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

Tuesday, Oct 02 2018 by
9

Morning all!

DX Group ( DX (Group) (LON:DX.) ) – 9.51p – £54.6m – PER n/a

Preliminary Results For The 12 Months To End June 2018 – Revenue up slightly (which is slightly ahead of market expectations), the Loss is also smaller than market expectations.

I remain Neutral here as it’s just too complicated for me – Way too much going on.

Revolution Bars ( Revolution Bars (LON:RBG) ) – 125p – £63.5m – PER 8.64

Interim Results For The 12 Months To End June 2018 – LFL Revenue down -0.6%, Operating Loss of £3.0m, the Final Dividend is maintained at 3.3p and pre-booked Christmas sales are up 20.3% (woo hoo!).

A strange set of results and some of the commentary is strange too, for example “H2 impacted by … the FIFA World Cup” – At least it seems like Christmas will not impact further! Why hold a stock when the main reason is the hope of a potential bid? Still guilty of the occasional school-boy error I continue to hold, just!

SCS ( SCS (LON:SCS) ) – 199p – £79.6m – PER 8.18

Preliminary Results For The 12 Months To 28th July 2018 – A strong year. Revenue up (slightly), Gross margin up (slightly), EPS up 14%, loads of Cash (£48.2m) and the Total Dividend is up 10.2%. Trading this year, so far, is in-line.

This looks almost decent enough to get involved for that juicy yield now (7%+), I am going to switch this up from Neutral to my Watchlist.

Treatt ( Treatt (LON:TET) ) – 482p – £281.4m – PER 25.3

Trading Update For The 12 Months To End September 2018 – In-line.

Based on forecasts I still can’t see the justification for a PER of 25 here – I remain Neutral.

As always, all comment most welcome!


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DX (Group) plc is engaged in the provision of parcels, mail and logistics services in the United Kingdom and Ireland. The Company's segments include parcels and freight, mail and packets, and logistics. The parcels and freight segment offers services, such as DX 1-Man, engaged in the delivery of irregular dimension and weight items; DX Courier, which provides next day parcel services, and DX 2-Man, which offers a business to consumer home delivery solution for heavier and bulkier items. The mail and packets segment comprises services DX Exchange, a business to business (B2B) mail service providing its customers with collection and delivery times; DX Secure, which provides security, and DX Mail, a mail service offering downstream access for smaller volume users. The logistics segment includes the provision of customer-liveried vehicles and uniformed personnel, such as fleet management solutions and integration with customer's business operations. more »

LSE Price
9.25p
Change
1.7%
Mkt Cap (£m)
52.2
P/E (fwd)
42.2
Yield (fwd)
n/a

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
108p
Change
0.5%
Mkt Cap (£m)
53.8
P/E (fwd)
8.1
Yield (fwd)
5.0

ScS Group plc is engaged in the provision of upholstered furniture and flooring, trading under the brand name, ScS. The Company specializes in fabric and leather sofas, and sells a range of branded and ScS branded products sold under registered trademarks, including Endurance and SiSi Italia. The Company also offers a range of third-party brands, including La-Z-Boy, G Plan and Parker Knoll. The Company operates from approximately 100 stores nationwide along with an online sales and also has approximately 10 distribution centers across the United Kingdom. The Company has operations in retail park locations and in House of Fraser stores across the country-as far north as Aberdeen and as far south as Plymouth, offering a range of upholstered furniture and floorcoverings. The Company also runs a made-to-order sofas, furniture and flooring concession within House of Fraser. The concession operates from approximately 30 House of Fraser stores across the United Kingdom and online. more »

LSE Price
228p
Change
1.8%
Mkt Cap (£m)
89.6
P/E (fwd)
8.8
Yield (fwd)
7.4



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


4 Posts on this Thread show/hide all

Edmund Shing 2nd Oct 1 of 4
3

Re RBG, I am guessing that the World Cup impact is due to the lack of TVs in their bars? JDW will have been the big winner from this I guess, perhaps ETI too...

Blog: The Idle Investor
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MrContrarian 2nd Oct 2 of 4
3

My morning smallcap tweet: Revolution Bars serves mixed cocktail.

Pennant International (LON:PEN), Tekcapital (LON:TEK), SCS (LON:SCS), DX (Group) (LON:DX.), Revolution Bars (LON:RBG)

Pennant (PEN) wins £10.2m Middle East order. Performed over the 2018, 2019 and 2020 FYs.
Tekcapital (TEK) placing at 7.5p, a 12% discount. " significant amount of the Placing will be utilised to expand Tekcapital's commercialisation of their investment portfolio of businesses."
ScS (SCS) FY ahead of market expectations. Rev up 1%, EPS 26.8p up 14%.FY div 16.2 up 10%. Trading: Sales order intake up 2.1% LFL for the 9 weeks to 29 September. Group trading in line with the Board's expectations.
DX Group (DX.) FY slightly ahead of market expectations. Rev up 3%, EPS -8.1p (-40.3p). Net debt £1.1m (£19.1m), ahead of market expectations. Current trading encouraging.
Revolution Bars (RBG) FY as guided. LFL rev -0.6%. EPS -5.7p (+7.7p [restated]). Adj EPS 13.p (14.6p [restated]). Div 3.3p (3.3p). Recent LFL -5% "but benefits of new initiatives put in place by new CEO yet to work through". Pre-booked Christmas sales up 20.3% (LFL 14%). I hold.

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matylda 2nd Oct 3 of 4

In reply to post #403589

Ah - Thanks, didn't realise that!

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andrea34l 2nd Oct 4 of 4
3

There is a rather a good looking acquisition announcement from Gamma Communications (LON:GAMA) today of DX Groep BV ("Dean One"), "a growing telecoms group based in the Netherlands... with many similar attributes to Gamma. It is largely channel-led, focused on products that Gamma has strong knowledge of and experience in. The market penetration and growth rates in sales of Cloud PBX in the Netherlands are similar to those in the UK, where Gamma has a track record in driving sustainable growth. Gamma management have known the Dean One business for a number of years. It has a very similar product set to Gamma, selling Cloud PBX, SIP trunks, data products and mobile to primarily SME businesses via a network of over 500 channel partners. It employs approximately 60 people. In the year ended 31 December 2017 revenue was c. €15.8 million and EBITDA was c. €0.8million."

The financial terms are "an initial cash consideration paid on completion of €13.2m with a deferred contingent consideration of up to €14.0m.  The total maximum consideration will be based on 7.5x the 2019 EBITDA of the acquired business.  The consideration for the acquisition will be funded entirely from Gamma's existing cash resources". This doesn't look overly expensive to me.

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