Morning All!
Feeling refreshed after a good break - Have to say, having returned 2 days ago, it was still hard getting back into it again this morning!!!!!!
Anyway, here we go (a slightly new format, hope it's OK as I believe it will be more useful to me in the future when analysing subsequent news updates)...
20-Sep-2017 – Mkt Cap £491m – 1910p
Interim Results For The 6 Months Ended June 2017 – Revenue up 17% but PBT is down 30% - Are there problems integrating recent acquisitions – Perhaps!
Analysis & View
Nicely (historic) rising Revenues and Profits (20% CAGR). EPS CAGR is 12% and ROCE is around 10%. The thing that puts me off though is the racy PER of 45, the recent Broker downgrades and the PBT down 30% in this report. At this price I am NEUTRAL for now.
20-Sep-2017 – Mkt Cap £50m – 48.5p
Interim Results For The 6 Months Ended June 2017 – Revenue up 224% to £5.5m (following a recent acquisition) but Losses increase.
Analysis & View
Revenues have been rising nicely here – And are projected to go from £3.57m in 2016 to £14.9m and £20.4m in 2017 and 2018 respectively. It’s never made a Profit though and even on Revenue of £20.4m in 2018 it’s projected to make a Loss. Has a little bit of Cash but perhaps not enough to see it through to profitability. I am AVOIDING this on the basis that if those Revenue projections are missed (it’s made £5.5m in H1 so needs almost £10m in H2 to hit 2017 forecasts) it will probably mean profitability is even further away.
20-Sep-2017 – Mkt Cap £398m – 212p
Interim Results For The 6 Months Ended June 2017 – An inline update – The highlight seems to be the reinstated Dividend – As planned (but’s it’s tiny!).
Analysis & View
Seems to have started improving since 2015 with Revenue and Profits up nicely in 2016 – Forecasts look to indicate the pattern will continue. There’s loads of Cash here too (about 25% of Mkt Cap). Putting me off though is the poor ROCE (never above 6.4%). Doubled in price this…
