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

Wednesday, Jul 11 2018 by
14

Morning all!

Low & Bonar ( Low & Bonar (LON:LWB) ) – 47.9p – £158.1m – PER 6.98

Interim Results For The 6 Months To End May 2018 – Revenue is up (slightly) but Profits have taken a circa 50% hit. The Interim Dividend has been maintained.

Although the Interim Dividend has been maintained, if it’s a softener, I doubt it’s enough – Remains on my Avoid list.

Air Partner ( Air Partner (LON:AIR) ) – 111.25p – £58.1m – PER 11.6

AGM Statement – Lots of mention of strong and growth but no mention of Revenue or Profit performance, or at least it wasn’t clear to me.

I sold out here after the accounting issue (which they intend to learn from!) and I don’t see anything in this statement to want to buy back in at present.

Alpha FX ( Alpha FX (LON:AFX) ) – 530p – £176.6m – PER 23.3

Trading Update For The 6 Months To End June 2018 – Revenue up 50%+ and confident of earnings for the FY to be in-line with expectations.

This update provides some confidence that the great Revenue increases will be reflected in EPS. I am tempted here and if I don’t take a position soon it will go on my Watchlist.

Swallowfield ( Swallowfield (LON:SWL) ) – 315p – £54.0m – PER 11.3

Trading Update For The 12 Months To End June 2018 – Broadly in-line, Revenues similar to last year with PBT to be significantly ahead of last year (due to growth in own brand sales). Net Debt at £11m – Expecting it to reduce significantly in the new financial year!

This was on my Watchlist at the 310p level and although we’re there now, I am just not convinced by this update (which I was waiting for) – I am going to go Neutral here and see what the actual results (profits) look like and how that Debt is handled.

Safestyle ( Safestyle UK (LON:SFE) ) – 49.7p – £41.1m – PER 8.20

Trading Update – Revenues to be below market expectations and a loss is now expected – Ouch!

Not sure why I still bother covering this – It remains on my Avoid list.

Telit Communications ( Telit Communications (LON:TCM) ) – 155p – £202.6m – PER 27.3

Trading Update For The 6 Months To End June 2018 – In-line – “Our gross margins have now stabilised and together with the revenue growth and costs rationalisation, we are making headway towards a return to being a sustainably cash generative business”.

I’m still not brave enough to invest in this one – It remains on my Avoid list.

Blancco Technology ( Blancco Technology (LON:BLTG) ) – 74p – £47.4m – PER 18.4

Trading Update For The 6 Months To End June 2018 – Revenue up but not as much as expected with Adjusted Operating Margin higher than expected.

I am not really sure what this update will mean when we see the actuals – It will remain on my Avoid list until then.

As always, all comment most welcome!


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Low & Bonar PLC is a United Kingdom-based company engaged in international manufacturing and supply of performance materials. The Company's segments include Building & Industrial, Civil Engineering, Coated Technical Textiles, and Interiors & Transportation. The Building & Industrial global business unit (GBU) supplies a range of technical textile solutions for applications in the building, roofing, air and water filtration and agricultural markets. The Civil Engineering GBU supplies woven and non-woven geotextiles and construction fibers used in infrastructure projects, including road and rail building, land reclamation and coastal defense. The Coated Technical Textiles GBU supplies a range of technical coated fabrics providing aesthetics and design, performance and protection. The Interiors & Transportation GBU supplies technical fabrics used in transportation, interior carpeting, resilient tiles and decorative products. more »

LSE Price
31p
Change
-8.8%
Mkt Cap (£m)
112.2
P/E (fwd)
6.3
Yield (fwd)
9.1

Air Partner plc is a United Kingdom-based aviation services company. The Company provides aviation services and solutions in air charter, specialist travel management, crisis and emergency planning, aircraft remarketing and aviation safety consultancy. The Company's segments include Commercial Jets Broking, Private Jets Broking, Freight Broking and Baines Simmons. Its commercial jets services include charter of large aircraft for over 20 people for governments, corporates and tour operators, among others. Its private jets services include charter of small aircraft and jets for approximately 20 people, for business and leisure by corporates, high net worth individuals and governments. Its freight services include charter of cargo transport aircraft and part-charter for regular and bespoke requirements. Its subsidiaries include Cabot Aviation Services Limited, which offers aircraft remarketing services, and Baines Simmons Limited, which offers aviation safety consultancy services. more »

LSE Price
102.75p
Change
-0.7%
Mkt Cap (£m)
54.0
P/E (fwd)
11.2
Yield (fwd)
5.6

Alpha FX Group PLC is a corporate foreign exchange (FX) broker with a focus on helping its clients to control the impact currency volatility has on their business. The Company operates Alpha FX. Alpha FX develop tailored hedging programmes that help businesses balance when, how much and how far forward to buy currency. Its Approaches include Passive Hedging, Active Hedging, Hedge Accounting, Dispute Resolution and Key Features. Passive Hedging Strategies are focused on protecting businesses from the unpredictable nature of currency markets in order to provide a predetermined level of financial stability. Active Hedging Strategies provide the protection and stability of a passive strategy. Hedge Accounting helps businesses, who are susceptible to volatility in their Profit and Loss over their reporting period. Dispute Resolution provides a resolution to mis-sold FX options. Key Features include technical analysis, hedging facilities, settlement, reporting and pricing. more »

LSE Price
620p
Change
-0.8%
Mkt Cap (£m)
228.4
P/E (fwd)
24.8
Yield (fwd)
1.2



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


2 Posts on this Thread show/hide all

MrContrarian 11th Jul 1 of 2
2

My morning smallcap tweet: Ilika bigging-up its cells again.

Ilika (LON:IKA), Fishing Republic (LON:FISH), PCI- PAL (LON:PCIP), Swallowfield (LON:SWL), Safestyle UK (LON:SFE), Frenkel Topping (LON:FEN)

Ilika (IKA) £4m placing and £1m open offer at 20p, a 13% discount. Needed for larger battery development but mainly for keeping the lights on (£3m). "Ilika has now extended its commercialisation roadmap to include large format Stereax cells for automotive power and now intends to build a new pre-pilot production line." I don't see how the orders of magnitude increase in capacity will be achieved. The Stereax M250 cell (albeit very small) has 10,000 less capacity than a typical Li-on cell.
Fishing Republic (FISH) guides H1 rev £3.4m (£4.1m). Store LFL -22%. Q1 margins below the Company's expectations mainly as a result of clearing old product lines. They knew they were doing that, right? Q2 margins improved, close to 2017. Absurdly slow reporting of dismal Q1.
PCI PAL (PCIP) guides FY broadly in line with expectations. "Our stated strategy is to focus on the channel sales route to market, evolving away from our previous mainly direct sale route. I am pleased at how quickly this evolution is happening albeit that we are still learning the timelines of the contracting, testing and go-live process."
Swallowfield (SWL) guides FY broadly in line with expectations. Rev flat but pre-tax significantly up despite underlying operating profit marginally behind last year. F/V is for rev up 1%,
Safestyle UK (SFE) warns FY rev below market expectations and small U/L pretax loss. Blames weaker consumer spending, loss of significant numbers of canvass, sales and installation staff to the new competitor.
Frenkel Topping (FEN) warns H1 operating profit halved YoY and FY profit below market expectations.

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BlueFrew 11th Jul 2 of 2
2

Telit Communications (LON:TCM) - As expected really. Net debt up to $25m from $9.3m at the same time a year before (it would have been obvious if they had repeated what they did last year and compared debt at December and at the same point the year before). From June '16 to June '17 they burned through about $30m. Debt went from $29.1m to $9.3m despite a placing which raised $49.7m. So only burning through $15.7m is a result of sorts I suppose.

We don't know how the rest of the balance sheet looks, so we can't see if there are any other shenanigans going on. Especially now there is no independent oversight.

Regardless the banks must be getting pretty nervous, especially with corporate governance as it is now. Peak debt over the year is much higher than either the June or December figures. They should remain within their current facilities, assuming things don't deteriorate and no hidden nasties. But things are getting tight.

The big unknowns are the FCA investigation into insider dealing (I'm surprised it's taking so long) and the BAMES litigation. The information in the public domain about both these things should give anybody still holding here pause for thought.

(Short Telit Communications (LON:TCM) )

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