I Read The News Today Oh Boy! 8-May-2019

Wednesday, May 08 2019 by

Morning all!

Cello ( Cello Health (LON:CLL) ) – 132p – £138m – PER 14.4

AGM Statement – Expects FY to be in-line.

All seems fine but would have to be on a single digit PER to get me interested.

Elegant Hotels ( Elegant Hotels (LON:EHG) ) – 69p – £61m – PER 7

Interim Results For The 6 Months To End March 2019 – Revenue up 3%, Adjusted PBT up 5%, Adjusted EPS up 27%, remain comfortable with meeting FY expectations.

I still can’t get excited here.

Johnson Services ( Johnson Service (LON:JSG) ) – 149p – £550m – PER 14.8

AGM Statement – Expects FY to be in-line.

I still reckon fair value here is sub 100p so I have no interest at this level.

Keystone Law ( Keystone Law (LON:KEYS) ) – 507p – £159m – PER 36.5

Results For The 12 Months To End January 2019 – Revenue up 35.1% to £42.7m (£31.6m last time), Adjusted PBT up 56.8% to £5.1m (£3.3m last time), Adjusted EPS up from 9.4p to 13.4p, FY Dividend to be 9p (in-line with policy) – Meaning first FY results are comfortably ahead of market expectations. New year has started in-line with the Board's expectations.

I reckoned this was fairly priced at 329p last time – Seems I was wrong and this seems impressive. Will keep an eye out for Broker updates.

Vertu Motors ( Vertu Motors (LON:VTU) ) – 35p – £132m – PER 6.5

Results For The 12 Months To End February 2019 – The headline is "Profit and cash generation ahead of expectations: dividend increased" with Adjusted PBT ahead of expectations at £23.7m (£28.6m last time), Revenue was up 6.7%. March and April trading in-line with profit expected to be in-line with the same period last time.

I still remain cautious myself here about the industry as a whole so I am not tempted here at present. 

As always, all comment most welcome!

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Cello Health plc, formerly Cello Group plc, is a United Kingdom-based healthcare and consumer strategic marketing company. The Company is engaged in providing market research, consulting and direct marketing services. The Company provides a range of biotech, diagnostics, devices and other non-healthcare clients. The Company operates through two segments: Cello Health and Cello Signal. The Cello Health Division provides market research, consulting and communications services principally to the Company's pharmaceutical and healthcare clients. The Cello Signal Division provides market research and direct communications services to the Company's consumer facing clients. The Company delivers its services from office networks in the United Kingdom, the United States and Singapore. more »

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Elegant Hotels Group plc is a holding company. The principal activity of the Company and its subsidiaries is the ownership and operation of hotels and restaurants on the island of Barbados. It owns and operates six freehold beachfront hotels and a beachfront restaurant in Barbados. Its hotels include Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach and Waves. It operates Daphne's restaurant, which is located on platinum West Coast in Paynes Bay, adjacent to The House and Tamarind in Barbados. Its Colony Club hotel is spread across six acres of tropical gardens with approximately 300 feet of beach frontage on the Caribbean Sea and lagoon style pools. Its Tamarind hotel is on the Platinum Coast. Its Crystal Cove hotel has three freshwater lagoon pools, two restaurants, two bars, two floodlit tennis courts and a fitness center. Its Turtle Beach property is on the south coast of Barbados. Its portfolio consists of over 550 rooms. more »

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Johnson Service Group PLC is a United Kingdom-based company that provides textile rental related services. The Company is the supplier of workwear and protective wear. The Company operates through Textile Rental segment. The Textile Rental segment is engaged in the supplying and laundering of workwear garments and protective wear; linen services for the hotel, restaurant and catering markets, and high volume hotel linen services. The Textile Rental segment principally consists of workwear garments, cabinet towels, linen and dust mats, are initially treated as inventories. It operates Textile Rental business under the brands, including Apparelmaster, Stalbridge, Bourne and London Linen. Its market workwear rental business, providing a clothing portfolio to the workplace, supported by sourcing supply and aftercare service solutions. Its Johnsons Stalbridge Linen Services offers the laundry service to the hospitality sectors. more »

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

4 Posts on this Thread show/hide all

MrContrarian 8th May 1 of 4

My morning smallcap tweet:

Vertu Motors (LON:VTU), 1Spatial (LON:SPA), Ceps (LON:CEPS), BigDish (LON:DISH), Keystone Law (LON:KEYS), Telit Communications (LON:TCM)

Vertu Motors (VTU) FY adj pretax £23.7m (£28.6m) ahead of market expectations (not stated). Rev up 7%, LFL up 5%. "Major capital expenditure programme now largely complete aiding future Free Cash Flow generation." Current trading with management's expectations. I hold.
1Spatial (SPA) acquires geospatial software solutions company Geomap-Imagis for £7m. Placing at 31.5p, a 5% discount.
Ceps (CEPS) FY18 rev-cont up 10%. Pretax-cont £137k (£211k). Div 0. Chmn says "accounts are very confusing and complicated, and it is hard, in the absence of individual company monthly management accounts, for the CEPS shareholder to discern this level of progress and improvement." Yet it publishes FY 4.5 months after year end and last tradng stmt was in H1 RNS in Sept!
BigDish (DISH) "is preparing to set its sights on the London commuter towns." Actually setting its sights on, surely?
Keystone Law (KEYS) FY comfortably ahead of market expectations. Rev up 35%, adj EPS 13.4p, up 43%. FY div 9p.
Telit Communications (TCM) caves on one VAT dispute in Italy, pays €400k without any admission of liability for 2004-2007. Still opposing tax penalty deeds separately issued against Telit in August 2015. I hold.

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wilkonz 8th May 2 of 4

Thanks Matylda. Harriet Clarfelt of IC has been pushing Keystone Law (LON:KEYS) hard since it was 300 pence a year ago. Her feeling is that by changing the traditional concept of selling 'law' outside the traditional model of a law firm this firm has further to go. It all hinges on whether or not they can keep recruiting youngish lawyers (mean age 46 years). The shares have gone up a modest 10 pence from around 500 on todays update but my guess is that they'll drift up to around 550 over the next couple of months. I hope so. I hold.

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matylda 8th May 3 of 4

In reply to post #474421

You're welcome, thanks for the info, I see it as a bit overvalued here now, I am keeping an eye out for updated forecasts, as of yet, not seen any. Hope the holding goes well for you.

Blog: Briefed Up
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andrea34l 8th May 4 of 4

The picture at Cello Health (LON:CLL) looks mixed, with Signal looking low-growth.

The results from Keystone Law (LON:KEYS) look sparkling, but I find the Stocko picture frightening, indicating a (perhaps deserved) frothy rating. One statistic which doesn't excite me is the "number of Principal lawyers* accepting offers has increased by 6.8% to 63 this year (2018: 59)", this sounds low.

There is a reasonable AGM from Morgan Sindall (LON:MGNS) although a rater curious H1-weighted result expected. The order book is up 8%, but potentially this could be higher with the JV with Brentwood Borough Council.

An AGM from ITV (LON:ITV) indicates a very subdued picture; they were a talked-about bid target at 170ish.... and at 129 I wonder this is a lesson to not buy on bid noise (I didn't).

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