Good morning!
I'm planning a bit of a catch up this afternoon, so intend looking at the following shares;
Victoria (LON:VCP) - results which I missed a couple of days ago
Majestic Wine (LON:WINE) - again, results from a few days ago
Fuller Smith & Turner (LON:FSTA) - have been meaning to look at this for ages
Then a few brief comments on other stocks.
Victoria (LON:VCP)
Share price: 327p (up 9.0% today)
No. shares: 91.0m
Market cap: £297.6m
(at the time of writing, I hold a long position in this share)
Interim results 26 weeks ended 1 Oct 2016 - these results were published 3 days ago, so I'm not sure what has caused the 9% share price rise today. It's possibly a delayed reaction to analyst & Institution meetings with management? Also, this share is surprisingly illiquid given its market cap - as shares are tightly held.
I met the charismatic Exec Chairman, Geoff Wilding, about 3 weeks ago, and reported on it here. It's a fairly straightforward buy & build - Mr Wilding is an experienced investment banker, who has done buy & builds before. So far he seems to have done an extraordinarily good job at Victoria - it almost looks too good to be true, but I can't see anything wrong with the figures.
The headline figures from the P&L for the half year look terrific;
- Total revenues up 45.3% to £153.4m - this is mainly driven by acquisitions
- Organic revenue growth of 8.0% (4.9% at constant currency)
- Underlying operating profit of £14.4m is up 82.3% - the adjustments don't look particularly aggressive to me, so I'm prepared to take this at face value.
Balance sheet - I'm less happy with this part of the accounts.
Working capital is absolutely fine - with a healthy current ratio of 1.76.
However, in my view the long-term creditors look too high, at a total of £120.6m - this figure includes a £9.7m pension deficit.
Overall, NAV is £73.4m, but this includes a lot (£91.1m) of intangibles. NTAV is negative -£17.7m. Normally I don't invest in companies with negative NTAV, however in this case I've made an exception because the business is performing so well, and strongly cash generative.
I raised this issue of the balance…
Unlock the rest of this article with a 14 day trial
Already have an account?
Login here