I Read The News Today Oh Boy! 19-Jul-2018

19th Jul '18 by matylda

8 comments 3869 reads

Morning all!

Versarien ( Versarien (LON:VRS) ) – 131.5p – £195.5m – PER 219.2

Preliminary Results For Year Ended March 2018 – Revenue up 52% to £9.02m, Loss Before Tax decreased by 27% £1.6m (2017: £2.2m).

I remain Neutral here on the basis there’s still no Profits.

Speedy Hire ( Speedy Hire (LON:SDY) ) – 60.5p – £316.9m – PER 12.5

Trading Update – On track to deliver FY in-line with the Board’s expectations.

I remain Neutral.

Quixant ( Quixant (LON:QXT) ) – 445p – £295.2m – PER 22.0

Trading Update For The 6 Months To End June 2018 – Revenue and PBT in-line with management expectations.

I am long here – It’s forecast +19.8% EPS growth in 2018 and +18.1% in 2019 with an ROCE of 31.0% and well above Industry Operating Margin of 14.0% plus some Cash means I will remain long for now.

Everyman Media ( Everyman Media (LON:EMAN) ) – 204p – £143.2m – PER 29.6

Trading Update For The 27 Weeks To 5^th July 2018 – In-line.

Starting to actually like this a little more (EPS forecasts are great and if in-line, could justify this rating) but I just can’t get away from the fact so many people are preferring on-line (at home) services these days. I remain Neutral but am tempted.

Sopheon ( Sopheon (LON:SPE) ) – 760p – £77.0m – PER 19.1

Trading Update For The 6 Months To End June 2018 – In-line with expectations with Revenue and PBT for this period to be significantly ahead of last year.

Could be tempted here this morning but I will await broker notes following this update.

DotDigital ( dotDigital (LON:DOTD) ) – 73p – £217.1m – PER 18.9

Trading Update For The Year To End June 2018 – Revenues up c.35% to £43.1m (2017: £32.0m), Profit to be in-line. Confident FY 2019 will also be in-line.

This has actually touched my Watchlist price now and I am tempted here – Now looks more reasonable Value wise.…

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MrContrarian

19th Jul '18

My morning smallcap tweet: Soccer result shocker for GOAL.

Goals Soccer Centres (LON:GOAL), Allergy Therapeutics (LON:AGY), Green & Smart Holdings (LON:GSH), Be Heard (LON:BHRD), WH Ireland (LON:WHI)

Goals Soccer Centres (GOAL) warns again. FY expected to be materially below market expectations due to the extreme weather in H1. H1 rev £16.1m (2017: £16.6m). CFO resigns with immediate effect. Kind words.
Allergy Therapeutics (AGY) Proposed placing & subscription at 26.5p (a 4.5% discount) to raise £10.6m. Needed to expand the planned Phase III PQ Grass Trial, part fund the Acarovac Phase II Trial and continue to progress its diversified pipeline.
Green & Smart Holdings (GSH) raises £3.2m via subscription by Serba Dinamik International Ltd at 6.19p, a 6% discount.
Be Heard Group (BHRD) warns FY adjusted EBITDA £3.0m to £3.3m, revenue ~£29.0m. Blames increased costs associated with winning new business, uncertainty around contract timing and client spend volatility. Lame excuses. Cutting costs.
W.H. Ireland Group (WHI) CEO resigns, steps down end July. He is thanked. New CEO will be Phillip Andrew Wale, Head of Fixed Income (Europe) at Cantor Fitzgerald Europe. So WHI sat on the resignation for a while. Being a nomad this is clearly best practice.
Versarien (LON:VRS) FY looks OK at first glance with rev £9024k up 52%. But @EasyBrent works out that graphene revenue was less than £24k down from, £128k. Rev breakdown AAC 4600k, Total Carbide 3200k, Versarien Tech 1200k, 24k undisclosed. Graphene is lumped in with plastics to disguise the fall, even though graphene is almost all it talks about. That's not the way to do things.

Impvesta

"Versarien (LON:VRS) FY looks OK at first glance with rev £9024k up 52%. But @EasyBrent works out that graphene revenue was less than £24k down from, £128k. Rev breakdown AAC 4600k, Total Carbide 3200k, Versarien Tech 1200k, 24k undisclosed. Graphene is lumped in with plastics to disguise the fall, even though graphene is almost all it talks about. That's not the way to do things"

Tut tut Mr C. To quote @EasyBrent, whoever he is, and use his figures without DYOR is very disappointing. @EasyBrent, on his twitter feed, says:

"#VRS signed 13 partnership the last 12 month, generating less than £24k in revenue."

I should point out that while 8 of the 13 (actually collaborations/agreements) were announced in the 6 month period October 2017 to March 2018, the remaining 5 were announced in April to July 2018 and could not possibly have generated any income in the year ended 31st March 2018.

But in any case the 24K is a nonsensical figure. All @EasyBrent has done is add together the figures quoted in round £100Ks (4600K + 3200K + 1200K = 9000K) and compared that to the more precisely disclosed revenue figure of 9024K.

Whatever view we may have on Versarien the discussion isn't helped by quoting nonsensical figures which aren't worth the thin air they have been plucked out of!

For transparency I happen to think Versarien is the most exciting investment I've ever made. Anyone interested I would urge to read Mike Brenner's comprehensive 3 part epic here:

https://www.stockopedia.com/co...

ExpectingValue

To ask the obvious, how much revenue did they make with graphene, then?

Note 2 to the accounts shows revenue in the Graphene and Plastic Products segment at £4,643K compared to £2,628K in the previous year.

I see that; but WPP could also change their segments such that they make £15bn in their 'marketing and graphene' division, if they so desired :)

"I see that; but WPP could also change their segments such that they make £15bn in their 'marketing and graphene' division, if they so desired :)"

Versarien haven't changed their segments though. Revenue in the same segment for the year ended 31st March 2016 was only £16K.

simoan

Any idea how much of the product sold was used in smoke and mirrors? :-) If I held I'd be concerned by the lack of clarity. This revenue must be the easiest thing in the world to break down into separate segments.

All the best, Si

20th Jul '18

"Any idea how much of the product sold was used in smoke and mirrors? :-) If I held I'd be concerned by the lack of clarity."

I'm not sure if that comment is meant to be serious or if you are just trying to wind me up! The investment case for Versarien isn't based on historical results from collaborations/agreements which were at an embryonic stage at the year end or hadn't even begun. It's all about the massive future potential for graphene in so many different areas e.g. aerospace, plastic, blown film, clothing, medical, shoes, sports equipment, audio, supercapacitors, tyres, inks, to name but a few.

We can all reach our own conclusion as to the whether this is a good investment based on the current share price. What isn't appropriate though is for spurious calculations to be put forward as fact "(@EasyBrent works out that graphene revenue was less than £24k down from, £128k.)" in a way likely to mislead shareholders or potential shareholders.

I Read The News Today Oh Boy! 19-Jul-2018

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Matylda

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