Morning Brief – 2-Mar-2018

Morning Brief Images 2-Mar-2018

UK Stock Market News Today – 2-Mar-2018

Morning all!

Revolution Bars (RBG) – 170p – £85.0m – PER 10.4

Interim Results For The 6 Months To 30 December 2017 – Revenue up 1.9% LFL (if you include New Years Eve) with Adjusted Operating Profit £6.0m (FY17 Restated*: £6.0m) and Adjusted EPS 9.4p (FY17 Restated*: 10.0p).

Not exactly inspiring but I continue to hold (more on takeover hopes than anything else).

PCF (PCF) – 29.78p – £63.2m – PER 12.3

AGM Trading Statement – First 5 months, strong and in-line – Quite a positive update and outlook.

Quite like this update but can’t find myself finding this more interesting at present.

Gear4music Holdings (G4M) – 642p – £134.0m – PER 49.6

Trading Update For The 12 Months To End February 2018 – Wow, that’s a speedy update, not expecting bad news in this one! And, Revenue is up 43% from £80.1m, website conversion is up from 2.75% to 3.25%, active customers up 39% and own brand sales are keeping pace with other brand sales. But, I think this a fly in the ointment – “EBITDA for the second half of FY18 will be ahead of the six-month period ended 28 February 2017, although as a result of the investments we have made during the year into our customer proposition, infrastructure, staff, systems and marketing, we expect EBITDA for the full financial year ended 28 February 2018 to be in line with our FY17 result”.

I still have reservations here and will remain Neutral for now. Although I am coming round to the view that if that’s the end of the spending then Margin and Profit here could go gangbusters!

Harvey Nash (HVN) – 86.9p – £63.8m – PER 6.63

Trading Update For The 12 Months To End January 2018 – In-line (revised up 3 times during the year), PBT to be up circa 22%.

Having sat on the fence in this sector for perhaps too long and although I don’t like the Operating Margin here, I am going to put this on my Watchlist, 84p – Might even pick a few up this morning.

As always, all comment most welcome – A great weekend to all!

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