HB Markets Small Companies Newsflash

AGA Rangemaster Group (AGA, 109.75p, £75.99m), the designer, developer, manufacturer, seller and service provider of premium brand cookers, kitchen and household products, reports an IMS for the 4 months to 30 April 2010. The group’s market is more stable than the previous year. Sales growth is expected to be driven by the introduction of new products. Management anticipate revenues for 2010 to exceed 2009. We expect the benefits of the cost savings to come through the current financial year. However, we believe the uncertainty surrounding the UK economy does not bode well for the company. The strong balance sheet with tangible net assets of £61.8m, encourages us to retain our HOLD recommendation. 

API Group (API, 7.75p, £5.43m) Trading update for the year suggests the second half was better than expectations and will result in an overall operating profit for the year, boosted by sales up 10% H2 on H1 – aided by a strong European recovery. However the group has failed to stem the losses at its Chinese subsidiary and will take a £2.6m hit in the report & accounts against those assets. Given the group reported a £1m operating loss in H1 the implication is a run rate of at least £2m for the new financial year, though still not sufficient to achieve overall profits probably. Still a HOLD.

Clarke (T.) (CTO, 142.75p £57.03m) Q1 2010 trading statement highlights some signs of a recovery in its markets, though timing and strength of the recovery remains uncertain. The forward order book has strengthened to £200m (£175m) and its net cash position of £11m (£21m in April 2009) is after £8.1m investment in D&S Engineering Facilities. The group has warned that existing projects may still be delayed, especially those relating to Government spend. We drop the recommendation to a HOLD for the time being till greater certainty on the outlook is evident.

Cryptologic (CRP, 205p, £26.30m) Q1 results saw revenues of $7.6m ($9.9m) with a substantially reduced loss of $3.2m (loss $24.8m) with net cash of $19.7m ($23.7m). Branded games showed modest gains to $1.3m ($1.2m) revenues as it added 26 games to take the total to 92 at the period end. The group is reporting growth in Q2, boosted by 108 branded games in use with a further backlog of another 92 and the expectation that the full casino suite will go live fro Betsafe.com. Still a HOLD.