Morning Brief – 19-Mar-2018

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Morning Brief Images 19-Mar-2018

UK Stock Market News Today – 19-Mar-2018

Morning all!

Hope you all had a great weekend.

Finsbury Food (FIF) – 116p – £151.2m – PER 11.2

Interim Results For The 26 Weeks To End December 2017 – Revenue of £157.8m up 0.7% (H1 2016: £156.6m), Operating Profit Margin of 5.5% (H1 2016: 5.3%), PBT of £8.4m up 6.3% (H1 2016: £7.9m), Adjusted Diluted EPS up 4.3% at 4.8p per share (H1 2016: 4.6p per share), Interim Dividend up 10% to 1.1p (H1 2016: 1.00p) and Net Debt is £16.6m (H1 2016: £21.0m).

Seems just about OK to me, not enough to get me invested though.

Gama Aviation (GMAA) – 260p – £165.4m – PER 10.8

Final Results For The 12 Months To End December 2017 – In-line with Revenue of $207.4m (2016: $196.1m) up 5.8% (CC), Underlying Operating Profit $18.7m (2016: $14.6m) up 28.3% (CC), Net Debtdown by $6.4m to $13.0m (2016: $19.4m) and current trading is in line – Well placed to achieve its expectations for the current year.

Done very little in the past 5 years except go sideways, I just can’t get excited here at present.

Learning Technologies (LTG) – 83p – £476.5m – PER 39.4

Preliminary Results For The 12 Months To End December 2017 – Revenue up 85% to £52.1m (£28.3m last time), Adjusted EPS up 74% to 2.064p (1.184p last time), the FY Dividend is up 43% to 0.3p and there’s now Net Cash of £1.0m (-£8.5m last time). Current trading is ahead of expectations.

Finding it hard to ignore this, even on a lofty PER, it’s going on the Watchlist, 75p.

Subsequent note: I subsequently bought an initial position here.

Miton (MGR) – 38.63p – £66.7m – PER 11.7

Final Results For The 12 Months To End December 2017 – Impressive enough, AuM up by 21% for the year at £3,361 million (2016: £2,783 million), Adjusted PBT up by 33% to £6.8M (2016: £5.1 million), Dividend of 1.4p, up 40% reflecting confidence in future prospects and momentum in AuM with Cash of £19.9m (2016: £21.3 million).

I think if the yield was higher I would be tempted just to tuck these away for the income. For now I will remain Neutral.

Maintel Holdings (MAI) – 820p – £116.4m – PER 9.55

Final Results For The 12 Months To End December 2017 – Revenue up 23% to £133.1m (2016: £108.3m), Gross Profit up 11% to £38.8m (2016: £34.9m), Basic EPS up 36% to 21.7p (2016: 16.0p) but Adjusted EPS is down 14% to 66.7p (2016: 78.0p), partially as a result of the increased number of shares in issue following the issue of new equity for an acquisition in May 2016, Net Debt is £27.7m. FY Dividend to be 33.8p (2016: 30.8p), an increase of 10% on the prior year.

I’m middle of the road here on this one. Doesn’t look too bad but that Net Debt and low Operating Margin leaves me sitting it out for now.

Volution (FAN) – 198.5p – £394.7m – PER 13.2

Interim Results For The 6 Months To End January 2018 – “Further progress with revenue growth of 11.6% and adjusted EPS up 8.3%”.

I know boring companies (like ones that make fans) are supposed to make solid investments. But, for me this really is just a boring company which I will not be investing in at present.

Accrol Group (ACRL) – 27p – £34.8m – PER 644.1

Trading Update – “Year ending 30 April 2018 results impacted materially but Group on track for FY19”.

Stockopedia classes this as a Highly Speculative Value Trap and I am not really into investing in those.

Spectra Systems (SPSY) – 115p – £51.5m – PER 18.0

Preliminary Results For The 12 Months To End December 2017 – Revenue up 9% to US$12,170k (2016: US$11,122k), Adjusted EPS of US $8.8 cents (2016: US 4.4 cents), Strongdebt-free balance sheet, with cash of US$11,181k (2016: US$8,808k). The annual Dividend is up 20% to US$0.06.

I just don’t truly understand what this company actually does. As attractive as some of the fundamentals are I just have to remain Neutral, it’s still on my look into more list.

As always, all comment most welcome – Have a great day!

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