Morning Brief – 21-Aug-2018

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Morning Brief Images 21-Aug-2018

UK Stock Market News Today – 21-Aug-2018

Morning all!

Hostelworld (HSW) – 292p – £279.1m – PER 15.3

Interim Results For The 6 Months To End June 2018 – Bookings up 2% and with no monetary figures in the lengthy preamble we find… Revenues are down 9% to 42.6m Euro with PBT down from 10.3m Euro to 7.6m Euro (similar hit to EPS). The Interim Dividend is also down slightly (in-line with policy).

Last time I wrote “I still don’t believe in the long term outlook for Hostelworld and remain underwhelmed by the growth, considering the PER is almost 20”. Even on a PER of 15.3 now I still can’t get away from Neutral here.

Tracsis (TRCS) – 633p – £179.4m – PER 25.5

Trading Update For The 12 Months To End July 2018 – Trading has been strong with Revenues ahead of expectations at circa £40m with Adjusted Profit also expected to be ahead. Cash is also up from £15.4m to £22m. “The Group remains well positioned for further growth as we enter the new financial year, with a good pipeline of organic sales opportunities, M&A prospects and positive industry growth drivers”.

Tempting as it is, I just find the valuation a little too high here – I remain Neutral, keen on seeing the actual results (in November).

Game Digital (GMD) – 27.55p – £47.6m – PER n/a

Trading Update – A mixed update which is more confusing (to me) than it is useful.

I sold half my holding after it doubled in value and I sold the remainder recently because I honestly couldn’t work out where this was heading – This latest update kind of fits in with that view (confusing), even though they have loads of Cash sitting there. I just have no idea what’s going to happen here, where it’s going or what they will do with that Cash.

Angling Direct (ANG) – 83.5p – £35.9m – PER 34.3

Trading Update For The 6 Months To End July 2018 – Revenue ahead of management’s expectations (up by 56%) at £21.94m in the 6 months to end July. German website launched in June and encouraged by initial results, other European websites to later this year.

Quite a lot to like here but it’s fishing equipment! Just feel Amazon could gobble the on-line side up quite easily if it wanted to and that the retail side is probably running at a tiny profit/loss. I remain Neutral.

As always, all comment most welcome!

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