AIM Prospector round-up w/e December 5th, 2014

Friday, Dec 05 2014 by
7

I thought Stockopedia readers might welcome a weekly round-up of happenings in and around AIM from AIM Prospector's view.

So, here goes with the first AIM Prospector weekly missive.

Monday

Over-fifties fashion retailer Bonmarche Holdings (LON:BON) announced interims on December 1st.

http://www.investegate.co.uk/bonmarche-holdings--b...

Everything looks great:


Total revenue up 11.8% at £91.1m (H1 FY14: £81.5m)
Store LFL sales growth of 7.8%
Profit before tax of £6.4m up 68.1% (H1 FY14: £3.8m); growth of 15% on underlying basis
Profit before tax margin increased from 4.7% to 7.0% (6.8% to 7.0% on an underlying basis)
Earnings per share were 9.9p (H1 FY14: 5.2p*; 8.7p** on underlying basis)
Strong cash generation with cash and cash equivalents at half year end of £13.5m (H1 FY14: £11.3m)
Interim dividend of 2.3 pence per share

However:

Towards the end of Q2, trading conditions became more difficult due to the unseasonably warm weather. These conditions have continued into the second half; however, on the basis that the weather returns to its normal seasonal pattern, the Board expects the current year's performance to be in line with its original expectations.

So there is a warning there that the outcome for the full year will probably be less than was being hoped for a few months ago. Stockopedia has consensus normalised EPS at 19.3 for the full year and an expected dividend of 6.8p per share. That puts Bonmarche Holdings (LON:BON) on a 2015 P/E of 13.7, with a forecast yield of 2.6%. Online sales grew 50.6%. I expect that online has a lot further to go at the company.

Mattioli Woods (LON:MTW) is one of AIM's most successful companies. A trading statement from the company was issued on Monday and the Chief Executive, Ian Mattioli took some time to articulate just how significant recent rule and taxation changes will be for the industry.

These are exciting times for our clients and ourselves, with the Government finally seeing the benefit of offering individuals and their families control of their pension funds, both now and into the next generation. The freedom to access pension funds from age 55 and removal of the 55% tax-charge on death provides a real sense of ownership, and paves the way for the inheritance of pension funds by the next and future generations.

http://www.investegate.co.uk/mattioli-woods-plc--m...

According to Stockopedia, the shares trade on a 2015 P/E of 16.4, with the prospect of a 2.2% yield. How many other sectors are looking at such a favourable trading environment for the coming years?

Tuesday

FY results to September from Gooch & Housego (LON:GHH) came on the 2nd. This is one of my favourite companies on AIM. The Chief Executive is moving to take the Chair in January.

The initiatives to embed a culture of continuous improvement and deliver operational excellence that commenced in 2014 provide a sound basis for further margin improvement in 2015 and beyond

http://www.investegate.co.uk/gooch---38--housego-p...

Super-investor John Lee likes Gooch & Housego.

Some of the key numbers from Plastics Capital (LON:PLA) moved in the wrong direction in their six months to the end of September, however, the dividend was increased by a third.

http://www.investegate.co.uk/plastics-capital-plc-...

Management have achieved a lot in the last five years here. The fall in oil price raises the possibility of margin improvements. Apparently the shares are trading on a P/E under 10, with a 3.5% yield. That seems cheap at first glance.

The recovery at consulting engineer WYG (LON:WYG) seems almost complete, with the promised dividend being declared for the first six months:

http://www.investegate.co.uk/wyg-plc--wyg-/rns/hal...

Estate agent M Winkworth (LON:WINK) expressed caution on the state of its market in a trading update but stopped just short of issuing a profits warning. Nevertheless the shares sold off.

http://www.investegate.co.uk/m-winkworth-plc--wink...

Wednesday

Story of the week

It turns out thatUniverse (LON:UNG) is the company providing the back-end to Morrison's 'Match & More' loyalty scheme. This looks like AIM story of the week.

Universe subsidiary, HTEC, was responsible for the development of the purpose built loyalty platform and will provide ongoing technology, hosting and maintenance support.

http://www.investegate.co.uk/universe-grp---ung-/r...

Universe shares ended the week 15% higher.

Thursday

Shares in luxury handbag firm Mulberry (LON:MUL) have had a rotten 2014 as the profit outlook has deteriorated dramatically. The shares still look expensive to me. There weren't any highlights in the results. Like-for-like sales down 13%. However, from the outlook statement:

During the nine weeks to 29 November 2014, total Retail sales were up 8% compared to the same period last year (like-for-like +2%).

http://www.investegate.co.uk/mulberry-group-plc--m...

So some cheer there.

The good news keeps on coming from Trakm8 Holdings (LON:TRAK), the shares were boosted by a 'Significant Hardware Order'.

http://www.investegate.co.uk/trakm8-holdings-plc--...

which leaves me wondering for how much longer the company will remain independent. With a £26m market cap it looks like an easy target for someone like Ricardo, GKN or Thales.

Friday

Friday saw the announcement of another acquisition from Belvoir Lettings (LON:BLV) as the franchisor of lettings agencies expands further in the North West with a deal that will be earnings enhancing in its first full year of ownership.

http://www.investegate.co.uk/belvoir-lettings-plc--blv-/rns/acquisition/201412050700089120Y/

Belvoir is forecast to pay a 5.3% dividend yield this year.

That's it!


David O'Hara
Editor, AIM Prospector


Disclaimer:  

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

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Bonmarche Holdings plc is a multi-channel retailer of womenswear and accessories. The Company offers clothing and accessories in a range of sizes for women through its own store portfolio, Website, mail order catalogues and through the Ideal World TV shopping channel. The Company's subsidiaries include Bluebird UK Topco, Bluebird UK Holdco and Bonmarch Limited. The Company has approximately 310 stores across the United Kingdom. more »

LSE Price
18.75p
Change
 
Mkt Cap (£m)
9.4
P/E (fwd)
19.1
Yield (fwd)
15.0

Gooch & Housego PLC is a photonics technology company, which manufactures optical components and systems. It provides photonics solutions for industrial, aerospace and defense, life sciences and scientific research applications. It operates through four market sectors: Aerospace & Defense, Life Sciences, Industrial and Scientific Research. Aerospace & Defense includes target designation and range finding; guidance and navigation; countermeasures; Space Photonics, and surveillance, displays and secure communications. Industrial comprises the industrial laser market for use in the semiconductor and microelectronic industries, and also includes other industrial applications, such as metrology and telecommunications. Scientific research covers academic and government-funded research, including multi-national projects. The Life sciences business includes optical coherence tomography, laser surgery, microscopy and development and manufacturing of medical and diagnostic devices. more »

LSE Price
1295p
Change
-2.3%
Mkt Cap (£m)
330.7
P/E (fwd)
21.7
Yield (fwd)
0.9

Trakm8 Holdings PLC is a Big Data company. The Company, through its subsidiaries, manufactures, distributes and sells telematics devices and services. The Company focusses on owning the intellectual property that it uses in its products and solutions. It supplies its customers in the fleet management and insurance sectors across the United Kingdom. In addition, the Company provides hardware devices that can be integrated into third party telematics or Internet of Things (loT) solutions. It offers Configuration Manager, Product Datasheets, Radio Frequency Identification, Telematics Devices, Vehicle Connectivity and Accessories, among others. Its portfolio of solutions includes Trakm8 ecoN, Trakm8 Tacho, Trakm8 Secure, Trakm8 Logistics and Trakm8 Insure. Its portfolio offers telematics solutions, including dashboard cameras that enable customers to record driving incidents and mitigate the risk from crash to cash accidents. It provides bespoke solutions and engineering support services. more »

LSE Price
23p
Change
 
Mkt Cap (£m)
11.5
P/E (fwd)
8.4
Yield (fwd)
n/a



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


2 Posts on this Thread show/hide all

marben100 7th Dec '14 1 of 2
2

I met with Plastics Capital (LON:PLA) on Thursday, to discuss their results and outlook:

The fall in oil price raises the possibility of margin improvements. Apparently the shares are trading on a P/E under 10, with a 3.5% yield. That seems cheap at first glance.

I was a little disappointed by the results, but the outlook was encouraging and, as you say, makes the shares look cheap. I wouldn't expect too much impact from commodity price movements, as sales contracts/prices tend to be linked to commodity prices. There might be some slight benefit from a potential lag between input and output prices falling. Of much more significance, however, is the signature of some major contracts for their ball-bearings business. These give them 75-80% visibility over 2nd half revenues, via firm orders, which is what leads to the optimistic outlook statement and the confidence to raise the dividend.

The newly acquired Flexipol business is in the process of being integrated into Plastics Capital's stable, which should lead to some cost synergies in due course.

The business is being held back by weak conditions in a number of their markets, notably Europe. Capital and consumer discretionary spending is on the floor there. No sign of that improving yet, but when a recovery comes that could provide quite a boost.

Cheers,

Mark

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Geoffers45 8th Dec '14 2 of 2

Mattioli Woods looks interesting but the directors have been selling an appreciable amount of shares this year.

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