Morning Brief – 26-Nov-2018

Morning Brief Images 26-Nov-2018

UK Stock Market News Today – 26-Nov-2018

Morning all!

Sanderson (SND) – 85p – £51.0m – PER 12.3

Preliminary Results For The 12 Months To End September 2018 – “Group trading results and cash ahead of market expectations; increased Final Dividend”. Revenue up 49% (£32m), Operating Profit up 33%, Adjusted EPS up 25% or so – The FY Dividend is up 13%. Confident that FY this year will be at least in-line with market expectations.

Even with this impressive set of results, don’t see real value at <10% forecast EPS growth and a 3% or so yield – Will keep an eye out for upgrades.

Cake Box Holdings (CBOX) – 176p – £70.4m – PER 25.4

Results For The 6 Months To End September 2018 – Revenue up 44% with Adjusted PBT up 34% and EPS up 36% (adjusted for AIM listing costs) – Actual PBT and EPS are both down about -10%. The Interim Dividend of 1.2p is up 17%. The group is “well placed for further progress and the Board remains confident of another successful year of growth”.

Fine, but with no idea what the Board is confident of (no forecasts on Stockopedia or Research Tree) so it’s just not possible for me to consider an investment here at present.

Kainos (KNOS) – 420p – £505.9m – PER 27.7

Interim Results For The 6 Months To End September 2018 – In-line with upgraded market expectations – Revenue up 62%, Adjusted PBT up 42%, Backlog up 29%, Diluted EPS up 24% and the Interim is up 40%.

Great interims however forecasts indicate all round annual growth around the 10% level – Not for me at present.

Cerillion (CER) – 145p – £42.8m – PER 13.4

Final Results For The 12 Months To End September 2018 – In-line with Revenue up 8.2% to £17.4m (2017: £16.0m), Adjusted PBT up 3.4% to £3.1m (2017: £3.0m), Adjusted EPS up 6.8% to 10.9p (2017: 10.2p) – The Total FY Dividend to be up 7.1%. Note the flat Order book (with 2 potential large near term orders).

This looks fairly priced to me, I guess any kicker would come from one or both of those orders coming in.

As always, all comment most welcome!

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