Good morning! It's catch-up Friday, so here is something I prepared earlier.

Agenda -

Paul's Section:

Sanderson Design (LON:SDG) (I hold) - luxury furnishings group, doing well, and reasonably priced. Super balance sheet. Ticks my boxes, as a value/GARP investor.

Gulf Marine Services (LON:GMS) (I hold) - *NB* High risk special situation. Worth a look, for experienced investors only, able to assess risk:reward at a problematic, highly indebted company.

Vertu Motors (LON:VTU) webinar

Jack's section:

Loungers (LON:LGRS) - very good two-year like-for-like results for one of the best bar operators out there, but there's been a strong recovery in share price since 2020 and the valuation looks full. There are supply chain and inflation risks to consider.

K3 Capital (LON:K3C) - thanks to readers for flagging this update hidden in a 'Notice of Results' RNS. Another upgrade - the company is making a habit of this. The growth rates and profitability metrics are impressive, and the acquisition opportunity remains fairly significant, so well worth checking out.


Sanderson Design (LON:SDG) (I hold)

198p - mkt cap £140m

Interim Results - announced yesterday

Sanderson Design Group PLC (AIM: SDG), the luxury interior design and furnishings group, announces its financial results for the six months ended 31 July 2021.

Strong recovery continues with key financial metrics ahead of the previous two half years. Reinstatement of interim dividend. Full year trading in line with expectations

Top marks for clarity of presentation here - this is exactly how it should be done - giving us H1 comparisons with last year (pandemic), and the year before (pre-pandemic). In a table, not rambling text, and not cluttered up with percentage movements. Perfect!

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I’ve highlighted above how u/l PBT has bounced back to more than pre-pandemic levels. This is because SDG has undergone a very effective turnaround under new CEO Lisa Montague, who’s done a great job I think, judging from the numbers.

It’s all just common sense stuff - e.g. reducing product lines to focus on best-sellers (which has also reduced inventories - to the benefit of cash - note the very favourable progression in the net cash position). Also overheads have been cut, through efficiency gains (e.g. launching new lines online,…

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