Animalcare Group (LON:ANCR) (ANCR, 90.5p, £18.15m) has disposed of the agricultural business, Fearing International and the business and assets of Ritchey Ltd for a cash consideration of £3.25m to Tru-Test Ltd. The disposal is in line with the group’s strategy and will allow it to focus on the core Animalcare veterinary medicines business. At 30 June 2009, the Agricultural businesses comprised net assets of £4.83m including fixed assets of £1.08m and stock of £0.85m. The division reported revenues of £7.12m and operating profit of £0.57m at the end of June 2009. The use of the funds is still to be decided. We would not be surprised if the group dispose of its loss making Travik Chemicals business. The restructuring of the business encourages us to reiterate our HOLD.
Archial Group (LON:ARL) (ARL, 1.5p, £3.57m) Share has been suspended this morning ahead of a meeting tomorrow with the UK’s HMRC regarding tax paid in previous years. We have been sellers for some time and this highlights the danger of substantial future dilution on an adverse outcome – if the company can find sufficient backers. Given it is suspended we maintain a now notional SELL.
Ceps (LON:CEPS) (CEPS, 28.5p, £2.37m) Interims to June 2010 saw revenues grow 5% to £7.9m (£7.5m) though gross profits fell to £0.87m (£0.98m), gross margins of 11% (13.1%), with op profits of £0.26m (£0.38m) and PBT of £0.12m (£0.23m) with EPS of 0.61p (2.14p) post an increased Friedman’s minority stake. Net debt increased from the year end £2.23m to £2.52m, reflecting the build up in inventories ahead of the stronger H2. Davies Odell disappointed slightly – hit by raw material increases forcing price rises though shoe repairs saw some improvement. Friedman’s improved margins by sourcing from the Far East and by growing exports to offset a flat UK market. Sunline kept volumes in polwrap at the expense of margins while in Solutions the group virtually lost its key customer in May. With the group sitting on a rating somewhere between 12x & 15x PER (should H2 not improve) the group appears well up with events and we move the group to a SELL with a 23.75p price target.
Corero Plc (LON:CORO) (CORO,…
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