I Read The News Today Oh Boy! 14-Aug-2019

Wednesday, Aug 14 2019 by
8

Morning all!

Duke Royalty ( £DUKE ) – 44p – £88m – PER 12

Trading Update For The 12 Months To End March 2019 – Results to show significant uplift on last year, Revenue and Cash Flow in-line. Pipeline remains strong.

I am Long here and if forecasts are met this still looks like good value to me on a 1 and 2 Year view. Based on the latest Broker note this morning, in my opinion, looks way undervalued on a 1 Year and 2 Year view - Net Debt a minor concern but all round growth and 6% or so Yield look good.

Lookers ( £LOOK ) – 44p – £171m – PER 5

Interim Results For The 6 Months To End June 2019 – Revenue up 2.7%, PBT down -39.7%, EPS down -29.5%, Interim Dividend held and the Balance Sheet is “strong” with Net Debt at £73.9m.

I still remain on the side-lines here and in the sector as a whole at present. Latest Broker note this morning indicates negative EPS growth (-30%) forecast for next year and a slight increase (1%) for the year after.

As always, all comment most welcome!

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Lookers plc operates as a motor retail and aftersales company in the United Kingdom. The Company operates through two business segments: motor distribution and parts distribution. The motor division consists of over 150 franchised dealerships representing over 30 marques from approximately 100 locations. Aftersales represents the servicing, repair and sale of franchised parts to customers' vehicles. Its parts division operates in the independent aftermarket sector of the United Kingdom's motor retail market, where it operates through three operating companies: FPS, Apec Braking and BTN Turbo. FPS is a warehouse distributor of automotive parts. Apec Braking is a provider of dry braking (pads and discs). BTN Turbo is a distributor of turbochargers and supplier of related value added services. Its operations are also carried out across Ireland. It sells approximately 180,000 new and used cars and vans per year. In addition, it has an independent parts distribution business. more »

LSE Price
48.3p
Change
5.8%
Mkt Cap (£m)
188
P/E (fwd)
5.4
Yield (fwd)
8.2

Duke Royalty Limited is a Guernsey-based diversified royalty investment company. The Company specializes in diversified royalty financing and provides alternative capital solutions to a diversified range of businesses in Europe and abroad. The Company’s investment policy is to invest in, without limitation and restrictions (including geographical restrictions), long-term, revenue-based royalties in private and/or public companies, and or other alternative asset classes and/or financing instruments from time to time that bear similar risk and return characteristics. The Company provides financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. It provides capital to companies in exchange for rights to a small percentage of future revenues. more »

LSE Price
44.4p
Change
 
Mkt Cap (£m)
88.7
P/E (fwd)
12.0
Yield (fwd)
7.6



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


3 Posts on this Thread show/hide all

MrContrarian Wed 7:47am 1 of 3
4

My morning smallcap tweet:

Gfinity (LON:GFIN), Green REIT (LON:GRN), Secured Property Developments (OFEX:SPD), Xeros Technology (LON:XSG)

Gfinity (GFIN) gives up on Australian JV. All spending has been expensed so no write-off.
Green REIT (GRN) gets rec cash offer of €1.9135, a 25% premium.
Sports Direct (SPD) Grant Thornton resigns as auditor effective 11 Sept. A FTSE350 co w/o an auditor soon?
Xeros Technology Group (XSG) seeking to raise £5m to £10m. £10m is expected to fund the business through to cash breakeven. Progress on moving to licensing model.

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andrea34l Wed 8:33am 2 of 3
2

The performance of Lookers (LON:LOOK) is pretty woeful compared to Marshall Motor Holdings (LON:MMH) though, as you say, this is not the time to be buying shares in car dealers.

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sharmvr Wed 9:44am 3 of 3
3

Indeed - car dealers and manufacturers are an issue globally, I just returned from India and apparently 300 showrooms have been closed in Delhi in the last quarter, production way down.
I sold out of Vertu Motors (LON:VTU) recently - may buy back in future but I am trying to include quality filters on value and with the operating margins in the sector, I am not sure they fit with my evolving style.
Think Marshall Motor Holdings (LON:MMH), Motorpoint (LON:MOTR) and Vertu Motors (LON:VTU) would be my picks in the space

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