I Read The News Today Oh Boy! 21-May-2019

21st May '19 by matylda

5 comments 1912 reads

Morning all!

Back after Mello, it was a pleasure to meet many of you.

Accesso Technology ( accesso Technology (LON:ACSO) ) – 790p – £177m – PER 18.5

Trading Update For The 4 Months To End April 2019 – Exisitng FY guidance unchanged.

Looks about fairly valued to me, based on the EPS forecasts I have access to, 2019E 50.7p, 2020E 58.4p.

Bloomsbury Publishing ( Bloomsbury Publishing (LON:BMY) ) – 234p – £177m – PER 14.5

Results For The 12 Months To End February 2019 – PBT (before exceptionals) ahead of expectations up from £13.2m to £14.4m, Diluted EPS up 16% ro 12.25p with the Final Dividend up 6%. This YTD is performing in-line.

Looks reasonable value although I reckon 250p could be a cap.

Epwin ( Epwin (LON:EPWN) ) – 82p – £116m – PER 7.5

AGM Trading Update – Expects to meet FY expectations it seems.

Still commands a high StockRank (92) and still I remain unconvinced.

GYG ( GYG (LON:GYG) ) – 72p – £34m – PER 30.4

Trading Update For The 12 Months To End December 2019 – Expects FY to be ahead of market expectations.

This seems to mean a return to profitability – Although this is quite encouraging I will wait until I see those FY actuals, or more accurate guidance.

Knights Group ( Knights Group (LON:KGH) ) – 283p – £207m – PER 17.4

Trading Update For The 12 Months To End April 2019 – Expects FY Adjusted PBT to be slightly ahead of management expectations.

This is on my Watchlist, based on this, I am now tempted to open a position.

Nexus Infrastructure ( Nexus Infrastructure (LON:NEXS) ) – 123p – £47m – PER 8.7

Interim Results For The 6 Months To End March 2019 – Revenue up 12.9% with Operating Profit down from £3.5m to £2.9m, Net Cash at £12.4m (£7.4m last time), Interim Dividend same as last year (2.2p). The Order Book is up 32.6%.

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MrContrarian

21st May '19

My morning smallcap tweet: Superyatch service sales so super

Tritax EuroBox (LON:EBOX), Knights Group (LON:KGH), GYG (LON:GYG), Integumen (LON:SKIN), 4D Pharma (LON:DDDD), Bloomsbury Publishing (LON:BMY)

Tritax EuroBox (EBOX) placing at 110p, a 2% discount, to fund investments.
Knights Group (KGH) guides FY adj pretax slightly ahead of market expectations at £9.7m, a 102% increase.
GYG (GYG) superyatch service co guides FY ahead of current market expectations due to improving market.
Integumen (SKIN) guides FY rev up 111%, ahead of previous expectations. EBITDA loss reduced by 12% to £1.25m. Also cgmn resigns immediate effect. He is thanked.
4D Pharma (DDDD) FY pretax -£24.3m (£19.4m) ,cash burn for the year was in line with expectation. "Directors are continuing to explore sources of finance available to the Group and have a reasonable expectation that they will be able to secure sufficient cash inflows into the Group to continue its activities for not less than twelve months."
Bloomsbury Publishing (BMY) FY adj-pretax up 9%, ahead of market expectations. FY div 7.96p up 6%. Still milking that Potter cow.

JamesS

Good to see you back matylda,
Thank you both for the info on Bloomsbury.
KR
James

andrea34

Results from APC Technology (LON:APC) look quite interesting to me, with revenue £10.7m+23.6%, EBITDA £851k+46.5% with operating profit still up 24.9%, and eps 0.4 (0.3). Acquisitions have helped progress, and it's not clear how much growth (if any) is organic. I'm not an accountant, but I can't see anything standing out. Debt is down, and high interest debt fully paid. Any views?

I don't understand how the valuation of Bloomsbury Publishing (LON:BMY) is as high as it is, with practically flat revenue and profit only up 3%. Note the following statement - "Excellent Academic & Professional performance, with profit before highlighted items of £3.1 million (2017/18: loss of £0.4 million) and revenue up 13", doesn't this therefore mean that the performance of everything else is pretty woeful?

Retail stalwart WH Smith (LON:SMWH) announces what looks like a reasonable trading statement to me, with total sales +15% and lfl+1%. As always, the travel operations are the star, with sales up 26%, with new large format travel stores doing well, they are also making inroads into hospitals which has overtaken rail in size. The price was initially down 3% for some reason, but has ticked back up over 2000p. I keep on watching, but don't hold.

There is an in-line 4-month update from Vitec (LON:VTC) (which I do hold), all divisions show growth... though the overall tone is a bit lacklustre to me, one division has a challenging market and they say "the value of total cameras sold has remained constant since December 2015" which seems a bit dull. There is to be significant digital investment. There are very few trades going through.

Why do you see Renew Holdings (LON:RNWH) as only fairly priced at 400p, Matylda? Operating profit is up 35% and revenue up 15%, with eps +15%. The engineering division seems to be doing very well, the Specialist Building division is well down admittedly (due to "contract selectivity", which has actually reduced margin) and I wouldn't be surprised if they are winding this down to sell it.

Wimbledonsprinter

I think the guidance from Topps Tiles (LON:TPT) is reasonable. I would look at the cash flow on a company like this and they are guiding for net debt to be around £12-14m at year end (after the Strata acqisition). This implies c£13m of FCF in FY19 (DYOR), which I think is reasonable for a treading water company with a market cap of £150m. Note out today by Liberum, indicating there could be modest upside to numbers, if the current positive LFLs, continues.

matylda

APC Technology (LON:APC) - I hold a small amount of these "off-piste" from last year thanks to some great previous (and more recent) analysis by https://twitter.com/Glasshalfull1

Renew Holdings (LON:RNWH) - I can only find my scribble on this so cannot comment more than that as I have not completed my usual 1 pager, I will sort this this week hopefully and report back - Loads to catch up on having missed most of last week and Monday due to Mello and extended London stay.

Topps Tiles (LON:TPT) - I have not yet got round to Broker notes missed since my break but thanks for the heads up, have made a specific note to make sure I update my Topps Tiles (LON:TPT) analysis.

Thanks all, good to be back - Still absolutely shattered after an excellent Mello and then an extended weekend ticking off the majority of the London attractions featured in the Paddington Pop Up Book with the real Matylda (aged almost 7!).

I Read The News Today Oh Boy! 21-May-2019

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Matylda

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