I Read The News Today Oh Boy! 26-Sep-2017

Tuesday, Sep 26 2017 by

Morning All!

Instem (INS)

26-Sep-2017 – Mkt Cap £26.9m – 169.5p

Interim Results For The 6 Months Ended June 2017 – Revenues up 13% and made a Loss for the period versus a Profit last time – Expects to still hit full year market expectations.

Analysis & View – Revenues are rising nicely but Profits are not consistent. Forecasts look good.  Has Cash (around 10% of Mkt Cap) but ROCE and Operating Margins are poor.  If the forecasts are hit this could be a winner – I will wait for further updates (as this one does not sound too upbeat) and remain NEUTRAL for now.

Universe (UNG)

26-Sep-2017 – Mkt Cap £20m – 8.63p

Interim Results For The 6 Months Ended June 2017 – Revenue (slightly), Profits (halved) and EPS (halved) all down. And this sounds like a warning to me…


Analysis & View – Revenues are slow growing with Profit progressing slightly faster, around 10% per annum perhaps. ROCE is decent for the sector (at 8.7%) and there’s Cash too (10% of Mkt Cap). On a PER of 9 I was going to say this seems about fairly priced here – I am not so sure now (after this update) and I am AVOIDING for now.


26-Sep-2017 – Mkt Cap £63m – 135p

Interim Results For The 6 Months Ended June 2017 – Revenue up 19% with a Loss of 1m Euro versus 0.6m last time – Due to 3.2m of exceptional items, mainly related to the recent IPO. So, it would have made a Profit then, of perhaps 2m Euro or so!

Analysis & View – Revenues seem to growing (and forecast to grow) around 10%. Operating Margin and ROCE are poor. With Net Debt of 15% of Mkt Cap and on a PER of 13 - This seems a little rich to me. I am NEUTRAL for now.

Netcall (NET)

26-Sep-2017 – Mkt Cap £67.4m – 48.5p

Final Results For The 6 Months Ended June 2017 – An uninspiring, seems like nothing much changed this year, set of results.

Analysis & View – Revenues seem to flat as do Profits and EPS (these results seem to confirm this). Operating Margin…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
12 thumbs up
0 thumbs down
Share this post with friends

Instem plc is a supplier of information technology (IT) applications to the early development healthcare market delivering solutions for data collection, management and analysis across the research and development continuum. The Company is engaged in Global Life Sciences operations. Its lead product suite, Provantis, is an application in the Early Development Safety Assessment (EDSA) market. The Provantis solution incorporates a suite of modules required for managing and recording EDSA studies, from receipt of the compound through to the automated assembly of statistical analyses and final reports. Its software allows scientific staff to collect, analyze and share data across the organization and externally. It also offers ALPHADAS, an early phase clinical software solution. The Company offers Centrus suite, which provides pre-built applications, as well as the ability to utilize a range of business intelligence and analysis tools. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

Universe Group plc is a United Kingdom-based company, which designs, develops and supports point of sale, payment and online loyalty solutions and systems for the United Kingdom petrol forecourt and convenience store markets. The Company's solutions are delivered through the cloud into real-time environments. The Company's trading segment is HTEC Solutions (Solutions). Solutions provide hardware, software and service solutions into the United Kingdom petrol and retail markets. The Company provides services, such as deployment, including site surveys, and communications infrastructure design and installation, and equipment refurbishment and disposal; field maintenance, including a range of on-site maintenance options; in-house services, including bench repair facility and help desk services, and outsourcing, such as project management, installation engineers and infrastructure consultants. The Company's subsidiaries include HTEC Group Ltd, HTEC Ltd and Indigo Retail Holdings Ltd. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

GYG plc is a United Kingdom-based superyacht painting, supply and maintenance company. The Company provides painting, supply and maintenance services to the superyacht industry. It operates under three divisions: Refit, New Build and Supply. Refit division includes repainting and finishing of superyachts, normally as part of a refit program. Refit also includes scaffolding and containment work. New Build division includes fairing and painting of new vessels as part of the build process. Supply division includes selling and delivery of maintenance materials, consumables, spare parts and equipment primarily to trade customers. It offers services through operations in the Mediterranean, Northern Europe and the United States. The Company’s brands include Pinmar, Rolling Stock, Pinmar Supply, Pinmar USA, Techno Craft and ACA Marine. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

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

2 Posts on this Thread show/hide all

MrContrarian 26th Sep '17 1 of 2

My morning smallcap tweet:

S&U (LON:SUS), Universe (LON:UNG), Pittards (LON:PTD), Cenkos Securities (LON:CNKS), MySale (LON:MYSL)

S&U (SUS) H1 EPS up 21%. "In contrast to the reported hiatus in both the used car market and in economic growth generally, S&U continues to experience robust and good quality demand and our current trading is in line with our expectations. In uncertain times we are very confident of our prospects for further steady and sustainable growth."
Universe Group (UNG) H1 rev down 4%. EPS 0.11p (H1 2016: 0.20p). "Period of continued heavy research and development in our next generation EPOS product suite...The financial results for the full year are, as in past years, second half weighted and this year's result is more than usually dependent on a small number of high value projects. Delays to these would mean that the company performs materially below current market expectations in the current financial year." Also chairman Robert Goddard resigns. NED Andrew Blazye becomes chmn.
Pittards (PTD) H1 rev up 6%, pretax £0.1m (2016 pre-exceptional costs: £0.4m). Exp FY trading ahead of the prior year. No F/C.
Cenkos (CNKS) Strong H1 Rev up 91% pretax up 156%. DIv 4.5p (1p). Very good start to H2.
Mysale Group (MYSL) FY rev up 6%, U/L pretax up 226% to A$0.03. Outlook: "underlying EBITDA for the year will be at least in line with the upper end of market expectations.''

| Link | Share
Julianh 26th Sep '17 2 of 2

S&U (SUS) has been a great long term holding for me. Revenue and profits have risen consistently for years. This does not show on the Stock Report because SUS sold their (lower margin and slower growth) personal loans business in 2015 in order to concentrate on their motor finance business, hence the drop in revenue and profits in 2015.
The problem for the SUS share price is that markets are getting increasingly worried by the fast growth in consumer credit and in particular the credit used to buy cars. The market is anticipating a crash when the bubble bursts, people can't pay off their loans and lenders end up having to write off large amounts of bad debts. Apparently the main source of worry is the relatively new personal contract purchase (PCP) loans. In PCP's customers don't own the car at the end of the payment process, can buy the car for an additional lump sum or hand the car back and then repeat the process with a new car. The downside of the PCP approach is that payments are calculated based on the ESTIMATED residual value of the car at the end of the payment period. If this estimate is too optimistic (e.g. if the used car market deteriorates) there will be a loss for the finance company or a requirement for the customer to pay an end of contract lump sum to clear the difference.
SUS have stated (their 4 August trading statement) that they are confident in the quality of their loan book and that they are also safer because their loans are more traditional hire purchase rather than PCPs
Overall, I am very positive about SUS except that:
1. the impairment % (a measure of potential bad loans) has gone up from 20.1% to 22.7% (these results)
2. the market looks as if it is going to treat SUS with a great deal of caution until worries about the consumer credit and car loans bubbles have been resolved.

| Link | Share

Please subscribe to submit a comment

Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis