Good morning! It's Paul & Jack here with the last SCVR for this week.

Agenda -

Paul's Section: 

Backlog items from yesterday -

AO World (LON:AO.) - closure of German business makes sense, due to continuing losses. I remain sceptical about AO's business model and ultimate viability even. One to avoid, I reckon.

DFS Furniture (LON:DFS) - profit warning. Just as I was warming to this share, recent conditions have deteriorated, as consumers cut back a bit. Maybe we've seen peak earnings for now? Guidance reduced to just below original "low scenario" profit for FY 6/2022. Customers cash deposits have been spent on divis & buybacks, which I find reckless.

Norcros (LON:NXR) - strong results beat expectations. Pension deficit only a minor issue now. Balance sheet sound. Big recent acquisition post year end has raised debt though. Looks one of the cheapest, decent companies on the market. Solid current trading too. An attractively cheap, well run, growing (by acquisition) group.

On to today's news -

Netcall (LON:NET) - a really impressive, big contract win. Shares are expensive, but could it now have reached an inflexion point that justifies the premium rating?

PROCOOK (LON:PROC) - a nasty profit warning today, with profit guidance roughly halved for FY 3/2023 - the perils of operational gearing being once again demonstrated. It's starting to look interesting now, and seems a fundamentally sound business. It's going on my watch list.


Explanatory notes -

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