Good morning from Paul & Graham.


Paul's Section:

Weekly summary - I've typed up episode 20  here, of my weekly podcast, for Stockopedia subscribers only, I hope you find it interesting - it's a quick way to see what we covered in the SCVRs last week, if you don't have time to read them all. This also gives you something to get stuck into first thing today, whilst Graham and I sift through the RNS, and decide what news to cover.

Joules (LON:JOUL) - a sorry end to this share, with refinancing talks having failed, and administrators being appointed. Shares are now worth nothing, and are suspended. We've been flagging here the recent high risk nature of this share, due to financing problems. However, I still want to apologise again for having got this share wrong previously. It always looked a good brand to me (and it is), but has been so badly run in recent years, that they managed to blow it up. What a pity. Still, let's have a discussion about all the warning signs, so we can avoid things like this in future. 

Cake Box Holdings (LON:CBOX) - H1 profits have reduced sharply, due to a big increase in admin costs. Confirms full year expectations though, which is a 29% fall in profit compared with last year. Balance sheet is solid, and there's a good divi yield. Plus new store openings are proceeding quite rapidly. I do have some misgivings though - previous accounting problems, where exactly does the profit come from, and why did costs surge so much in H1? On balance,  I could see this going either way, so am neutral.

SRT Marine Systems (LON:SRT) - a fantastic-looking P&L, with interim revenues up 300%, and a swing into decent profits. Although cashflow is negative, since customers haven't actually paid yet. The balance sheet looks weak, with heavy reliance on private bond funding. Commentary includes spectacular pipeline numbers, which if they come, could be transformational. I'm neutral, because it's impossible to judge whether the talk will convert into sustainable profits & cash, where it hasn't done for the last 17 years.

Graham's Section:

ME International (LON:MEGP) (£374m) - an ahead of expectations full-year trading update from this operator of photo-booths, laundry machines, food vending machines, etc. Strong consumer demand is seen across all of its services,…

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