I Read The News Today Oh Boy! 30-Nov-2017

Thursday, Nov 30 2017 by

Morning All!

Totally ( Totally (LON:TLY) ) – 32.5p – £19.4m – PER n/a

Trading Update – In-line with Cash expected to be significantly ahead of expectations, £8m versus £4.1m.

A new one to me and I am not sure what to make of this. It’s clearly got lots of Cash but I have no idea what the real forecasts are. I will keep an eye out for a more detailed update in the future.

MS International ( MS International (LON:MSI) ) – 181p – £30.3m – PER 19.9

Half Year Report For The 6 Months To 28 October 2017 – PBT up to £1.64m (2016 - £0.61m) on a notable uplift in revenue to £34.63m (2016 - £25.00m). EPS up to 7.8p (2016 - 3.3p) and there’s Net Cash of £14.53m.

This looks OK but with concerns about the UK MoD spending also pointed out – For me, with already unimpressive ROCE and Operating Margin figures, it’s just a little too risky in the present environment.

On The Beach ( On The Beach (LON:OTB) ) – 399p – £520.4m – PER 18.1

Preliminary Results For The 12 Months To End September 2017 – Headlines with “Strong second half revenue growth drives 33.8% increase in Group adjusted PBT”. Revenue up 17.2% (£83.6m), EPS up 35.4% and the Dividend is up 27.2% (2.8p). It seems in-line and based on current trading in-line expectations remain.

Looks OK here and it’s more so the sector than the actual company putting me off here. That said it seems to weather storms (!!!) reasonably well.

St Ives ( ST Ives (LON:SIV) ) – 74p – £105.6m – PER 5.85

Trading Update (For The 3 Months To 3 November) – Trading ahead of managements expectations, Revenue running 4% ahead of the equivalent period last year.

It’s cheap for sure but amongst other things, the Net Debt here (£54.6m, over 50% of Mkt Cap) just makes me want to steer clear. I also believe there’s a reasonable sized Pension deficit but have not had time to look into this.

James Latham ( James…

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Totally PLC is a holding company. The Company is engaged in the provision of solutions to the healthcare sector. Its segments include Innovative Solutions to the healthcare sector and Head Office Costs. The Innovative Solutions to the healthcare sector segment represents the operations of Totally Health Limited (Totally Health). The Head Office costs segment represents central costs that are offset by internal cost recoveries. Totally Health provides personalized Clinical Health Coaching to support patients with long term health conditions, and manages outcomes and healthcare costs. The Company offers My Clinical Coach, a direct-to-consumer health coaching service for people with long-term health conditions. The Company's subsidiary, Premier Physical Healthcare Limited, provides a range of treatments and advice for musculoskeletal injuries and conditions. The Company's subsidiary, About Health Limited, provides community-based health services. more »

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MS INTERNATIONAL plc is engaged in the design and manufacture of specialist engineering products and the provision of related services. The Company's segments include Defence, Forgings and Petrol Station Superstructures. The Defence division is engaged in the design, manufacture and service of defense equipment. The Forgings division is engaged in the manufacture of forgings. The Petrol Station Superstructures division is engaged in the design, manufacture, construction, branding, maintenance and restyling of petrol station superstructures. The Forgings division is producing a range of original equipment fork-arms for the forklift truck, construction, agricultural and quarrying equipment manufacturing industries together with after-market products. The Petrol Station Superstructures division is engaged in the business of design, manufacture and construction of petrol station canopies, convenience stores and car-wash buildings across the United Kingdom, Eire and Eastern Europe. more »

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On the Beach Group plc is a United Kingdom-based online travel agent. The Company operates in two segments: Core and International. The Company's core segment conducts its activity through the United Kingdom Website (UK). The Company's international segment conducts its activity through Swedish Website (eBeach.se). The Company is an online retailer of beach short-haul beach holidays, primarily targeting customers in the United Kingdom under the On the Beach brand. The Company's technology platform enables customers to package the constituent components of their holiday (including flights, hotels and transfers) to build custom-made holidays from a range of flight and hotel combinations. The Company offers customers a range of flight and hotel products bookable through online channels (including by desktop, mobiles, tablets and applications) and over the phone. The Company's subsidiaries include On the Beach Beds Limited and On the Beach Travel Limited. more »

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6 Posts on this Thread show/hide all

MrContrarian 30th Nov '17 1 of 6

My morning smallcap tweet:

James Latham (LON:LTHM), ST Ives (LON:SIV), Lamprell (LON:LAM), Hargreaves Services (LON:HSP), Flowgroup (LON:FLOW), HML Holdings (LON:HMLH), Graphene Nanochem (LON:GRPH), Seeing Machines (LON:SEE)

Latham James (LTHM) H1 rev up 7% but pretax down 12% due to higer material cost. Pension deficit under IAS19 down from £16.6m at 31 March 2017 to £8.5m. H2 has started well with growing revenues at slightly higher margins.
St Ives (SIV) 3 months trading ahead of management's expectations. Rev up 4%.
Lamprell (LAM) warns FY earnings materially below current market expectations due to worsening cost overruns on East Anglia One offshore windfarm project. Project now expected to make a significant loss
Hargreaves Servs (HSP) H1 trading in line but anticipates a strong H2 from coal outperformance.
Flowgroup (FLOW) Decides to limit costomers to <250,000, will save the Company approximately £2.5m due to lower regulatory payments. Should beome profitable 6 months sooner. CEO Tony Stiff kicked out to save money. "Whilst profitability remains broadly in line with market expectations, the flat level of customer accounts will have an impact >HML Holdings (HMLH) H1 fev up 25% but adj EPS 1.9p (2.1p). "Adjusted earnings are calculated before interest, amortisation and share based payment charges." Before interest? WTF? EPS 1.2p (1.4p). Blames ne-off costs primarily relating to the integration of acquisitions and associated investments in infrastructure. Margins here actually getting worse as it increases scale. Has beome a serial disappointer.
Graphene Nanochem (GRPH) suspended pending reverse takeover of CG TekBuild Pte a special purpose vehicle set up by Austrilia's Coulter Group Pty "to consolidate a portfolio of projects and opportunities undertaken by the Coulter Group in the development, construction, installation and operations of enhanced modular building."
Seeing Machines (SEE) has won two major Guardian deals in 2017 in the Middle East and Russia, total 5,620 Guardian units. Delivery over a one to two year timeframe. SEE's largest single fleet customer deals to date.

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Aislabie 30th Nov '17 2 of 6

Matylda, firstly thanks for these daily snapshots, much appreciated.
You note that ST Ives (LON:SIV) may have a pension deficit problem and you may not be aware that a good guide to this is on the Stockreport page to the right under "Other Rates" where it shows the gearing % it also shows the percentage if you include the pension deficit. For St Ives this shows 99% including the pension as opposed to 86% without so your suspicions are correct!

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matylda 30th Nov '17 3 of 6

In reply to post #247453

You're welcome and thanks for the kind words.

I was aware of that function but never worked out exactly how to use it, I can see now how it's a quick heads up and I thank you for that.

My preference is always to check it out manually in the accounts but if it's a company I am not much interested in, I don't bother.

I was also pondering at what stage is a Pension Deficit a real issue, e.g. 50% of Mkt Cap for example - Just as a finger in the air, hey this is a real issue, it's Mkt Cap is £100m and it's got a £50m Pension Deficit!

I did pose this to Mr Scott a while ago and await a response.

I'm not sure if too much is being made of it if, for example, a company has a £20m Deficit on a £100m Cap, to me that's still quite scary especially if there's Net Debt too. Anyway, I guess it's quite debatable.

Thanks again.

Blog: Briefed Up
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gsbmba99 30th Nov '17 4 of 6

Premier Asset Management (LON:PAM) results look good. Happy holder.

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Aislabie 30th Nov '17 5 of 6

In reply to post #247463

The pension deficit issue is full of confusing issues, mostly arising from the guess at the earning rate of the pension assets.
Trustees are under pressure (not least from auditors) to assume only the most guaranteed long term earning rates which means mostly government bonds. As soon as you assume higher rates (which I believe Trustees should aspire to) the deficits recede fast, if not disappear.
As often is the case I think investment decisions come back to cash flow. If the company can handle the yearly rate of support to the fund, or the one off hit to rebuild it then that seems to me to put it in the manageable category.
It is worth also finding out how long ago the company abandoned a defined benefit scheme. These things Re all now in run off and particularly where the company is growing the pension costs damage could become less quite quickly.
The rough stuff comes in a company facing possible where the claims could be a significant issue for shareholders who are, as ever, at the back of the queue!

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Aislabie 30th Nov '17 6 of 6

"...facing possible liquidation where the claims...

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