Good morning from Paul & Graham - suitably refreshed from his holidays! Today's report is now finished.

Normal service resumes here today, I'm pleased to say.

Weekend podcast went up as usual, or is available on podcast services (just search for "Paul Scott small caps").

Agenda

Paul's Section -

Beeks Financial Cloud (LON:BKS) (I hold) - a reassuring, in line with (previously raised) expectations, trading update for FY 6/2022. Also BKS reveals the identity of an impressive recent client win. Outlook comments are buoyant, with a "record sales pipeline".  This share is tricky to value, but the accelerating organic growth, mostly recurring revenues, and positive outlook, reinforce my belief that this share looks like a long-term winner for patient investors.

Spectra Systems (LON:SPSY) - I crunch the interim numbers, and come away impressed with the high profit margin, strong balance sheet, and generous divis. It's a very small company, but has numerous projects in the pipeline, any of which could be transformational if they scale up. Hence blue sky upside, on top of solid fundamentals - that's an attractive risk:reward stating point in my view. Worth a closer look I'd say.

Accsys Technologies (LON:AXS) - a catalogue of problems from this specialist wood products maker, which is struggling to ramp up production. Sluggish production in Holland, hampered by high gas prices as well as production gremlins. Its new Hull factory is also seeing delays & question marks over viability (due to gas, again). Only its US JV is progressing well, but won't be producing until mid-2024. Pity, as products are in demand. Overall, it looks too difficult to assess, and I'm worried about more dilution.

Graham's Section:

Sigmaroc (LON:SRC) (£310m) - this quarrying company announces interim results and also a JV with the industry giant ArcelorMittal. The deal is impressive in terms of the association that’s been formed, but I’m curious as to how the JV will negotiate pricing with its primary customer (ArcelorMittal) who will also be a 47.5% shareholder. As for the interim results, they show promise with good profitability and an upbeat trading statement, although the balance sheet has a significant degree of leverage. Overall I find this a perhaps risky and complicated, but nevertheless an interesting stock for us to keep under coverage, especially considering the inflation theme which exerts great influence over SigmaRoc’s revenues…

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