Morning Brief – 23-Jan-2018

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Morning Brief Images 23-Jan-2018

UK Stock Market News Today – 23-Jan-2018

Morning All!

Lakehouse (LAKE) – 36.5p – £57.5m – PER 8.30

Preliminary Results For The 12 Months To End September 2017 – Whoever wrote this update should be shot, what a mess. I think… Revenue is down 3% to £290.3m, there’s a Profit (not sure how much) versus a loss last year and the final dividend is a third of what it was last year.

I am going to pass on this one for now as I am not exactly clear on what is being communicated here.

Velocity Composites (VEL) – 120p – £43.0m – PER n/a

Maiden Results For The 12 Months To End October 2017 – In-line. Revenue up 46% to £21.4m (2016: £14.6m) with Underlying Operating Profit of £0.9m (2016: £0.3m) – In-line with expectations. There’sCash of £5.4m. 75% of 2018 revenues on contract, with 85% visibility overall.

Not sure about this at all, looks OK but this is confusing – Underlying EPS increased to 2.39p but reported Loss Per Share is 2.47p. I have to remain Neutral here for now, need a little more research.

Scisys (SSY) – 123.75p – £36.3m – PER 10.8

Trading Update For The 12 Months To End December 2017 – “The Directors expect the Company’s trading results will comfortably meet current market guidance, both in respect of revenues and adjusted operating profit”. The order book is at record levels and strong across all sectors, entering 2018 with positive momentum across all divisions.

Still quite like this but with that Net Debt (almost 30% of Mkt Cap) I reckon it’s probably fairly priced here.

Ideagen (IDEA) – 102.13p – £204.5m – PER 22.7

Unaudited Results For The 6 Months To End October 2017 –  Revenue up 43% to £17.2m (£12.0m last time), Adjusted PBT up 56% to £4.1m (£2.6m last time) with Net Cash of £5.9m (£4.8m last time). Interim Dividend will be increased 15% (but it’s still less than 0.25% which is quite useless and pointless). Current trading remains robust and in line with management expectations.

Still quite like the look of this. I thought it was a bit rich on a PER of 19.8 but these latest numbers suggest there may still be an investment case here. For now though I will remain Neutral.

Flowtech Fluidpower (FLO) – 183p – £96.7m – PER 11.3

Trading Update For The 12 Months To End December 2017 – Revenue up 43% CC, to £77.9m (£53.8m last time). PBT to be in the range £8.6m to £8.8m (in line with market expectations). Dividend up 5%. Based on progress made this year, expects to meet market expectations for 2018 and 2019.

This is going on my Watchlist, 170p, may even snap some up this morning!

LoopUp (LOOP) – 392p – £164.9m – PER 58.5

Trading Update For The 12 Months To End December 2017 – Looks good, Revenue up 36% to £17.5m in FY2017 (FY2016: £12.8m), ahead of market expectations in spite of the currency headwind in the second half which saw the pound/dollar rate rise to $1.32 versus $1.23 at the start of the year. Profit margin up 2.2% and EBITDA up 161% to £3.5m. Net Cash of £2.9m.

Quite like this growth story but on a PER of 58.5 I just can’t bring myself to pay up here.

DotDigital (DOTD) – 98.13p – £290.3m – PER 28.4

Trading Update For The 6 Months To End December 2017 – Revenue up 25% to £18.8m, in line with management expectations (H1 2017: £15.0m) and EBITDA is also in line with management expectations.

Perhaps fairly priced here, I am going to add it to my Watchlist, 80p.

Elecosoft (ELCO) – 42.75p – £33.1m – PER 15.3

Trading Update For The 12 Months To End December 2017 – Revenue and PBT to be significantlyhigher than last year and in-line with market expectations.

Quite like the look of this, it’s going on my Watchlist, 40p.

Have a great day all.

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