Small Cap Value Report (Fri 13 Sep 2019) - CCT, JDW, GAN, TM17

Friday, Sep 13 2019 by
32

Good afternoon, Graham here.

Paul and I appear to have got our wires crossed about who was doing today's report.

I'm going to do a late version of the report now, with the help of Jack Brumby.

Sorry for the lack of communication and lateness! We are on it now.

Today's report covers:




By Jack:

Character (LON:CCT)

  • Share price: 355p (-4%)
  • No. of shares: 21.4 million
  • Market cap: £76 million

Trading update

Profit warning.

‘Through a combination of these factors, the profit before tax for the Group for the year ended 31 August 2019 is likely to be in the range of £11.0m - £11.5m., slightly under the lower end of current market expectations.’

This toy company is one of the more popular stocks on the site - and recently, as many of you know, the share price has unravelled as a result of Hasbro bidding for Peppa Pig IP owner Entertainment One. It’s been quite a dramatic decline.

ciGOhgQ7j7A02e1o-MQmOC91QC-X3FcxYCGlXhEU

That’s a drop of about 38% over the past couple of months. Alas, when it rains it pours.

The company says:

The second half of the financial year just ended has seen several factors negatively impacting our business. The most significant factor has been the failure of the retail market in Scandinavia to fully absorb the sales vacuum caused by the liquidation in January this year of Top Toy, OVG-Proxy ApS's ("Proxy") largest customer until its demise.’

Add to this Sterling weakness (with the $/£ proving particularly painful for the group) and the fact that Character’s recent purchase of Proxy needs a bit more TLC than was originally anticipated… It’s clear that conditions are tricky for management right now. When it rains it pours.

As for Peppa Pig, Character says:

To date, there has been no dialogue between the Company and Hasbro as to its future intentions for Peppa Pig and, although it is unlikely that a definitive position in that regard will be known for some time, discussions have taken place with eOne and it has been agreed that the Group's current Peppa Pig licence (due to expire on 31…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

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

Do you like this Post?
Yes
No
40 thumbs up
8 thumbs down
Share this post with friends



J D Wetherspoon plc owns and operates pubs throughout the United Kingdom and Ireland. The Company aims to provide customers with food and drinks. The Company operates a trading estate of approximately 895 pubs. The Company operates over 40 hotels and approximately 900 rooms. The Company's hotels include George Hotel, the Shrewsbury Hotel and the Unicorn, Ripon. The Unicorn, Ripon consists of over 32 bedrooms in North Yorkshire. Its hotel rooms provide unlimited free wireless fidelity (Wi-Fi) as standard and its staff member provide assistance around the clock. The Company's hotels have adjoining pubs, serving breakfast menu and Wetherspoon dishes, and club nights. The Company offers a range of food, such as burgers, desserts, steaks, and salads and pastas. Its food menu includes Breakfast Club, Deli Deals, Small Plates, Sharers, Burritos, Pub Classics, Fresh From The Grill, Chicken and Ribs, Burgers and Dogs, Sides, Mexican Monday, Steak Club, Chicken Club, Curry Club and Fish Friday. more »

LSE Price
1480.63p
Change
-0.4%
Mkt Cap (£m)
1,562
P/E (fwd)
19.4
Yield (fwd)
0.8

GAN plc, formerly GameAccount Network plc, is a provider of enterprise online gaming software, operational support services and online game content development services to the casino industry. The Company's segments are business to business (B2B) and business to consumer (B2C). The Company is engaged in the provision and development of real money gaming software and the supply of Internet gaming systems to the online industry, and the provision and development of simulated gaming software and underlying systems to casino operators in the United States and other international markets. It offers GameSTACK Internet Gaming System, which is licensed to online and land-based gaming operators. The Company also licenses gaming content to a range of United Kingdom, Spanish and Italian gaming operators. In New York, the Company offers a Simulated Gaming Website, www.EmpireCityCasino.com. It offers a virtual reality (VR) simulated gaming application, containing Class III slot machines. more »

LSE Price
88.5p
Change
-1.7%
Mkt Cap (£m)
76.7
P/E (fwd)
42.8
Yield (fwd)
n/a

The Character Group plc is a toy company. The Company is engaged in the design, development and international distribution of toys, games and gifts. Its geographical segments include other EU, UK and Far East. It designs and manufactures toys based on television, film and digital characters, and distributes these products in the United Kingdom and overseas. It also distributes finished products in the United Kingdom developed by overseas-based toy producers. Its diverse product range includes products for pre-school, boys, activity and girls. The Company's brands include Peppa Pig, Little Live Pets, Teletubbies, Minecraft, Scooby Doo, Mashems, Fireman Sam and Ben & Holly. Its customer list includes the United Kingdom toy retailers, the United Kingdom independent toy stores and a selection of overseas distributors. It operates approximately two distribution warehouses located near Oldham, Greater Manchester. It primarily distributes products sourced from overseas third parties. more »

LSE Price
375p
Change
-0.8%
Mkt Cap (£m)
80.8
P/E (fwd)
7.6
Yield (fwd)
7.4



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


62 Comments on this Article show/hide all

johnsmith68 Wed 10:46am 1 of 62
5

I've noticed that the last couple of days, the SCVR is quite hard to find (I got to it by looking at Paul's activity feed).  Under the discussion links to it and on the home page, the links are all pointing to yesterday's report and earlier.  I think this may be why there are so few comments.

| Link | Share
sharw Thu 11:31pm 2 of 62
1

Looks like its my turn to bump this up to the top ready for the morning.

| Link | Share

Please subscribe to submit a comment




About Graham Neary

Graham Neary

Full-time investor and independent analyst. Editor at Cube.Investments, small-cap writer at Stockopedia. Previously a fixed income analyst in the City and institutional fund manager. I'm a CFA charterholder and have the Investment Management Certificate and STA Diploma in Technical Analysis for good measure. When I'm not talking about finance, I enjoy recreational poker, chess and Mandarin Chinese. more »

Follow



Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis