Morning Brief – 19-Mar-2019

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Morning Brief Images 19-Mar-2019

UK Stock Market News Today – 19-Mar-2019

Morning all!

Bango (BGO) – 98.5p – £69m – PER 17.7

Results For The 12 Months To End December 2018 – Revenue up 60%, Loss reduced from -£3.9m to -£3.5m, Cash at £3.8m (down from £4.85m) – “Bango expects to generate sufficient cash to cover both the operational costs of the business and the continued investment in product development in the coming year”.

Looks less of a gamble than it used to be but still not enough for me to get involved yet.

Bloomsbury Publishing (BMY) – 226p – £170m – PER 13.8

Trading Update For The 12 Months To End February 2019 – In-line with Net Cash circa £27m.

I reckon this is about fair value around this level.

Elcosoft (ELCO) – 79p – £64.6m – PER 18

Results For The 12 Months To End December 2018 – Revenue up 11%, PBT up 8% with Adjusted EPS up just over 30%, the FY Dividend is up 13%.

Seems to be in-line, I remain on the sidelines having sold out in October last year.

Focusrite (TUNE) – 517p – £300m – PER 28.5

Trading Update For H1 For The Financial Year Ending August 2019 – Revenue seems to be up a couple of percent with profits ahead of last year too. Net Cash is up from £22.8m to £26.2m.

I held here previously but sold out in July 2018. Sure, there’s still a lot to like, the Net Cash, ROCE and Op Margin, for example. However, on a PER of almost 30 for a company forecast for almost no EPS growth over the next 2 years, it’s not for me at present.

Gym (GYM) – 202p – £279m – PER 17.4

Results For The 12 Months To End December 2018 – Revenue up 35.6%, Adjusted PBT up 19.4%, Adjusted EPS up just over 10% with the FY Dividend up just under 10%. The New Year has started in-line.

I think I would have expected more here, I will keep an eye out for Broker notes.

Judges Scientific (JDG) – 2870p – £178m – PER 17.8

Results For The 12 Months To End December 2018 – Revenue up 9% (5.5% organic), Adjusted Operating Profit and EPS both up 30%+, the Dividend is up 25%, Net Cash of £0.9m (from £8m of Net Debt). The Order book is slightly down on last year.

With little growth factored in for next year – Still looks overvalued to me.

Kape Technologies (KAPE) – 101p – £143.6m – PER 18.6

Results For The 12 Months To End December 2018 – Revenue up slightly (53% recurring), EBITDA up 28.3% (slightly ahead of expectations), Adjusted EPS up 36.8%. Confident this year will be in-line with market expectations.

I am Long here and this seems to be good enough reason to continue to do so for now.

Learning Technologies (LTG) – 68p – £450m – PER 17.7

Results For The 12 Months To End December 2018 – Revenue up 83% (recurring 68%), Profit ahead of expectations with Adjusted Diluted EPS up 68%. The FY Dividend is up 67% amd 2019 has started in-line with management expectations.

I am Long here and don’t understand why this has been hammered down so much recently. Will keep an eye on the market reaction to these results (which seem good to me).

Mears (MER) – 290p – £320m – PER 8

Results For The 12 Months To End December 2018 – Revenue down -3.4%, Underlying PBT up 3.8%, EPS up 3.6% with the Dividend up 3.3%.

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

Mincon (MCON) – 112.5p – £224m – PER 16.1

Results For The 12 Months To End December 2018 – Revenue up 21%, Operating Profit up 16%, EPS up 35% but trading in the new year has been “fitful and flat”.

Looks good until the “fitful and flat” statement, I will remain on the side-lines for now.

SCS (SCS) – 222p – £89m – PER 8.7

Interim Results For The 26 Weeks To 26th January 2019 – In-line.

Still not enough here for me, Last time I checked forecasts are for lower EPS this year than last – That’s not tempting to me.

Taptica International (TAP) – 167p – £118m – PER 4.5

Results For The 12 Months To End December 2018 – Earnings in-line, Revenue up 31%, Gross Profit up 38%, EPS up from 22.49c to 32.81c with Net Cash at $54.4m. Still looking to merge with RhythmOne.

I remain tempted but also very wary here – Due to this indecision I just have to sit on the fence.

Team17 (TM17) – 230p – £302m – PER 26

Results For The 12 Months To End December 2018 – Revenue up 46% to £43.2m, Profit up 18% with Adjusted Basic EPS up from 4.3p to 6.1p (both ahead of expectations). Net Cash stands at £23.5m (£8.4m last time).

Still quite like this and would like to see revised Broker notes following these results.

Tribal (TRB) – 71p – £140m – PER 17

Results For The 12 Months To End December 2018 – Revenue down about -5% but Adjusted Operating Profit is up 27% (Operating Margin up from 10.1% to 13.5%) and EPS 34%. The Dividend is up 10%. Expects Revenue this year to be similar but focus is on margin.

I am on the fence here and need to look into this in more detail although I am little inspired by flat Revenue projections.

Zotefoams (ZTF) – 612p – £295m – PER 28.6

Results For The 12 Months To End December 2018 – Revenue up 16%, PBT up 23%, EPS up 16%, the Dividend is up by 3%. Start to this year seems to be in-line.

I famously keep avoiding this one as it always seems too expensive to me (and keeps going up). I will remain on the side-lines until I see value.

As always, all comment most welcome!

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