Morning Brief – 30-Aug-2018

Morning Brief Images 30-Aug-2018

UK Stock Market News Today – 30-Aug-2018

Morning all!

Arrow Global (ARW) – 257.5p – £438.0m – PER 5.93

Interim Results For The 6 Months To End June 2018 – Underlying PAT up 10% to £28.4m, EPS also up 10% from 14.8p to 16.3p – On track to finish the year in line with market expectations.

Well, this is quite interesting in that according to Stockopedia (Normalised) EPS is expected to be up almost 100% this year (to 37.3p). Stockopedia has this down as an Adventurous Value Trap and I wonder if it is or not. But, basically, I just don’t know enough or have enough conviction in the numbers to take a risk here – I will remain Neutral for now.

Churchill China (CHH) – 1000p – £109.7m – PER 15.4

Interim Results For The 6 Months To End June 2018 – Revenue up 6% to £27.2m (H1 2017: £25.8m) with PBT up 24% to £3.3m (H1 2017: £2.7m) and EPS up 24% to 24.4p (H1 2017: 19.6p). The Interim Dividend is upped 18% to 8.7p (H1 2017: 7.4p) – Good progress against strategic objectives.

On a PER of 15.4 I am being swayed (slightly) away from my Neutral view here. Requires a little more research on my behalf.

Morses Club (MCL) – 150p – £199.1m – PER 10.8

Trading Update For The 26 Weeks To 25th August 2018 – Trading in-line and confident for the rest of the year.

Although reasonably attractive on a PER of 10 and a yield of 5% or so I remain Neutral here (have a feeling this sector is perhaps due even more regulation).

Scisys (SSY) – 173.5p – £51.3m – PER 13.5

Trading Update – H1 & H2 to be more balanced this year so H1 expected to be stronger than usual, Net Debt almost halved (now £3.3m) and Order book at record levels (circa £100m). Confident of outlook.

This was on my Watchlist at 120p, so missed out by not paying up after the previous results were announced. For now, though I will go Neutral as I find the forecasts (on Stockopedia) underwhelming (no Broker notes on Research Tree). Will keep an eye out for updates.

As always, all comment most welcome!

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