I Read The News Today Oh Boy! 2-Mar-2018

Friday, Mar 02 2018 by
19

Morning all!

Revolution Bars ( Revolution Bars (LON:RBG) ) – 170p – £85.0m – PER 10.4

Interim Results For The 6 Months To 30 December 2017 – Revenue up 1.9% LFL (if you include New Years Eve) with Adjusted Operating Profit £6.0m (FY17 Restated*: £6.0m) and Adjusted EPS 9.4p (FY17 Restated*: 10.0p).

Not exactly inspiring but I continue to hold (more on takeover hopes than anything else).

PCF ( PCF (LON:PCF) ) – 29.78p – £63.2m – PER 12.3

AGM Trading Statement – First 5 months, strong and in-line – Quite a positive update and outlook.

Quite like this update but can’t find myself finding this more interesting at present.

Gear4music Holdings ( £G4M ) – 642p – £134.0m – PER 49.6

Trading Update For The 12 Months To End February 2018 – Wow, that’s a speedy update, not expecting bad news in this one! And, Revenue is up 43% from £80.1m, website conversion is up from 2.75% to 3.25%, active customers up 39% and own brand sales are keeping pace with other brand sales. But, I think this a fly in the ointment – “EBITDA for the second half of FY18 will be ahead of the six-month period ended 28 February 2017, although as a result of the investments we have made during the year into our customer proposition, infrastructure, staff, systems and marketing, we expect EBITDA for the full financial year ended 28 February 2018 to be in line with our FY17 result”.

I still have reservations here and will remain Neutral for now. Although I am coming round to the view that if that’s the end of the spending then Margin and Profit here could go gangbusters!

Harvey Nash ( Harvey Nash (LON:HVN) ) – 86.9p – £63.8m – PER 6.63

Trading Update For The 12 Months To End January 2018 – In-line (revised up 3 times during the year), PBT to be up circa 22%.

Having sat on the fence in this sector for perhaps too long and although I don’t like the Operating Margin here, I am going to put this on my Watchlist, 84p – Might even pick a few up this morning.

As…

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Revolution Bars Group plc is a United Kingdom-based operator of bars. The Company has a trading portfolio of approximately 60 bars located predominantly in town or city high streets, which operate under the Revolution and Revolucion de Cuba brands. The Company's bars focus on a drinks and food-led offering, and typically trade from late morning, during the day and into late evening. Revolucion de Cuba bars are characterized by their 1940s Cuban-inspired style, with dark woods, traditional bar counters, antique tiles, vintage furniture, Havana-style ceiling fans, and original Cuban artwork and photographs. Its bars are located in various places, such as Cambridge, Ipswich and Norwich in South East; Bath, Plymouth and Southampton in South West; Birmingham, Derby, Leicester, Loughborough and Milton Keynes in Midlands; Cardiff and Swansea in Wales; Blackpool, Chester and Huddersfield in North West; Sheffield, Sunderland and York in North East, and Edinburgh and Glasgow in Scotland. more »

LSE Price
66.7p
Change
-0.5%
Mkt Cap (£m)
33.5
P/E (fwd)
9.6
Yield (fwd)
7.9

PCF Group plc, formerly Private & Commercial Finance Group plc, is engaged in banking business. The Company offers retail savings products for individuals. In addition, the Company deploys those funds through its two lending divisions such as consumer finance and business finance. Consumer finance, which provides finance for motor vehicles to consumers. Business finance, which provides finance for vehicles, plant and equipment to small and medium-sized enterprises (SMEs). The Company also provides both depositors and borrowers with a service and a straightforward, range of products tailored to suit their needs. more »

LSE Price
32p
Change
0.8%
Mkt Cap (£m)
79.4
P/E (fwd)
8.7
Yield (fwd)
1.5

Gear4music (Holdings) plc is engaged in the online retailing of musical instruments and equipment. The Company sells its own-brand musical instruments and music equipment alongside with other brands. The Company offers over 1,500 products, which are sold under approximately eight brands, including Gear4music; Archer, which offers string instruments, such as violins, cellos, violas and double bass; Redsub, which offers bass guitar amplifiers and pedals; SubZero, which offers guitars, amplifiers, mixers, speakers and audio electronics; Minster, which offers digital pianos; Rosedale, which offers woodwind instruments, such as clarinets, flutes, oboes and piccolos, and Brass Instruments, which offers trumpets, trombones, tubas and French horns. The Company has developed its own e-commerce platform, with multilingual, multicurrency and responsive design Websites covering approximately 19 countries. more »

LSE Price
232.5p
Change
 
Mkt Cap (£m)
48.7
P/E (fwd)
51.3
Yield (fwd)
n/a



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


3 Posts on this Thread show/hide all

MrContrarian 2nd Mar '18 1 of 3
9

My morning smallcap tweet:

Revolution Bars (LON:RBG), £G4M

Revolution Bars (RBG) H1 - 26 weeks to 30 December (why the change from 6 months to 31 Dec?). Rev up 11%, LFL up 0.4%, EPS -6.8p (FY17 Restated 8.5p). Adj EPS 9.4p (FY17 Restated 10.0p). LFL adjusted to remove the benefit of New Year's Eve trading 1.9%. Outlook positive but vague.

[Edit]  Last 7 weeks excluding New Year's Eve LFL down 2%. "We believe that like-for-like sales reduction is temporary and that growth will return as footfall naturally improves as customers recover from the Christmas period, with the better weather and in particular the bank holiday weekends when the business traditionally see stronger sales." That's BS. How will the seasonal growth improve LFL?

Gear4music (G4M) FY trading: rev up 43%. EBITDA in H2 will be up but "s a result of the investments we have made during the year into our customer proposition, infrastructure, staff, systems and marketing, we expect EBITDA for the full financial year ended 28 February 2018 to be in line with our FY17 result." Don't state if this is in line. F/C is for an 16% fall in adj EPS. 

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andrea34l 2nd Mar '18 2 of 3
7

I'm afraid I don't share your, or the market's, enthusiasm for Harvey Nash (LON:HVN) - yes, it may be the case that "adjusted profit before taxation and non-recurring items being up c22% compared to the prior year", but as far as I can tell this improvement is largely due to efficiency and cost cutting measures, as at the gross profit level things are rather more pedestrian. UK & Ireland Gross Profit is up only 6%, Mainland Europe Gross Profit "up 5% overall" (that dreaded word overall, implying a mixed bag), while the Rest of World Gross Profit was 19% lower.

Re. Revolution Bars (LON:RBG) I think the directors deserve an award for their (failed) attempt in trying to make the numbers look better than they actually are. Even with all the adjustments under the sun, profit is actually pretty flat, and the outlook statement is frankly poor... and I am almost anticipating a further announcement in due course saying that the snowy conditions we are currently suffering from have "further affected performance... although we believe this to be temporary... and have every reason to be optimistic... blah blah". The share price currently down almost 5% says it all, and on that basis I am glad not to hold. A bid is a possibility with many companies, but not a certainty with any of them - I could argue that as they have fought off two suitors already, then any more will be deterred as a result. Just my own thoughts....

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matylda 2nd Mar '18 3 of 3
1

In reply to post #332488

Excellent commentary - In general agreement - Thank you, much appreciated. Although I am still tempted to take a bite at at Harvey Nash (LON:HVN) !

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