So, here we go with Day 3, thanks as always for the continued contribution and support!
Not a great deal to report on actually (TTG probably being of most interest)…
Rotola (ROL) – Half Year Report To May 2017 – A reasonable update with Revenue up 4.5% and profits up about 18% (EPS up about 9%), Debt, same as last year - Things don’t look too bad here, at first –Nice profit (PER around 10), ROCE 9%, Dividend of 3.83% (easily covered 2x) – But why is a company with a PBT of about £3m running a £25m (and rising) debt and paying a Dividend of almost 4% - I may be naïve in my investment approach but this doesn’t make sense to me at all. My high level view here is, forget the Dividend, more so, show me that you can pay down that debt – Then use the cash to invest in the business (ROCE is a decent 9%) and/or then consider paying a Dividend.
TT Electronics (TTG) – Results For The Half Year Ending June 2017 – Looks OK here, Revenues (mostly organic) up 13%, PBT up 28%, EPS doubled and ROCE at 10%. Doesn’t look too bad on Stockopedia either, Stock Rank 86. Up 40% so far YTD it looks like this update may see it moving even higher – First time I have come across this one but this nice update probably deserves a closer look – Of course I prefer, especially in these times, to see cash on the books – Net Debt here is 15% of current Mkt Cap but that looks OK if this growth can be sustained.
Volution (FAN) – Trading Update 12 Months To End July 2017 – Headlines that Revenue (£185m) is up 20% (15% CC) compared to the 12 months previous and 2 Acquisitions completed. Why no mention at all of profit guidance here – Argggghhh! We have to wait until 10th October to find out. On a current PER of 13, this confirmed revenue increase may give this some tailwind, I personally prefer to see the actuals. Have profits perhaps been affected by the acquisitions? Strange no mention of profit or dividend position at all – Or am I being too pedantic here!
I also…
