Hello, it's Paul & Jack with the SCVR -

Explanatory notes -

A quick reminder that we don’t recommend any stocks. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be right, and sometimes wrong, because it's anybody's guess what direction market sentiment will take & nobody can predict the future with certainty. We are analysing the company fundamentals, not trying to predict market sentiment.

We stick to companies that have issued news on the day, with market caps up to about £700m. We avoid the smallest, and most speculative companies, and also avoid a few specialist sectors (e.g. natural resources, pharma/biotech).

A key assumption is that readers DYOR (do your own research), and make your own investment decisions. Reader comments are welcomed - please be civil, rational, and include the company name/ticker, otherwise people won't necessarily know what company you are referring to.


Agenda -

Castings (LON:CGS) - good H1 recovery but various headwinds mean the company is struggling to translate a strong pipeline as vehicle customers suffer from the semiconductor shortage. Castings looks like a sensibly run business with a strong balance sheet, so it should be able to navigate these conditions, but profitable growth has been lacking for some time.

Works Co Uk (LON:WRKS) - a better than expected revenue performance offsets rising freight costs, leaving the group on course to meet original expectations for FY22. There's a huge store estate here given the small market cap and a possible value opportunity given the valuation, but I'm unsure of the fundamental profitability of the business model.

Avon Protection (LON:AVON) - commiserations to holders after a brutal 40%+ share price drop this morning. The affected business area accounts for c12% of forecast FY22 revenue so there is a chance the reaction is overdone but shifts in sentiment like this can take a long time to undo, so I don't think there's any rush for onlookers to jump in. Final results now expected in December.

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Jack’s section

Castings (LON:CGS)

Share price: 370p (+0.54%)

Shares in issue: 43,632,068

Market cap: £161.4m

Interim results

This is an iron casting and machining group. It’s got…

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