Morning Brief – 25-Jan-2018

Morning Brief Images 25-Jan-2018

UK Stock Market News Today – 25-Jan-2018

Morning All!

So late – So much to get through, I am sure there’s more than 10 updates below

CPL Resources (CPS) – 535p – £148.9m – PER 10.1

Results For The 6 Months To End December 2017 – Nice all round increases, 12% increase in Revenue to €256.7m, PBT of €9.0m (up 11%) and EPS up 15% to 26.4c. The Interim Dividend is up10% to 6.35c per share. Recent tender offer also seen the share capital reduced by about 12%.

Fundamentally there’s a lot to like here. My misgivings are I am not too keen on the outlook for the sector at present (just a little too much uncertainty) and secondly, I am not so sure these latest figures (based on a quick comparison with Stockopedia) are a bit of a miss (a small one though) but I cannot find any reference to in-line or expectations.

ITE Group (ITE) – 179p – £482.0m – PER 20.0

Trading Update For The 12 Months To End December 2017 – In-line with £113m in Revenue booked for 2018 (£99m last year) which is 70% of market expectations for the full year. Net Debt is £circa £52m. The board is pleased with performance to date.

Just not enough to get me interested here.

MySale (MYSL) – 109p – £168.2m – PER 123.6

Trading Update For The 6 Months To End December 2017 – A record H1. Revenue up 11% to c. A$152.0m and Gross Profit up 19% to c. A$45.7m. Gross Margin increased 200 bps to 30.1%. Board expects underlying EBITDA for the year will be at least at the top end of market expectations.

One I will keep an eye on but at this valuation I won’t be taking part.

Frontier Smart Technologies (FST) – 183p – £74.2m – PER

Trading Update For The 12 Months To End December 2017 – Revenue up circa 28% at circa £41.2m (FY 2016: £32.1m) and underlying EBITDA is anticipated to be circa £1.9m (FY 2016: £0.7m). Net Cashof £2.9m (FY 2016: £0.7m).

Seems like an impressive update but I am going to be Neutral for now to see what those actuals (real profit) look like in March.

StatPro (SOG) – 147p – £96.4m – PER 20.6

Trading Update For The 12 Months To End December 2017 – Revenue £49.0m (up 30%) and Adjusted EBITDA £6.9m (up 35%). Net debt of £20.2m (2016: £10.1m) following investment in acquisitions. Confident of “further good progress in growing revenue and profits in 2018”.

Based on this increase in revenue which is impressive I would still like to see what the actual profits look not EBITDA.

Mission Marketing (TMMG) – 45.48p – £38.3m – PER 5.79

Trading Update For The 12 Months To End December 2017 – In-line, Revenue up 6% and PBT up10%. Net Debt below £7.5m is better than market expectations. The chairman states “Alongside our drive to identify operating efficiencies, embracing technology will improve our margins and continue to fuel our core growth through 2018”.

Got quite a bit going for it here now the Net Debt is a bit more manageable. The Operating Margin and ROCE are OK for the sector and the 3.5% or so Dividend is well covered. I’m going to put it on my Watchlist, 40p.

Vertu Motors (VTU) – 47p – £182.2m – PER 7.68

Trading Update For The 12 Months To End February 2018 – FY performance to be moderately belowcurrent market expectations, following further declines in the new car market resulting from the depreciation of sterling and a softer general consumer environment.

I like this company and suspect it may be cheaper in the future now than it is today. If I find myself more interested in the sector I could be tempted here.

North Midland Construction (NMD) – 330.2p – £33.5m – PER 10.7

Trading Update For The 12 Months To End December 2017 – In-line, approximately 18% ahead of the previous year BUT there’s some legal dispute that will affect earnings. There’s loads of Cash(£17m).

Quite like this company but it’s Operating Margin is very small. With the legal dispute ongoing I will watch from the side-lines for now.

Haynes Publishing (HYNS) – 204p – £30.8m – PER 15.7

Results For The 6 Months To End November 2017 – Revenue up 21% and PBT up 120%. Interim Dividend unchanged.

Many have done well this past year here and well done. Even though it seems to keep surprising me, I can’t get myself committed here for some reason.

Findel (FDL) – 200p – £172.9m – PER 7.57

Trading Statement For The 42 Weeks To 19-Jan-2018 – In-line thanks to “Strong Christmas online trading underpins drive to profit growth”.

Just WAY too much Net Debt for me to be interested.

Van Elle Holdings (VANL) – 86.69p – £69.4m – PER 7.18

Interim Results For The 6 Months To End October 2017 – Revenue up by 22.1% to £52.6m (H1 2016: £43.1m), underlying Operating Profit by 15.6% to £5.7m (H1 2016: £4.9m) with Gross margin of 31.7% (H1 2016: 36.2%) reflecting specific contract issues, now resolved. Net debt is £4.6m (H1 2016: £4.1m) and there’s an Interim Dividend of 1.4p per share, reflecting the Board’s confidence in the Group’s prospects.

Will be affected by Carillion but not sure by how much yet, potentially £1.6m. The Interim Dividend seems like a sweetener. I just have to remain Neutral here for now.

Quixant (QXT) – 430p – £284.0m – PER 23.9

Trading Update For The 12 Months To End December 2017 – Expects to report revenue for the of approximately $109m, a 20% increase. Expects Adjusted PBT to be in-line with market expectations despite a $1.6m write off.  Net Cash of $4.2m.

I got involved here previously but actually sold out yesterday, had no idea this update was due! I thought the fundamentals looked good here and I wanted exposure to the gaming space. Just decided with a small loss this was not where I should be. Still like it but will remain Neutral for now.

Phew! Good day to all.

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