Morning Brief – 8-May-2018

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Morning Brief Images 8-May-2018

UK Stock Market News Today – 8-May-2018

Morning all!

Hope you had a great Bank Holiday.

Costain (COST) – 476p – £505.2m – PER 12.7

AGM Statement – In-line.

Still quite like the look of this but I find it difficult to see where any real growth can come from at present. Would become more interesting if it pushes through all time highs to the 500p level.

Cambria Automobiles (CAMB) – 61p – £61.0m – PER 7.88

Unaudited Interim Results For The 6 Months To End February 2018 – In-line but doesn’t look like it – Here’s the spiel “Cambria will maintain its momentum in the second half and deliver a financial performance in line with market expectations for the year as a whole”.

Still going to remain Neutral here.

Treatt (TET) – 465p – £267.7m – PER 25.7

Interim Results For The 6 Months To End March 2018 – Revenue up 14% to £53.6m (2017 H1: £47.1m), Adjusted PBT of £5.8m (up 20% from £4.8m. Following the reduction in US corporate taxes, Basic Adjusted EPS up 30% from 6.58p (2017 H1) to 8.58p (2018 H1). Interim Dividend up 10%. Warns on exchange rates and raw material costs but believes the FY will meet expectations.

I like this but as I think I said last time – On a PER of 20+ I would just be expecting a little more here (EPS is inflated by US tax change).

IDE Group (IDE) – 15p – £30.1m – PER 9.38

Final Results For The 12 Months To End December 2017 – Revenue up 50% (to £43.4m) with EBITDA up just 10%. Operational review in progress which will include board changes, profitability in 2018 to be significantly lower than 2017.

Based on this update I find it hard to want to invest here at present.

Ideagen (IDEA) – 112.5p – £228.0m – PER 24.5

Trading Update For The 12 Months To End April 2018 – In-line, Revenue up 33% at approximately £36.1m, (FY2017: £27.1m) with a significant increase in adjusted EPS. “A growing base of recurring revenues and a strong pipeline of new business opportunities which provides the Board with confidence for the current year and beyond”.

Looking quite good here and quite tempted – Will probably remain Neutral though and keep an eye out for the actual results.

4imprint (FOUR) – 1770p – £497.1m – PER 19.3

AGM Statement – First four months of 2018 above Board’s expectations, with Revenue growth of 16% and order intake up 15% over prior year. Board is very pleased to see that the early indications are encouraging and say it is likely FY Revenue will be higher than current market consensus and Operating Profit, guided to be flat will be higher.

I just can’t work out if this is fairly priced or under priced, but, on a PER of 19.3, I am erring on the side of the latter for now – So will remain Neutral.

As always, all comment most welcome!

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