Morning Brief – 29-Jan-2018

Morning Brief Images 29-Jan-2018

UK Stock Market News Today – 29-Jan-2018

Morning All!

Porvair (PRV) – 532.78p – £243.1m – PER 27.6

Results For The 12 Months To End November 2017 – Record revenue of £116.4m (£109.4m last time),up 6%, PBT up 16% to a record £11.7m (£10.1m last time), EPS up 14%, Net cash at £9.8m (£13.6m last time) and the final dividend is up 12.5% to 2.7p per share. Made a promising start to the year.

Nice set of results but on this rating I would expect better than this. I remain Neutral here for now.

SThree (STHR) – 372p – £484.0m – PER 13.8

Results For The 12 Months To End November 2017 – Adjusted PBT up 9% to £44.5m (helped by FX, which if you strip out shows an under performance over last year of -3%), the final Dividend is maintained.

Stockopedia (StockRank 97) likes it more than I do.

EasyHotel (EZH) – 112p – £112.6m – PER 78.5

Trading Update – Strong trading continues and is in-line with the Board’s expectations.

I am still wary of this sector (with the rise of Airbnb and Booking). For sure I am not interested in paying up for an operator on a PER of 78.5.

Anpario (ANP) – 493p – £114.0m – PER 29.9

Trading Update For The 12 Months To End December 2017 – In-line with Cash at £13.6m versus £11.1m last time.

Almost doubled in the past 12 months. Wish I’d spotted it back then when it was reasonably priced, looks expensive now to me.

Netcall (NET) – 47p – £67.1m – PER 20.4

Trading Update For The 12 Months To End December 2017 – In-line.

Quite like this, it’s going on my Watchlist, 44p.

Sopheon (SPE) – 492.5p – £49.2m – PER 17.9

Trading Update For The 12 Months To End December 2017 – Expects revenues to be over $28m, upfrom $23m in 2016, and comfortably ahead of current market expectations. Expects PBT to be significantly ahead of current market expectations. Year-end Net Cash $9.5m (2016: $4.2m). Overall revenue visibility for 2018 already stands at $18m, compared to $13m at this time last year.

I still like this, on my Watchlist, 470p, may even consider paying up here.

Colefax (CFX) – 515p – £52.6m – PER 19.1

Results For The 6 Months To End October 2017 – Sales up 6.5% to £42.08m (2016: £39.53m), 5.1% CC, PBT up 35% to £2.56m (2016: £1.90m), EPS up 44% to 18.0p (2015: 12.5p), Net cash up to £9.5m (2016: £8.0m) and the Interim Dividend is up 4% to 2.40p per share. “The Group has made good progress over the last six months helped by improving trading conditions in our core US market and an encouraging performance by our Decorating Division. With a strong order book for the second half, we now expect the Decorating Division to exceed our original expectations for the full year”.

Looks OK but I just can’t work out how such a small rise in Revenue has translated into such a huge rise in PBT and EPS. I will remain Neutral until I can research this a little more.

KCOM (KCOM) – 88.2p – £455.6m – PER 19.6

Trading Update For The 12 Months To End March 2018 – On track to deliver an overall EBITDA performance slightly ahead of the Board’s expectation, and a revenue performance slightly behind.

A decent ROCE and Operating Margin plus a HUGE Dividend (almost 7%). I am tempted here, but why is that Dividend so big?

Inspired Energy (INSE) – 21p – £119.5m – PER 12.6

Trading Update For The 12 Months To End December 2017 – In-line and trading in the current year to date has been strong.

Held previously and sold out at break-even. I’m not 100% sure why I got out here, going to put it on my Watchlist at 18p and revisit.

A great day to all.

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