I Read The News Today Oh Boy! 11-Dec-2018

11th Dec '18 by matylda

6 comments 2787 reads

Morning all!

Bilby ( Bilby (LON:BILB) ) – 91p – £36.9m – PER 6.63

Interim Results For The 6 Months To End September 2018 – Revenue down, PBT down, EPS down, Dividend maintained. Expects EBITDA to exceed last year.

I reckon this is fairly valued here (at best).

Carpetright ( Carpetright (LON:CPR) ) – 16.35p – £50.1m – PER n/a

Interim Results For The 26 Weeks To 27^th October 2018 – On track to deliver £19m in cost savings, average store lease reduced to 3.5 years (52% having a 2 year break clause). Revenue down 15.7%, Loss up from -£0.6m to -£11.7m.

Hope those cost savings kick in soon, remains on my Avoid list for now. Worth keeping a note here that N+1 Singer state that there’s £60m assets (property freehold) here.

Driver ( Driver (LON:DRV) ) – 78.5p – £42m – PER 12

Preliminary Results For The 12 Months To End September 2018 – Revenue up 6% to £62.6m, Underlying PBT up 54% to £3.8m, EPS of 4p (0.7p last time), Net Cash of £6.9m (Debt of –£0.2m last time). New year has started in-line with management expectations.

This still looks quite good, it’s just a pity there is no guidance from the company or Brokers (that I can find).

K3 Capital ( £K3C ) – 273p – £115.2m – PER 20.2

Trading Update For The 6 Months To End November 2018 – Achieved significant Revenue and Profit growth in H1, expecting H2 to also be strong, confirms trading in-line with market expectations.

I still consider this overvalued here (even 33% of the all time high), perhaps I have got my numbers wrong!

MySale ( MySale (LON:MYSL) ) – 34.65p – £53.5m – PER 17.8

Trading Update – Looks like a H1 update - Challenging conditions, Revenue and Profits to be significantly below market expectations. This remains the case even based on an expected significantly improved H2.

This is now going on my Avoid list, at least for the time being.

RM ( RM (LON:RM.) ) – 184p – £154.3m – PER 7.57…

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Edmund Shing

11th Dec '18

Like RM (LON:RM.) today, as you point out, very cheap valuation, plus positive EPS momentum and revisions over the past 12 months, underlined by the results today. With EV/EBIT of around 7x and modest growth expectations that might be revised higher, I am staying positive on this. I particularly like the fact that net debt post Consortium acquisition has been more than halved from £13m to £6m now.
Ed

MrContrarian

My morning smallcap tweet: MySale sales fail.

Telit Communications (LON:TCM), Venn Life Sciences Holdings (LON:VENN), Driver (LON:DRV), Carpetright (LON:CPR), MySale (LON:MYSL), IXICO (LON:IXI)

Telit Communications (TCM) guides FY rewv $415-$425m, remains on course to deliver a positive 'profit in cash' in H2. Another $10m PA cast savings found. Expects significantly improved profitability and cash generation in 2019. Sale of automotive division won't complete until end Jan, 6 months after it was announced.
Venn Life Sciences (VENN) strategic collaboration with Open Orphan DAC. Parties will commit to resource sharing and joint marketing in rare disease segment. Also £1m loan note over 2 years at 10% PA. Lenders gifted 3% of co and 5.5% in warrants at 2.2p, the current SP.
Driver Group (DRV) FY ahead of 'original' market expectations. What does that mean? Rev £62.6m is slightly above F/C. Restarts div, at 0.5p.
Carpetright (CPR) H1 rev down 16%. LFL down 12.7% of which Q2 'only' -8.9%. Pretax -£11.7m (-£0.6m). Restructuring progress in line. Going concern stmt.
Mysale Group (MYSL) guides FY rev and profit significantly below market expectations after poor Q2, the peak season. Blames "greater than anticipated market disruption arising from changes to general sales tax regulations in Australia...exacerbated by the product mix and an insufficient proportion of the 1P (own-buy) inventory being located in the local distribution centre." Guides return to growth in underlying EBITDA in H2. I hold.
IXICO (IXI) CFO out. She is thanked.

Albertos

12th Dec '18

RM (LON:RM.)

For those interested, the following from the Investors Chronicle;-

"For house broker Numis, the shares are “materially undervalued”. Analysts here have upgraded their operating profit and EPS forecasts for the 2018 financial year by around 3 per cent, taking the former to £26.8m from £26m, and the latter to 24.3p from 23.5p."

I suspect that's the most PI's will see of broker notes.

Phil

matylda

Phil, may I ask, where you seeing that Numis Broker note?

Hi

I'm not seeing the Numis note - it's just referred to in an Investors Chronicle article.

Like you I suspect my only access to real broker's notes is thru Research Tree.

Phil

13th Dec '18

Cheers Phil.

I Read The News Today Oh Boy! 11-Dec-2018

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Matylda

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