I Read The News Today Oh Boy! 1-May-2019

Wednesday, May 01 2019 by
21

Morning all!

Augean ( Augean (LON:AUG) ) – 92p – £97m – PER 10.6

Trading Update For The 12 Months To End December 2018 – Profit expected to be materially ahead of market expectations.

Still an outstanding HMRC issue so I will remain on the side-lines until that's resolved.

Avon Rubber ( Avon Rubber (LON:AVON) ) – 1474p – £457m – PER 18.4

Interim Results For The 6 Months To End March 2019 – Revenue up 2.1% (CC) with Adjusted PBT down -27%, EPS down -31.6%. The Interim Dividend is up 30% and Net Cash is up from £39.1m to £46.8m. Confident of delivering on FY expectations.

I still see no attraction here at a price above 1000p.

Blancco Technology ( Blancco Technology (LON:BLTG) ) – 122p – £80m – PER 31.3

Trading Update For The 12 Months To End June 2019 – Expects Revenue to be marginally ahead of market expectations and Adjusted Operating Profit to be comfortably ahead.

I need to look into this a little more as there seems to be quite a material difference between Broker forecasts and those on Stockopedia.

GetBusy ( GetBusy (LON:GETB) ) – 29.5p – £14.3m – PER n/a

AGM Trading Update – Q1 in-line, FY unchanged.

I have not much more to say that I did last time here – "Still a share I remain Long in (a really stuipid purchase). Was unable to sell out here at a decent price in an illiquid market, still paying the price (as it was at a better price than today)!".

MPAC ( MPAC (LON:MPAC) ) – 131p – £27m – PER 9.2

Trading Update And Acquisition – Trading this year is in-line with the Order book significantly above last year. Bought Lambert for £15m in Cash, expected to be "materially earnings enhancing" – Expects FY to be in-line.

Becomes a little more interesting – Will keep an eye out for Broker updates here.

ULS Technology ( ULS Technology (LON:ULS) ) – 77p – £50m – PER 11.4

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Augean PLC is engaged in the provision of specialist services focused on hazardous waste. The Company operates through five segments: Energy and Construction, which includes a site at Cooks Hole in Northamptonshire where minerals are extracted and also generates energy as electricity from closed landfill cells and operates over three hazardous and non-hazardous landfill operating sites; Radioactive Waste Services, which provides waste disposal services of low level radioactive wastes and naturally occurring radioactive material produced in the United Kingdom; Augean Integrated Services; which operates a High Temperature Incinerator at Sandwich, East Kent and a site in Cannock focused on Total Waste Management solutions; Augean North Sea Services, which provides waste management and waste processing services to offshore oil and gas operators, and Industry and Infrastructure, which provides specialist industrial cleaning services and operates over three waste processing sites. more »

LSE Price
122p
Change
 
Mkt Cap (£m)
127
P/E (fwd)
12.0
Yield (fwd)
n/a

Avon Rubber p.l.c. is a United Kingdom-based technology group. The Company specializes in respiratory protection systems and milking point solutions through its two businesses, Avon Protection and milkrite InterPuls. The Company designs, tests and manufactures specialist products and services. Avon protection is the advanced chemical, biological, radiological and nuclear (CBRN) respiratory protection systems for the military, law enforcement and fire markets. The milkrite InterPuls is providing complete milking point solutions to customers across the world. more »

LSE Price
1400p
Change
1.5%
Mkt Cap (£m)
428.1
P/E (fwd)
17.6
Yield (fwd)
1.8

Blancco Technology Group Plc, formerly Regenersis Plc, is a provider of mobile device diagnostics and secure data erasure solutions. The Company's segments include Erasure and Diagnostics. The Erasure segment focuses on development and delivery of solutions, and includes Blancco, which provides erasure software; SafeIT, which is engaged in cloud and networked data erasure business, and Tabernus, which is engaged in providing software erasure products. The Diagnostic segment includes Xcaliber Technologies, a smartphone diagnostics software business. Its secure data erasure solutions include Blancco Management Console, Blancco Cloud, Blancco File, Blancco 5, Blancco Mobile Solutions, Enterprise Erase E800, Enterprise Erase E2400, Enterprise Erase Mobile and Ontrack Eraser Degausser. Its mobile diagnostics solutions include fault diagnostics, repair and program enablement. It serves manufacturers, financial institutions, healthcare providers and government organizations across the world. more »

LSE Price
136.5p
Change
-1.8%
Mkt Cap (£m)
90.6
P/E (fwd)
33.9
Yield (fwd)
n/a



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


6 Posts on this Thread show/hide all

MrContrarian 1st May 1 of 6
5

My morning smallcap tweet: Bould sinks from the ashes of Photonstar.

Bould Opportunities (LON:BOU), Castings (LON:CGS), Augean (LON:AUG)

Bould Opportunities (BOU) [was Photonstar LED Group] open offer at 0.0125p, a 79% discount, to deliver on the new strategy as a cash shell. "This is a material discount to the Company's current share price, but equally represents a material premium to the Company's cash per share." SP a year ago 0.55p, 5 years ago 7p. Epic value destruction. What's not to like?
Castings (CGS) guides FY results ahead of market expectations due to strong demand which included some customer stock building, Credit to co for highlighting that - it may unwind if due to Brexit.
Augean (AUG) guides FY profit materially ahead of market expectations due to higher landfill volumes, increased radioactive waste profit and strong performance of both the treatment and North Sea businesses.

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andrea34l 1st May 2 of 6
2

I suppose I am kicking myself for selling Avon Rubber (LON:AVON) in the previous market lull considering the price they got up to... but in the same breath I got a bit nervous about the performance, and I am glad I don't now hold them on this poor update.

I am presuming that the excitement in the share price of MPAC (LON:MPAC) is due to the acquisition - it does seem a very good value buy. The strong order book also bodes well. EDIT: I looked at the interim and final results for last year, and I don't feel compelled to buy - I'd worry whether the H1 blip is a one off, I also think the broker forecasts are a tad optimistic. 

I am a bit wary of buying Blancco Technology (LON:BLTG) after this update - they say that "...cost investment initiatives put in place since September 2018 are ongoing and are yet to be fully costed within the organisation...", doesn't this mean that next year's results could see profits affected by more costs? In any case, the valuation seems a bit steep to me.

There is an exciting acquisition announcement from TP (LON:TPG) this morning, of Sapienza for €11.5m initial consideration which is seen to be "significantly earnings accretive for the year ending 31 December 2020"; it doesn't seem too expensive either. Glad I topped up the other day...

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matylda 1st May 3 of 6
4

Hi Andrea,

MPAC (LON:MPAC) - The other thing is that £400m Pension deficit "The large size of the UK (£377.7m of liabilities) & US (£22.5m of liabilities) defined benefit, pension schemes compared to MPAC's market capitalisation".

Blancco Technology (LON:BLTG) - This is just too complicated for my small brain, mush easier stuff to analyse than worry myself getting bogged down in the numbers here. I do suspect though that longer term (5 years or so) this could be much much higher.

TP (LON:TPG) - I reckon there's still 50% upside from here even without taking into account the £10m Net Cash still available for further acquisitions.

Thanks as always for the input.

Blog: Briefed Up
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andrea34l 3rd May 4 of 6
2

I just thought I would add that a less scary way to invest in Augean (LON:AUG) is buying shares in Gresham House Strategic (LON:GHS) which has an investment in them. They continue to trade at a significant discount to NAV. The rating of Augean (LON:AUG) is pretty low considering their trading update... but the £30m+ tax argument is a bit of a risk - note, this won't receive a hearing until next year.

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matylda 3rd May 5 of 6
1

In reply to post #473691

Thanks Andrea, I certainly favour the exposure via a more diversified Gresham House Strategic (LON:GHS) but at present I think I will sit it out in both instance. Thanks again for pointing out to all.

Blog: Briefed Up
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wilkonz 4th May 6 of 6
1

The NAV for Gresham House Strategic (LON:GHS) is certainly favourable but the management charge is 3.35% pa which is going to eat into any future profits.

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