 88.5p – £71m – PER 20.1

Trading Update For The 12 Months To End December 2018 – Comfortably in-line, Net Debt down 32% to £13.9m. In a good position to drive further growth in 2019 (helped by the governments Making Tax Digital initiative).

Getting the Net Debt down is a good achievement here. I am going to move this from my Avoid list to Neutral but I guess I am concerned that there is perhaps a sole reliance on a government initiative.

Telit Communications (TCM) – 132p – £173m – PER 19.9

Trading Update For The 12 Months To End December 2018 – Revenue expected to be at the top end of expectations ($427m), growth of 14%.

There’s just not enough information here for me to take this off my Avoid list yet.

TP (TPG) – 6.4p – £48.5m – PER n/a

Trading Update For The 12 Months To End December 2018 – Revenue and Cash to be ahead of market expectations with Operating Profit in-line. Expecting further growth in 2019 and beyond.

Will wait to see the actuals here.

As always, all comment most welcome!

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