Morning Brief – 27-Oct-2017

Morning Brief Images 27-Oct-2017

Morning All!

EL Captial (K3C) – 133p – £55.7m – PER 12.4

AGM Statement – A strong start to the year in-line with management expectations. Expecting substantial profit growth in FY18.

Apart from the 6% Spread I quite like the look of this.

Systems1 (SYS1) – 517.5p – £64.5m – PER 15.7

Results For The 6 Months To End September 2017 – Revenue down to £13.82m from £15.28m (-12% in CC), PBT down to £0.85m from £2.79m (-70%) and EPS down to 4.2p from 13.7p (-69%). This is also scary – “Trading in Q3 to date has not yet resulted in a pick-up in our order book.  Were the gross profit decline seen in H1 to be repeated in H2, then our PBT for the full year would decline by 50% to 60% (2016/17: £6.3m)”.

If I was holding, I would be looking for the exit.

Symphony Environmental Technologies (SYM) – 12.75p – £19.3m – PER 127.5

Trading Update – The Board now expects revenues for the year to end December 2017 to be approximately £8m (£6.8m last time). PBT to be significantly higher than current market expectations (due to leverage) – Not less than £350,000 for the full year (£123,000 last time). Also hasCash in the bank of £317,000.

First time I have come across this company, just below my £20m usual Market Cap limit – And this update seems encouraging. Will keep an eye on it.

Attraqt (ATQT) – 43.5p – £46.3m – PER 23.9

Trading Update – The new FD (1st September) conducted a review and “due to inaccuracies in forecasting the timing of certain contracts and client “go-live” dates, it is necessary for the Company to revise its full year outlook”. Expects the full year to be about 10% below previous expectations but to still show YoY high single digit organic growth and for EBITDA to be positive in H2 as well as being broadly breakeven for the year as a whole. The lower revenue run rate at the end of 2017 is expected to carry forward into 2018.

I wasn’t much attraqted (get it!) to this previously, even less so now.

That’s it from me today.

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