I Read The News Today Oh Boy! 20-Jul-2018

20th Jul '18 by matylda

3 comments 1725 reads

Morning all!

Lighthouse ( Lighthouse (LON:LGT) ) – 37.5p – £47.9m – PER 22.0

Trading Update For The 6 Months To End June 2018 – In-line.

2017 growth was excellent but looks like Revenue in 2018 and 2019 will see just a small rise with EPS growth of 10% each year. On a PER of 22.0 this seems at best fairly priced here – I will take this off my Watchlist for now and go Neutral.

Bango ( Bango (LON:BGO) ) – 162p – £113.5m – PER 33.6

Trading Update For The 6 Months To End June 2018 – 4^th year of at least doubling End User Spend (£220m H1 2018 vs £92m last time). A strong first half and expecting a strong second half, now fully funded to reach profitability (no mention of when but operational costs now seem to be stable and capable of handling $5bn per year).

Looks like less of a gamble than it used to be. Will remain on the side-lines and keep an eye out for updates here.

As always, all comment most welcome!

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MrContrarian

20th Jul '18

My morning smallcap tweet:

Feedback (LON:FDBK), Bango (LON:BGO)

Feedback (FDBK) CEO resigns with immediate effect 'in order to devote more time to his other business interests.' Kind words but he'd only been CEO for 5 months. In April he said "I look forward to delivering continued progress towards our long-term vision." We want the truth.
Bango (BGO) H1 trading End User Spend (EUS) £220m (£92m) "continues its four-year growth trend of at least doubling every twelve months...Our competitive customer offering has been greatly enhanced by Audiens, allowing global merchants to boost customer acquisition and revenue through powerful data insights. This combined proposition is driving EUS and revenue growth, positioning Bango well for a strong second half of the year." In line? No guidance.

matylda

Agreed re: Bango (LON:BGO) - Guidance was somewhat lacking!

According to a note on Research Tree looks like about £1bn or so EUS is required for a profit - 2019E is £1.4bn for 2.8p EPS (2018E is £540m for -1.5 EPS) - That's Fully Adjusted EPS and gives a PER of 68.1.

andrea34

Midwich (LON:MIDW) - "...has traded well in the first half, with good top line growth across all of its geographies on a constant currency basis. Overall gross margins have improved, helped by the contribution of the three businesses acquired in 2017... the Board now anticipates that the Group's performance for the current full year will be ahead of its previous expectations". Cash generation is slightly below expectation but expected to normalise. Mid price currently 702.5p +6%, Stockrank 73, QM High Flyer

I Read The News Today Oh Boy! 20-Jul-2018

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Matylda

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