Morning Brief – 30-Nov-2017

Morning Brief Images 30-Nov-2017

Morning All!

Totally (TLY) – 32.5p – £19.4m – PER n/a

Trading Update – In-line with Cash expected to be significantly ahead of expectations, £8m versus £4.1m.

A new one to me and I am not sure what to make of this. It’s clearly got lots of Cash but I have no idea what the real forecasts are. I will keep an eye out for a more detailed update in the future.

MS International (MSI) – 181p – £30.3m – PER 19.9

Half Year Report For The 6 Months To 28 October 2017 – PBT up to £1.64m (2016 – £0.61m) on a notable uplift in revenue to £34.63m (2016 – £25.00m). EPS up to 7.8p (2016 – 3.3p) and there’s Net Cash of £14.53m.

This looks OK but with concerns about the UK MoD spending also pointed out – For me, with already unimpressive ROCE and Operating Margin figures, it’s just a little too risky in the present environment.

On The Beach (OTB) – 399p – £520.4m – PER 18.1

Preliminary Results For The 12 Months To End September 2017 – Headlines with “Strong second half revenue growth drives 33.8% increase in Group adjusted PBT”. Revenue up 17.2% (£83.6m), EPS up 35.4% and the Dividend is up 27.2% (2.8p). It seems in-line and based on current trading in-line expectations remain.

Looks OK here and it’s more so the sector than the actual company putting me off here. That said it seems to weather storms (!!!) reasonably well.

St Ives (SIV) – Now Kin And Carta (KCT) – 74p – £105.6m – PER 5.85

Trading Update (For The 3 Months To 3 November) – Trading ahead of managements expectations, Revenue running 4% ahead of the equivalent period last year.

It’s cheap for sure but amongst other things, the Net Debt here (£54.6m, over 50% of Mkt Cap) just makes me want to steer clear. I also believe there’s a reasonable sized Pension deficit but have not had time to look into this.

James Latham (LTHM) – 945p – £185.6m – PER 17.1

Results For The 6 Months To End September 2017 – Revenue £107.3m, up 7% on £100.3m with PBT £6.7m, down 12.2% on £7.7m.  EPS 27.8p (2016: 31.2p) a decrease of 10.9%. Pension Deficit down from £16.6m at 31 March 2017 to £8.5m. Interim Dividend same as last year (4.5p). H2 has started well although trading conditions continue to be mixed.

There’s quite a lot to like here although I would not be paying up at this level. It’s on my Watchlist for now.

Hargreaves Services (HSP) – 314.25p – £100.5m – PER 16.1

Trading Update For The 6 Months To End November 2017 – Expected to be in-line and expecting a stronger H2. Quite a confident sounding update.

All round this looks OK but it’s a little volatile. A dip to the 250p level (if we ever see it again) would make it much more interesting for me.

That’s it from me this morning, nothing of great interest for me.

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