Morning Brief – 5-Mar-2018

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Morning Brief Images 5-Mar-2018

UK Stock Market News Today – 5-Mar-2018

Morning all!

Hope you all had a great weekend.

Reach (RCH) – 75.5p – £225.9m – PER 2.22

Results For The 12 Months To End December 2017 – Revenue down by 12.6% to £623.2m (weak print trading environment – Digital Revenue up 7% to £83.9m), Operating profit of £124.7m (statutory is reported as up 4.7% to £97.9m), EPS 36.1p versus 38.1p last time. Pension down by £88.4m to £377.6m, Net Debt down from £25m to £9m and the Final Dividend increase of 6% means a total of 5.8p for the year. “Board remains confident that our strategy will meet our objective to deliver sustainable growth in revenue, profit and cash flow over the medium term”.

Even with the Pension Deficit overhead and the terminal decline of the print sector, could this turnaround to be a decent on-line player? It’s a gamble but with that well covered Dividend circa 8%,decrease in Pension and Net Debt, Northern and Shell acquisition and improvement in on-line Revenue – Considering a small opening position, if I don’t it will be on my Watchlist at 70p.

MySale (MYSL) – 109.75p – £169.4m – PER 60.1

Results For The 6 Months To End December 2017 – Headlines with “Record H1 sales and profitability combined with strong strategic progress”. Revenue is up 11%, Underlying PBT is up 266% but there a reporting loss of -£0.1m (-1.3m) last time. The CEO says “It has been a great start to the new financial year and we approach the second half with confidence, with an exciting range of strategic opportunities ahead”.

I still can’t see how this is worth £169.4m, Mr. Market is obviously seeing much more here than me.

Zoo Digital (ZOO) – 69.57p – £51.2m – PER 47.8

Trading Update For The 12 Months To End March 2018 – Revenue $28m ($16.5m last time) and EBITDA expected to be ahead of market expectations, at least $2.3m ($1.8m last time). Cash of $2.2m ($0.7m last time). Chief Exec states “expect to be operationally geared to achieve enhanced profitability in future periods”.

Would have been good to have seen a guidance on real Profit although it’s encouraging to seestrong growth in Revenue, EBITDA and the Cash balance. I am tempted here and for the sake of keeping an eye on it, I will add it to my Watchlist, 65p.

Batm Advanced Communications (BVC) – 26p – £104.8m – PER 358.1

Results For The 12 Months To End December 2017 – Revenue up 18.5% to $107.1m (2016: $90.4m), EPS is positive at 0.06¢ (2016: 0.27¢ loss per share).

The CEO describes this as a “turnaround year” (I guess on the basis EPS is positive for the first time) and says they are entering 2018 in a stronger position than last year. There’s not enough here for me at present.

As always, all comment most welcome – Have a great day!

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