Small Cap Report - ZYT, CPR, ASC, IGR, BEG

Tuesday, Dec 11 2012 by
2

Prelims from Zytronic (LON:ZYT) are released today. They are a maker of touch sensors, with a mkt cap of £51m at 347p/share. Their results look pretty good, with PBT up 17% from £3.6m to £4.2m, and EPS up 21% to 22.2p. That puts the shares on a fairly warm PER of 15.6, although they do have net cash of £2.3m, and the divis are up 10% to 8.5p (a yield of 2.4%).

The short term outlook looks a bit wobbly - with current trading below the equivalent buoyant period last year, as expected they say. The interesting bit is that there are some "very interesting & substantial projects for major customers under development".

I've been invited to meet management later today, so am looking forward to hearing more about the company's growth plans. Their 20% operating profit margin indicates that they have pricing power, something that appeals to me. If decent growth is in the pipeline too, then could be interesting. I see that ZYT shares have sold off 11% in early trading, so the results must have disappointed some holders.

Carpetright (LON:CPR) shares have maintained an impressive feat of levitation for many years now, nobody seems to have any idea why the company has such a stratospheric valuation. Shorters have attacked it again & again, and every time it rebounds. At 666p (a sign? lol!) it's valued at £470m. Their H1 performance in the UK was improved a bit, from breakeven last year's H1, to a £5.2m operating profit this year. Europe (a much smaller part of the group) went the other way, with operating profit falling from £2.9m to breakeven. There is no dividend.

It does own a property portfolio worth £82.6m. The average net debt in H1 was £27m, down from £79.6m in the previous H1), a large reduction, driven by the sale & leaseback of freehold shops.

The valuation remains completely unfathomable, one assumes because investors are looking back to 2006-7 when it made £40m+ profit p.a.. Someone ought to point out to them that those figures were on the back of an unsustainable consumer credit boom that is not going to be repeated.
At some point the bubble here will burst, and the shares will come down to fair value, which I reckon is probably 200-300p/share, if…

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Zytronic plc is a United Kingdom-based developer and manufacturer of a range of touch sensor products. The Company's touch technologies include projected capacitive technology (PCT) and multi-touch projected capacitive technology (MPCT). It operates through the development and manufacture of customized optical filters to enhance electronic display performance segment. Its integrated touchscreen technologies are used across the world in a range of applications for leisure, on the street and in the workplace. The Company, through its subsidiary, Zytronic Displays Limited, sells its products through a network of representatives and resellers, for application uses in gaming, digital signage, ticketing, medical, and information and financial kiosks. Its MPCT products are capable of detecting till approximately 40 independent touch points, all with millisecond response times, in thick, toughened and ultra large glass formats. Its products include ZYTOUCH, ZYFILM and ZYPOS. more »

LSE Price
365p
Change
 
Mkt Cap (£m)
56.3
P/E (fwd)
13.7
Yield (fwd)
3.9

Carpetright plc is a United Kingdom-based retailer of floor coverings and beds. The Company operates through segments, including UK and Rest of Europe (comprising Belgium, the Netherlands and Republic of Ireland). The Company offers a free home estimating service. Its sample service also enables customers to look at the different options. The Company trades from 478 stores and concessions in the United Kingdom, as well as 142 stores across Holland, Belgium and the Republic of Ireland. The Company's product range includes mattresses, divans and bed frames, with a range of headboards and finishes. The Company's product range in Europe includes laminate, vinyl and rugs. The Company operates through around 94 stores in the Netherlands, 23 in Belgium and 22 in the Republic of Ireland. more »

LSE Price
230.25p
Change
0.1%
Mkt Cap (£m)
156.2
P/E (fwd)
9.5
Yield (fwd)
2.4

ASOS Plc is a United Kingdom-based global online fashion destination .The Company sell cutting-edge fast fashion and offers a variety offashion-related content, making ASOS.com the hub of a thriving fashion community. It sell 75,000 branded and own-brand products through localized mobile and web experiences, delivering from United Kingdom(UK) hub to almost every country in the world. It tailors the mix of own-label, global and local brands sold through each of nine local language websites: UK, United States, France, Germany, Spain, Italy, Australia, Russia and China. It sell Womenswear products in sizes 2 to 28 and Menswear in sizes XXXS to XXXL, and have introduced an increased range of men’s waist, leg-length and shoe sizes. more »

LSE Price
4478p
Change
-1.3%
Mkt Cap (£m)
3,787
P/E (fwd)
63.0
Yield (fwd)
n/a



  Is Zytronic fundamentally strong or weak? Find out More »


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About Paul Scott

Paul Scott

Paul trained as an accountant, then spent 8 years as FD for a ladieswear retail chain.He became a professional small caps investor in 2002 to date.Paul writes a small caps report for Stockopedia.com on weekday mornings. He joined Fundamental Asset Management Ltd as a research associate in 2014, as part of their Small Cap Value Portfolio team. more »

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