Morning Brief – 9-Oct-2017

Morning Brief Images 9-Oct-2017

Morning All!

Cap XX (CPX)

Audited Results For The Year To End June 2017 – Revenue down to A$4.1m which seems in-line with estimates (on Stockopedia). Losses of A$1.2m vs A$0.7m last time.

Still cannot see the justification for a 3x rise here in the past 12 months – Perhaps I am naively missing something!

Castleton Technology (CTP)

Trading Update For The 6 Months To End September 2017 – Encouraging update with Revenue and Profit due to be up 10% to support a full year performance in-line with market expectations. Debt is down from £9.4m to £7.9m (about 15% of Mkt Cap).

On a PER of 12 seems to be priced about right here.

Plant Impact (PIM)

Preliminary Results For The Year To End July 2017 – Revenue up 17% to £8.5m vs £7.2m last time, Gross profit up 19% to £6.7m vs £5.6m last time. Cash up to £7.2m vs £5.6m last time. Revenue seems in-line with forecast (according to Stockopedia) – CAGR is 34.7%! But, the Net Loss is up -£3.1m vs -£0.7m last time. Expecting 2018 Revenue to be in-line but margins to be lower (does this mean bigger losses? If so, it will need that Cash!).

Not sure I can see any case for investment here.

Reach (RCH)

Trading Update For Q3 2017 – Confident that performance for the year will be in-line with expectations. Has bought back £9m in shares in the past 12 months and started paying down the pension deficit (which I think is £400m+). And, also progressing discussions to acquire 100% of the publishing assets of Northern & Shell.

Can’t help but think this is positive news for a company yielding 6.5%+ on a PER of 2.45. Cheap if you accept the risks; the print sector (is not in terminal decline) and the pension deficit (can be sorted).

YouGov (YOU)

Preliminary Results For The Year To End July 2017 – Revenue up 21% (9% CC), PBT and EPS up 24%.Cash up to £23.2m vs £15.6m last time. Dividend increased by a whopping 43%! Further to this, current trading is in-line with the boards expectations. Also, interesting to see today – The CFO is stepping down at the end of the year – Accounting issues to be revealed within the next 12 months – Perhaps?

This all sounds great and seems to justify the PER of 24. However, it’s on my AVOID list after reading this update – Identifying potential accounting issues in May 2016. In my opinion DYOR (a term I hate but have to use at times) can be relying on comment from those you respect, especially if it is “negative” comment, where things seem rosy. And the CFO stepping down!

Not much to excite here…

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