I Read The News Today Oh Boy! 17-Apr-2018

Tuesday, Apr 17 2018 by
20

Morning all!

TP ( TP (LON:TPG) ) – 5.60p – £42.6m – PER 28.1

Results For The 12 Months To End December 2017 – Revenue up 39% to £29.5m (2016: £21.2m) with an Operating Loss £0.5m (2016: £0.3m). Closing cash of £21.9m (2016: £9.2m), £20.8m from an equity raise to “fund ambitious growth plans”. Order book up 89% to £32.1m (2016: £17.0m).

A bit of a mixed bag here and it seems quite a miss on the Profit front, e.g. making a Loss instead of a Profit. Problems handling growth perhaps? And, the intention is to grow more? Will remain on the side-lines for now.

Dialight ( Dialight (LON:DIA) ) – 524p – £171.1m – PER 15.4

Trading Update For The 12 Months To End December 2018 – Not sure what this means but it doesn’t seem very positive.

Anyway, it will remain on my Avoid list for now.

Porvair ( Porvair (LON:PRV) ) – 490p – £228.2m – PER 24.6

AGM Trading Update For The 4 Months To End March 2018 – In-line, Revenue growth of 9%.

I just expect more here from a company trading on a PER of 20+, I’m Neutral for now.

Findel ( Findel (LON:FDL) ) – 251p – £212.6m – PER 9.09

Trading Update For The 12 Months To End March 2018 – Upper end of market expectations with Net Debt down circa £7m to £74m.

There’s just way too much Net Debt here for me and, last I read, there’s a Pension Deficit of £2.5m a year too. I’m Avoiding this one for now.

Filta Group ( Filta Group (LON:FLTA) ) – 197.5p – £52.6m – PER 26.9

Results For The 12 Months To End December 2017 – PBT of £1.7m (2016: loss of £0.2m) with Revenue up by 34% at £13.5m (2016: £10.1m). Service and territory expansion seems to be progressing well. Outlook confident.

Nice update, remains on my Watchlist at 150p but perhaps it’s worth paying up here now. Will keep an eye on this this morning.

Flowtech Fluidpower ( Yes

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TP Group plc, formerly Corac Group plc, is United Kingdom-based engineering company, which focuses on the defense and energy sectors. The Company's principal activities consists of TPG Maritime, which provides air purification equipment for submarines, including oxygen/hydrogen generation and purification, air handling and distribution systems; TPG Design and Technology, which specializes in the design and development of turbomachinery; TPG Engineering, which includes the manufacture of heat exchange equipment used in the heating and cooling of large scale industrial processes and other fabricated structures, and TPG Managed Solutions, which provides services to major organizations through prime contracting and provision of specialist resources. The Company's services include analysis, design, project control, cost engineering, prime contract management, equipment build, equipment maintenance and supply chain management. more »

LSE Price
7.1p
Change
 
Mkt Cap (£m)
55.3
P/E (fwd)
20.5
Yield (fwd)
n/a

Findel plc operates in the home shopping and education supplies markets. The Company's segments include Express Gifts, Findel Education and Overseas Sourcing. The Express Gifts segment includes direct mail order businesses in the United Kingdom, offering online and through catalogue a range of home and leisure items, clothing, toys and gifts supported by credit offer. The Findel Education segment supplies resources and equipment (excluding information technology and publishing) to schools and educational establishments in the United Kingdom and overseas. The Overseas Sourcing segment includes sourcing office based in Hong Kong supplying importing services to various group companies and external customers. The Company's subsidiary Express Gifts Limited, includes Studio, an online and home catalogue shopping; Ace, an online store for home, living and garden needs, and Health & Home, an online store for beauty, home, office and garden accessories. more »

LSE Price
251.5p
Change
-2.5%
Mkt Cap (£m)
223
P/E (fwd)
8.9
Yield (fwd)
n/a

Flowtech Fluidpower plc is a United Kingdom-based distributor of technical fluid power products. The Company operates through two divisions: Flowtechnology, which is geographically split into Flowtechnology UK (FTUK) and Flowtechnology Benelux (FTB), and Power Motion Control (PMC). FTUK and FTB focus on supplying distributors and resellers of industrial maintenance, repair and operation (MRO) products, primarily serving urgent orders rather than bulk offerings. The PMC division is engaged in the design and assembly of engineering components and hydraulic systems, which are managed by component supply along with a service and repair function. Its business is focused on its distribution offering in over three categories: Pneumatics (products that enable the use of gases to provide mechanical motion), Hydraulics (products that enable the use of fluids to provide mechanical motion) and Industrial (products and accessories that act as conduits for gases and liquids). more »

LSE Price
140p
Change
5.3%
Mkt Cap (£m)
81.2
P/E (fwd)
8.1
Yield (fwd)
4.9



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


5 Posts on this Thread show/hide all

andrea34l 17th Apr '18 1 of 5
4

Thanks for the heads up, Matylda. My views on a few of the stocks mentioned:

To me the results from TP (LON:TPG) look promising. Yes, there is an increase in overall operating loss, but this is after the general collection of adjustments to EBITDA (some of which are non-cash costs) which is actually up 142%. I am happy to continue with my small holding based on the progress made and the order book.

I haven't even bothered to look at the announcement from Dialight (LON:DIA) as they seem to go from one set of poor news to another; I see no value in investigating this stock.

I am rather wary of Flowtech Fluidpower (LON:FLO) compared to you, they have made an awful lot of acquisitions and it's difficult for me to see the value that this is adding at this point. If you look at section 2 of the audited figures you can see that the original Flowtechnology underlying operating profit is actually marginally down and the eps is down too, so it looks to me as though all these increased shares are at this point purely funding acquisitions and not providing overall value as-yet. Admittedly, the other two divisions show a lot more growth, but it is impossible for me to see whether there is any actual organic growth.

I also don't understand how Porvair (LON:PRV) deserves its premium rating.

The results out from JD Sports Fashion (LON:JD.) look pretty good, with revenue 3,161m+33%, ptp 294.5m+24%, and eps 23.83p+30% - at 368p, the PER is only 15; lfl is admittedly now only single digit, but it is still positive. If you walk past any store, there are always customers in them.

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MrContrarian 17th Apr '18 2 of 5
2

My morning smallcap tweet:

Findel (LON:FDL), Dialight (LON:DIA), Christie (LON:CTG)

Findel (FDL) guides FY performance at the upper end of market expectations: pretax £26m to £26.5m.
Dialight (DIA) AGM stmt. "As expected, these actions [to resolve production problems] are yet to yield significant results in the fulfilment of outstanding orders, although we have made progress in service levels of our smaller product lines. We are confident of an overall significant improvement in our operations over the coming months. The Board continues to expect the Group's results for 2018 to be heavily weighted to H2 reflecting the successful resolution of the issues." Downside risk.
Christie Group (CTG) FY rev up 11%, operating profit before exceptional items £3.8m (£1.1m) broadly in line with expectations. "We continued to deal with some challenges in our SISS division but, having made significant progress in this division in recent months, we are optimistic of its prospects for 2018." Guides H1 significantly ahead YoY.

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smatthews1 17th Apr '18 3 of 5
1

In reply to post #353983

Dialight (LON:DIA) does seem to be spending a lot of time fighting production shortages, and tying up more capital with higher inventory levels to accommodate this. I think the share price with stay depressed for a while, but I am watching closely as I think there will be a half decent turn around to come out of this, as their market seems plenty big enough.

Flowtech Fluidpower (LON:FLO) I am also very wary of their rate of acquisitions, I haven't got anything against acquisitions in general but I worry if the quality is there vs the rate at which they are aquiring.

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matylda 17th Apr '18 4 of 5

Cheers all - Been a bit of a busy one today.

TP (LON:TPG) seems to have done well.

Dialight (LON:DIA) - Can't bring myself to go near them at the moment, just no idea when they might move up.

Porvair (LON:PRV) - I don't get it either!

Flowtech Fluidpower (LON:FLO) - I've accepted that risk (the acquisitions) with a small opening position today.

JD Sports Fashion (LON:JD.) - Had a quick glance there too this morning and thought it looked quite good.

Thanks again for taking the time to add.

Blog: Briefed Up
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stuartb58 20th Apr '18 5 of 5
1

Think PRV is underestimated. Look at large contracts now nearing completion. Little movement in billings/revenues in 2017; billings some £8M above revenues to date (balance in Deferred Income) and whilst there will be some more costs to come there looks a hefty move from Def Income to P&L in the not too distant future. Large gasification project in India should also produce hefty spares income after commissioning in 2018. Modest losses in short term in China a nuisance, but manageable and rest of the business looks on a roll - Finneran acquistion last year looks a steal - churning out monthly revenues of $1M +.. Just my ho.

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