Good morning, it's Paul & Jack here today, with the SCVR for Monday.

Agenda -

Paul's Section:

Renold (LON:RNO) (I hold) - a positive trading update, ahead of expectations, with strong order intake in particular. Supply chain problems are mentioned, but despite this expects performance to beat market expectations. Don't forget the large pension scheme deficit.

Up Global Sourcing Holdings (LON:UPGS) - another positive trading update. FY 07/2021 ended well, with profits 4% ahead of market expectations. Current trading is in line, despite supply chain disruption. Equity Development raises current year EPS forecast by 3%. Valuation still looks reasonable, despite multi-bagging from the pandemic lows last year. Looks good, providing nothing goes badly wrong with shipping from the Far East - which is a risk, albeit one that UPGS has managed well to date.

Jack's Section:

Zoo Digital (LON:ZOO) - revenue ahead of expectations and conversion of a loan note. Momentum is returning here, but the valuation is high and the group has so far struggled to generate profits.

Sigmaroc (LON:SRC) - impressive update from this highly acquisitive construction company. The pace of inorganic growth is very high and Nordkalk adds to that (although it should pave the way for organic growth as well), but the team has so far shown that they are up to the task of capitalising on the identified consolidation opportunity. The scale of equity dilution and the quality of asset acquisitions going forward are key.

Explanatory notes -

A quick reminder that we don’t recommend any stocks. We aim to cover 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 market sentiment will take & nobody can predict the future with certainty.

We stick to companies that have issued news on the day, with market caps up to about £700m. We avoid the smallest, and most speculative companies, and also avoid a few specialist sectors (e.g. natural resources, pharma/biotech).

A key assumption is that readers DYOR (do your own research), and make your own investment decisions. Reader comments are welcomed - please be civil, rational, and include the company name/ticker, otherwise people won't necessarily know what company you are referring…

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