Morning Brief – 16-Oct-2018

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Morning Brief Images 16-Oct-2018

UK Stock Market News Today – 16-Oct-2018

Morning all!

DotDigital (DOTD) – 84p – £249.8m – PER 22.3

Preliminary Results For The 12 Months To End June 2018 – Revenue up 35% to £43.1m (2017: £32.0m), Adjusted Operating Profit up 22% to £10.0m (2017: £8.2m) with Adjusted Diluted EPS up about 25% to 3.12p (2017: 2.46p).

I still like this and it remains on my Watchlist for now – Seems to have trouble breaking that 100p level and not sure these results provide the catalyst for that!

Nanoco (NANO) – 34p – £97.2m – PER n/a

Trading Update For The 6 Months To End September 2018 – Revenue up more than 100% to £3.5m (2017: £1.6m), Loss after tax down from £9.1m to £6.0m, Cash Position up to £10.7m – Sufficient to fund the Group assuming commercial production revenues start early in H1 FY20.

I am going to remain Neutral while it’s still clearly loss making.

Netcall (NET) – 61p – £87.2m – PER 23.5

Audited Results For The 12 Months To End June 2018 – Revenue up 32% to £21.9m (FY17: £16.2m), PBT £45,000 (F17: £1.68m) and Diluted EPS 0.09p (FY17: 1.03p) – Both after acquisition related expenses.

This remains on my Watchlist for now, still cannot quite jump off the fence either way here – Will be on the lookout for Broker notes later in the day.

Footasylum (FOOT) – 32.5p – £34.0m – PER n/a

Trading Update For The 26 Weeks To The 25th August 2018 – “Currently trading in line with the FY19 expectations that were rebased with the trading update of 3 September 2018”.

I still can’t do much more than remain Neutral here.

Gear4music Holdings (G4M) – 482.5p – £101.1m – PER 34.1

Trading Update For The 6 Months To End August 2018 – Revenue up 36% with a 40% increase in active customers (gross margin down 230bps). Strong Revenue growth in H2 to date means trading is in-line with FY (Revenue and EBIDTA (no mention of Profit or EPS)) expectations.

This keeps looking more attractive the cheaper it gets (even with a slight reduction in Gross Margin) – I would just like to see the Actuals here (the real Profits and EPS) – Remaining more tempted but still Neutral for now.

IG Design (IGR) – 498p – £388.0m – PER 17.2

Trading Update For The 6 Months To End September 2018 – Due to deliver record H1 Revenues – Expect forecast FY Diluted EPS to be in line with management expectations, delivering strong YoY growth.

I hold here and continue to do so for now, I believe there’s still decent value here if expectations are met.

Driver (DRV) – 78.5p – £42.3m – PER 13.5

Trading Update For The 6 Months To End September 2018 – Expects to report FY Underlying PBT comfortably ahead of current market expectations (£3.8m). Net Cash at year end of £6.9m versus small Net Debt last time.

This looks quite positive but I believe forecast EPS is due to be down on last year (Profit and not EPS is mentioned in this update) – Will be on the lookout for Broker notes here while remaining Neutral for now.

Vianet (VNET) – 102.5p – £29.0m – PER 10.7

Trading Update For The 6 Months To End September 2018 – Growth in Operating Profit in-line with market expectations – Interim 1.7p Dividend to be maintained.

Seems about fairly priced here – I remain Neutral.

As always, all comment most welcome!

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