@uk (LON:ATUK) (ATUK, 4.625p, £3m) has announced Findel (LON:FDL) Education, the UK’s largest educational supplier, has become the first customer to sign up to the group’s Green Marketplace – in effect an online marketing tool reducing the use of catalogues – thus green. The contract is worth some £0.05m. We still remain cautious on funding and maintain the SELL.
Intercede Group (LON:IGP) (IGP, 44p, £21.20m) Trading update for H1 to September 2010 reports sales up 20% against 2009 with improved profitability. Contract wins in the USA now makes it the largest region for the group. Cash has been held at £4.47m (£4.64m at the year end) which reflects a £0.5m or so generation given exceptional relating to last year were paid in H1. On just over 10x PER with a positive momentum confirmed we return the group to a BUY with a 13x PER target - or 53p.
Kbc Advanced Technologies (LON:KBC) (KBC, 45p, £24.92m) has won a $42m contract to improve six refineries over a 3o month programme. The service agreement with Permex Refinacion will lead to work falling in to this year so ensuring the improvement in capacity utilisation occurs and increasing the order book for the next few years. Forecasts of £5.2m PBT with 5.5p EPS puts the group on a modest 8.2x Per and we maintain our BUY to the 62p level.
Matchtec (MTEC, 192.5p, £44.96m) Final results to July 2010, saw revenues recover in H2 but overall they were down 2% to £264.43m (£269.58m) with gross profits of £26.16m (£30.27m), margins of 9.9% (11.3%), with lower admin costs of £17.34m (£18.62m) leaving op profits down £8.82m (£11.65m) and PBT at £8.58m (£11.28m), tax at 28.4% (29.2%) leaving EPS at 26.35p (34.37p) – slightly ahead of expectations. Still implies H2 PBT was weaker - a worrying trend given the good performance from other quoted recruiters. Importantly for investors the group maintained the 10.6p final (a yield of 5.5% on that alone) taking the full year to a held 15.6p - or a yield of 8.1%. The group ended the period with net debt of £4.51m (net debt £1.16m) reflecting operating cashflow generation offset by £5.36m of adverse…
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