Morning Brief – 23-Jul-2018

Morning Brief Images 23-Jul-2018

UK Stock Market News Today – 23-Jul-2018

Morning all!

SRT Marine Systems (SRT) – 26.25p – £36.7m – PER 13.8

Final Results For The 12 Months To End March 2018 – Revenue down from £11.0m to £5.3m, resulting in a Loss Before Tax and exceptional items of £4.3m (2017: Profit £ 1.2m) – The rest doesn’t sound any more inspiring either.

I said last time I looked at this that I couldn’t see how a PER of 22.4 was justified and I am not even sure a PER of 13.8 represents an investment case here, for me it doesn’t.

Microgen (MCGN) – 385p – £234.4m – PER 19.8

Trading Update For The 6 Months To End June 2018 – Revenue up 23% with Profits/EPS up about 10% each (the Interim Dividend is also increased by 10%).

This had dropped down to my Watchlist price (440p) but I wanted to wait and see how an update looked – I sense things may be slowing down here a little and on a PER of 19.8 I am going to go Neutral for now.

McColl’s Retail (MCLS) – 210p – £241.9m – PER 9.52

Interim Results For The 26 Weeks To 27th May 2018 – Revenue up 19.2% (to £601.7m) but down 2.7% LFL. PBT £2.3m (2017: £4.5m), Basic EPS 1.3p (2017: 2.8p) with the Interim Dividend maintained at 3.4p (2017: 3.4p).

The Net Debt remains high at 50% or so of Mkt Cap and sub industry average Operating Margin still put me off. I remember watching the rise of McColl’s last year wondering what I had missed, watching it’s slow but steady fall this year, I am not quite sure it’s ready to stop just yet – I remain on the side-lines.

SThree (STHR) – 347.5p – £452.2m – PER 11.4

Interim Results For The 6 Months To End May 2018 – Encouraging H1 with Revenue up 11% but reported PBT is down 7% and there’s now Net Debt of £6.2m (HY 2017: Net Cash £5.2m).

Stockopedia (StockRank 92) still likes this more than I do – I remain Neutral.

Mission Marketing (TMMG) – 47.5p – £40.1m – PER 5.22

Trading Update For The 6 Months To End June 2018 – A rather strange update. This statement “we again expect to report strong double digit growth in headline profit before tax for the first half of 2018 and a continued increase in profit margins” which sounds very positive is followed with “In common with recent years, we expect our results for the year to 31 December 2018 to again have a significant bias towards the second half and we look forward to further progress over the remainder of the year”.

This seems to suggest the Interim Results due in September will disappoint so although I quite like this I am going to take it off my Watchlist for now (was there at 40p) and go Neutral. Will keep an eye on those results though because a company on a PER of 5.22 with double digit growth is impressive enough.

Instem (INS) – 294p – £46.8m – PER 19.9

Trading Update For The 6 Months To End June 2018 – In-line.

Quite like this and will remain Neutral while I do some more research. From a technical stand point a break-out to a new all time high (above 325p) would be a signal of interest (especially with EPS forecast to do so too (in FY 2018)).

Judges Scientific (JDG) – 2420p – £149.7m – PER 17.7

Trading Update For The 6 Months To End June 2018 – Seems to say H1 may be weak but H2 should be strong enough to meet FY expectations.

This was on my Watchlist (1900p) but now I am going Neutral and will keep an eye out for updates.

GetBusy (GETB) – 66.5p – £32.2m – PER 21.5

Statement Regarding Recent Share Price Movement – Trading in-line.

Just commenting here for the first time as the referred to share price movement meant this popped up on my Technical screen for the first time this weekend. If trading is in-line with the broker notes I have read even after the 50% move last week this looks like decent value. May well take a position here this week.

As always, all comment most welcome!

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