Morning Brief – 2-Jul-2018

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Morning Brief Images 2-Jul-2018

UK Stock Market News Today – 2-Jul-2018

Morning all!

Plastics Capital (PLA) – 110.5p – £43.1m – PER 9.57

Final Results For The 12 Months To End March 2018 – Revenue up 16.6% to £76.7m with Adjusted PBT down -3.7% to £4.18m and Adjusted EPS down -17.4% to 9.5p. Expecting another year of progress (Revenue growth?).

Rising Revenue, falling PBT and EPS, no Dividend and with Net Debt of £15m (30%+ or so of Mkt Cap and 3x greater than PBT) – This remains on my Avoid list for now.

Trakm8 Holdings (TRAK) – 105p – £37.7m – PER 13.6

Final Results For The 12 Months To End March 2018 – Revenue up 12% to £30.1m, Adjusted PBT up 142% to £2.8m with Adjusted EPS up 41% to 8.19p. Expecting H1 2019 Revenue to be below H1 2018 Revenue with FY 2019 still expected to be above FY 2018 inline with market expectations.

I am no more interested here today than I was previously – Neutral.

Zoo Digital (ZOO) – 94p – £69.4m – PER 62.2

Final Results For The 12 Months To End March 2018 – Revenue up 73% to $28.6 million (2017: $16.5 million) with Adjusted PBT of $0.5 million (2017: loss of $0.1 million). There’s a complicated explanation of the figures and the outlook is hardly upbeat.

I was really keen on this and had it on my Watchlist, kicking myself at not having bought in. I am now (probably incorrectly) switching to Neutral as it’s just a little too confusing for simple old me.

Eve Sleep (EVE) – 69p – £96.1m – PER n/a

Trading Update For The 6 Months To End June 2018 – A timely update that’s for sure, sales are up 61% but below expectations. Will change focus to core growth markets (countries) rather than new countries. UK profitability delayed. Not expected to recover from H1 in H2 – A profit (sorry, greater loss than forecast) warning it seems! And the CEO has been put to bed (sorry!).

As I mentioned previously this is a loss maker (which I don’t usually invest in) but with ads everywhere I decided to cover (to see how the story unfolds). I think my previous comment still applies – I just can’t see the fascination – It’s a mattress, something we replace every 10 years or so. I may be wrong and soon everyone will be using an Eve Sleep mattress. On the other hand the company may continue spending a fortune on advertising and end up dead in the water. It’s just not for me, I sleep well enough at night as it is, don’t need to potentially disrupt this (with the mattress or the holding)! – This is now going on my Avoid list and I will cease coverage for the time being.

Filtronic (FTC) – 11p – £22.8m – PER 18.3

Trading Update For The 12 Months To End May 2018 – Fallen below my £30m Market Cap now but anyway, the second half is reported as broadly inline.

I will cease coverage here until it gets back above the £30m Market Cap value (if it ever does).

Avation (AVAP) – 224.5p – £140.9m – PER 8.7

Interim Management Statement For The 12 Months To End June 2018 – In-line.

I remain Neutral here having sold out in May this year based on quite poor EPS forecasts of EPS +12% next year and -6% the year after.

Quartix (QTX) – 380p – £181.3m – PER 32.9

Trading Statement For The 6 Months To End June 2018 – Trading in-line, profits broadly in-line.

I remain on the side-lines here as, for me, this is just not good enough for a company on a PER of 30+.

As always, all comment most welcome!

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