Morning Brief – 15-May-2018

Morning Brief Images 15-May-2018

UK Stock Market News Today – 15-May-2018

Morning all!

Xpediator (XPD) – 60.5p – £71.0m – PER 15.9

Final Results For The 12 Months To End December 2017 – Revenues up 60% to £116.3m (2016: £72.8m), PBT up by 65% to £2.4m (2016: £1.5m), Adjusted Basic EPS 3.27p (2016: 1.52p) and a Final Dividend of 0.64p (2016: nil). Positive Q1, well placed to deliver a successful 2018 (no mention of in-line or targets) and the CFO is stepping down.

I hold and will continue to do so.

Patisserie Holdings (CAKE) – 433p – £441.4m – PER 22.4

Interim Results For The 6 Months To End March 2018 – Revenue of £60.5m up by 9.1% (2017: £55.5m), PBT of £11.1m up by 14.2% (2017: £9.7m), Diluted EPS of 8.92p up by 13.2% (2017: 7.88p) and the Interim Dividend is up 20% to 1.44p (2017: 1.20p).

Still remaining on the side-lines here, these results seem a little underwhelming, is the Dividend increase a sweetener? Perhaps.

Elegant Hotels (EHG) – 87p – £77.3m – PER 10.4

Interim Results For The 6 Months To End March 2018 – Revenue up 8%, Adjusted PBT down 7% to $11.4m (H1 2017: $12.2m), Adjusted EPS 10.5c (H1 2017: 11.0c)and the Interim dividend is 1.33p (H1 2017: 3.5p). Comfortable with the FY market expectations.

The Dividend was one of the attractions here (for me). I did hold here but got sold out – It just wasn’t doing much and I decided that perhaps a hotel group is unlikely to grow very fast – In a downturn or with the continued rise of Airbnb. I remain happy with that decision so far.

Zytronic (ZYT) – 450p – £72.2m – PER 14.5

Interim Results For The 6 Months To End March 2018 – Revenue £10.6m (H1 2017: £11.3m), PBT £2.2m (H1 2017: £2.5m), Interim dividend increased by 100% to 7.60p per share (H1 2017: 3.80p), Basic EPS 11.7p (H1 2017: 13.8p), Net cash of £13.7m (30 September 2017: £14.1m) following an increase to dividend payments. H2 started well but growth may be suppressed (vs recent years).

I previously commented that I may be interested here around 400p. However, I also commented that this would probably mean one of 2 things, something has gone wrong (and it may then be a riskier investment than it is today) or there’s been a general market sell off (in which case there will most likely be better companies to invest in). I remain Neutral.

Premier Foods (PFD) – 37.75p – £317.3m – PER 5.0

Preliminary Results For The 12 Months To End March 2018 – Seems slightly ahead of market expectations.

Although slightly ahead it’s probably about right for a company on a PER of 5.0. Still loads of Net Debt here (well over 100% of Mkt Cap) and a Pension Deficit of about £300m. I will remain Neutral.

Animalcare (ANCR) – 190p – £113.2m – PER 13.2

Final Results For The 12 Months To End December 2017 – Revenue up 22.4% to £83.7m (2016: £68.4m) with Underlying Basic EPS down 24.6% to 12.6p (2016: 16.7p).

This results look to be as expected and no cause for me to be anything more than Neutral.

Gear4music Holdings (G4M) – 726p – £146.9m – PER 61.0

Preliminary Unaudited Results For The 12 Months To End February 2018 – Revenue up 43% to £80.1m, PBT down -43% to £1,5m. Active customers up 39% and conversion increased from 2.75% to 3.25%. 2019 trading so far is in-line, expecting to meet expectations.

I am going to remain Neutral here, still not entirely convinced on a PER of 61.

ITE (ITE) – 145.8p – £404.5m – PER 16.1

Interim Results For The 6 Months To End March 2018 – Revenue up 8% to £75.4m, Statutory PBT £1.3m (£3.1m last time), Diluted EPS -0.7p (0.6p last time), Interim Dividend the same (1.5p, in line with policy). Order book is 31% ahead on a like-for-like basis.

There’s just not enough here to get me interested any further at present.

Sprue Aegis (SPRP) – 132.5p – £60.8m – PER 11.0

Final Results For The 12 Months To End December 2017 – Doesn’t look good at all.

I am staying well away for now.

Lookers (LOOK) – 99.2p – £391.5m – PER 7.06

Trading Update For The 3 Months To End March 2018 – Not sure what this is saying except the balance sheet is strong.

I remain Neutral.

Cenkos Securities (CENK) – 104.5p – £57.8m – PER 6.98

Unaudited Interim Results For The 6 Months To End February 2018 – After a disappointing Q1, now more optimistic for the rest of the year outlook.

Seems like a bit of a cautious update, attractive enough but comes with a little too much risk for me.

Alumasc (ALU) – 140p – £50.6m – PER 6.07

Trading Statement – Ouch! FY Revenue to be down 7-9% with PBT down 15-20%.

I am staying away from this for now.

Symphony Environmental Technologies (SYM) – 33.75p – £51.3m – PER 77.2

Trading Statement – Revenue up 17%, increasing marketing budget by £375,000.

Although this is on an impressive ride at present, on a PER of 77.2 I will remain Neutral here for now.

As always, all comment most welcome!

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