Small Cap Value Report (25 May 2017 - Part 2) - DODS, VANL, GTLY, CLG

Thursday, May 25 2017 by

Good afternoon!

Since there were quite a few announcements over the past few days, I'm going to add a few on those which haven't been covered yet.

Paul produced a huge numbers of comments in a Part 1 report this morning at this link:

Please let me know anything we've missed, and I'll include a comment (preferably small-caps).




  • Share price: 12.125p (-8%)
  • No. shares: 341 million
  • Market Cap: £41 million

Final Results

This is a media business providing data, events, research and training, focusing on political and public policy matters.

It's a big turnaround story - after many years of losses or marginal profitability, it swung back to a decent profit result last year.

The momentum has continued this year (ending March 2017), with a further improvement in PBT to £1.6 million (from £1.1 million).

Looking at the Director backgrounds: the current CEO is said to have gained considerable internal influence in 2013, and was subsequently promoted to his current position in August 2016. He has been at Dods since 2001, but appears to deserve particular credit for the turnaround.

But for what it's worth, the Dods share price does remain considerably below it's pre-Great Recession levels.

But things are looking up now:

The Group's operations generated £3.4 million of cash during the fiscal year. Continuous improvement in back office procedures, a decrease in days sales outstanding from 37 days to 32 days and diligent management focus all contributed to cash generation. The Group used £3.1 million in investing activities during the year of which £2.5 million was used for the build-out, furnishings and equipment related to the relocation of Dods' registered office and headquarters into new premises at The Shard in London Bridge Quarter.

It's a shame that free…

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All my own views. I am not regulated by the FSA. No advice.

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Dods (Group) Plc is a United Kingdom-based content, media services and events company delivering information and analysis across multiple platforms. The Company's principal activity is the curation and aggregation of information and data and the provision of services through a combination of online information and digital services, training courses, conferences and events, publications and other media. The Company is engaged in the provision of information and insights into the political and public policy environments around the United Kingdom and European Union. Its portfolio of brands, products and services include Digital & Print Media, Events, and Information & Insight Services. Its print, Web and social media operations deliver news, comment and expert analysis, while providing channels for its customers to engage with senior decision makers. Its engagement events include exhibitions, summits and round tables. It operates primarily in the United Kingdom, Belgium and France. more »

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Van Elle Holdings plc is a geotechnical engineering contracting company. The Company offers end-to-end solutions, including site investigation, driven, bored, drilled and augered piling, and ground stabilization services. It also develops, manufactures and installs precast concrete products for use in specialist foundation applications. It operates through four segments: General Piling, which is involved in open piling on brown and green field sites, particularly on new housing and new development sites; Specialist Piling, which is involved in installing piles where access to the area is restricted or specialist techniques are required; Ground Engineering Services, which is involved in providing site investigation, soil sampling drilling, grouting and soil nailing techniques to consolidate ground conditions, and Ground Engineering Products, which manufactures and installs modular precast concrete beams, primarily to the new housing market. more »

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Gateley (Holdings) Plc provides commercial legal services together with complementary non-legal services, including acting as independent trustees to pension schemes and also provides specialist tax incentive advice. Its segments are Banking and Financial Services, which is engaged in the provision of legal advice in respect of asset finance, banking and corporate recovery services; Corporate, which is engaged in the provision of legal advice in respect of corporate, family, private client and taxation services; Business Services, which is engaged in the provision of legal advice in respect of commercial, commercial dispute resolution, litigation, regulatory, shipping, transport and insurance services; Employees, Pensions and Benefits, which is engaged in the provision of legal advice in respect of employment and pension services, and Property, which is engaged in the provision of legal advice in respect of construction, planning, real estate and residential development services. more »

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  Is LON:DODS fundamentally strong or weak? Find out More »

14 Comments on this Article show/hide all

BH1991 25th May '17 1 of 14

Hi Graham,

"Please let me know anything we've missed, and I'll include a comment (preferably small-caps)."

Gateley Holdings (LON:GTLY) released an trading update this morning - sounds positive!

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Graham Neary 25th May '17 2 of 14

Ok, I'm on it! Thanks BH

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tabhair 25th May '17 3 of 14

Any thoughts of £DX obviously a total car crash, but it was covered by Paul here frequently enough and is interesting at very least..

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Ramridge 25th May '17 4 of 14

Graham - I wonder if you could look at Clipper Logistics (LON:CLG) which today announced the acquisition of Tesam.
The consideration paid is £12m but the company has £3.4m cash and a freehold which CLG are saying will be sold forthwith for £2.7m. So that makes CLG are paying cash adjusted only £5.9m for the acquisition.
Tesam has been profit making for a number of years and the last audited net profit was £1.5m There is no debt. So they are buying on a cash adjusted multiple of only 4. ( I looked up their company accounts in Companies House)
Revenue is £20m and P/S comes to 0.6
Clipper's net profit was £11m. So a £1,5m contribution form the acquisition is 13.6% . Not small by any account.

The one negative is that CLG is on a high PE of 32 , but eps growth rate is 22% and ROCE is 40% .

Thanks, Ram

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FREng 25th May '17 5 of 14

Van Elle Holdings (LON:VANL) has managed to recover to above its IPO price, having stumbled in Q3. There has been no further mention of the contingent liability. The short series of RNS since IPO are worth reading. I wonder why the insiders have bought such tiny volumes of shares.

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simonty 25th May '17 6 of 14

Dodds is the old Huveaux which was a complete dog. It is also a vehicle for Lord Ashcroft.

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Graham Neary 25th May '17 7 of 14

In reply to post #188914

Covered it, cheers Ram

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Graham Neary 25th May '17 8 of 14

In reply to post #188909

Hi tabhair, maybe next time it has results or an update? cheers

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Ramridge 25th May '17 9 of 14

Many thanks, Graham

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Howard Marx 25th May '17 10 of 14

In reply to post #188914

Charlie Munger often uses the phrase "invert, always invert", to emphasise a thorough appraisal.

If Clipper Logistics can buy an aligned business for a multiple of 4x, maybe this shines a light on the appropriate valuation for companies exposed to the business of contract logistics.

Maybe 4x IS cheap. Perhaps the 10x p/e of Wincanton is more appropriate. But the 27x earnings rating for Clipper appears excessive.

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ricky65 25th May '17 11 of 14

In reply to post #188929

Sorry wrong button!

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ricky65 25th May '17 12 of 14

In reply to post #188909

For me DX (Group) (LON:DX.) is a complete bargepole. I had a go catching the falling knife last year thinking the problems were fixable and, as often the case catching falling knives, I got burned. Lesson learned! The share price is down 92% from the IPO which tells me that management are massively incompetent.

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FREng 26th May '17 13 of 14

Volvere (LON:VLE) today please, Graham.

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Redrichmond 7th Jul '17 14 of 14

In reply to post #188894


Looking at the chart and comparing rises on or just before a news release. You can make up your mind on Tues 11th July 2017. But my guess is 12-15p upward climb or more.. Easy money :)

Law is the future with the £500-£700 per hr corporate layers having to rewrite post brexit business contracts etc.. Lots and lots works for them

RESULTS releases and how the price went up in ALL but 1 release they have ever done

25th May 2017 - 161p increased to 195p up 34p (17.4%)
6th Dec 2016 - 109p increased to 130p up 21p (16.1%)
19 July 2016 - 95p increased to 120p up 25p (20.8%)
19th May 2016 - 103p increased to 107p up 4p (3.7%)
16th Nov 2015 - 103p increased to 105p up 2p (1.9%)

3rd Nov (approx 2 weeks before a release on 16th No 2015 it jumped up 8.6%)95p increased to 109.50p up 9.5p

Only time it has been down since float in over 2 years was for a release on 15Sep 2015 where it went from 101p-97p down 4p (nearly 4% down)

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 Are LON:DODS's fundamentals sound as an investment? Find out More »

About Graham Neary

Graham Neary

Full-time investor and independent analyst. Prior to this, I spent seven years in the financial markets as an analyst and institutional fund manager. I'm CFA-qualified, also holding the Investment Management Certificate and the STA Diploma in Technical Analysis.Away from finance, my main interests are recreational poker and everything to do with China, especially Mandarin Chinese. more »


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