Good morning!
This will be the quickest SCVR ever, as I have to leave home at 7:50 this morning, to head for Essex, to attend a memorial service, and then a family get together afterwards. I'll try to add a few more comments this evening, but it depends what time I get home.
Norcros (LON:NXR)
The CFO, Martin Payne, is stepping down, for career reasons, to join Polypipe (LON:PLP). The reason seems to stack up - PLP has a market cap of £630m (at 315p per share) against NXR £126m (at 206p), so it doesn't look to be a particular concern in terms of anything suspicious, or otherwise negative.
Trakm8 Holdings (LON:TRAK)
Interim results to 30 Sep 2015 - the headline figures look good;
Remember these are only half-year figures.
The good figures also come with a positive outlook statement;
The Group believes that we will continue to successfully execute our outlined strategy and as a consequence deliver growth in shareholder value. The second halves of our financial years have consistently shown increasing revenues including service revenues over the first half. This year we expect that this will be true again. This, along with a full period effect of DCS, means that we expect second half of the year revenues will be considerably ahead of the first six months.
At the time of our Final Results in July we indicated that we expected to modestly exceed the market's then current expectations. The Board is now confident that the results for the year ending 31st March 2016 will again modestly exceed the market's current expectations.
That's the way to do it! Setting forecasts sensibly, so they can be beaten (modestly!). Excellent stuff.
Net cash - in the highlights section, the company says it has £1,423k net cash. This seems to ignore £583k borrowings in current liabilities, and £2,943k borrowings in long term creditors. So I make it net debt of £2.1m. So an apparent anomaly there.
The company capitalised £581k of development costs in H1, against an amortisation charge of £282k, so the net benefit to the P&L is about £0.3m.
My opinion - a very nice growth company, with excellent management. The market cap is quite rich now, at £80.0m (at 265p), which is about 24 times this year's forecast…
