Good morning. It's a busy morning for results & trading statements, so let's start with a share that's been on my watch list for some time, Networkers International (LON:NWKI). Their trading update today seems to be OK. The key bit is that they confirm expectations for this year (ending 31 Dec 2013).

The market cap is £31.5m at 36p per share, and they have reported a reduced level of net debt, at £6m (which is an invoice discounting facility). The interim dividend has been raised from 0.6p to 0.7p.

Stockopedia shows the current year EPS forecast as 4.7p, so that puts them on a PER of about 8, which looks reasonably good value, although that rises to about 10 if you factor in the net debt. With an economic recovery now seemingly underway, that doesn't look a demanding valuation at all for a company that should see a cyclical uplift in demand from now on. So it might be worth a look.

Altthough fee income being 8% down against H1 last year does concern me a bit.




The FTSE 100 is forecast to open in a few minutes, down 11 points at 6,560, so nothing too dramatic there.




Next I've been looking at results from OpSec Security (LON:OSG), for the year ended 31 Mar 2013. It's a £32m market cap (at 40p per share) security company which specialises in anti-counterfeiting technologies, both physical and online. Revenue is up from £38.3m to £51.7m, although that has been driven mainly by acquisitions. Only 6% of the growth is organic.

Adjusted operating profit rose from £2.3m to £3.7m. Adjusted EPS rose from 2p to 5.7p, which doesn't look quite right to me, and from what I can gather the EPS figure has been flattered by a Corporation Tax credit, so that does not look a reliable figure for valuing the business on a PER basis, from what I can gather.

You would need to adjust the EPS fgure for a normalised tax rate first, before relying on it as the starting point for a valuation.

I also don't like the fact that they report £6m cash in the headline figures, but actually have substantial debt of £17.3m, so overall have net debt. The presentation of…

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