I Read The News Today Oh Boy! 21-Sep-2017

Thursday, Sep 21 2017 by

Morning All!

A little late - Loads to get through...

Venture Life (VLG)

21-Sep-2017 – Mkt Cap £23.4m – 65.5p

Interim Results For The 6 Months Ended June 2017 – Highlights are, Revenue up 28% and Losses basically halved – A move almost to being breakeven.  A warning follows that, whilst full year Revenues will be in-line, EBITDA will not meet current market expectations.

Analysis & View - Nice Revenue increases and although still making a Loss, first Profits are due this year (perhaps not after this update). Looks like Debt (20% of Mkt Cap) means a small fund raise may also be required in the near future. The company’s niche is interesting and if it starts showing signs of being profitable I may become interested. For now I am AVOIDING.

Elektron Technology (EKT)

21-Sep-2017 – Mkt Cap £27.9m – 14.5p

Interim Results For The 6 Months Ended July 2017 – Revenue up slightly, group has returned to profitability and an improved performance in H2 is expected.

Analysis & View - This is a little strange for me – Revenues have been falling (slightly up in this update) and it consistently makes a small Profit or a Loss (a Profit in this update).  Shares in issue are up 70% in 5 years and I struggle to see why the share price is up 100% this year. On the basis this update is not screaming to me that things have really changed here – I am AVOIDING for now.

Scisys (SSY)

21-Sep-2017 – Mkt Cap £28.3m – 97.5p

Interim Results For The 6 Months Ended June 2017 – Reasonably positive here. Profits up 18%, Revenues up 23%, Order book at £64m versus £35m LFL and the interim Dividend is up 11%.  EPS is down to 1.4p (from 2.8p) due to an exceptional tax charge.  This is also encouraging - “Directors remain fully confident of meeting the upper end of full-year expectations, as well as the future prospects of the Group.”.

Analysis & View - I like the recent rising Revenues here and the 2016 Profit increase was over 200%. The ROCE is low (6.8%) but OK for the sector. Net Debt (about 30% of Mkt Cap) seems high.However, that Order book and confirmation of “upper end of full-year expectations” means I am adding this to my WATCHLIST with an interest around the 90p level. On a PER of 8.65 I may even consider paying up here for an initial position.

Cambridge Cognition Holdings (COG)

21-Sep-2017 – Mkt Cap £33.3m – 161p

Interim Results For The 6 Months Ended June 2017 – Revenue down slightly and Losses more than doubled, although still small.

Analysis & View - Revenue growth is reasonably good here (although down slightly in this update) and it’s just started to make a (tiny) Profit (a LFL Loss in this update though).  Operating Margin and ROCE are low. Having doubled in the past 6 months the current PER is a very racy 41! I can’t see the justification here for a PER of 41 (or even half of that to be honest), perhaps I am missing something - For now I am AVOIDING.

Mission Marketing (TMMG)

21-Sep-2017 – Mkt Cap £37.3m – 44.75p

Interim Results For The 6 Months Ended June 2017 – Revenue up 4%, PBT up 11% and Interim Dividend up 10% - The Chairman is confident of another year of growth.

Analysis & View - The annual figures look OK to me. The Operating Margin and ROCE are low – But about average for the sector. There’s a nice 3.5% or so well covered Dividend BUT there’s quite a lot of Net Debt. The share price has not really moved anywhere in 3 years. On a PER of 5.52 a catalyst is needed here to push this up above the 50p area – But, when will it come? Not in this update - For now I am NEUTRAL.

Begbies Traynor (BEG)

21-Sep-2017 – Mkt Cap £71m – 66p

A general in-line AGM Statement and Trading Update.

Analysis & View - This is a tough one for me and one I just have to put in the too complicated for me bucket. Revenues are quite stagnant, Profit/Loss is hit and miss, Operating Margins and ROCE are generally low and there’s Net Debt, albeit 15% or so of Mkt Cap. This is on my AVOID for now list.

Accsys Technologies (AXS)

21-Sep-2017 – Mkt Cap £89.8m – 79.75p

I have to be honest, based on the short amount of time I have in the morning to get through the news – I just cannot make head nor tail of this AGM Statement.

Analysis & View - There’s nicely rising Revenues (30% CAGR) here – But still no Profit! There’s plenty of Cash to hopefully see this company through to profitability – But even the 2019 forecast (on Revenue of £71m) is a Loss. This is not even jam tomorrow yet so it’s on my AVOID list for now.

Park (PKG)

21-Sep-2017 – Mkt Cap £148.4m – 78.5p

An upbeat AGM Statement


Analysis & View - A steadily growing company with nice annual Revenue, Profit, EPS and (reasonably covered) Dividend increases (currently 3.63%). ROCE is excellent and there’s plenty of Cash too (20% of Mkt Cap). The downside is the Operating Margin, improving - But never above 3.5%.On a PER of 13.8, doesn’t look too bad as a slow and steady growth opportunity with a reasonably covered yield. I have added this to my WATCHLIST as being interested around the 70p level.

Quixant (QXT)

21-Sep-2017 – Mkt Cap £290.1m – 437.5p

Interim Results For The 6 Months Ended June 2017 – Revenue up 38%, (adjusted) PBT up 77%, EPS doubled and now has Cash of $1.7m.

The COO also makes this statement, seems H2 will not be so strong…


Analysis & View - Nicely (historic) rising Revenues and Profits (50% CAGR). ROCE is 28% and it now has Cash too.I hold a Long position here and will continue to do so.

Volvere (VLE)

21-Sep-2017 – Mkt Cap £30.6m – 750p

Interim Results For The 6 Months Ended June 2017 – Nice LFL growth, Revenue up from £14.5m to £18.5m and PBT up from £0.25m to £0.76m.

Analysis & View - Quite like the numbers here and with loads of Cash (50% of Mkt Cap) it still seems decent value here on a PER of 23. Have added this to my WATCHLIST with an interest around the 700p level, should we ever see it again!

Quite a bit to keep an eye on today, quite liking SSY, PKG ad VLE - At the right price!


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Venture Life Group plc is an international consumer self-care company. The Company focuses on developing, manufacturing and commercializing products for the ageing population. Its segments include Brands, which includes sales of branded healthcare and cosmetics products direct to retailers and under distribution agreements, and Manufacturing, which includes sales of products and services under contract development and manufacturing agreements. Its product range includes the UltraDEX oral care range, which is primarily sold in the United Kingdom through the pharmacy and grocery retailers. Its product range also includes food supplements for lowering cholesterol and maintaining brain function, dermo-cosmetics for addressing the signs of ageing and medical devices for conditions, such as hemorrhoids, minor aches and pains, and women's intimate health issues. It also provides development and manufacturing services to other companies in the healthcare and skincare sectors. more »

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Elektron Technology plc is a holding company. The Company is engaged in designing, manufacturing and marketing products that connect, monitor and control. It operates in two segments: Connectivity, and Instrumentation, Monitoring and Control (IMC). Connectivity comprises two complementary product families: Bulgin and Arcolectric. The Company's products are helping its customers to quantify real-world environments, process this data and act on the results. Its products include sealed connectors, Switches, indicators, battery, fuseholders, ophthalmic instruments, nanopositioning and sensing equipment, and vehicle power management systems. The Company's Checkit offers a wireless solution providing work management software and automated monitoring. Its subsidiaries include Elektron Technology Corporation, Elektron Technology PTE Ltd, Elektron Technology UK Ltd and Elektron Technology (Shanghai) Trading Limited. more »

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SCISYS PLC is a United Kingdom-based company, which is engaged in developing information technology (IT) services. The Company develops application solutions and products, and provides supporting services. The Company provides IT services to corporations and public sector organizations through four divisions: Space; Enterprise Solutions & Defence (ESD); Media & Broadcast (M&B), and Xibis Ltd. The Space division provides various aspects of a space system, from fundamental research and onboard software solutions, to supplying ground segment infrastructure and services. The ESD division provides software solutions across various markets, including defense, security, marine, public sector and commercial. The M&B division is a supplier of digital radio production, archiving, asset-management and playout solutions. The Xibis Ltd division offers Web and application solutions, support and hosting services to range of sectors including retail, education, technology and transport. more »

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  Is Venture Life fundamentally strong or weak? Find out More »

2 Posts on this Thread show/hide all

MrContrarian 21st Sep '17 1 of 2

My morning tweet:
Haynes Publishing (LON:HYNS), Driver (LON:DRV), APC Technology (LON:APC), Marshall Motor Holdings (LON:MMH), Safestyle UK (LON:SFE), Real Good Food (LON:RGD)

Haynes Publishing (HYNS)► Competition and Markets Authority approves its acquisition of E3 Technical. Still needs DVLA licence.
Driver Group (DRV)► exp FY U/L pretax ahead of its previous expectations.
APC Technology Group (APC)► FY trading: exp rev £15.6m (£17.9m), pretax £0.2m (-£3.1m). F/C post-tax £0.6m.
Marshall Motor Holdings (MMH)► sells finance arm for £42.5m gross. "The Group's reported net debt at 30 June 2017 was £101.1m. As a result of the Disposal, the Group's pro forma 30 June 2017 balance sheet would have been un-geared with net cash of approximately £4.6m." Boosts NAV by 50p/sh. Will reduce underlying EPS this FY.
Safestyle (SFE)► H1 rev up 1% but U/L pretax down 15%. Blames 'severest contraction of our market since 2008/09.' Is confident of outperforming the market and gaining market share.
Real Good Food (RGD) (last night) Shareholder loan up to £4m at 10% PA.

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beatingmrindex 21st Sep '17 2 of 2

@matylda - great effort again and thanks for your morning news updates - How was your holiday? I have been watching scisys SCISYS (LON:SSY) and Dillistone (LON:DSG) for ages - both are companies I would like to get into at some stage...

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