I Read The News Today Oh Boy! 16-Jan-2018

Tuesday, Jan 16 2018 by
20

Morning All!

Innovaderma ( Innovaderma (LON:IDP) ) – 264.6p – £38.0m – PER 17.2

Trading Update For The 6 Months To End December 2017 – Revenue up 31% (CC) to £4.2m (H1 FY2016: £3.2m), Skinny Tan in the UK doing well. The Roots™ Double Effect ("Roots") haircare range, launched in August 2017 is growing in popularity and has performed strongly in the period. Confident of meeting market expectations for the current financial year with much greater revenue visibility for the second half than in prior years.

Good news for Skinny Tan and the new Roots product too – It seems. I am now going to add this to my Watchlist, 220p.

Communisis ( Communisis (LON:CMS) ) – 69p – £144.5m – PER 10.5

Trading Update For The 12 Months To End December 2017 – An in-line update with Net Debt reduced to £24.3m (£30.4m last time). Pension deficit down significantly to circa £38m ( from £55.5m).

Nice to see the Net Debt and Pension Deficit down. I’m almost tempted here but will remain Neutral for now. Up almost 10% yesterday (on a massive increase in volume) suggests the insiders liked this update before we had a chance!

K3 Capital ( £K3C ) – 162.75p – £68.7m – PER 14.7

Interim Results For The 6 Months To End November 2017 – A strong H1. Revenue up 34% to £7.5m (£5.6m last time), EBITDA up 28%, EPS up 32% (6.14p) and the Dividend is up 217%. Momentum has continued into H2. Trading comfortably in line with management's expectations.

I quite like this and it’s going on my Watchlist, 140p.

1PM ( 1pm (LON:OPM) ) – 55.53p – £47.8m – PER 7.15

Interim Results For The 6 Months To End November 2017 – Revenue up 74% to £13.9m (H1 2016/17: £8.0m), PBT (and exceptional items) up 77% to £3.6m (H1 2016/17: £2.0m) EPS up 4.9% to 3.23p per share despite a significant issue of shares in the period.

I was long here previously but got cold feet and got out for a small loss. I opened a small position after a trading update. After a bit more investigation the dilution (shares in issue doubled in…

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InnovaDerma PLC is a holding company. The Company develops a range of male and female at-home and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation. It operates through hair and beauty division. Its products include Leimov Personal Hair Laser Starter Kit, Leimov Hair Treatment Pack, Leimov Bio Cleansing Shampoo, Leimov Thickening Conditioner, Leimov Scalp Therapy Day Treatment, Leimov Scalp Serum Night Treatment, Leimov Deep Cleansing Scalp and Body, Leimov Hair Treatment Pack for Her, Leimov Personal Hair Laser Starter Kit for Her, Leimov Vitality Shampoo, Leimov Follicle Boost Therapy, Leimov BioPlex Scalp Serum, Leimov Scalp and Body Exfoliating Spa, Leimo Instant Hair Introductory Pack, Leimo Instant Hair Regular Pack, Leimo Instant Hair Building Fiber, Skinny Tan-Ab Shader, Skinny Tan-Dermabrasion Pre-tan Primer, and Tan and Glow. It operates in the United Kingdom, the United States, Australia, New Zealand, the Philippines and South Africa. more »

LSE Price
79p
Change
1.3%
Mkt Cap (£m)
11.5
P/E (fwd)
6.9
Yield (fwd)
n/a

Communisis PLC is a United Kingdom-based integrated marketing services company. The Company helps in communication between brands and their customers. It creates content and delivers across multiple customer touch-points in digital, broadcast and print channels. It operates in three segments: Design, Produce and Deploy. The Design segment offers marketing expertise, communications consultancy and creative services specializing in customer relationship marketing, shopper marketing, brand activation and financial services content. The Produce segment includes its outbound transactional services for billing and statements for financial services and utilities. The Produce segment includes its capabilities, such as document composition, workflow management, and digital output, such as e-mail. The Deploy segment offers brand deployment support with service lines, such as campaign management, studio services, supplier sourcing, governance, in-store activation, and warehousing and logistics. more »

LSE Price
70.8p
Change
 
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a

K3 Capital Group Plc, along with its trading subsidiaries, Knightsbridge, KBS Corporate and KBS Corporate Finance, are a group of business and company sales specialists across business transfer, business brokerage and corporate finance, serving owners across the United Kingdom in the small cap marketplace. The services provided by the Company include the presentation of their clients' businesses for sale to market, the sourcing of potential acquirers and project management of transactions to completion. more »

LSE Price
147p
Change
 
Mkt Cap (£m)
62.0
P/E (fwd)
10.6
Yield (fwd)
7.8



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


11 Posts on this Thread show/hide all

MrContrarian 16th Jan '18 1 of 11
5

My morning smallcap tweet:

IG Design (LON:IGR), Simigon (LON:SIM), Distil (LON:DIS), £K3C, Van Elle Holdings (LON:VANL), Interserve (LON:IRV), Alpha FX (LON:AFX), Premier Technical Services (LON:PTSG)

"IG Design Group (IGR) good Q3, guides FY ahead of current market expectations."
Simigon (SIM) FY trading. Rev $4.3m impacted by customer withholding some payment over $1.4m contact. $0.7m deferred to 2018 pro tem. Adj net loss of approximately $1.1m. $20m backlog over 5 years, guides 2018 rev $5m.
Distil (DIS) Guides FY in line despite Q3 growth down to 19% from 26% for H1. "Major promotional activity during the quarter and a growing consumer awareness of our brands led to a strong sales." Launches Blackwoods 2017 Vintage Dry Gin. Vintage gin? Isn't that deliberately misleading?
K3 Capital Group (K3C) H1 above management expectations with rev up 34% to £7.5m, pretx £3.2m (2.5m). Hikes div to 2.85p (0.9p). Guides FY comfortably in line with mkt expectations.
Van Elle (VANL) Carillion insolvency exposure £1.6m debt and WIP. Adverse financial impact if unable to recover any monies. H2 orders book £2.5m from Carillion. "It is too early to say whether there will be any effect on the commencement or completion dates of contracted work with Carillion, or what impact these developments will have on future work programme"
Interserve (IRV) wins 4 year £37 million passenger support contract from Spanish airports operator, AENA.
Alpha Fx Group (AFX) Guides FY rev ahead of exp at £13.5m and underlying operating profit margin in line. So an adjusted profit beat?
Premier Technical (PTSG) 2017 in line, 2018 will be materially ahead of current market forecasts

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Beginner 16th Jan '18 2 of 11
4

Van Elle Holdings (LON:VANL) are citing a possible 10-20% hit in revenue due to Carillion (LON:CLLN) going under. The price here is down just 10% at the mo. Probably worth avoiding for now.

(I meant to say also that I cannot see the attraction of Premier Technical Services (LON:PTSG) .  Take away the intangibles and there are no assets, and it has been growth by acquisition, some of which have been very small.  That could be problematic in the future.  I also feel that some of the RNSs have been a little disingenuous.  Having said all that, my scepticism to date has been totally misplaced!)

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matylda 16th Jan '18 3 of 11
7

A few more this morning, ones I didn’t have time for before 8:00am…

IG Design ( IG Design (LON:IGR) ) – 391p – £241.6m – PER 17.2

Q3 Trading Update Covering The Christmas Period – Strong trading. Expects to deliver record revenues in 2018 with the continued expansion of its global footprint outside the UK which the Board expects will account for over 70% of sales. All regions on track to achieve YoY Revenue and Profit growth. EPS expected to be ahead of current market expectations.

Still liking this, it remains on my Watchlist, 380p.

Premier Foods ( Premier Foods (LON:PFD) ) – 42.75p – £358.0m – PER 5.60

Q3 Trading Statement For 13 Weeks To 30-Dec-2017 – LFL Q3 and YTD Revenues up slightly, a few percent or so. Outlook is unchanged.

There’s still loads of Net Debt here (well over 100% of Mkt Cap) and the Pension Deficit is about £100m. Still can’t get excited here.

Crossrider ( Crossrider (LON:CROS) ) – 72p – £98.2m – PER 17.9

Trading Update For The 12 Months To End December 2017 – In-line.

The growth looks OK here but probably fairly priced at best. Without seeing “real” profits, EBITDA only mentioned in the latest update, hard to make any kind of call. I’m going to wait to see the actuals.

Alpha FX ( Alpha FX (LON:AFX) ) – 538p – £174.3m – PER 28.9

Trading Update For The 12 Months To End December 2017 – Revenue for the year is ahead of expectations and is expected to be £13.5m, Profit expected to be in-line.

No doubt this company can grow Revenue but can Profit and EPS grow at a rate to justify a PER of almost 30. I am not convinced at present.

Science In Sport ( Science in Sport (LON:SIS) ) – 74p – £49.2m – PER n/a

Trading Update For The 12 Months To End December 2017 – In-line. Revenue up 28% to £15.6m (£12.2m last time), no mention of Profit/Loss.

Even if Revenue of £15.6m is achieved (up 28%) and things are in-line it means a Net Loss of -£3.88m versus a Net Loss of -£2.64m last time with EPS of -8.20p per share versus -6.21p last time. With an estimated £3.88m in Cash (strange coincidence?) according to Stockopedia – This is hardly inspiring at all. I am avoiding this one for now.

Blog: Briefed Up
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brentpease 16th Jan '18 4 of 11
1

If at all possible, would welcome any comments on the trading update by Anglo Asian Mining (AAZ) this morning. Looks like they will be debt free by mid year (47% debt reduction last year) and are trading on a forward pe of less than 2. This quality, value and growth play seems to have been overlooked by the market and while it is liked by the stock rankings I feel they have some catching up to do.

Greatly appreciated

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pippasfan 16th Jan '18 5 of 11

The gym. What needs to get you off the fence, so to speak. I have shares in the gym, so am interested in your ideal news please ?

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brentpease 16th Jan '18 6 of 11

Apologies, have now seen your note on the small cap report that you are not covering stocks from the resource sector, which seems a shame, but I can understand you have limited time and we have all had many free lunches from you already :-)

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matylda 16th Jan '18 7 of 11
1

In reply to post #298623

GYM (LON:GYM)

Although "I find it interesting and impressive enough" - For a company on such a high valuation (for the sector) I would have liked to see some reference to Profit here. It's not hard to grow Revenue whilst Profit lags. As a holder would I be concerned with this update? Perhaps, if I bought above 220p I would be. If I had bought sub 180p then I would be more relaxed, In fact around that level I might get off the fence myself, even without seeing the actual Profit figures.

I wish you well with the holding.

Blog: Briefed Up
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abtan 16th Jan '18 8 of 11
1

In reply to post #298668

Hi Matylda

Re GYM (LON:GYM) the real story is in the cash flow, which is fantastic and, in my opinion, greatly strengthened by today's update.

There have been useful comments in the past in this forum. For ease I'm referencing 2 of my previous posts, but there are far more useful contributions from other posters on the same pages:

1) Here

2) And Here


Also keep in mind that Pure Gym sold for £600m (+£120m of debt on top) last year with an EBITDA of c£47m 

vs 

c£30m EBITDA expected from GYM (LON:GYM) this year. The Gym Group's EV is currently £295m

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matylda 16th Jan '18 9 of 11

In reply to post #298728

Much appreciated, thanks for taking the time to update. Its clearly something where some see more value than I do.

Blog: Briefed Up
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pippasfan 16th Jan '18 10 of 11

In reply to post #298668

Thank you, appreciate your thoughts

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crazycoops 16th Jan '18 11 of 11
1

In reply to post #298618

Hi brentpease

Re: Anglo Asian Mining (LON:AAZ) - As a holder, I was very happy with the update today. I’m not sure they are overlooked by the market though. The shares have moved up quite steadily over the past few months. It’s a great little company with excellent leadership and personnel. I am happy for the shares to re-rate gradually as the strategy is executed. Several further updates on that front during Q1 should see further progress. Thankfully, it has not yet attracted too many noisy traders - long may it continue.

Blog: Share Knowledge
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