Morning Brief – 26-Oct-2017

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Morning Brief Images 26-Oct-2017

Morning All!

Alumasc (ALU) – 26-Oct-2017 – 172p – £62.9m

AGM Trading Statement For The Year Ending June 2018 – UK Revenue up 4% YTD, export sales arelower than the previous year. Still expecting to hit Full Year results. Growth is not exactly enticing here but the ROCE is excellent (19.5%), the 4%+ Dividend is well covered and there’s £6.08m in Cash(10% of Market Cap) – On a PER of 7.86 looks decent enough value to me. Perhaps even better value if this update sends the price South a little!

Mattioli Woods (MTW) – 26-Oct-2017 – 821p – £212.5m

AGM Statement – Reading between the lines (it’s not the clearest of updates) it seems to be in-linehere. Based on this update and the high level figures I can’t quite convince myself to consider investing here or just pass – On that basis I will do what I usually do in this situation and pass.

Connect (CNCT) – 26-Oct-2017 – 90.75p – £230.3m

Preliminary Results For The Year Ended August 2017 – Looks like a miss by about 5 – 10% here. Is this built into the price for this beaten down company? There’s quite a lot to like and even more so if this gets cheaper – It’s on a PER of 5.51, there’s a 10% Dividend (well covered) and a sector busting ROCE of 26.5%. With Net Debt reduced from £141.7m to £82.1m it’s still quite high (say 35% of Market Cap). Is this what’s holding it back? It’s holding me back at present but 10% lower this could be worth an initial nibble – Perhaps!

Debenhams (DEB) – 26-Oct-2017 – 46p – £577.1m

Preliminary Results For The Year Ended 2nd September 2017 – Revenue down 2% but underlying PBT of £95.2m is in-line with expectations. The Dividend (7%) is attractive here but the forecasts and Net Debt (£216.9m) at 40% of Market Cap are not so. I just have no idea where Debenhams will be in 5 (or even 2) years time – Will it be bust or soaring high once again? Or, still struggling along? Sodifficult to tell and there’s no need to make things difficult eh!

Caretech Holdings (CTH) – 26-Oct-2017 – 418p – £315.8m

Trading Update For The Year Ended September 2017 – In-line and confident of delivering their exciting growth strategy. On a PER of 11.7, it’s probably priced about right at these levels, one concern that pops out is the Net Debt. Although it’s reduced to £147.2m versus £156.9m last time – That’s still over 40% of Market Cap!

That’s it from me this morning – Will keep an eye on ALU and CNCT.

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