Morning Brief – 6-Mar-2018

Morning Brief Images 6-Mar-2018

UK Stock Market News Today – 6-Mar-2018

Morning all – A lot to get through so apologies in advance for any errors, etc. Do please let me know to correct any silly or confusing ones.

Headlam (HEAD) – 529p – £448.9m – PER 11.7

Final Results For The 12 Months To End December 2017 – Seems about in-line to me.

This was on my Watchlist at 530p – There’s a well covered Dividend of circa 4%+ and a decent cashpile. Based on the slow growth here though I am going to lower that Watchlist price to 450p for now.

Huntsworth (HNT) – 77.6p – £256.2m – PER 12.6

Preliminary Results For The 12 Months To End December 2017 – Revenue up 9% at £197.0m (2016: £180.1m), PBT up 52% at £24.4m (2016: £16.0m), Diluted EPS 5.8p (2016: 4.0p) and the Total Dividend for the year will be 2.0p (2016: 1.75p). Net Debt is up from £31.6m to £36.3m. CEO – “Despite increasing FX headwinds, the year has started well with good trading momentum and Huntsworth is well positioned for further growth in 2018″.

Doubled in 2018 it looks like it has the potential to keep going. Considering an initial investment here, if not it will go on my Watchlist, 75p.

LoopUp (LOOP) – 339.99p – £143.5m – PER 50.7

Preliminary Results For The 12 Months To End December 2017 – Revenue up to £17.5m (up 33.5% CC) ahead of market expectations. Customer spread improved. EBITDA up 161%, Operating Profit £0.7m, Diluted EPS up 722% to 4.4p (0.5p last time) and now Debt Free with Cash of £2.9m. Outlook is confident.

Almost tempted to pay up here, just seems to be going places this company. Can’t remember the last time I paid up on a PER of 50+ though. If I don’t get involved soon I will leave it on my Watchlist, 280p

MPAC (MPAC) – 182p – £36.7m – PER 17.4

Final Results For The 12 Months To End December 2017 – Previously Molins. “Excellent progress on the Group’s strategic initiatives”, Order book 35% higher than at the start of 2017, Sales from continuing activities of £53.4m (2016: £41.5m), statutory Profit After Tax of £1.6m (2016: £0.6m loss), Underlying EPS of 4.2p (2016: loss of 6.0p), Net cash of £29.4m (2016: £0.8m), there will not be a final dividend.

Those who bought into the recovery here are up 3x in 12 months. Perhaps fairly priced here now?

SDL (SDL) – 418p – £344.1m – PER 16.2

Preliminary Results For The 12 Months To End December 2017 – Underwhelming, not even a Dividend increase.

I will not be taking any further interest here for now.

Caretech Holdings (CTH) – 399.5p – £302.3m – PER 10.8

AGM Statement – In-line.

From memory the property portfolio is valued at something like £329m but there’s Net Debt of about £150m (50% or so of Mkt Cap). It also relies heavily on Local Authoritys for Revenue. Enough for me to remain Neutral.

Nexus Infrastructure (NEXS) – 259p – £98.7m – PER 11.1

AGM Statement –  In line with Boards expectations, encouraged by the Order Book level up 11% to £225m providing good visibility for the year ahead.

I remain long here, a slow and steady tuck away. Great ROCE and Operating Margin (for the sector), a decent Cash pile and a modest yield (about 3%).

Craneware (CRW) – 1925p – £507.1m – PER 43.2

Interim Results For The 6 Months To End December 2017 – Revenue up 16% to $31.1m (H1 2017: $26.8m), PBT up 16% to $8.7m (H1 2017: $7.5m), Adjusted basic EPS up 18% to 25.4c (H1 2017: 21.6c), Cash of $52m (H1 2017: $45m) following dividend payment of $4.1m with the proposed Interim Dividend up 15% to 10p (H1 2017: 8.7p).

I have been saying this is expensive on a PER of 30 and 35 and it’s now 43. I am coming to the conclusion I got it wrong here. However, based on these interims I cannot justify paying up on a PER of 43.  Rightly or wrongly! What am I missing here?

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

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