I Read The News Today Oh Boy! 29-Nov-2018

Thursday, Nov 29 2018 by
17

Morning all!

Character ( Character (LON:CCT) ) – 495p – £105.0m – PER 10.6

Preliminary Results For The 12 Months To End August 2018 – Revenue down from £115.3m to £106.2m, PBT down from £13.4m to £11.6m, Underlying Diluted EPS down from 50.54p to 44.38p – On the bright side Cash is up from £11.5m to £15.6m, the Dividend is up from 19p to 23p and this years trading has been in-line with expectations.

Still a lot to like here but these results are hardly inspiring – I will keep an eye out for forecasts.

James Latham ( James Latham (LON:LTHM) ) – 625p – £123.1m – PER 10.8

Unaudited Results For The 6 Months To End September 2018 – Revenue up 10.2%, Gross Margin 17.1% (from 17.3%), PBT up about 15% (excluding one off sale of old site).

Seems steady enough, I think my main concern here is where any real growth kicker can come from.

Motorpoint ( Motorpoint (LON:MOTR) ) – 217.5p – £211.4m – PER 10.5

Results For The 6 Months To End September 2018 – Revenue up 9.4%, PBT up 13.3%, Adjusted EPS up 11.6% with Gross Margin up from 140% to 146%. The Interim Dividend is up and impressive 25%. Current trading is in-line.

I still have concerns about the sector but it does now seem to be holding up (even as we get nearer to you know what) - Getting more tempted but not quite over the edge yet.

Mycelx Technologies ( Mycelx Technologies (LON:MYX) ) – 230p – £86.5m – PER 15.1

New Project Award And Trading Update – New order and guides FY revenue of $25m - $26m in Revenue and $2.4m to $2.8m Net Profit.

I am long here and this is the kicker I was hoping for before year end – I will continue to hold for now as I quite like the outlook here.

Synectics ( Synectics (LON:SNX) ) – 190p – £33.8m – PER 9.80

Trading Update For The 12 Months To End November 2018 – PBT expected to be broadly in-line…

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The Character Group plc is a toy company. The Company is engaged in the design, development and international distribution of toys, games and gifts. Its geographical segments include other EU, UK and Far East. It designs and manufactures toys based on television, film and digital characters, and distributes these products in the United Kingdom and overseas. It also distributes finished products in the United Kingdom developed by overseas-based toy producers. Its diverse product range includes products for pre-school, boys, activity and girls. The Company's brands include Peppa Pig, Little Live Pets, Teletubbies, Minecraft, Scooby Doo, Mashems, Fireman Sam and Ben & Holly. Its customer list includes the United Kingdom toy retailers, the United Kingdom independent toy stores and a selection of overseas distributors. It operates approximately two distribution warehouses located near Oldham, Greater Manchester. It primarily distributes products sourced from overseas third parties. more »

LSE Price
580p
Change
 
Mkt Cap (£m)
124
P/E (fwd)
11.7
Yield (fwd)
5.1

James Latham plc is a timber and panel products distributor. The Company is engaged in timber importing and distribution, carried out in approximately 10 locations. The Company offers a range of wood-based panel products, natural acrylic stone, hardwoods, high grade softwoods, flooring, cladding, decking and plastics. The Company also supplies commodity and specialist products to timber and builders' merchants. The Company offers a range of product categories, such as panels, solid surface, door blanks, hardwoods, softwoods, engineered timber, flooring, decking, cladding, modified timber and panels, fire retardant panels and technical panels. The Company caters to door and kitchen manufacturers, shop fitters and other market sectors. The Company's subsidiaries include Lathams Limited and James Latham Trustee Limited. Lathams Limited is engaged in importing and distribution of timber and panel products. James Latham Trustee Limited is a corporate trustee company. more »

LSE Price
852.5p
Change
0.3%
Mkt Cap (£m)
167.5
P/E (fwd)
n/a
Yield (fwd)
n/a

Motorpoint Group plc is an independent vehicle retailer in the United Kingdom. The Company's principal business is the sale of vehicles, of which are approximately two years old and which have covered over 15,000 miles. The Company sells vehicles from brands representing vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW. The Company operates from over 10 retail sites across the United Kingdom. The Company has a national contact-center dealing with online enquiries. In addition to sales of vehicles, the Company operates Auction4Cars.com, a business to business online auction platform for vehicles. The Company also offers ancillary products to customers, including customer finance packages, vehicle guarantees, insurance products and vehicle protection treatments. more »

LSE Price
214p
Change
-1.8%
Mkt Cap (£m)
205.3
P/E (fwd)
11.0
Yield (fwd)
3.6



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


8 Posts on this Thread show/hide all

matylda 29th Nov '18 1 of 8
5

And, by the way, those of you who said you were a little shy to post or thought you might post stupid questions - Don't be, we all learn from and generally help each other here.

Blog: Briefed Up
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MrContrarian 29th Nov '18 2 of 8
5

My morning smallcap tweet:

Dignity (LON:DTY), Synectics (LON:SNX), Coral Products (LON:CRU), Realm Therapeutics (LON:RLM), Character (LON:CCT)

Dignity (DTY) CMA interim report on funeral mkt concludes mkt not working well enough. Will conduct a full Market Investigation. "Its initial work indicates problems with the market that have led to above inflation price rises for well over a decade - both for funeral director services and crematoria services. The scale of these price rises does not currently appear to be justified by cost increases or quality improvements."
Synectics (SNX) guides FY U/L pretax broadly in line with market expectations. A weak performance in the UK on-vehicle security sector has been offset by strong results from global Gaming security. Will make a £2m write-off, most of which will be non-cash.The pipeline of expected (note) new business is somewhat stronger than originally expected, so "increasingly confident of solid progress in the Group's results in the coming year."
Coral Products (CRU) H1 rev up 10%, U/L EPS 0.87p (0.23p). Div 0.25p (0.0p). 'Delighted' but don't know if it's a beat.
Realm Therapeutics (RLM) update on formal sale process. "From among the several non-binding proposals, the Company has selected a short list of potential transactions and has advanced these to deal negotiation and due diligence." More news in Q1 2019
Character Group (CCT) FY looks like a beat with rev £106.2m and U/L EPS 45p (52p) vs F/C 39p. FY div 23p (19p).

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andrea34l 29th Nov '18 3 of 8
1

If one looks at the Character (LON:CCT) results on face value then the figures do indeed look rather lacklustre. However, if one compares them to the picture in H1, then comparing the H2 period they have actually increased profit by 10.9% and revenue by a more modest 3.5%. I'm not sure this is enough to get me excited enough to invest though, I would worry if their sales cold be affected if the most dire Brexit projections became a reality.

The update from Mycelx Technologies (LON:MYX) is good, though I think they are perhaps a little speculative for me with a wobbly long term record. I don't doubt your figures, Matylda, I am just wondering how you calculate a PER of 15.1?

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Weasel 29th Nov '18 4 of 8
3

In reply to post #422688

Whilst I do quite like Character (LON:CCT) as a company, from memory Management are very very generous to themselves with regard to salaries, relative to overall profitability.

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matylda 29th Nov '18 5 of 8

In reply to post #422688

Andrea, from the Stocko main page.

Blog: Briefed Up
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gus 1065 29th Nov '18 6 of 8
5

I think the problem with the Character (LON:CCT) remuneration is as much about the number of executive directors on the board (7) as the extent of the largesse that they scoop out of the pot for themselves. If you take a look at page 40 of the latest annual report it sets out the extent of the board pay for 2018.

http://www.thecharacter.com/Content/Images/uploaded/PDF/2017/TCG%20Annual%20Report%20year%20ended%2031%20August%202017.pdf

Three of the seven get £750k or more and the total for the board in aggregate is just shy of £4m. In the context of company net profit of about £9m and a £100m market cap, it seems excessive for a small mid cap, especially as it’s Peppa that is the one bringing home most of the bacon.

Gus

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andrea34l 29th Nov '18 7 of 8
1

In reply to post #422773

I wonder how accurate that data field is considering that, in the financial summary, the forecast PER for this year is 22.5?

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Edward John Canham 29th Nov '18 8 of 8
3

In reply to post #422863

The PER figure quoted by Stockopedia is "12 month rolling forecast", therefore it's currently only taking 1 month of 2018 (22.5) but 11 months of 2019 (14.6)

Phil

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