Morning all!
Augean ( Augean (LON:AUG) ) – 119p – £124m – PER 11.7
Trading Update – Expects FY 2019 to be ahead of market expectations, Net Cash at £20m.
One thing that stops me investing here is some outstanding HMRC issue – Must look into this a little more, wondering if the £20m Net Cash now covers (I think last I checked potential liability was £30m).
As always, all comment most welcome!
My morning smallcap tweet: IQE waning wireless wafer worry
IQE (LON:IQE), Goals Soccer Centres (LON:GOAL)
IQE (IQE) guides FY rev only £140m to £160m vs F/C £175m. Blames a reduction in forecasts from a number of mobile chip customers. Warned in May that it "may experience some delay to orders and the potential for adjustment of supplier managed inventory levels, predominantly in its Wireless"
Goals Soccer Centres (GOAL) Sports Direct lashes GOAL's decision to appoint a division of GOAL's auditors to investigate the VAT underpayment, and not Kroll as SPD requested. " It is the Company's position that they are 100% sure that the matters under investigation were carried out by one individual."
Regarding the Augean (LON:AUG) update, although this is positive, in the May update they said that due to strong Q1 trading FY19 results would be "materially ahead of expectations" and yet now they say that results are only going to be "ahead of expectations"... unless this means ahead of the expectations that were created following the May update, if you follow me :-/ Anyway, the price is up again... so I'll enjoy the follow through to my holding in Gresham House Strategic (LON:GHS) for now.
The IQE (LON:IQE) update mentioned by Mr C is a catalogue of woe, with more than one division performing very poorly and reduced forecasts.
Advanced Medical Solutions (LON:AMS) announce an "overall in-line update", with most areas/products showing strong growth, though their US Liquiband product temporarily stalling due to Brexit stockpiling and a previous competitor supply issue.
Re. BigDish (LON:DISH) exactly what is a "yield management platform"???
Although I see some value in Gulf Keystone Petroleum (LON:GKP) the update today contains drilling schedule delays meaning that production in the current year will be at the bottom range of the 32-38,000 boepd forecasts and the 55,000 target will be delayed by one quarter to Q2 2020.
Thanks for the updates, have a good weekend everyone.
Andean,
I spotted the change of expectation emphasis, but I am sure it was because n+1 upgraded their May forecast by circa 15%: "Today we have increased our PBT estimates by 15% for FY19 and FY20, and by 14% for FY21, with a corresponding increase in net cash to £50.5m by the end of our forecast horizon". The broker forecast £23m cash by this year end (vs. £11m at the end of last year vs. £20m H1 actual, so it looks like Augean (LON:AUG) are well ahead. The HMRC claim makes this a punt though.
Postscript - n+1 PBT forecast up 10% just now.
