Morning Brief – 9-Jan-2018

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Morning Brief Images 9-Jan-2018

Morning All!

Another busy morning, 10 updates follow…

Elegant Hotels (EHG) – 96p – £85.3m – PER 10.4

Unaudited Results for the Year To End September 2017 – Revenue up 5.1% to $59.9m with PBTdown 6.1% to $9.2m. EPS is down over 20% from 13.1c per share to 10.1c per share. Trading this year remains in-line with market expectations.

Held this until recently, quite a lot to like, including the well covered Dividend (almost 7%). It just wasn’t doing much and I decided that perhaps a hotel group is unlikely to grow very fast – In a downturn or with the continued rise of Airbnb. I am happy with my decision so far.

Nexus Infrastructure (NEXS) – 235p – £89.6m – PER 10.8

Preliminary Results for the Year To End September 2017 – Revenue flat at £135.0m (in-line with expectations) and Operating Profit of £9.3m is ahead of expectations. Order book up 25% and Cash of £27.1m. Dividend for the year of 6.3p per share, in-line with policy.

Still quite like this, seems like a potential slow and steady tuck away. Great ROCE and Operating Margin, it’s got a decent Cash pile, a modest yield (about 3%). It’s on my Watchlist, 225p.

Carr’s (CARR) – 124.1p – £113.4m – PER 10.5

Trading Update For The 18 Week Period To 6-Jan-2018 – In-line and pleased with how FY 2018 has commenced. Net Debt is up from £14.1m to £19.0m.

Even on a PER of 10.5, looks about fairly priced to me.

Robert Walters (RWA) – 658p – £495.5m – PER 15.9

Trading Update For Q4 2017 – Net income up 19% and comfortably in-line with expectations.

Quite a lot to like here but I am not particularly keen on paying up for a recruitment company at present. If or when I take a liking to the sector this will be near the top of list.

Stock Spirits (STCK) – 264.5p – £529.0m – PER 18.2

Trading Update For The 12 Months To End December 2017 – Slightly ahead of expectations.

Looks expensive to me.

Topps Tiles (TPT) – 80p – £154.5m – PER 11.0

Q1 Trading Update – LFL Revenue up 3.4%.

With Revenue forecast to be £218.2m this year, based on £211.8m last time, this seems in-line. I still don’t see any attraction here although some may welcome the well covered yield, circa 4.5%.

Majestic Wine (WINE) – 459p – £328.0m – PER 22.7

Christmas Trading Statement – LFL sales up 3.2% (10 week period to end 1-Jan-2018). Remain on track to hit £500.0m in sales by 2019.

I still can’t get excited here. And, they’re still banging on about £500m in Revenue by 2019, why? It’s only 10% higher than 2017 Revenue – The PER is 22.7!

Bioquell (BQE) – 282.6p – £63.5m – PER 29.1

Trading Update For The 12 Months To End December 2017 – Revenue will be ahead of expectations, £29.3m versus £26.8m last year. Pre-exceptional earnings before tax are expected to be significantly ahead of market expectations (to include an exceptional gain of £0.25m, disposal of the Airflow business). Net Cash of £14.5m.

Quite like this, it’s doubled in the past 12 months. Will keep an eye out for those results when they come through.

Gresham Technologies (GHT) – 191p – £128.9m – PER 28.9

Trading Update For The 12 Months To End December 2017 – In-line with Revenue up 24% to £21.3m (which actually seems slightly ahead of in-line) and EBITDA up 32% to £5.0m.

Quite a lot to like here although it can be volatile. It’s going on my Watchlist, 160p.

Joules (JOUL) – 310p – £271.3m – PER 24.5

Christmas Trading Update – For the 7 weeks to 7-Jan-2018 Sales are up 19.2 (there are now 117 stores versus 107 last time).

Quite a lot to like here as I mentioned previously, growth looks good as do forecasts. ROCE and Operating Margin well above industry norms. There’s Cash and a tiny Dividend (<1% – Why bother?). It’s just way too expensive for me so I am going to take it off my Watchlist for now.

Have a great day!

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