I Read The News Today Oh Boy! 24-May-2018

Thursday, May 24 2018 by
22

Morning all!

Shoe Zone ( Shoe Zone (LON:SHOE) ) – 172p – £86.0m – PER 10.2

Interim Results For The 6 Months To End March 2018 – Says first half in-line but based on the forecasts, I am not so sure it is.

The low PER and great yield may tempt some. I will remain Neutral for now.

Huntsworth ( Huntsworth (LON:HNT) ) – 99p – £326.9m – PER 14.7

Trading Update For The 4 Months To End April 2018 – In-line.

I am Long here and will remain so for now.

Alliance Pharma ( Alliance Pharma (LON:APH) ) – 89.2p – £424.1m – PER 18.8

AGM Statement – In-line.

Was on my Watchlist at 60p but looks like growth is forecast to slow now. I am going to go Neutral here for now.

Henry Boot ( Henry Boot (LON:BOOT) ) – 297.5p – £396.0m – PER 10.5

AGM Statement And Trading Update – In-line with FY 2018 expected to be in-line.

Forecasts look quite poor so I am now removing this from my Watchlist - Neutral for now.

Headlam ( Headlam (LON:HEAD) ) – 482.5p – £409.4m – PER 10.7

AGM Statement – Not so encouraging.

Growth was already forecast to slow here and this probably won’t help. I will remove this from my Watchlist and go Neutral for now.

StatPro ( StatPro (LON:SOG) ) – 180.5p – £118.5m – PER 23.9

AGM Statement And Trading Update – In-line with Fixed Income module to be launched in Q3 2018, as planned.

Forecasts look great here and any break above 190p would surely be positive, it’s on my Watchlist at that level (yes, to consider buying the break-out).

Sportech ( Sportech (LON:SPO) ) – 83.4p – £155.8m – PER 32.3

AGM Statement – Not sure what they’re trying to say here.

Mentioned this previously, this is just too complicated for me. Already on my Avoid list, I am now going…

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Shoe Zone plc is a footwear retailer in the United Kingdom and the Republic of Ireland. The Company offers women's shoes, men's shoes, boy's shoes and girl's shoes. The Company's online offering combined with its store network enables customers to shop through multiple channels. The Company operates from a portfolio of approximately 550 stores. Its customers purchase all of the products available in stores, as well as an additional approximately 400 product styles. The Company sells over 20 million pairs of shoes per annum. The Company has operations in various countries, including Germany, Italy, Spain and France. The Company's distribution center is located in Leicester, England. The Company's subsidiaries include Castle Acres Development Limited, Shoe Zone Retail Limited, Zone Property Limited, Zone Group Limited, Shoe Zone (Ireland) Limited, Shoe Zone Pension Trustees Limited, Stead & Simpson Limited, Zone Footwear Limited, Zone Retail and Walkright Limited. more »

LSE Price
213p
Change
-0.5%
Mkt Cap (£m)
106.9
P/E (fwd)
12.1
Yield (fwd)
5.5

Huntsworth plc is a United Kingdom-based public relations and integrated healthcare communications company. The Company operates through segments, including Citigate, Grayling, Huntsworth Health and Red. Citigate offers communications services, including global financial, investor relations, corporate, consumer and public policy communications consultancy with an integrated network across the United Kingdom, Europe, the United States and Asia. Grayling is a global integrated communications network, covering marketing communications, public relations and public affairs. Grayling develops and manages reputations for a range of organizations across a range of sectors, including consumer brands, technology, energy, healthcare, financial services, transport and logistics, and governments. Huntsworth Health is a healthcare communications company. Red Consultancy is a United Kingdom-based multi-specialist, consumer focused communications consultancy. more »

LSE Price
101p
Change
-1.0%
Mkt Cap (£m)
374.4
P/E (fwd)
11.8
Yield (fwd)
2.6

Alliance Pharma plc is a United Kingdom-based specialty pharmaceutical company. The Company is engaged in acquisition, marketing and distribution of pharmaceutical products. The Company operates in various business areas, such as Hydromol, secondary care, community and consumer products, established products and international. The Company's therapeutic areas of focus include cardiovascular, central nervous system, child health, consumer health, dermatology, endocrinology, gastroenterology, obstetrics and gynecology, oral health, oncology, stoma care, toxicology and travel health. The Company's product categories include prescription only medicines, over the counter medications, medical devices, cosmetics and nutritional supplements. The Company's products include SkinSafe, Lift Plus, AbsorbaGel, DeoGel, LaVera, ClearWay, Gelclair, ImmuCyst 81mg, Hydromol, MacuShield, Lypsyl, Anbesol Adult Strength Gel, MolluDab and Ashton & Parsons Infants' Powders. more »

LSE Price
77.5p
Change
0.9%
Mkt Cap (£m)
398.1
P/E (fwd)
14.7
Yield (fwd)
2.2



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


6 Posts on this Thread show/hide all

MrContrarian 24th May '18 1 of 6
7

My morning smallcap tweet: The shell game.

Oakley Capital Investments (LON:OCI), Gotech (LON:GOT), Sportech (LON:SPO), Local Shopping Reit (LON:LSR), HSS Hire (LON:HSS)

Oakley Capital Investments (OCI) agrees sale of Facile for £52.2m, a 58% premium to the December carrying value. NAV uplift 9.3p/sh. Buyer is to EQT VIII (a large EU investment fund). Oakley Capital Private Equity III will invest €80m alongside EQT as a minority partner
GoTech Group (GOT) cash shell runs out of time to make aquisition so will move to NEX. Plans placing via convertible loan notes, change of name and implementation of future strategic focus on the cannabis market.
Sportech (SPO) AGM stmt. Mixed. Racing and Digital division is broadly trading in line with management expectations. Bump 50:50 - encouraging progress. Venues division rev below Board expectations. Sportech may benefit from US allowing sports betting - it has an operation in Connecticut. No overall guidance. Place your bets.
Local Shopping Reit (LSR) sells £9m of properties at 2.6% below book and 4.2% after costs. Another sale netted £2.8m, a 2.4% premium to book but 2% loss after costs. 40 properties scheduled for auction before the end of FY.
HSS Hire Group (HSS) Q1 rev up 5%. Adjusted EBITDA up 64%. Post Q1 U/L rev up 7%. "At the beginning of April we moved to the new distribution model, a significant operational change which was delivered flawlessly." No overall guidance.

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andrea34l 24th May '18 2 of 6
2

Newriver Reit (LON:NRR) announces "the acquisition of Hawthorn Leisure Holdings Limited for an enterprise value of £106.8 million. This represents a net initial yield based on the value of the pub portfolio of 13.6% and will be satisfied using the Company's existing resources. As well as a portfolio of 298 high quality community pubs, the acquisition includes an established brand and pub management platform, which could be applied across the Company's existing pub portfolio, generating significant scale-based synergies. The transaction will be immediately accretive to NewRiver's Funds From Operations ("FFO") and net assets". A yield of 13.6% sounds pretty good... to me. FY NAV flat at 292p (presumably due to open offer last year), property return +8.2%, eps 16(15.5), retail occupancy still 97%, footfall -0.9%, Q1-19 dividend 5.4p up only 3%.

TP (LON:TPG) announces a partnership agreement with Micropore Inc, the US developer of revolutionary ExtendAir® carbon dioxide adsorbent systems used in rebreathing and life support applications. "This is a significant building block in the Company's overseas growth strategy... provides a route for TP Group to enter or invest in the U.S market.The Agreement, effective immediately, enables TP Group to develop and market a new range of equipment that is additional to existing systems and will open up new opportunities for the Company..." Price up 5.5%


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gus 1065 24th May '18 3 of 6
3

Morning Matylda.

Thanks, as ever, for your morning commentary. I’ve been following Sportech (LON:SPO) for a few years now and agree it’s quite a complicated story to follow. In simple terms, the company’s previous mainline business (UK doorstep football pools) was dying on its feet and it’s spent the past few years trying to reinvent itself while also fighting a relatively high value VAT dispute with HMRC and dealing with a debt laden balance sheet. Short to long it, it basically won most of its dispute with HMRC generating a cash windfall and revamped the pools business into an online format which it then sold, again for a slug of cash. A fair amount of the cash was distributed to shareholders last December.

The company then entered a “strategic review” period with the expectation that its legacy businesses would be sold to a PE or trade buyer. This came to nothing and when announced the share price tanked in March 2018 - in hindsight an excellent buying opportunity. Meanwhile, the ongoing business has morphed itself into a US focused sports betting infrastructure provider and, low and behold, the recent US Supreme Court ruling has effectively legalised US betting transforming Sportech (LON:SPO) into a glamour growth stock. This is the gist of the outlook narrative in today’s RNS

It may well be a classic case of “better to travel than arrive” as there is a lot of bulletin board hype on this at the moment and transforming potential into revenue is a challenge, but for the time being the company does seem to be having a pretty good run of luck!

Gus.

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ricky65 24th May '18 4 of 6
1

I've had StatPro (LON:SOG) in my Minervini profile for a while now. The impression I got was revenue and earnings were pretty flat for years until the UBS Delta acquisition. Then chart broke out to all time high and is still in an upward channel. There's acquisition risk and they had to take on some debt but it looks like it could be transformative.

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matylda 24th May '18 5 of 6
1

Thanks Gus for the Sportech (LON:SPO) detailed information, much appreciated - I am staying well away for now.

Thanks Ricky, StatPro (LON:SOG) has also appeared on my Tech screen - I have this comment at present "I don't like the inconsistency here and the fact it's got Debt and it's not even covered by 3x next years profits - Pass on this for now".

Thanks Andrea again as always for your daily input, REITs are not for me and the spread on TP (LON:TPG) is just crazy.

Blog: Briefed Up
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gus 1065 31st May '18 6 of 6

In reply to post #366909

RNS during the day about a strategic tie up by Sportech (LON:SPO) to offer sports betting platforms in the nascent US market.

https://www.investegate.co.uk/sportech-plc/spo/us-sports-betting-platform-agreement/201805311245078708P/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Sportech%20PLC%20Alert

Not sure if it’s still under the market radar as the share price has barely moved. Might have expected a more positive reaction. May already be in the recently ticked up price (better to travel than arrive as per previous post etc.).

Gus.

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