Morning Brief – 27-Mar-2018

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Morning Brief Images 27-Mar-2018

UK Stock Market News Today – 27-Mar-2018

Morning all!

Alliance Pharma (APH) – 66.6p – £320.2m – PER 14.9

Results For The 12 Months To End December 2017 – Revenue up 6% to £103.3m (2016: £97.5m), 3% CC, Underlying PBT up 8% to £24.0m (2016: £22.2m), Underlying Adjusted Basic EPS up 10% to 4.06p (2016: 3.69p), Net Debt at £72.3m (2016: £76.1m), FY Dividend will be 10% up at 1.331p (2016: 1.210p). This year has started well.

Still quite like this. Previously my Watchlist at 60p, I will leave it there for now.

Churchill China (CHH) – 945p – £101.9m – PER 15.7

Results For The 12 Months To End December 2017 – Revenue up 5% to £53.5m (2016: £51.1m), Profit before exceptional item and  tax up 15% to £7.5m (2016: £6.5m), Adjusted EPS up 15% to 55.3p (2016: 48.2p), Proposed Final Dividend up 16% to 17.2p (2016: 14.8p). Look forward to the coming year with confidence.

Still quite like this but don’t see any scope for anything extraordinary to happen here, except perhaps a bid for the brand. I’m Neutral.

Elecosoft (ELCO) – 52.26p – £37.9m – PER 17.6

Results For The 12 Months To End December 2017 – Revenue up 12% (8% CC) to £20.0m (2016: £17.8m), Net borrowings eliminated, £1.0m net cash at year end (2016: £1.3m net borrowings), Adjusted EPS share* up 20% to 2.9p (2016: 2.4p) with the FY Dividend up 50% to 0.60p (2016: 0.40p) with final recommended dividend of 0.40p. Confident for the year ahead (and beyond).

This was on my Watchlist and probably missed out here (so will just leave it there at 40p for now). Rightly or wrongly, I just can’t justify the current valuation based on a 8% uplift in Revenue and a 20% uplift in EPS. That said the ROCE and Op. Margin are pretty good!

Moss Bros (MOSB) – 46.75p – £44.9m – PER 11.5

Preliminary Results For The 52 Weeks To 27 January 2018 – As expected here, not particularly good results and confirmation that 2019 will be no better.

Remains on my Avoid list for now.

Game Digital (GMD) – 24p – £41.5m – PER n/a

Interim Results For The 26 Weeks To 27 January 2018 – Revenue up 3.8% to £586.8m, Adjusted PBTdown 16% and EPS down 19%. Cash at £84.9m. Outlook is clear as mud.

I am not sure what to make of these results but that Cash pile is nice to see. I remain long having sold half after doubling up previously.

Quartix Holdings (QTX) – 390p – £185.5m – PER 30.8

Trading Update – Looks like a bit of a warning that 2018 will be slightly worse than 2017 and 2019 will also be impacted.

Not sure this is going to go down well, I am remaining on the side-lines here.

Scisys (SSY) – 127.5p – £37.4m – PER 11.1

Unaudited Results For The 12 Months To End December 2017 – This looks quite good – Revenues up25% to £57.2m (2016: £45.7m), Statutory Operating Profit increased to £4.7m (2016: £2.8m) and Basic EPS increased to 11.5p (2016: 7.6p). Net Debt reduced to £5.9m (2016: £10.2m) and the Year-end order book is 41% higher at £91.3m (2016: £64.6m). FY Dividend up 10% to 2.16p (2016: 1.96p). 2018 very encouraging.

With that Net Debt down now I am tempted here, if I don’t open an initial position I will put it on my Watchlist, 120p.

S&U (SUS) – 2340p – £280.6m – PER 10.0

Preliminary Results For The 12 Months To End January 2018 –  Revenue up 32% at £79.8m (2017: £60.5m), PBT up 20% at £30.2m (2017: £25.2m), Basic EPS up 19% at 203.8p (2017: 170.7p). Total Dividend up 15% to 105p (2017: 91p). Outlook is with quiet but real confidence.

If it was not for the sector and outlook I would be more interested. It will stay on my Watchlist for now at 2000p.

As always, all comment most welcome – Have a great day!

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