Morning all!

Porvair ( Porvair (LON:PRV) ) – 410p – £187.3m – PER 19.5

Trading Update For The 12 Months To End November 2018 – Revenue expected to be up 10% with EPS ahead of managements expectations. Net Cash to be down from £9.8m to £6.5m (after spending circa £13m) – Order books healthy.

Based on forecasts of EPS growth <10% (2018E and 2019E), even if they are beaten (by as much as 25% say) - On a PER of 20 or so I still don’t see value here at present.

S&U ( S&U (LON:SUS) ) – 2150p – £258.2m – PER 7.98

Trading Update – FY to be broadly in-line with expectations.

Still looks attractive and even with (you know what) in the background, this is quite tempting (5%+ yield), forecast 10%+ EPS growth 2019E & 2020E, healthy ROCE and Op Margin. What’s stopping me – The amount of Net Debt (which is probably acceptable for a lender I guess) and the potential default rate depending on how (you know what) goes. Tempting, but not just quite enough, especially on a broadly in-line.

As always, all comment most welcome!

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