Good morning, it's Paul here.

7-8am comments

Porvair (LON:PRV)

H1 results (6m to 31 May 2019) look strong;

Revenue up 21% to £72m

Adjusted EPS up 36% to 12.9p

Cashflow looks weak though, due to adverse working capital movements (inventories & debtors up, as you would expect from expansion, but trade creditors sharply down).

IFRS 15 has resulted in a large £8.2m provision for warranties being created.

Looks potentially interesting, so I'll take a closer look later today, in more detail.

Cake Box Holdings (LON:CBOX)

Full year results (y/e 31 Mar 2019) look a little below forecast;

Adj EPS of 7.9p versus consensus forecast of 8.1p

High profit margin, as it's a franchise business, selling cakes.

LFL sales growth in franchise stores of 6.5% looks very good - maybe this is an emerging winner in the current retail downturn? Doing a roll-out of new franchise stores, which seems to be working.

Looks potentially interesting - I'll take a closer look later today.


Formal sale process & strategic review.

Mentions the dreaded word "stakeholders" - which is often code for the equity probably being worthless. 

One of the options mentioned today is de-listing, so I imagine the share price is likely to suffer badly today, although at c.7p there's not much left anyway.

I don't see any value here. Management have completely screwed things up, and a change in Australian sales tax apparently clobbered gross profit.

Given previously unrealistic outlook comments made by management, I'm not minded to believe the RNS today, saying that drastic cost cuts will make it cash generative next year.

No further coverage today, as this looks a basket case now, with management having zero credibility in my eyes.

Afternoon comments

Now i have a bit more time, let's focus on the shares whose updates look most interesting today.

Porvair (LON:PRV)

Share price: 583p (up 3.4% today, at 15:11)
No. shares: 45.8m
Market cap: £267.0m

Half year results

Porvair plc ("Porvair" or "the Group"), the specialist filtration and environmental technology group, today announces its half yearly results for the six months ended 31 May 2019.

As mentioned above, the financial highlights…

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