Brady (LON:BRY) (BRY, 67p, £18.94m) has been selected to provide a complete solution to support Selco Finance & Industrial Group’s substantial oil trading base. The stock has almost achieved our 69p price target – still a HOLD.
Corin Group (LON:CRG) (CRG, 54.0p, £23.10m), the leading manufacturer and supplier of orthopaedic devices, reports interims to 30 June 2010 are in line with full year expectations. The company continue to make good progress with group revenues up 9% to £21.9m (H109: £20.1m), up 6% on constant currency basis. The European market continued to suffer with revenues down by 10% on constant currencies, but this is offset by the strong growth in Australia, US and the ROW. Normalised operating profit increased to £0.9m (H109: £0.8m). Net debt reduced to £4.4m (Dec 09: £5.4m). The group maintain the interim dividend per share at 0.48p. The widening of the product portfolio, with the launch of Trinity acetabular cup, the Metafix hip stem and the innovative Minihip short stem hip, provides the group with organic revenues growth. The group has made a positive start to H2. The market forecasts 2010 PBT of £2.6m and EPS of 3.6p. On a 2010 PER of 15x, the stock seems expensive. However, when we take into consideration the historic 2009 EV/sales of 0.7x, we believe the group is fairly valued. We reiterate our HOLD recommendation.
Dq Entertainment (LON:DQE) (DQE, 124p, £44.60m) has signed a merchandising agreement with Off Road, a footwear manufacturer, for a range of products to be based on the jungle Book series being developed by DQE. BUY
Timeweave (LON:TMW) (TMW, 25.25p, £56.92m) Interims to May 2010 from the holding company for 50% of Amalgamated Racing (which owns the exclusive broadcast pictures, audio and data licences for 31 racecourses to licensed betting offices in the UK and Republic of Ireland and on TurfTV) as well as holding cash balances built from dividend payments. Revenues rose to £13.88m (£12.57m) with op profits up to £4.45m (£3.9m) with underlying PBT of £3.61m (£3.39m). As important is the cash balances that rose to £30m, including the £15.47m gross consideration from the sale of Alphameric Solutions Limited. With a 1p (0.75p) interim DPS declared the group will examine the use of the cash and potential return to shareholders. We maintain the BUY recommendation with a 30p price target.
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