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

16th Oct '18 by matylda

3 comments 2725 reads

Morning all!

DotDigital ( dotDigital (LON:DOTD) ) – 84p – £249.8m – PER 22.3

Preliminary Results For The 12 Months To End June 2018 – Revenue up 35% to £43.1m (2017: £32.0m), Adjusted Operating Profit up 22% to £10.0m (2017: £8.2m) with Adjusted Diluted EPS up about 25% to 3.12p (2017: 2.46p).

I still like this and it remains on my Watchlist for now – Seems to have trouble breaking that 100p level and not sure these results provide the catalyst for that!

Nanoco ( Nanoco (LON:NANO) ) – 34p – £97.2m – PER n/a

Trading Update For The 6 Months To End September 2018 – Revenue up more than 100% to £3.5m (2017: £1.6m), Loss after tax down from £9.1m to £6.0m, Cash Position up to £10.7m - Sufficient to fund the Group assuming commercial production revenues start early in H1 FY20.

I am going to remain Neutral while it’s still clearly loss making.

Netcall ( Netcall (LON:NET) ) – 61p – £87.2m – PER 23.5

Audited Results For The 12 Months To End June 2018 – Revenue up 32% to £21.9m (FY17: £16.2m), PBT £45,000 (F17: £1.68m) and Diluted EPS 0.09p (FY17: 1.03p) – Both after acquisition related expenses.

This remains on my Watchlist for now, still cannot quite jump off the fence either way here – Will be on the lookout for Broker notes later in the day.

Footasylum ( Footasylum (LON:FOOT) ) – 32.5p – £34.0m – PER n/a

Trading Update For The 26 Weeks To The 25^th August 2018 – “Currently trading in line with the FY19 expectations that were rebased with the trading update of 3 September 2018”.

I still can’t do much more than remain Neutral here.

Gear4music Holdings ( £G4M ) – 482.5p – £101.1m – PER 34.1

Trading Update For The 6 Months To End August 2018 – Revenue up 36% with a 40% increase in active customers (gross margin down 230bps). Strong Revenue growth in H2 to date means trading is in-line with FY (Revenue and EBIDTA (no mention of Profit or EPS)) expectations.

This keeps looking more attractive the cheaper…

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MrContrarian

16th Oct '18

My morning smallcap tweet: Lame FOOT cuts store growth pace.

£G4M, Nektan (LON:NKTN), Footasylum (LON:FOOT), Driver (LON:DRV)

Gear4music (G4M) H1 rev up 36% but gross margin down 230bp. "Particularly strong revenue growth since 1 September alongside notable gross margin improvements on H1. As such, we remain confident of delivering another year of strong revenue growth and EBITDA in line with our full year expectations." That's based on only 6 weeks H2 trading though.
Nektan (NKTN) wins contract for E-Lite casino platform from BetVictor. No numbers, not even duration.
Footasylum (FOOT) H1 adj pretax -£4m (£2.3m). Guides FY in line with recently 'rebased' ie cut F/C. "FY20 the Company will scale back its targeted store expansion programme to two new stores and two upsizes per annum, until the capacity for greater investment returns. As a result, associated costs in FY20 will be lower than previously expected." Not stated if this is in the F/C.
Driver Group (DRV) guides FY underlying pretax comfortably ahead of market expectations, at ~£3.8m. Net cash £6.9m, also comfortably ahead of market expectations.

Gromley

Re Driver (LON:DRV)

Why do you expect EPS to be down?

Stocko forecasts are for it to rise and with their "underlying" PBT up at £3.8m (vs £2.5m) with no new shares issued (AFAICS) - isn't that a positive indicator?

It's true that translation from underlying PBT £2.5m to Actual PAT £0.3m last year was pretty poor, but that did include £1m loss on discontinued operation (including loss on disposal) and a further £1m exceptional costs which do look like they are exceptional.

"Share based payments" is the only debatable adjustment but was only £170k (although £1.1m the previous year) Not totally sure though what is implied by today's statement

The non-cash share-based payment charge deducted in calculating reported PBT will be assessed as part of the audit sign-off process. It is anticipated that this may increase further as the Board's expectations of future performance strengthen.

Given the size of the number two years ago, my guess would be that this could be a material number, so it seems unacceptable that are left to "wait and see".

If it were not for that doubt I would think this all looks very interesting, however, I don't really think I want to own a "professional services consultancy to construction and engineering industries"

matylda

Revised Broker note gives EPS 3.0 (2015A) -0.8 (2016A) 5.6 (2017A) 5.6 (2018E) 6.5 (2019E).

Hope it helps.

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

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Matylda

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