Good morning, it's Paul here.

My plan today is to set aside some time to catch up on a few things that I missed earlier in the week. In addition to reporting on today's news too, of course.


Move to subscriber-only editorial

Most readers here are subscribers. We got one or two negative, and inaccurate reader comments yesterday, complaining about the move to put all editorial here behind the pay wall, w.e.f. next Saturday.

To prevent any more misunderstandings, Ed explains here why this decision has been taken. It's worth a read, as he also updates us on other improvements to Stockopedia.




A couple of small acquisitions are announced;

Begbies Traynor (LON:BEG) is acquiring a profitable, small firm of chartered surveyors. The deal looks sensibly structured, with a 3-year earn-out on stretch targets. I like BEG's strategy of developing its property services division. This generates some growth, which is lacking in its core insolvency division.

Scientific Digital Imaging (LON:SDI) is acquiring a small but profitable, complementary business here. Again, not material.




Treatt (LON:TET)

Share price: 392.5p (up 1%, pre-market open)
No. shares: 58.8m
Market cap: £230.8m

Trading update

Treatt, the manufacturer and supplier of innovative ingredient solutions for the flavour, fragrance, beverage and consumer product industries today publishes a trading update for the half year ended 31 March 2019 (the "Period").


Nothing madly exciting here, it's an in line update (right at the end, in the outlook section);

... the Board, therefore, continues to believe that profit before tax and exceptional items will be in line with its expectations for the financial year ending 30 September 2019. 


Other points sound reassuring overall;

  • H1 revenues up 7%
  • Encouraging opportunity pipeline
  • New $14m US facility, completed in Mar 2019, will be fully operational by June 2019
  • UK relocation, costing £35m, due to start summer 2019, occupancy due to begin in summer 2020
  • Forex hit of £0.6m - doesn't really matter, as it's swings & roundabouts


My opinion - there could be a good opportunity here. It's not cheap, on about 20 times forecast earnings, but that doesn't include upside from the major new production…

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