I Read The News Today Oh Boy! 18-Oct-2017

18th Oct '17 by matylda

4 comments 4994 reads

Morning All!

44p - £95.3m

H1 2017/18 Update – Higher than expected aircraft maintenance costs mean PBT is expected to be in the range of £5m to £10m H1 2017/18 - In H1 2016/17 adjusted PBT was £15.9m. The company is still “confident that we are still on a clear sustainable path to profitability in line with our stated plan”. Not sure the market will see it that way this morning!

Foxtons (FOXT)

73p - £200.8m

Q3 Trading Update To End September 2017 – A mostly in-line update which actually seems slightly below expectations and is also quite downbeat sounding to me.

Eckoh (ECK)

51.5p - £129.7m

Trading Update For The 6 Months To End September 2017 – An in-line update and a confirmed move into Net Cash to the tune of £1.7m - At the end of H1 2017 Net Debt was £2.1m. Just in-line, on a PER of 28.3, this looks a little overcooked to me here.

That’s all from me this morning, nothing much of interest to be honest – Nothing on the Long side at least.

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MrContrarian

18th Oct '17

My morning smallcap tweet:

Chamberlin (LON:CMH), Ubisense (LON:UBI), Atlantis Resources (LON:ARL), Oncimmune Holdings (LON:ONC), Tissue Regenix (LON:TRX), Flybe (LON:FLYB), Foxtons (LON:FOXT)

Chamberlin (CMH) trading - FY rev in line but problems with new machines in foundry increasing costs. Exp U/L profit flat YoY. F/C was for 11 fold rise in adj EPS to 19.5p.
Ubisense Group (UBI) wins £1m contract from premium German car mfr. No timescale.
Atlantis Resources (ARL) MeyGen Phase 1A is expected to formally complete its construction phase and enter into its 25-year operational phase within the coming weeks. It's only 6MW mind. Seeking talks with Govt for 80 MW of capacity to allow construction of Phase 1C.
Oncimmune (ONC) wins £900k (min) Polish contract over 3 yrs. "We anticipate the signing of a number of further agreements in Europe, and beyond, in the coming months."
Tissue Regenix Group (TRX) CEO leaves with immediate effect. No reason. Just when like your wife leaves you in the middle of the night. You didn't expect a reason did you? Chmn showers him with plaudits. "The integration of CellRight continues as planned and current trading remains in line with Board expectations."
Flybe Group (FLYB) warns on H1, exp adj pretax £5-10m (£16m). A £6m hit from extra IT cost was already announced. "Following a detailed review of aircraft maintenance, it has incurred higher than expected related costs in the first half. This reflects the drive to further improve the reliability of its aircraft...A full review of the maintenance strategy has now been launched which aims at a significant improvement of aircraft performance and costs." If the inc maintenance followed a review they must have known about it for weeks or months! Not good enough.
Foxtons (FOXT) trading in line. The 10% rise yesterday must have been the overture to this music for holder's ears. I'm short.

timarr

Also Softcat (LON:SCT): revenue up 23.8%, adjusted profit up 10.1%, final dividend up 69.4% and a special dividend thrown in.

https://www.investegate.co.uk/softcat-plc--sct-/rns/final-results/201710180700038694T/

timarr

andrea34

Sold my tiny holding (phew) in FLYB... twice bitten... don't trust investing in them now; loved the flight experience though, I just can't understand why they don't lower the flight prices a touch, I would have thought it would help fill their planes rather more.

Any holders of RWS? I bought recently on the trading update, and I see the price has gone almost back to where I bought it at on today's acquisition news - maybe investors are scared at the pricing of the placing... but to me it looks a pretty good, and profitable, fit:

RWS Holdings plc... today announces that it has entered into an agreement to acquire the entire issued share capital of Moravia US Holding Company, Inc. and Moravia Lux Holding Company S.à r.l., a leading provider of technology-enabled localisation services, from Moravia Holdings II, LLC for a cash consideration of US$320m plus working capital and certain other adjustments and transaction costs. The Consideration, adjustments and transaction costs are intended to be funded by a c.£185m (before expenses) cash placing of new ordinary shares in the capital of the Company, details of which have been announced by the Company separately today, and a new US$160m term loan which will refinance the Group's existing facility (the "New Facility").

The Board believes that the Acquisition has a compelling strategic and financial rationale as it:

• Brings to the Group a highly successful business with a strong track record of profitable and cash generative growth:

• Long term relationships with some of the largest publicly traded technology companies in the world

• Has increased revenues by a CAGR of 26.0% from US$100.3m in 2014 to US$159.2m in 2016 and adjusted EBITDA by a CAGR of 52.6% from US$11.6m in 2014 to US$27.1m in 2016

• Creates a third RWS division of scale with significant growth prospects:

• Growth opportunities include increasing share of wallet with its long-standing clients, winning new clients, introducing complementary solutions and growing new verticals and geographies

• Further diversifies RWS, as it is expected to represent approximately one third of the enlarged group's profits, and strengthens its global operational base

• Provides significant additional market opportunities for both companies due to their complementary business activities, geographies and client base, including the potential cross-selling of patent translation services to Moravia's intellectual property-rich clients

• Brings a strong, well established management team to the Group

• Is at an attractive valuation for one of the few major localisation providers focussed on the high growth technology sector in a highly fragmented market

• Is expected to be highly and immediately earnings enhancing for RWS shareholders

matylda

FLYB - A lot of faith lost there by the market this morning and, as MrC pointed out, rightly so - As it was surely known or at least partly known previously.

RWS - Was on my radar for much of 2015 but never managed to get in - No real thoughts on the big drop especially having also read the same sentence as you this morning - The one you have highlighted in italic and bold above.

I Read The News Today Oh Boy! 18-Oct-2017

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Matylda

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