I Read The News Today Oh Boy! 17-Oct-2017
Morning All!
99.5p - £21.2
Final Results For The 12 Months To End July 2017 – Revenue up 31.4% to £4.56m from £3.47m last time. Profits (after tax) up 34.0% to £1.34m and EPS up 33.2% to 6.26p (4.70p last time). Lending is up 30.5% and Barclays have increased facilities from £10 million to £15 million – And more from another bank (no mention how much). 2p Final Dividend proposed. Board “looks forward to the year ahead with cautious optimism”. On a PER of 15 looks like the market should like this update.
260p - £72.7m
Interim Results For The 6 Months To End July 2017 – This “niche venture capital provider” seems to be flying - NAV per share up to 304p (31 Jan 2017: 273p, 31 July 2016: 253p), Portfolio value up 24.6% with a 12.8% total shareholder return (31 July 2016: 5.8%). Significant rise in profit after tax (unaudited) of £10.2m (31 July 2016: £4m) - £8.6m still available for investment. Not really my area this but it is tempting here to open an initial position.
Note - There's no StockRank data as it's classed as an "Investment Trust".
73p - £215.8m
Final Results For The 12 Months To End June 2017 – Revenue up 19% to £32.0m from £26.9m, PBT up 30% to £8.1m from £6.2m and EPS up by 32% to 2.42p from 1.83p. Strong cash generation from operations of £8.8m with net cash position of £20.4m up 18% as at 30 June 2017. Revenue per user is up 24% and revenues outside the UK are up 48% (23% of total Revenue). There’s a lot to like here - On a PER of 26.7 it might still be reasonable value here (although Stockopedia doesn’t think so (Value = 10)), especially if this growth can be sustained. Q1 progress is reported as “in-line with plan” and the board is confident of “achieving our ambitious growth plans”.
Note – Proposed Dividend of 0.55p per share is an increase of 25%+ compared to 0.43p last time.
33p - £27.9m
Trading Statement & Directorate Change - Up about 20% this month, this update could put a dampener on that! The interim Chairman has decided to leave – Probably because he didn’t like this decision “the Group will no longer offer for sale large quantities of stock at a discount”, which will mean “it is now clear that the shortfall is unlikely to be recouped in the current year. It is expected that revenue will be lower and, consequently, there will be a material impact on profitability in the current financial year”.
308p - £152.7m
Trading Update For The 6 Months To End September 2017 – An in-line update not making it any more attractive to me today than it was yesterday.
166.88p - £87m
Q3 Trading Update For The 9 Months To End September 2017 – Revenue up 34.4% and trading in-line with market expectations. Recently broken above 150p and on a PER of 12.5, I’m tempted here this morning.
Will keep an eye on BPM, welcome of course others comments as it’s completely new to me. Also interested in FLO too.
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3 comments
Orchard Funding is an interesting niche lender (insurance premiums and professional fees). Default rate is very low (one bad debt this year, zero in 2016). In the past they have talked about a banking license application, but that has not been mentioned for a while. They have a P2P site that they are proud of, but seems not to be a material source of funding. Platforms are rated higher than lenders so interesting opportunity though. Overall they look prudent and there seems room to continue growth.
My morning smallcap tweet:
Batm Advanced Communications (LON:BVC), Hornby (LON:HRN), Cloudcall (LON:CALL), RhythmOne (LON:RTHM)
BATM Advanced Communications (BVC) has been awarded a proof-of-concept contract to be the main supplier of cyber monitoring and detection systems for a European defence agency. Worth $350k, paid end of Q1 2018.
Hornby (HRN) warns again as new CEO rules end to discounting large quantities of stock. Material hit to profit this FY.
CloudCall (CALL) placing of up to £5.7m at a small 5% discount "to capitalise on near term growth opportunities". Nothing to do with millions of cash going out the door every year.
Rhythmone (RTHM) H1 trading in line. Continued profitability on an adjusted bullshit earnings(1) basis. Fill your boots.
Note 1: bullshit earnings = EBITDA.
Just replace adjusted EBITDA with BSE, we'll all know what you mean, :-)