Morning Brief – 20-Nov-2018

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Morning Brief Images 20-Nov-2018

UK Stock Market News Today – 20-Nov-2018

Morning all!

Focusrite (TUNE) – 421.5p – £244.9m – PER 24.5

Results For The 12 Months To End August 2018 – Revenue up 13.7% (CC) to £75.1m, Adjusted Operating Profit up 22.6% with Adjusted Diluted EPS up 22.3% – The Total FY Dividend is up 22.2% and Net Cash stands at £22.8m (£14.2m last time).

Priced about right perhaps? I remain Neutral – Loads of Cash!

Accsys Technologies (AXS) – 104.5p – £123.2m – PER n/a

Interim Results For The 6 Months To End September 2018 – Revenue up 10% or so and still making a loss.

Still continues to grow Revenue but the Profit is still lagging (or lacking, whichever you want). Seems to have enough Cash to see it through to profitability – But even the 2019 (Profit) forecast (on Revenue of £74.1m) is forecast as just £2m. Still not for me.

Bonmarche Holdings (BON) – 81.4p – £40.7m – PER 8.27

Interim Results For The 6 Months To The 29th September 2018 – Revenue in-line with last year, LFL sales down -1%, on-line up 28.9% (12% of total sales (9% last year)). Profit and Net Cash are both down – The Interim Dividend is unchanged. FY to be in-line IF Black Friday and Christmas go well.

Still a mixed bag here but still a decent yield. Still a tough call to get involved especially if Black Friday and Christmas do not deliver – I remain Neutral.

CML Microsystems (CML) – 461p – £79.0m – PER 17.6

Results For The 6 Months To End September 2018 – Revenue down -6%, PBT up 2%, Basic EPS up 8%, Net Cash of £13.54m, the Interim Dividend will be 2p (same). Warns FY Revenue may miss but Profit should not.

I still don’t see the value here at present, I remain Neutral.

Eckoh (ECK) – 37.25p – £94.1m – PER 40.5

Unaudited Results For The 6 Months To End September 2018 – Revenue down -2% and a -£0.2m Loss has been made (£0.8m Profit last time) – Net Cash has doubled to £3.4m. Results are in-line with Board expectations. Note the recurring Revenue (87%).

Great recurring Revenue but not enough here to shift me from Neutral.

Solid State (SOLI) – 316p – £26.8m – PER 11.2

Interim Results For The 6 Months To End September 2018 – Revenue up 4%, Adjusted PBT up 6% with Adjust Diluted EPS up 5% – The Interim Dividend is also up 5%. Confident of a stronger H2 and continued longer term growth.

I quite like this but with EPS forecast to go nowhere over the next couple of years I will remain Neutral for now.

SRT Marine Systems (SRT) – 27.75p – £38.8m – PER 10.7

Results For The 6 Months To End September 2018 – Broadly in-line with Revenue up 10% meaning a smaller Loss than last year (-£1.3m versus -£1.8m). Expecting a better H2.

There’s still nothing here to change my view from Neutral.

Macfarlane (MACF) – 83.5p – £131.6m – PER 11.1

Trading Update For The Period 30th June To 31st October 2018 – Expects seasonal uplift in Q4 will see it meet FY expectations.

I sold out here recently and remain Neutral seeing 100p as perhaps fair value.

IMImobile (IMO) – 293p – £191.4m – PER 19.2

Unaudited Interim Results For The 6 Months To End September 2018 – Revenue up 26%, a slight Loss of -£0.1m (£1m Profit last time), Diluted Adjusted EPS is up 35% – Net Debt is £9.3m versus Net Cash of £4.3m last time. FY to be in-line.

I remain Neutral here with no real conviction either way at present.

KCOM (KCOM) – 91.8p – £474.2m – PER 19.7

Trading Update And Revised Dividend Commitment – Trading for current FY to be weaker than originally expected (an EBITDA to down -5%) with next FY to be significantly below expectations. Net Debt has ballooned to £108.5m (expect to be 10% higher than expectations at FY) – The Dividend will now be not less than 3p instead of the committed 6p.

I pondered last time why the Dividend was so big, well there you have it! This is going on my Avoid list for now.

As always, all comment most welcome!

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