Good morning from Paul & Roland.

Agenda - 

Paul's Section:

Essensys (LON:ESYS) - interim results yesterday triggered a 36% rise in share price. Interim figures look poor to me, with revenue growth almost stalled. However, the balance sheet is strong (for now anyway, it intends burning through the whole cash pile in the next 2 years). Outlook comments indicate growth is accelerating now people are returning to offices. However, forecasts show it needs to more than double revenues, and still won't reach breakeven. Hence this looks a high risk business model, and shares are just a punt at this stage.

Solid State (LON:SOLI) - an impressive year end update, with the latest in a series of profit upgrades. Record order book gives comfort for the new year just started. Cost headwinds seem to be absorbed within increased revenues. 2 acquisitions have performed well. Valuation looks about right to me. 

Procook (LON:PROC) - my first look at this recent IPO, which retails kitchenware online and in c.50 UK stores. I like what I see! Valuation probably still too high though.

Roland's Section:

Record (LON:REC) - this specialist currency management business saw a slowdown in AUME growth last year, but appears to be benefiting from rising interest rates. I can see some attractions, but I wonder if the business model may face tougher competition than in the past.

Ibstock (LON:IBST) - this FTSE 250 brickmaker upgraded its 2022 guidance yesterday following a strong Q1. The company seems to be on a sound footing and the stock looks reasonably valued, but I’m wary about cyclical risks and might prefer to focus on the top performers in this sector.

Brickability (LON:BRCK) - This fast-growing building materials group now expects to report FY22 EBITDA 19% ahead of previous guidance. I’m encouraged by the presence of owner management and this group’s strong progress since its 2019 IPO. Although I can see some cyclical risks, I have a favourable impression of the business.


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…

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