I Read The News Today Oh Boy! 29-May-2019

Wednesday, May 29 2019 by

Morning all!

EasyHotel ( easyHotel (LON:EZH) ) – 74p – £108m – PER 37.2

Interim Results For The 6 Months To End March 2019 – Revenue up 52.6% (to £7.26m), LBT of -£0.12m (£0.09m PBT last time), Basic EPS down from 0.1p to -0.1p, the Interim Dividend is up from 0.07p to 0.08p. Confident of meeting FY expectations.

Looks like some decent H2 weighting is required to see that forecast 50%+ increase in Net Profit (and EPS) – Still not for me at present.

Netcall ( Netcall (LON:NET) ) – 57p – £81m – PER 34.3

Trading Update For The 12 Months To End June 2019 – Looks like a bit of a warning.

As always with this company I think it's best to wait and see actuals – So that's what I will be doing, especially after a TU (what looks like) profit warning.

Spectra Systems ( Spectra Systems (LON:SPSY) ) – 124p – £57m – PER 18.3

Trading Update For The 12 Months To End December 2018 – Profits to exceed market expectations.

I said this last time and my view hasn't really changed - "Still quite like this but still just too hard for me to judge – Just Never know where those new contracts are coming from (but they seem to keep coming) – For this reason alone I have to remain on the sidelines".

Telford Homes ( Telford Homes (LON:TEF) ) – 303p – £230m – PER 11.5

Results For The 12 Months To End March 2019 – Revenue up 12% (to £354.3m), PBT in-line at £40.1m (£46m last time) due to lower margin build to rent, Total Dividend same as last year (17p), pipeline of 4,900 homes (4,000 last time), FY 2020 PBT expectations unchanged.

Still remain wary of this sector but will keep an eye out for Broker updates here – Could be tempted to finally dip a toe in here.

XLMedia ( XLMedia (LON:XLM) ) – 51p – £106m – PER 5

AGM Statement – Business continues in-line with management expectations, intention is to continue buy-back programme…

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easyHotel PLC is a United Kingdom-based owner, developer, operator and franchisor of branded hotels. The Company operates through two segments: Owned properties and Franchising. The Owned properties segment is involved in hotel operations carried out in the Company's owned hotels and properties. The Franchising segment includes its franchise hotel operations in connection with the license of the Company's brand name. The Company has a portfolio of 11 owned hotels comprising of 1,216 rooms, and it has a further 25 franchised hotels with 2,139 rooms. The Company's owned hotels include Old Street (London), Glasgow and Croydon. Its franchise locations include Bulgaria (Sofia), Czech Republic (Prague), Germany (Berlin, Frankfurt), Hungary (Budapest), the Netherlands (Amsterdam, Rotterdam and The Hague), Switzerland (Basel, Zurich), the United Arab Emirates (Dubai) and the United Kingdom (Edinburgh, London Central and Heathrow, and Luton). The Company's subsidiary is easyHotel UK Limited. more »

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Netcall PLC is a United Kingdom-based company, which designs, develops and markets communication, workforce management and business process management (BPM) software and services to the healthcare, public and private sectors. The Company provides corporate solutions, health solutions and public solutions. The Company's corporate solutions include multichannel contact center, workforce optimization, customer self-service and proactive outbound applications. The Company's health solutions include patient self-service, appointment management cycle, and resource management and work optimization. The Company's public solutions include case, record and document management, and customer service. The Company offers platforms, such as corporate liberty platform, public liberty platform and health liberty platform. The Company also provides deployment services, including on premise, cloud and hybrid; professional services, including training, and support services, including SolutionCare. more »

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Spectra Systems Corporation provides technology-based security solutions. The Company operates in three segments: Authentication Systems Group, which captures the hardware, software and materials related to banknote, tax stamp and other high value goods; Secure Software Transactions Group, which provides an internal control system (ICS) software offering to the lottery and gaming industries, and Banknote Cleaning Group, which captures the technology related to cleaning soiled banknotes. ICS provides tools for fraud detection, money laundering, match fixing and statistical analysis. The Company develops and sells integrated optical systems across a spectrum of markets, including currency manufacturing and cleaning, branded products, industrial logistics and other highly sensitive documents. The Company's solutions include engineered materials, sensors and quality control equipment. The Company's materials are available in several forms, including particles, threads, inks and coatings. more »

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

11 Posts on this Thread show/hide all

MrContrarian 29th May 1 of 11

My morning smallcap tweet: Spectra shines again

Netcall (LON:NET), Spectra Systems (LON:SPSY)

Netcall (NET) warns FY adj EBITDA only £3.4m due to delays in NHS product orders plus public sector customers ordering the newly launched Low-code cloud offerings.
Spectra Systems (SPSY) expects FY profit to exceed market expectations. That's so many in a row I can't remember.

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andrea34l 29th May 2 of 11

I used to hold Spectra Systems (LON:SPSY) (and sold below the current price), I probably wouldn't buy back because I found the investment to much of a roller coaster; I think the rating is low for a reason.... I just don't quite know what it is

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matylda 29th May 0 of 11

In reply to post #479061

It does seem complicated but they do seem to keep beating expectations !

Blog: Briefed Up
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smilingmickey 29th May 4 of 11

This Company is very secretive. IHMO their IP and Patent Cover is strong.
The security product labelling opportunity in China seems very enticing.
They supply various products to Central Banks (who maybe appreciate the way in which the IP is protected!)

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wilkonz 29th May 5 of 11

Thanks as always Matylda. Do you have any views on £QLT? The metrics look attractive but the price has fallen 20% over the last few weeks and I'm not sure why. It's now trading below it's 200 day EMA. At first sight it's highly undervalued but I'm wondering if I'm missing something?

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matylda 29th May 6 of 11

In reply to post #479276

You're welcome wilkonz.

Not usually something I look at, way too big, but just put just quickly put some high level figures from Stocko into a Parity PEG Price Report and reckon...


(Sorry about the size of the image, no idea how to make it scale)

It's probably reasonable value here on a 2 Year view especially taking into account the 4% Yield (which looks like it is just being introduced in 2019E) - Perhaps they've recently sold off a division or something, which may also help explain the Revenue and Net Profit drop below (as I say, no idea as it's not something I have ever looked at).

Some things that would probably put me off...

- Odd the drop in Revenue and Net Profit, yet EPS is still growing.

- As you mention, chart is not particularly favourable.

- ROCE is very low.

- Op Margin is also low.

Probably not much help but had a spare 5 minutes.

Blog: Briefed Up
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wilkonz 29th May 7 of 11

Actually that's very helpful Matylda. I confess I was tempted but the price drop was off-putting to say the least. I've been following Quilter (LON:QLT) since they bought Lighthouse (of which I was a holder) and had put them down as a buy at 130 but now I'll wait for them to go up to 135 and review again. Statistically it's unwise to buy below the 200 MA. And as you've highlighted, the margin and return on equity isn't spectacular. Many thanks for taking the trouble to give them a once over. William

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matylda 29th May 8 of 11

In reply to post #479301

You're welcome, glad it was useful in some way.

Blog: Briefed Up
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Nick Ray 29th May 9 of 11

If you want to shrink the image: select it, then grab one of its "ears" and drag it to the size you want.

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matylda 29th May 10 of 11

In reply to post #479331

Thanks - Will try that next time

Blog: Briefed Up
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wilkonz 30th May 11 of 11

In reply to post #479306

Just to update I've decided to buy a small block at 132. I can't find any sinister reason why the price has dropped recently unless it's because of the Lighthouse acquisition - which I think they got at a bargain price. Quilter (LON:QLT) used to be Old Mutual so I'd guess it's intrinsically sound. It's a bit of a gamble but I reckon there's a 55% chance of the shares going back up to 150 pence in the next couple of months. Many thanks again for your help.

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