Morning all!
AB Dynamics ( Ab Dynamics (LON:ABDP) ) – 1910p – £375m – PER 33.3
Interim Results For The 6 Months To End February 2019 – Revenue up 69% (to £25.8m), PBT up 95% (to £6.4m), EPS up 130% (to 28.36p), the Interim Dividend is up 10% and Net Cash stands at £18.9m (£12.9m last time).
Been calling this one wrong for as long as I can remember, always never able to convince myself to pay up – Perhaps it's about time I did (I probably won't)!
As always, all comment most welcome!
My morning smallcap tweet:
Westminster (LON:WSG), Vela Technologies (LON:VELA), Taptica International (LON:TAP), IXICO (LON:IXI)
Westminster Group (WSG) wins $3.48m container screening contract over 2 years. Rev largely in 2019.
Vela Technologies (VELA) placng at 0.1p, a 44% discount. And to sweeten the deal, buyers get 1/4 warrants at 0.15p. As if the discount isn't enough.
Taptica (TAP) founders inc ex CEO place 11% of co. Clearing overhang may help SP. I hold.
IXICO (IXI) wins £2m imaging services contract to support a phase study in Huntington's Disease over 7 years plus a smaller contract.
Agree entirely Matylda..looked at this many times and never pressed the trigger. Even went to a presentation by Ab Dynamics (LON:ABDP) and drew the wrong conclusion from the then ceo decision to quit the company.
Same here with £ADBP and the results do look good.... though I do wonder why they haven't quantified the order book considering they are so precise with all their other numbers. The short selling Beneish risk flagged on the Stocko page makes me nervous though. But with the future forecasting driverless cars (which I welcome when I see some of the lunatics on the road) then surely business will remain strong...?
There is the usual farcical results announcement from WANdisco (LON:WAND) with full year revenue DOWN from $19.6m to $17m ("though H2 is up 13%"... whoopee) and "adjusted EBITDA loss" of $9.4m($0.6m). Cash is disappearing down the plughole as fast ever.
A trading update from SysGroup (LON:SYS) looks reasonable, with revenue +22% and adjusted EBITDA +40%; stocko metrics aren't that great... but on an adjusted basis the rating doesn't look that demanding to me considering growth.
One thing I don't understand about driverless cars: I actually quite like driving even though I live in London. Is the idea to make it compulsory or will you be able to opt out.? I know it's many years away but have not seen anything on this point.
Andrea,
I don't think that the Beneish M-score for Ab Dynamics (LON:ABDP) is a legitimate concern. It fails just two of the Beneish tests:
The first of these is a fail due to non-current deferred tax assets going up roughly 7-fold between end-2017 and end-2018. This was driven by the near incomprehensible requirements of accounting for share options. It is certainly not reflective of stuffing expenses into assets, which is what Beneish is concerned about here. (Although note that 'intangible assets' of £213k appeared on the balance sheet for the first time at 2019 H1, which indicates that they may have started to capitalise some costs).
The second is the only justification for investing in Ab Dynamics (LON:ABDP) at such a high PE ratio - its excessive sales growth! In point of fact, they are working in a sweet point and investing heavily in their business to take maximum advantage of it; that's what good management do.
Thanks guys for the £ABDP comments - I decided to not take the plunge and let it continue to be the one that got away (perhaps forever). I am still on the look out for an updated Broker note but I don't suspect it will push me over the edge.
My reconciliation shows that the new £213k intangible asset is actually a transfer that was previously classed as property, plant and equipment.
Not sure how that happens.
