Small Cap Report (17 Apr) - SDY, SEPU, JD., CPP, INB, IGR, NWS, ANP

Wednesday, Apr 17 2013 by
5

Pre 8 a.m. comments

Just a few relevant trading statements today, as it's mainly larger caps reporting today, including Tesco, Burberry, and Marston's.

Speedy Hire (LON:SDY) announce a positive year-end (31 Mar 2013) trading update, with the key sentence being that they expect to report profit before tax marginally ahead of their previous expectations. The outlook sounds cautiously optimistic.

At 49p the shares look fully valued, given broker consensus of 2.5p EPS, so that's a PER of almost 20 times 2012/13 earnings, falling to 15 times next year's forecast earnings. Not exactly bargain basement. The dividend yield is only just over 1%, again not good value in my opinion.

 

Sepura (LON:SEPU), a global leader in "TETRA" radios for the emergency services, issues a positive trading statement, with revenues and profits for the year ended 29 Mar 2013 expected to be ahead of market expectations. Sales are up 25% over prior year, which is pretty impressive, in the range E103-105, whereas Stockopedia shows E100.6m as the consensus forecast.

This should make the valuation less than the PER of 16.5 shown on Stockopedia for this year consensus forecast earnings, but it's not clear how much cheaper, at a guess it might bring the PER down to 14-15? So not cheap enough to spark my interest, although it does look a quality company.

 

It's more of a mid-cap really, but JD Sports Fashion (LON:JD.) issues its preliminary results for the 53 weeks ended 2 Feb 2013 (note the extra week, which is likely to slightly flatter results). EPS has come in bang on forecast, at 88.5p, putting the shares on a very reasonable PER of 8.4, which drops to 7.2 next year's forecast earnings.

There is also a healthy 4.2% dividend yield. I like the look of this, it always looks cheap & still does. Whereas most shares have shot up in the last year, this one hasn't, so could well be worth a look. There is a major shareholder with 57%, which creates issues - are minority shareholders' interests safe? Also it makes the shares very illiquid given the size of the company.

 

Post 8 a.m. comments

It looks as if the sorry chain of events at

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Speedy Hire Plc is a tools, equipment and plant hire services company. The Company's segments include UK & Ireland Asset Services and International Asset Services. UK & Ireland Asset Services delivers asset management and focuses on relationship management. International Asset Services delivers overseas projects and facilities management contracts by providing a managed site support service. Its geographical segments include UK, Ireland and Other countries. It operates across the construction, infrastructure and industrial markets. Its hire fleet comprises a range of small tools, specialist equipment, and large plant vehicles and machinery. It also retails a range of tools and equipment, as well as safety personal protective equipment (PPE) and site supplies. It also offers various services, such as on-site operative training, test and repair, fuel supply and management, industrial shutdown project management, on-site depots and hire desks. It also offers partnered services. more »

LSE Price
57.25p
Change
1.3%
Mkt Cap (£m)
295.9
P/E (fwd)
13.1
Yield (fwd)
2.9

Sepura plc is a provider of communications solutions. The Company is engaged in the design, development and supply of digital radios, infrastructure and applications for Professional Mobile Radio (PMR) users, providing specialist solutions for the public safety, transportation, oil and gas, mining, utilities, industrial and other commercial sectors. It offers terrestrial trunked radio (TETRA), digital mobile radio (DMR), Project 25 (P25) and long-term evolution (LTE) system solutions. Under TETRA, it offers systems infrastructure, applications, hand-portable radios, covert radios, fleet management, modem and accessories, among others. Its suite of control room applications includes dispatchers, automatic person location (APL) and in-building tracking. Its DMR radio systems include DMR Tier II, which links approximately 30 repeaters; DMR Tier III, which links over 1,000 sites, and Dispatcher applications, which provide call logging and call management. more »

LSE Price
19.75p
Change
2.6%
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a

JD Sports Fashion Plc is a multichannel retailer of sports fashion and outdoor brands. The Company's segments are Sports Fashion and Outdoor. The Company's sports fashion brands include JD, Size?, Chausport, Sprinter, Getthelabel.com, Kooga, Kukri Sports, Source Lab, Scotts, Tessuti, Cloggs, JD Gyms and Nicholas Deakins. Its outdoor brands include Blacks, Millets, Tiso and Ultimate Outdoors. Chausport operates throughout France retailing international footwear brands, such as Nike, adidas and Le Coq Sportif together with brands specific to the local market, such as Redskins. Sprinter is a sports retailer in Spain selling footwear, apparel, accessories and equipment for a range of sports, as well as lifestyle casual wear and childrenswear. Kooga designs and sources rugby apparel and equipment. Cloggs is an online retailer of branded footwear. Blacks is a retailer of specialist outdoor apparel, footwear and equipment. It has over 900 stores across a range of retail fascias. more »

LSE Price
329.2p
Change
0.0%
Mkt Cap (£m)
3,203
P/E (fwd)
13.3
Yield (fwd)
0.5



  Is Speedy Hire fundamentally strong or weak? Find out More »


2 Comments on this Article show/hide all

bobdouglas 17th Apr '13 1 of 2
1

Paul,
Quite impressive that Sepura has managed to maintain its cash position of circa 6 million euros after aquiring 3T last May for 8 million euros. Obviously, very cash generative.

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Monty9 18th Apr '13 2 of 2
1

I bought Anpario a while back precisely on its GARP credentials. It makes natural food additives (I think in the far east) and distributes in 60 countries. Experienced management should avoid any pitfalls. The hard thing about this sort of operation can be to get it to profitability which they have done most successfully. Their market looks rock solid (especially if the 'non-natural' additives suffer from regulatory constraint). Looks like a company that could make the big time eventually - or get bought.

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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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