Morning Brief – 2-May-2019

Morning Brief Images 2-May-2019

UK Stock Market News Today – 2-May-2019

Morning all!

Best Of The Best (BOTB) – 275p – £26m – PER 22

Trading Update For The 12 Months To End April 2019 – Expects FY Revenue to be marginally ahead of market expectations and Profit to be ahead (doesn’t say by how much).

Will keep an eye out for Broker updates here – I was previously put off by 2 things, negative EPS growth forecast for 2020E and the fact legislation may be introduced here at some point.

Cerillion (CER) – 169p – £50m – PER 14.7

Trading Update For The 6 Months To End September 2019 – Encouraging with one major contract signed ($6.8m) and another ($10m) in the final stages. With H1 behind last year, FY is on track with H2 weighting from these contracts.

Not comfortable enough with this update to consider an investment.

Gresham Technologies (GHT) – 95p – £65m – PER 56

Results For The 12 Months To End December 2018 – Excellent start to the year.

Liking this more but will wait to see actuals, to ensure there’s a return to positive EPS.

McBride (MCB) – 105p – £192m – PER 7.5

Trading Update And CEO Leaves – FY earnings to be modestly lower than current market expectations and the CEO leaves, doesn’t read like it was a happy ending.

I remain uninestered in this company at present.

Morses Club (MCL) – 177p – £230m – PER 11.7

Preliminary Results For The 52 Weeks To 23 February 2019 – Revenue up ever so slightly, Adjusted PBT up 14.6%. Adjusted EPS up 16.2%, Final Dividend up 8.3%.  In a later RNS the CFO will retire in July 2019.

I will say the same thing as last time I covered this “Always quite liked this, decent growth and yield (4.5% or so). I reckon there’s some value here however the potential risk of more regulation just makes me shy away from that Buy button.”.

Reach (RCH) – 76p – £228m – PER 2

Trading Update For The 4 Months To End April 2019 – Expects FY to be in-line with print falling and on-line rising.

Remains cheap on a Yield of 8% or so but there’s still 2 BIG issues here (for me) – The HUGE Pension Deficit and the terminal decline of print (can they make on-line a success?).

Zytronic (ZYT) – 348p – £56m – PER 13.5

H1 Trading Update – Revenues of £9.5m (£10.6m last time), PBT of £1.4m (£2.2m last time). Although H2 usually stronger, warns it may not be this year. Net Cash at £12.1m (looks like it was £14.1m last time) and Interim Dividend expected to be maintained (similar level to last year).

Based on these metrics alone I have no interest here at present.

As always, all comment most welcome!

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