Morning Brief – 30-Apr-2018

Morning Brief Images 30-Apr-2018

UK Stock Market News Today – 30-Apr-2018

Morning all!

Back in the saddle again after a memorable (well, I remember most it) Mello 2018.

Just before getting onto this mornings news, and I am not the first here for sure…

I just feel a real special thanks is due to all those involved in organising the Mello 2018 event. It was awesome! It obviously took some doing, especially with it being done so well. So, here’s a special thank you from me and – Count me in next time!

Now, onto the news…

Interserve (IRV) – 106.9p – £155.8m – PER 5.98

Final Results For The 12 Months To End December 2017 – Revenue £3,250.8m (£3,244.6m last time),Loss Before Tax -£244.4m (£94.1m last time), Net Debt £502.6m (£274.4m last time). Refinancing, Cost cutting, etc. in place now but “still much to do”.

Up almost 100% in the past couple of months but I’m not yet convinced. I will however move it from my Avoid list to Neutral. It is very rare I would ever go straight from Avoid to a purchase, firstly I prefer to see something to at least convince me to go Neutral – And, these results do, but not with a great deal of conviction.

Luceco (LUCE) – 66.8p – £107.4m – PER 6.96

Results For The 12 Months To End December 2017 – Statutory – Revenue up 25.4% to £167.6m (2016: £133.7m), that’s 21.7% CC, Operating profit up 19.3% to £14.2m (2016: £11.9m), Basic and Fully Diluted EPS up 34.8% to 6.2p (2016: 4.6p) with Net Debt at £36.7m (2016: £29.5m).

I can’t see enough here to get me to take this of my Avoid list yet.

UP Global Sourcing Holdings (UPGS) – 36.2p – £29.7m – PER 6.85

Interim Results For The 6 Months To End January 2018 – Revenue is as per the previous trading update (£48.4m versus £68.1m last time). However, it seems EBITDA is just £4.5m versus the £6.0m to £7.0m (which was already below current market expectations) mentioned in the same update. Trading for FY 2018 is currently in-line with management expectations.

Remains on my Avoid list.

Telit Communications (TCM) – 155.7p – £203.5m – PER 21.0

Results For The 12 Months To End December 2017 – New board, cost optimisation plan in place, business units being integrated, etc. Revenue flat, Loss Before Tax -$10.7m (Profit of $33.1m last time), Net Debt almost doubled to $30.2m.

I’m just not brave enough to invest here, it remains on my Avoid list for now.

Sanderson (SND) – 90p – £53.7m – PER 13.8

Trading Update For The 6 Months To End March 2018 – “Results slightly ahead of management’s expectations; positive trading momentum maintained with strong balance sheet; November acquisition makes a good start; current order book now standing at £8 million”.

Still quite like this but just can’t get past remaining Neutral.

As always, all comment most welcome!

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