I Read The News Today Oh Boy! 22-Feb-2018

Thursday, Feb 22 2018 by

Morning all!

Zytronic ( Zytronic (LON:ZYT) ) – 533p – £84.4m – PER 17.1

AGM And Trading Update For The 1st 4 Months Of The Year – Broadly in-line with the equivalent period last year.

Gave this a little thought this morning. I reckon on reflection I would only be interested here around the 400p level. This would probably mean one of 2 things, something has gone wrong (and it may then be a riskier investment than it is today) or there’s been a general market sell off (in which case there will most likely be better companies to invest in). Going to remove this from my Watchlist for now.

Macfarlane ( Macfarlane (LON:MACF) ) – 86p – £132.6m – PER 12.2

Results For The 12 Months To End December 2017 – Another year of growth in-line with market expectations - Revenue up 9% to £196.0m, (2016: £179.8m) and PBT up 19% to £9.3m (2016: £7.8m). FY Dividend will be up 8% on last year. Debt down to £14.3m (£15.3m last time), Pension Deficit down to £11.8m (£14.5m last time). Confident of further progress in 2018.

I am long here and like these results enough to remain long.

Vitec ( Vitec (LON:VTC) ) – 1070p – £481.4m – PER 13.8

Results For The 12 Months To End December 2017 – A “transformational year” - Revenue up 10.8% (£353.3m) and Adjusted PBT up 13.4%, ROCE up 19.6%, FY Dividend increased by 12.1%. Confident, at current exchange rates, of delivering further progress in 2018. Why no hedging strategy, if it’s so important?

I quite liked this and it was on my Watchlist – I am now, on reflection seeing it as less attractive and am going Neutral. The 2 kickers being that further progress, it seems, is dependent on FX (which should not be the case (and it's not hedged)) and, maybe I am missing something, but I just don’t see the “transformational” here.

Northgate ( Northgate (LON:NTG) ) – 351p – £482.3m – PER 7.98

Q3 Trading Update – A load of waffle usually means there’s some bad news towards the end. It seems “FY18 PBT is expected…

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Zytronic plc is involved in developing and manufacturing of touch sensor products. The Company is also engaged in the development and manufacture of customized optical filters. Its geographical segments include Americas (excluding USA), USA, EMEA (excluding UK and Hungary), Hungary, UK, APAC (excluding South Korea) and South Korea. Its products incorporate an embedded array of metallic micro-sensing electrodes. Its technologies include projected capacitive technology (PCT) and multi-touch mutual projected capacitive technology (MPCT). PCT touch sensors can be constructed from one, two or three layers of laminated, toughened glass. Its sensing products offer touchscreen solution for applications, such as leisure, digital signage, retail, surfaces, banking and industrial applications. Its touch sensors are used in video jukeboxes and slot machines. The PCT touch sensors are used in a range of workplace applications, from medical diagnostic equipment to oil field machinery controls. more »

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Macfarlane Group PLC is a United Kingdom-based company, which is engaged in designing, manufacturing and distribution of packaging products. The Company's segments include Packaging Distribution, which is engaged in distribution of packaging materials and supply of storage and warehousing services in the United Kingdom, and Manufacturing Operations, which is engaged in designing, manufacturing and supplying of self-adhesive labels to a range of fast moving consumer goods (FMCG) customers in the United Kingdom, Europe and the United States. The Company's business operates approximately 18 Regional Distribution Centers (RDCs) supplying customers with a range of packaging materials and services. The Company's Macfarlane Packaging Distribution serves in various sectors, such as Internet retail, third party logistics (3PL) and aerospace. Its Macfarlane Labels serves in various sectors, such as health and beauty, food and household goods. more »

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Vitec Group PLC is a United Kingdom-based provider of image capture and content creation solutions. The Company operates in three divisions: Imaging Solutions, Production Solutions and Creative Solutions. The Company designs, manufactures and distributes high performance products and solutions including camera supports, camera mounted electronic accessories, robotic camera systems, prompters, light emitting diode (LED) lights, mobile power, monitors and bags. The company operates in three divisions imaging solutions, production solutions and creative solutions. It provides small high definition (HD) monitors, Teradek transmitters, tripods, Anton/Bauer batteries, JOBY GorillaPods and audio capturing products. more »

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  Is LON:ZYT fundamentally strong or weak? Find out More »

5 Posts on this Thread show/hide all

MrContrarian 22nd Feb '18 1 of 5

My morning smallcap tweet:

Starcom (LON:STAR), Zinc Media (LON:ZIN), Zytronic (LON:ZYT), Sinclair Pharma (LON:SPH)

Starcom (STAR) warns FY post-tax loss "materially higher than the breakeven to small loss previously indicated" due to share-based payment costs, unrealised exchange differences and certain holding company costs.
Zinc Media Group (ZIN) wins four 'significant' TV commissions from BBC, Channel 4 and Channel 5.
Zytronic (ZYT) AGM stmt - rev and profit in the first four months of the FY remain broadly in line with the equivalent period last year. House broker FY f/c was for adj EPS up 4%, reb down 1.5%.
Sinclair Pharma (SPH) drops US distributor for Silhouette InstaLift end March, by mutual agreement. "Sinclair will pay to Thermi a one-off, undisclosed payment for the early termination and will regain the full US distribution rights for the Products." Why the payment if the termination is mutual? "Advanced discussions with potential US partners are ongoing and we expect to enter into an alternative arrangement effective from 1 April".

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ISAallowance 22nd Feb '18 2 of 5

Hi Matylda,

Northgate's ( Northgate (LON:NTG) ) load of waffle is actually quite important to give context to the 25% reduction in PBT. Basically, they've figured out that it's more profitable to keep their vans for 3 - 9 months longer before selling them, starting immediately. Hence less van sales this year, which affects PBT (since the vans they keep are all depreciating) more than it affects EBITDA. Although some of the reduction in PBT is attributed to lower earnings from UK van rental, which isn't so good.

I hold (a very small position). I'll continue to hold on this update.

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matylda 22nd Feb '18 3 of 5

In reply to post #328803

Fair comment - Just saying, waffle is usually used to shroud the inevitable bad news. Good luck with the holding.

Blog: Briefed Up
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whitepjs 22nd Feb '18 4 of 5

In reply to post #328803

The problem for me with the Northgate (LON:NTG) is the lack of clarity about the potential fall in UK margins. I believe UK is 62% of turnover, and they are already reporting a 1.3% drop in margins in the UK,with a suggestion of further price cuts to come.

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