Morning Brief – 24-Jan-2018

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Morning Brief Images 24-Jan-2018

UK Stock Market News Today – 24-Jan-2018

Morning All!

Staffline (STAF) – 1006p – £280.2m – PER 8.57

Audited Results For The 12 Months To End December 2017 – This looks like a slight miss to me, Revenue is up 8.5% to £957.8m but underlying PBT (£36.3m) was below that of 2016. Note, the CFO has been promoted to CEO and a new CFO has been brought in.

I still see this as just reasonably priced and will remain Neutral.

Empresaria Group (EMR) – 100.1p – £49.1m – PER 7.36

Trading Update For The 12 Months To End December 2017 – In-line, record PBT (up 20%) with diluted EPS up 9% or so. No outlook or update on current trading given.

Net Debt circa 30% of Mkt Cap is probably the main concern here. Most other fundamentals look OK but just don’t find myself tempted here.

Hotel Chocolat Group (HOTC) – 340p – £383.6m – PER 34.5

Trading Update For The 13 Weeks To End December 2017 – Revenue up 15% and trading continues in-line with management’s expectations.

This is just way too expensive for me at these levels.

DESCRIPTION – Engaged in manufacturing and retailing of chocolate in the United Kingdom and overseas, it offers chocolates under the brand, Hotel Chocolat direct to customers though subscription, online and approximately 83 stores.

Centaur Media (CAU) – 50.25p – £72.6m – PER 15.0

Trading Update For The 12 Months To End December 2017 – Not much in this really, picked out “Material improvement in both cash collection and debtors’ days” and “Continued progress with the operational improvement programme, resulting in increased efficiencies and reduced costs”.

The fundamentals (on Stockopedia) look mixed, Profit, Loss, Profit, etc. and the Revenues don’t seem to be growing much either. I am just not tempted here at present.

Hostelworld (HSW) – 360.5p – £344.5m – PER 19.9

Trading Update For The 12 Months To End December 2017 – In-line.

Looking back on my notes – I still wonder who uses Hostelworld? I am sure it has an audience (that’s clear from the booking numbers), perhaps in the backpacker world. However, with AirBnB and Booking.com out there too, how long before those backpackers become users of the alternatives? Without continuing advertising spend, how will Hostelworld attract the next generation when AirBnB and Booking.com are poised to dominate? Sure, I may be wrong here. It remains my gut feel, I don’t like the long term outlook for Hostelworld. Nor am I particularly bowled over by the growth.

James Cropper (CRPR) – 1788p – £169.3m – PER 26.6

Trading Update – In-line except… How can it be in-line except? “The full year impact of the higher pulp price on PBT is now expected to be £1.5m. The Board, accordingly, expects PBT to be in the region of £5.7m” – At least that’s a clear “honest gov” follow up but isn’t this like a 20% or so miss?

This is even less attractive to me now than it was before.

Have a great day all.

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