I Read The News Today Oh Boy! 4-Apr-2019

Thursday, Apr 04 2019 by
15

Morning all!

Concurrent Technologies ( Concurrent Technologies (LON:CNC) ) – 73p – £53m – PER 14.3

Results For The 12 Months To End December 2018 – Revenue up slightly to £16.6m (from £16.2m), Margin down slightly, PBT of £3m is the same as last year and the Dividend is up 4.5% (to 2.3p).  Cash at £7.7m (down from £8.4m last time). Started the new year with a strong Order book.

This looks in-line (ish) with the forecasts I can see and I reckon it seems priced about right here.

HSS Hire ( HSS Hire (LON:HSS) ) – 35p – £60m – PER 14

Results For The 12 Months To End December 2018 – Revenue up 5%, LBT reduced significantly from -£85.2m to -£4.5m.

Complicated results and HUGE Net Debt keeps me well away for now.

IMImobile ( IMImobile (LON:IMO) ) – 287p – £191.5m – PER 17.8

Trading Update For The 12 Months To End March 2019 – Revenue to be ahead of market expectations, up 28% on last year (18% organic).  Gross Profit to be up 20% on last year and EBITDA 30%. Net Debt at £7.9m (Cash of £4.3m last time (acquired Impact Mobile for £16m).

Looks quite reasonable - I still have no conviction either way here at present but will be keeping an eye out for those FY actuals.

Mothercare ( Mothercare (LON:MTC) ) – 22p – £76m – PER 38

Trading Update For Q4 2019 (12 Weeks To End March 2019)  – FY Profit to be in-line with market expectations, on track to deliver £19m of annual cost savings.

This is a weird as I see them forecast to make a loss – Anyway, it remains on my Avoid list for now.

Ramsdens Holdings ( Ramsdens Holdings (LON:RFX) ) – 179p – £55m – PER 9.5

Trading Update – Continues to trade in-line, despite Brexit, hot weather and a challenging retail environment.

I still reckon this is about fairly priced around this level – This also does sound like they're potentially lining up a warning. 

As always,…

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Concurrent Technologies Plc is engaged in manufacture of embedded computer products for applications in the defense, aerospace, transportation, telecommunications, scientific and industrial markets. The Company designs, manufactures, sells and supplies high-end embedded computer products (boards) primarily on processors from Intel. Its products include processor boards, switch fabric boards, transition modules, carrier boards, graphics adapters, serial adapters, storage controllers and mass storage. Its products support various operating systems, such as Windows, Linux, Solaris, QNX and VxWorks. Its geographical areas of operation are the United Kingdom, Other Europe, North America and Rest of the World. The Company sells and markets its products in the United States, various European Economic Area (EEA) countries, Israel, China, India, Japan, South Korea, Australia and Singapore. It has design facilities in Bangalore, India, and sales and support in China. more »

LSE Price
65.5p
Change
2.3%
Mkt Cap (£m)
47.6
P/E (fwd)
16.7
Yield (fwd)
3.8

HSS Hire Group plc provides tool and equipment hire and related services in the United Kingdom and Ireland through a network of over 300 locations across the nation. The Company's business focuses on supplying equipment and services to the fit-out, maintain and operate sectors of the market, with its businesses also supplying construction contractors. Its segments include HSS Core, which is engaged in the provision of tool and equipment hire and related services, and HSS Specialist segment, which is engaged in the provision of generator, climate control, powered access and cleaning hire equipment and the provision of cleaning maintenance services, under specialist brands. Its businesses include HSS hire, HSS One Call, HSS Training, ABird Power Solutions, Apex Power Solutions, Reintec cleaning equipment services and TecServ equipment maintenance. It caters to the customer base ranging from retailers and airports to facilities management companies and infrastructure developers. more »

LSE Price
31.5p
Change
 
Mkt Cap (£m)
53.6
P/E (fwd)
9.1
Yield (fwd)
n/a

IMImobile PLC is a cloud communications software and solutions provider. The Company's segments include Europe and Americas (Europe being substantially all to the United Kingdom), India and South East Asia (SEA), and Middle East and Africa (MEA). Its products include IMIconnect, IMIcampaign, IMIdigital, IMIchat, IMIsocial and Textlocal. IMIconnect is an enterprise cloud communications platform enabling information technology (IT) to create and deliver multi-channel digital customer journeys. IMIcampaign is a multi-channel campaign management platform to deliver personalized marketing campaigns in real time. IMIdigital is a content management system for end-to-end delivery of content services across all digital touchpoints. IMIchat is a mobile and social chat application for contact centers. IMIsocial is a built for radio and television broadcasters to develop audience engagement and live programming across mobile, digital and social. Textlocal is a cloud-based messenger platform. more »

LSE Price
338p
Change
 
Mkt Cap (£m)
250.2
P/E (fwd)
19.5
Yield (fwd)
n/a



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23 Posts on this Thread show/hide all

iwright7 4th Apr 4 of 23
3

Matylda,

Ramsdens Holdings (LON:RFX) I still reckon this is about fairly priced around this level – This also does sound like they're potentially lining up a warning.

Sounds to me that Ramsdens Holdings (LON:RFX) are patting themselves on the back for overcoming widespread retail woes, rather than lining up a future profit warning. This business (should be) counter-cyclical. I will hold until full results and updated outlook on 12th June.

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jonesj 4th Apr 5 of 23
1

I don't interpret this as lining up a profit warning, as the hot summer was 2018 and the trading statement has already covered a period comprehensively covering that. The remaining part is Brexit, which has been uncertain for 3 years and the current higher uncertainty is likely to be solved one way or the other shortly, as the EU will force things along.

Peter Kenyon, CEO of Ramsdens, commented: "This has been another good year for Ramsdens, reflecting the strengths of our trusted brand and diversified business model. Our business has been tested in a challenging retail environment, an exceptional hot summer in the UK and a continued backdrop of Brexit uncertainty, and I am delighted to report that we have achieved our targets despite these challenges".

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sharw 4th Apr 6 of 23
1

Matylda -

regarding your comment on Mothercare (LON:MTC) a loss of £6.7m is a profit of -£6.7m !!

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sharmvr 4th Apr 7 of 23
2

Ramsdens Holdings (LON:RFX)
What might have been meant by "the board's initial expectations" - is this different to current expectations?

I read and did not see anything to worry about and then re-read a few times out of respect for Matylda's keen eye and this is all I found.

I hold.

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Edward John Canham 4th Apr 8 of 23
1

Ramsdens Holdings (LON:RFX)

I generally dislike the use of the term "board expectations" because logically the market has no idea what these are in actual numbers unless they have disclosed them to the market along the lines of Next (LON:NXT) .

Using "the board's initial expectations" takes this absurdity to a whole new level - do they mean when they did a 5 year plan 6 years ago?

I suspect everything is OK but it continues to annoy me on a daily basis - probably need to get another hobby!

Phil

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matylda 4th Apr 9 of 23
3

Well sorry to ruffle feathers there guys regarding Ramsdens Holdings (LON:RFX). It just seemed to me like they were saying - We're doing well despite Brexit, weather and the general retail environment. They're pretty much things they knew about (OK weather, perhaps not) and things that are unlikely to be going away completely any time soon. Perhaps I just took it as overly cautious and I for sure appreciate others take on it.

Regarding Mothercare (LON:MTC) I was referring to the headline in the RNS "Significant strategic progress and full year profit in line with market expectations", apologies, I realise I did not make that clear.

Blog: Briefed Up
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sharmvr 4th Apr 10 of 23
3

Not at all Matylda - at least none of my feathers were ruffled - I am just grateful it was a short update :)

Ramsdens Holdings (LON:RFX)
I am taking it to mean that earnings expectations were 16.5 pence, now they are 17 pence, and we will be somewhere between the two.
I am considering top slicing since it is getting a bit larger than I am comfortable with for a company of this size.

Re counter-cyclicality, one could argue that demand for pawn broking goes up during recession, but people are not able to re-pay and there is lack of customer demand for pledged items, which gives them a double whammy.
If we believe the airlines and travel agents, demand for foreign currency must be slowing down too.
Jewellery sales I would think have at least some cyclicality

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Beginner 4th Apr 11 of 23

In reply to post #465546

Question for Mat - Will you be going 'subscription only' when the Stocko changes come in later this month? B

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matylda 4th Apr 12 of 23
3

In reply to post #465686

No

Blog: Briefed Up
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john652 4th Apr 13 of 23

In reply to post #465686

hi, what 'subscription only' , what change is this?

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jonesj 4th Apr 14 of 23
1

In reply to post #465621

Sharmvr

1 If I understand the accounts properly, both Ramsdens Holdings (LON:RFX) and H & T (LON:HAT) have the value of their pawnbroking loans covered by pledges and if the loans are not redeemed, they cover the cost completely by sale of goods. [Note: Me correctly comprehending the accounts is not guaranteed]

2 Ramsdens only make about 1/4 of their gross profit from pawnbroking. Compared with about 40% for retail foreign currency sales.

One of the attractions of this stock is the way the management have grown the forex business to replace gold dealing revenues. Seems to be a diversified business, with skilled management.

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Edward John Canham 4th Apr 15 of 23

In reply to post #465811

Ramsdens Holdings (LON:RFX)

That's one way of looking at it - agree management is good here - but they have expanded into / become dependent on retail foreign currency sales at a time when the market is becoming more and more competitive.

This is the one thing that keeps me away from Ramsdens Holdings (LON:RFX) .

I would actually argue, in the current climate, that pawnbroking and gold dealing are far more attractive than their currency dealing.

Phil

Edit : The hot weather/ home vacation argument worried 6 months ago and it still does now.


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Beginner 4th Apr 16 of 23

In reply to post #465766

From April 12 all editorial will be available to paying subscribers only. B

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andrea34l 5th Apr 17 of 23

In reply to post #465866

What do you mean by "editorial"? Does this include the discussion board?

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Beginner 5th Apr 18 of 23

In reply to post #466056

Sorry, but I'm not sure. The SCVR will be subscription only, but what exactly will qualify as 'editorial' I don't know.

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herbie47 5th Apr 19 of 23
1

In reply to post #466056

I guess editorial is posts produced by Stockopedia staff?

So the forum is still going to be open apart from "SCVR", so won't cut out the spam.

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matylda 5th Apr 20 of 23
2

Apologies - I now believe I Read The News Today and all other discussions will be Subscriber only - You can read more about this in a recent post by Ed here.

My intention for now is continue posting and continue to enjoy all that the Discussion Board has to add.

Blog: Briefed Up
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sharmvr 5th Apr 21 of 23
1

In reply to post #465851

Jones / Phil,

thanks very much for your thoughts and I agree with both perspectives, which is I guess the reason I top-sliced.

Re pledges and sorry if this is sucking eggs - yes the loan is secured by a watch / ring or whatever. The person will repay the loan + interest and take their pledged item back and if they cannot repay the lose the pledged item.
This is one of the reasons I do not think this form of credit will be hit by high cost credit, in a standard arrangement, the customer will repay a defined amount or lose their item.

The broker needs to sell the pledged item to recover the loan, where consumer demand I think is a factor, albeit they probably have a margin of safety between loan and value of pledged item.
I expect this will be noticeable in inventory numbers.

I retain my holding, albeit in smaller size than yesterday.

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wilkonz 26th Apr 22 of 23

Ramsdens Holdings (LON:RFX) were rated a strong buy by Simon Thompson in the IC of 28th November 2018, There doesn't seem to be much wrong with their metrics - apart from a spread of 4 pence. I haven't read anything bad into their update and there's been no discouraging news since. I've bought a few shares at 172 pence.

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matylda 26th Apr 23 of 23
1

In reply to post #472151

I reckon there's upside from 172p and perhaps almost enough for me - Just not quite yet.

Blog: Briefed Up
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