Good morning!

I added 3 more companies to yesterday's report in the evening. Not sure why I've been splitting the reports into two sessions lately, just tiredness & being overloaded with information I think. Sometimes you just need to spend a few hours digesting things before writing about them.

So here is the link for yesterday's report, which now includes additional new sections on the following;

eg Solutions (LON:EGS) - lousy interims, but contract wins mean a stronger H2 is in prospect. I'm not prepared to give this company the benefit of the doubt, given its track record.

DX (Group) (LON:DX.) - rapidly declining profits & huge structural problem with DX Exchange. A value trap in my view. I don't see this ending well.

Dillistone (LON:DSG) - OK interims. Nice recurring revenues. Good divis, but balance sheet not great. Unexciting, unless it can crank up the growth rate.

That's enough to get you started, whilst I write up today's report!


On to today's news;



Begbies Traynor (LON:BEG)

Share price: 47.5p (up 2.7% today)
No. shares: 126.8m
Market cap: £60.2m

AGM trading update - this is an insolvency practitioner, which has also acquired other related businesses in property services (e.g. valuation, auction, etc). Today it updates on the year to date (ending 30 Apr 2017).

Trading seems to be alright;

Our trading in the first quarter of the current financial year was satisfactory. Performance in both divisions was in line with our expectations, despite the continuing challenging levels of market activity.


The insolvency market has been in the doldrums ever since we entered the artificial world of near-zero interest rates in 2008/9. This allowed zombie companies to be gradually restructured over the last 8 years, rather than being put through formal insolvency procedures, as happened in the past. So a lot less work for Begbies than expected, in recent years. Therefore it has down-sized its cost base, to remain reasonably profitable.

Today it also says that Govt insolvency statistics are roughly unchanged on last year.

Outlook comments sound reasonably upbeat in the circumstances;

...Overall, we continue to be confident of the prospects for the group and will look for further opportunities to develop and enhance the business, both organically and through selective acquisitions."

My opinion - it's valued on…

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