I Read The News Today Oh Boy! 23-Oct-2017

Monday, Oct 23 2017 by
16

Morning All!

What a busy morning...

Real Good Food (RGD)

26p - £20.4m

Trading Statement – H1 Revenue up 13% (LFL), 20% including newly acquired Brighter Foods. Margins have been hit though (cost of butter mentioned again) and from a forecast EBITDA of £6.5m the group now expects to make a loss. Actually, they had already revised down to £2m at the beginning of August and to £1m at the end of August. Anyway, they say it comes in 3’s so here’s your 3rd profit warning! And, this is worrying “Should it be, in light of the Board's revised expectations, that the current banking covenants come under pressure, the support from the Major Shareholders would extend to ensuring the facilities are maintained”. The PER here is 5, I think even that’s generous!

Pendragon (PDG)

29p - £413.7m

Interim Management Statement 1 July to 20 October 2017 – A weird selection of dates and a really muddy update in my opinion. The basics seem to constitute a profit warning with PBT expected to be £60m. I am not much interested here as the update is horribly structured and very unclear. But, anyway, let’s use my “have a guess at it” interpretation - Stockopedia has a Net Profit for 2017 of £60m so if we add 25% (assuming tax is about 20%), that gives us £75m PBT – So this is basically a profit warning and a 20% miss.

Dialight (DIA)

815p - £265m

Trading Update – Argggghhh! EBIT will be in the range of £13.5 to £15.5m for the year ending December 2017. Don’t have time to go check what it should have been but at least the way it was worded gives me a clue “due to short-term production challenges, we now expect EBIT for the year ending 31 December 2017 to be in the range of £13.5m to £15.5m”. How much of a profit warning this is I have no idea.

CML Microsystems (CML)

425p - £71.5m

Trading Update For The 6 Months To End September 2017 – A nice update here - “Gross revenue and draft operating results are in line with expectations and significantly ahead of the prior year corresponding period”. Looks like quite a nice little company, revenues growing, profits…

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Real Good Food plc is a food manufacturing and distribution company. The Company is engaged in the sourcing, manufacture and distribution of food to the retail, foodservice and industrial sectors. The Company's segments include Cake Decoration, Food Ingredients and Premium Bakery. The Company’s Cake Decoration segment manufactures, sells and supplies cake decoration products and ingredients for the baking sector in the United Kingdom and abroad. Its Food Ingredients segment manufactures and supplies a range of food ingredients, such as chocolate coatings, sauces, jams, dry powder blends and snack bars to the retail, wholesale and foodservice sectors. Its Premium Bakery segment manufactures, sells and distributes bakery and dessert products to the United Kingdom retailers and foodservice customers. more »

LSE Price
6.25p
Change
-6.4%
Mkt Cap (£m)
6.6
P/E (fwd)
n/a
Yield (fwd)
n/a

Pendragon PLC is an automotive online retailer. The Company's principal market activities are the retailing of used and new vehicles and the service and repair of vehicles (aftersales). Its segments are Stratstone, which consists of its vehicles, truck and commercial vans brand, including the sale of new and used motor cars, motorbikes, trucks and vans, together with associated aftersales activities; Evans Halshaw, which consists of its volume brand, including the sale of new and used motor vehicles and commercial vans; US Motor Group, which consists of its retail operations in California in the United States, including the sale of new and used motor cars; Pinewood, which consists of its activities as a dealer management systems provider; Leasing, which consists of its contract hire and leasing activities; Quickco, which consists of its wholesale parts distribution businesses, and Central, which represents its head office function and includes all central activities. more »

LSE Price
10.66p
Change
1.7%
Mkt Cap (£m)
146.4
P/E (fwd)
12.3
Yield (fwd)
11.2

Dialight plc is a holding company. The Company manufactures and sells lighting products in the industrial market. It operates through two segments: Lighting, and Signals and Components. Its Lighting segment develops, manufactures and supplies light emitting diode (LED) lighting solutions for hazardous and industrial applications, and includes anti-collision obstruction lighting. Its Signals and Components segment develops, manufactures and supplies status indication components for electronics original equipment manufacturers, together with industrial and automotive electronic components and LED signaling solutions for the traffic and signals markets. Its LED lighting solutions include Vigilant Industrial Solutions, DuroSite Industrial Solutions and StreetSense Infrastructure Solutions. Its LED signaling solutions include transportation signals, obstruction signals and SafeSite hazardous area signals. Its indication solutions include Circuit Board Indicators and Panel Mount Indicators. more »

LSE Price
348.5p
Change
1.3%
Mkt Cap (£m)
111.9
P/E (fwd)
10.3
Yield (fwd)
3.0



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


3 Posts on this Thread show/hide all

MrContrarian 23rd Oct '17 1 of 3
1

My morning smallcap tweet:

Omega Diagnostics (LON:ODX), Real Good Food (LON:RGD), Scholium (LON:SCHO), Dialight (LON:DIA), Solid State (LON:SOLI), Renewi (LON:RWI)

Omega Diagnostics (ODX) H1 trading. Rev up 4%. FY F/C is for rev up 8%. "We expect a stronger second half and the outturn for the year remains dependent on one or more of the objectives outlined above delivering a material contribution to our results."
Real Good Food (RGD) trading - rev OK, profit dire. Bakery hit by commodity prices and labour inefficiencies and materials wastage during a period of extensive and disruptive site re-development. Significant additional costs from professional advisers as a result of needing to respond to its Corporate Governance and regulatory shortcomings. Guides FY loss. "Group and Head Office costs have been too high and these are also subject to a comprehensive review, part of which will result in moving the Head Office from London to Wavertree, Liverpool." Not sweet.
Scholium Group (SCHO) H1 trading. H1 is usually quieter than H2, but is expected to show a return to modest profitability (2017: -£240k). Expanding into stamp auctions & sales after buying a 'significant portfolio of stamps'. From the floundering Stanley Gibbons I assume.
Dialight (DIA) Trading. Short-term production challenges knock expected FY EBIT down to £13.5m - £15.5m. "We expect to end the current financial year with a strong net cash position and the Board is considering reinstating dividend payments"
Solid State (SOLI) H1 trading. Guides FY profit slightly lower than current market expectations due to "product mix in the period and increases to overheads through the investment in growth and margin initiatives*". *= BS for cutting prices.
Renewi (RWI) FY trading. Exp results significantly above board's previous expectations.

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ISAallowance 23rd Oct '17 2 of 3
3

Braemar Shipping Services (LON:BMS) reported interim results today, market cap approx 90-100m with approx 6m net cash. Results seemed ok but somewhat uninspiring to me, underlying eps 5.39p, down on previous H1, adjustment (acquisition) looks reasonable, outlook makes optimistic noises about the rest of the year. I had held on to some since the previous profit warnings since the Baltic Dry Index has been slowly rising but on these results I've sold all that I held.

Broker forecast EPS for the full year is 20p though, and the Stocko computers classify it as a superstock, so maybe I've been too hasty.

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RichardK 23rd Oct '17 3 of 3

In reply to post #231853

I held Braemar for several years and it was generally a serial disapppinter; nothing like a 'superstock'. I sold out earlier this year.

Richard

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