Good morning!

I so enjoyed the documentary on TV last night about the problems within the Labour Party. It's even worse than the militant tendency infiltration of the 1980s. Much, much worse. The resulting schadenfreude gave me a surge of energy, which I put to good use by writing up 6 new company sections in yesterday's SCVR.

Here is the link to yesterday's full report.


These are the companies I commented on yesterday evening;

SKIL Ports & Logistics (LON:SPL) - total car crash - yet another overseas AIM company craps out. Foolishly, I got caught on this one, breaking my own rule on not buying overseas AIM stocks.

7Digital (LON:7DIG) - poor results, and running out of cash. Fundraising coming, probably.

DP Poland (LON:DPP) - poor interims. Still loss-making. Painfully slow progress. But good LFL sales growth. Bonkers market cap, for such a poor roll-out. Forecast to reach breakeven in 2018!

Adgorithms (LON:ADGO) - awful interim results, but pots of net cash. Shares at a discount to net cash, but beware - it's overseas & AIM.

Styles and Wood (LON:STY) - interims are nothing special, but it has heavy H2-weighting to trading. Shares have had a great run, but price looks up with events now.

Spectra Systems (LON:SPSY) - strange little company. Lacklustre interims, but optimistic noises about future potential. Cash-backed balance sheet. Has delivered nothing in last 5 years, so could just be more of the same?

Right, on to today's news.



French Connection (LON:FCCN)

Share price: 40.5p (down 7.2% today)
No. shares: 96.3m
Market cap: £39.0m

(at the time of writing, I hold a long position in this share)

Interim results, 6m to 31 Jul 2016 - bit of a mixed bag here, there's something for both bulls and bears. This is a strongly H2-weighted business (relying on big sales of party dresses for Xmas), so the interims are always ropey.

This time the loss before tax is flat against last year, at £7.9m, on turnover down 8.7% to £69.2m. Falling turnover is not necessarily a problem here, because it's a special situation where a massively loss-making retail division needs to be down-sized,…

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