Morning Brief – 31-Jul-2019

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Morning Brief Images 31-Jul-2019

UK Stock Market News Today – 31-Jul-2019

Morning all!

Dignity (DTY) – 614p – £307m – PER 9

Interim Results For The 6 Months To End June 2019 – Revenue down -11% with Underlying PBT down -45% and EPS down -46%, deaths are down just -7%! Warns FY guidance is based on more deaths.

I still see no reason to go “bottom picking” here.

Elektron Technology (EKT) – 49p – £91m – PER 15

Bulgin Sale – Sells Bulgin for circa £94m (to be returned to shareholders) and will rename as Checkit.

I am Long here and am just a little concerned on the remaining business in that it will be loss making. Based on the last results Bulgin contributed Revenue of £30.1m with Operating Profit of £9.0m, Group Revenue was £33.7m with Operating Profit of £4.6m. Let’s see what happens!

Nasstar (NASA) – 12p – £68m – PER 23

Trading Update For The 6 Months To End June 2019 – In-line with FY expected to also be in-line.

Don’t see much value here based on forecasts and feel it’s prudent to at least wait and see the Actuals. Based on the latest Broker note this morning, in my opinion, this looks way overvalued on a 1 Year and 2 Year view.

StatPro (SOG) – 142p – £94m – PER 16

Interim Results For The 6 Months To End June 2019 – Revenue up 3.2% (recurring 98%), Loss of -£0.26m against a Profit of £0.81m last time, the Interim Dividend is unchanged at 0.85p. FY to be in-line.

If forecasts are met seems about fairly valued here. Based on the latest Broker note this morning, in my opinion, this looks way overvalued on a 1 Year view and undervalued on a 2 Year view – Net Debt is quite high, ROCE & Op Margin both low, a 10% upgrade to 2020E EPS would make it more interesting.

As always, all comment most welcome!

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