Morning Brief – 17-Oct-2017

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Morning Brief Images 17-Oct-2017

Morning All!

Orchard Funding (ORCH) – 99.5p – £21.2

Final Results For The 12 Months To End July 2017 – Revenue up 31.4% to £4.56m from £3.47m last time. Profits (after tax) up 34.0% to £1.34m and EPS up 33.2% to 6.26p (4.70p last time). Lending is up 30.5% and Barclays have increased facilities from £10 million to £15 million – And more from another bank (no mention how much). 2p Final Dividend proposed. Board “looks forward to the year ahead with cautious optimism”.

On a PER of 15 looks like the market should like this update.

DotDigital (DOTD) – 73p – £215.8m

Final Results For The 12 Months To End June 2017 – Revenue up 19% to £32.0m from £26.9m, PBTup 30% to £8.1m from £6.2m and EPS up by 32% to 2.42p from 1.83p. Strong cash generation from operations of £8.8m with net cash position of £20.4m up 18% as at 30 June 2017. Revenue per user is up 24% and revenues outside the UK are up 48% (23% of total Revenue).

There’s a lot to like here – On a PER of 26.7 it might still be reasonable value here (although Stockopedia doesn’t think so (Value = 10)), especially if this growth can be sustained. Q1 progress is reported as “in-line with plan” and the board is confident of “achieving our ambitious growth plans”.

Hornby (HRN) – 33p – £27.9m

Trading Statement & Directorate Change – Up about 20% this month, this update could put a dampener on that! The interim Chairman has decided to leave – Probably because he didn’t like this decision “the Group will no longer offer for sale large quantities of stock at a discount”, which will mean “it is now clear that the shortfall is unlikely to be recouped in the current year. It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year”.

Just not enough here to get me interested.

RhythmOne (RTHM) – 308p – £152.7m

Trading Update For The 6 Months To End September 2017 – An In-line update.

This latest in-line update doesn’t make this share any more attractive today than it was yesterday.

Flowtech Fluidpower (FLO) – 166.88p – £87m

Q3 Trading Update For The 9 Months To End September 2017 – Revenue up 34.4% and trading in-line with market expectations.

Recently broken above 150p and on a PER of 12.5, I’m tempted here.

Will keep an eye on FLO here today.

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