Morning Brief – 28-Nov-2017

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Morning Brief Images 28-Nov-2017

Morning All!

A little late here, 12 reports and a couple of holdings I wanted to keep an eye on at the open. Apologies now for errors, etc. – Was really quite a mad morning!

Note: I also missed off the GMD news which seems to be a move for the better.

Sanderson (SND) – 73p – £40.2m – PER 12

Final Results For The 12 Months To End September 2017 – I looked at these numbers a couple of times (in my limited morning period) and can just take away what these results seem – Just OK.

I’m Neutral here and why does the Chief Exec insist on stating “Whilst the Group has not yet detected any major loss of confidence from either existing or prospective customers, the Board and senior management continue to carefully monitor market conditions, customer confidence, as well as the development of sales prospects and the progression of these sales prospects into customers”?

Gordon Dadds (GOR) – 141.5p – £40.5m – PER 18.3

Interim Results For The 6 Months To End September 2017 – Revenue up by 14.5% to £12.89m (H1 2016 £11.26m), Adjusted PBT up by 103% to £0.58m (H1 2016 £0.28m) and Adjusted EPS of 2.26p (H1 2016 2.24p). There’s Net Cash of £12.53m. Outlook is in-line.

Remaining Neutral here for now but will keep an eye on updates here.

D4t4 Solutions (D4T4) – 156p – £59.7m – PER 14.1

Interim Results For The 6 Months To End September 2017 – Opens with “As experienced in some previous years a higher proportion of our business is expected to close and be delivered in H2 2017.  Despite a lower first half due primarily to a change in the timing of contract awards by comparison to the same period last year, the Board remains confident of achieving management expectations for the full year based on recent business wins and the depth and quality of the prospects pipeline”.

The Board remain confident the full year results will be in-line – I will be watching from the side-lines.

ULS Technology (ULS) – 152.88p – £99.1m – PER 22.9

Interim Results For The 6 Months To End September 2017 – Revenue up 56% to £15.28m (H1 2017: £9.78m), Underlying Operating Profit up by 44% to £2.81m (H1 2017: £1.95m), Adjusted EPS up by 45% to 3.48p (H1 2017: 2.40p) but Net Debt is £2.3m (FY 2017: Net Cash £3.7m). The Interim dividend is up an uninspiring 5%.

I am a holder here and remain so.

Topps Tiles (TPT) – 60.75p – £116.9m – PER 8.5

Final Results For The 12 Months To End September 2017 – Don’t like the look of this much – Highlights, Revenue down slightly, PBT down 15% (£17m), Final Dividend cut 8% and Net Debt also increased.

I can’t see any attraction here.

Park (PKG) – 87p – £167m – PER 15

Interim Results For The 6 Months To End September 2017 – Don’t like the look of this much, Revenue up just 3.1% with LFL Loss Before Tax doubling from -£0.8m to -£1.6m.

Although this latest update is considered “in-line” this is coming off my Watchlist for now. Sure, it may well perform as promised in the 2nd half, but then again, it may not. Gift vouchers and prepaid gift cards doesn’t exactly inspire these days either.

Treatt (TET) – 420.25p – £219m – PER 21.4

Final Results For The 12 Months To End September 2017 – Nice headline “Adjusted PBT up 46% and adjusted EPS up 42% as the Group delivers a strong set of results”. Revenue is up 24.5% to £109.6m. Impressive and seems to be in-line and the Board expects trading to continue in-line.

Doubled this past 12 months on a PER of 21.4 it’s starting to look a little more attractive. It’s going on my Watchlist.

Acal (ACL) – 318.25p – £225.1m – PER 13.7

Interim Results For The 6 Months To End September 2017 – Nice – Revenue up 15% in CC (to £190.2m), Underlying PBT up 42% to £11.8m and the Dividend us up a modest 8%. The future looks bright too – Highest ever period end order book of £111m (+16% CC) and New project design wins increased by 30% to over £90m. Full year to be in-line with expectations.

Up 50% this past 12 months, this is still looking quite attractive. Keeping me on the fence here is the poor ROCE and Operating Margin (not only generally poor but poor for the sector too). Perhaps I am being too vigilant.

IG Design (IGR) – 435p – £275.2m – PER 20

Interim Results For The 6 Months To End September 2017 – Looks pretty good, Revenue up 14% to £166.5m from £145.5m, PBT up 27% to £10.5m from £8.2m, Underlying EPS up 14% to 10.9p and Net Debt reduced by £6.2m to £70.2m. There’s a new CFO announced today too.

I still like the look of this. Nice growth, Revenue, Profit and EPS. A nice ROCE of 15% and a small well covered Dividend. It’s on my Watchlist and if the market is disappointed with these results I may be a buyer soon.

Gooch & Housego (GHH) – 1396.5p – £341.8m – PER 25.7

Final Results For The 12 Months To End September 2017 – Revenue up 30.2% (£112m), PBT up 13.7% and EPS up 16.2%. Record order book of £72.1m, up 36.5%.

I still quite like this but and I’m not sure what’s making me sit on the fence here (perhaps I think it’s too expensive on a PER of 25.7) – But I am.

ITE (ITE) – 180p – £484.7m – PER 21

Final Results For The 12 Months To End September 2017 – Revenue up 5% YoY (by 5%) for the first time in 5 years. But there’s a loss, again, not sure that was expected by the market.

Looking a bit closer at the Stockopedia numbers I actually decided to pass on this (and this update backs me up). I just don’t like the flat Revenues, EPS inconsistencies, the variable Operating Margin and ROCE. It just seems like an “anything can happen” here company – Not for me.

Veltyco (VLTY) – 74p – £55m – PER 9.42

Trading Update – “Trading since the interim results has remained strong. Given current levels of business, the Board expects revenue and EBITDA to be significantly ahead of market expectations for the year ended 31 December 2017” and “The Board is also pleased with the recent investment in eSports.com by Veltyco, as announced on 11 October 2017, which is already showing great promise and is anticipated to contribute to the growth of the Company in the years to come”.

I am a holder here and remain so.

Phew!

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