AIM Prospector morning thoughts (VLE, GVC, SPRP)

Monday, Sep 22 2014 by
3

Good morning,

Three AIM company announcements caught my eye this morning: Volvere (LON:VLE), Sprue Aegis (LON:SPRP) and GVC Holdings (LON:GVC). So, a quick mention of all three.


Volvere (LON:VLE)

Interim results here:
http://www.investegate.co.uk/volvere-plc--vle-/rns...

The company is a "growth and turnaround investment company". Assessing the progress in this sort of business can be very tough, as values are so subjective and profits/losses are very lumpy as sales are made etc.

Anyhow Volvere has announced a drop in net assets per share from £4.00 at the end of 2013 to £3.93 at the end of June. However, this figure is ahead of the £3.46 reported at this stage last year.

The share price has meandered somewhat in the last five years, between 230p and 330p so many shareholders will not have done that well on a capital basis. There is no dividend either.

However, the management are highly rated here and I would be happy to research further.


GVC Holdings (LON:GVC)

This is a gambling firm that took on some of the old Sportingbet assets when the other part of the business was taken over by William Hill. Some of the operations are in unregulated markets. Investors tend not to like this, as the risk of being closed down is always there.

As a result, GVC Holdings (LON:GVC) has typically traded on a low P/E. The company has a policy of paying out most of earnings in dividend so there is a huge yield there.

Interims:
http://www.investegate.co.uk/gvc-holdings-plc--gvc...

It is a very positive statement this morning, citing a great World Cup and progress in Latin America.

Some highlights:

Dividend
• Quarterly dividend of 12.5 €cents (2013: 10.5 €cents)
• Additional special dividend of 2.5 €cents (2013: nil)
• Total quarterly dividend is 15 €cents, up 43% on same quarter last year (2013: 10.5 €cents)
• Cumulative dividends payable in calendar year 2014, 55 €cents. Total up 96% over prior year (2013: 28 €cents)

Financial highlights

• Wagers up 38% to €694 million (H1-2013: €502 million)

• Sports margin 9.9% (H1-2013: 10.3%)
• Net Gaming Revenue ("NGR")…

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Disclaimer:  

Blackthorn Focus, publishers of AIM Prospector, may have enjoyed past, or seek future, commercial relationships with companies featured.

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Volvere plc is a holding company. The Company identifies and invests in undervalued and distressed businesses and securities, as well as businesses that are complementary to existing group companies. Its segments include Security Solutions, Investing and Management Services, and Food Manufacturing. Its food manufacturing segment consists of the Company's subsidiary, Shire Foods Limited (Shire), which is engaged in manufacturing frozen pies, pasties and other pastry products for retailers and food service customers. Its security solutions segment consists of the Company's subsidiary, Sira Defence & Security Limited, which is engaged in digital closed-circuit television (CCTV) viewing software business. more »

LSE Price
1125p
Change
 
Mkt Cap (£m)
35.1
P/E (fwd)
n/a
Yield (fwd)
n/a

GVC Holdings PLC is a sports betting and gaming company. The Company operates under various brands in the gaming sector, including bwin, sporting bet and Foxy Bingo. It also provides online gaming services on a business-to-business basis to the third party operators. Its segments include Sports and Gaming. Its Sports segment includes gains and losses in respect of bets placed on sporting events in a year. Its Gaming segment includes net win in respect of bets placed on casino, poker and bingo, along with deposit charges debited to customer accounts. Its brands include CasinoClub, Betboo, partycasino and Sportingbet. Casinoclub offers an equivalent system in which only its own customers participate. Betboo provides online bingo, Sportsbook, casino and poker access to South American customers. Sportingbet provides sports betting, casinos, games and poker on line and on mobile. partycasino offers online casinos, with approximately 180 mobile games and various casino games. more »

LSE Price
648.6p
Change
1.6%
Mkt Cap (£m)
3,774
P/E (fwd)
10.5
Yield (fwd)
5.5

Fireangel Safety Technology Group plc, formerly Sprue Aegis plc, is engaged in the business of design, sale and marketing of smoke and carbon monoxide (CO) detectors and accessories. The Company also operates its own CO sensor manufacturing facility in Canada. The Company is also a provider of home safety products. The Company's principal products include smoke alarms and CO alarms and accessories. Sprue manufactures CO sensors for use in all its CO alarms. Sprue serves in the United Kingdom retail and the United Kingdom's fire and rescue services. The Company offers a range of brands, including FireAngel, AngelEye, Pace Sensors, First Alert, SONA, BRK and Dicon brands. The Company's subsidiaries include Sprue Safety Products Limited, which is engaged in distribution of smoke and CO alarms, and Pace Sensors Limited, which is a manufacturer of CO sensors. more »

LSE Price
24p
Change
9.1%
Mkt Cap (£m)
18.2
P/E (fwd)
17.6
Yield (fwd)
n/a



  Is LON:VLE fundamentally strong or weak? Find out More »


3 Posts on this Thread show/hide all

JMLDutch 22nd Sep '14 1 of 3

Re: SPRP,

The market seems happy with the results, but I am not totally confident.

The market expects full year 16.8p EPS, however, H1 only was 6.2 EPS. Is 10.6 EPS possible in H2? This is a 71% increase from H1 to H2.

H1 2014 EPS was up 33.6% compared to H1 2013. It seems to me, a 71% increase in EPS in half a year is gonna be hard to achieve. Thoughts?

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AIM Prospector 22nd Sep '14 2 of 3
1

Hi JMLDutch,

First I would say that management have said they will hit market expectations so their reputations are on the line. Remember also that as of today, we are nearly three months into the second half so they will have almost three quarters of the full year pretty-much accounted for.

I think that the bigger clue is in the 14th July trading statement:
http://www.investegate.co.uk/sprue-aegis-plc--sprp...

Despite the impact of the declining value of the Euro, with the launch later this year of a new trade range of products combined with a record order book for H2 2014, which includes a significant increase in business in France, the Board remains optimistic of delivering results for the year ending 31 December 2014 in line with market expectations.

The France sales are being driven by new home safety legislation.

UK fire safety firm Sprue Aegis set to cash in on French alarm law

http://www.express.co.uk/finance/city/457658/UK-fi...

Chairman and chief executive Graham Whitworth said the French law was a big opportunity for the company, which recently posted record annual sales of £48.3million – up 30 per cent.

Hope that helps,

David O'Hara
Editor, AIM Prospector

E-Magazine: AIM Prospector
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JMLDutch 23rd Sep '14 3 of 3

Thanks for your reply, very helpful.

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