Morning Brief – 22-Jan-2018

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Morning Brief Images 22-Jan-2018

UK Stock Market News Today – 22-Jan-2018

Morning All!

Accrol Group (ACRL) – 36p – £46.4m – PER n/a

Unaudited Interim Results For The 6 Months To End October 2017 – Operating loss of £5.7m compared to an Operating Profit of £3.9m last time. Revenue up 13.1% to £72.3m (£63.9m last time), Net debt is up £9.4m to £29.3m. New CEO believes “that the capabilities of this business are significant and, if well managed, it can deliver a considerably improved performance in the medium term”. Still expects a small loss (adjusted EBITDA) this year but expects to operate within its borrowing covenants while work on the turnaround continues. And, the CFO has gone, surprised?

I just can’t get interested here.

Goals Soccer Centres (GOAL) – 77p – £57.9m – PER 9.43

Trading Update For The 12 Months To End December 2017 – Sales flat and the Board anticipates profits for 2017 will be broadly in line with the lower end of market expectations. The search for a new CEO is at an advanced stage.

Hardly inspiring stuff!

DESCRIPTION – Operator of 5-a-side soccer centers across approximately 50 centers in the United Kingdom and 3 in the United States.

Revolution Bars (RBG) – 168p – £84.0m – PER 10.8

Trading Update For The 26 Weeks To 30-Dec-2017 – Revenue for the period up 10.6% (£73.7m), Christmas period LFL up 5.9%. And, here’s a bit of honesty – “Directors believe that the 27 weeks to 6 January 2018 provides a better benchmark for underlying performance.  LFL sales during the 27 weeks to 6 January 2018 were up 1.9%”. Expects FY to be in-line.

I hold here and continue to do so. Fundamentals seem fine to me and of course there’s still that prospect of a bid North of 200p.

Connect (CNCT) – 105.6p – £261.5m – PER 6.57

Trading Update For The 19 Weeks To 13-Jan-2018 – Revenue down 3.5% to £564.5m, decline of newspaper and magazine sales greater than the revenue growth in Mixed Freight and Pass My Parcel (PMP). Expects FY adjusted PBT to be in the range of £42m to £45m – Dividend expectations underpinned by a continued good cash performance. PMP Revenue is up 222% YTD (£2.5m) but still likely to incur the same level of losses as last year. 2 year £15m targeted efficiencies to be greater in year 2.

I hold here and whilst this update is uninspiring, I will retain faith whilst that Dividend yield (almost 10%) doesn’t look like it’s in danger. Yes the Net Debt concerns me too!

Just spotted this which is a concern – Update on the Disposal of the Books division to Aurelius Equity Opportunities. Will have to keep an eye on the market reaction this morning and hopefully some clarification on this disposal.

Michelmersh Brick Holdings (MBH) – 88.5p – £72.1m – PER 10.8

Trading Update For The 12 Months To End December 2017 – In-line and “demand from the house building and RMI markets continues to be robust and Group’s well-balanced forward order book for 2018 reflects this trend”.

Interesting enough although the Net Debt (circa 30% of Mkt Cap) is a concern. I will remain Neutral for now but will dig a little deeper on this one.

Learning Technologies (LTG) – 74.8p – £427.6m – PER 35.3

Trading Update For The 12 Months To End December 2017 – Expects Revenues to be not less than £51.8m (2016: £28.3m), Adjusted EBIT materially ahead of market expectations at not less than £14.0m (2016: £7.0m) and Net cash is £1.0m (2016: Net Debt of £8.5m). Objective is to deliver run-rate revenues of £100m and run-rate EBIT of £25m by the end of 2020.

Truly impressive growth here, just need to see how that translates into actual Profit. One to research a little more.

Strix (KETL) – 138p – £262.2m – PER 11.1

Trading Update For The 12 Months To End December 2017 – Inline.

Looks OK but probably priced about right for what looks like a slow grower with a small Dividend yield.

Animalcare (ANCR) – 293p – £175.5m – PER 18.3

Trading Update For The 12 Months To End December 2017 – Seems broadly in-line.

I just can’t work out why this is rated so highly, based on the forecasts on Stockopedia. Will remain on the sidelines for now.

A great day to all!

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