Small Cap Value Report (Mon 26 Jun 2017) - VCP, W7L, MBH, AVG, LPA, SUN

26th Jun '17 by Paul Scott

14 comments 12169 reads

Good afternoon! It's Paul here.

Today I report on the following announcements;

Victoria - Reorganisation & trading update
Warpaint - AGM statement
Michelmersh - big acquisition
Avingtrans - trading update & contract extension
LPA Group - interims
Surgical Innovations - trading update

Mello Beckenham

Last call for David Stredder's long-running & very popular investment evenings in Beckenham.

Tonight's event has some interesting speakers, and I think there are a few places left.

Contact David here, if you're interested in attending. They're very enjoyable socially too, as everyone has a common interest in shares, and newbies are always welcomed warmly by David, and introduced to a few people.

Victoria (LON:VCP)

Share price: 498.5p (up 1.1% today)
No. shares: 91.0m
Market cap: £453.6m

Manufacturing Logistics Reorganisation Update - this company has been a remarkably successful buy & build of carpet/flooring companies, in the UK & Australia.

The announcement starts by emphasising that this reorganisation is being done for positive reasons;

...today announces that due to rapid growth and continued significant demand for its products, it is reorganising the Group's UK manufacturing footprint and logistics operations principally to increase production capacity and improve service levels for customers. Each of these positive developments will also progressively improve margins for the Group.

Production in Kidderminster is being moved to 2 other UK sites.

As regards logistics, the company says that it will move its distribution centre from another (too small) site, to the larger Kidderminster site. This will give "significantly increased capacity".

It intends opening 2 further new distribution centres (in NW London, and in the North), in late 2018 onwards.

Trading update - this sounds reassuring;

...the Group's underlying profits before tax will be well ahead of last year and the Board is confident of meeting market expectations for the financial year ending 31 March 2018.

Being well ahead of last year is nothing new - that's already baked into broker forecasts. So the bit that matters, is "confident of meeting market expectations".

I like it when companies are confident early in the financial year, as it can sometimes mean that they're heading for an earnings beat, but are not quite ready to say so (just in case something goes wrong later in the year).

Outlook - all sounding confident;

The…

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Trident

26th Jun '17

Paul. Sorry no investor comment today. Duvet day! :-)

Paul Scott

Haha, love it! :-)

larksrise

Paul - Michelmersh Brick Holdings EBITDA quote in the announcement also adds back directors emoluments if I'm reading that correctly?

LR

seadoc

Avingtrans (LON:AVG) update makes no comment about bid for Hayward Tyler (LON:HAYT) they have had a couple of extensions of a month each and last Friday got another but for just 7 days, to this Friday. I guess they want to wait for sp to grow a bit on this update and pay more in paper?

Seadoc

Hi seadoc,

Thanks for the reminder, I'd forgotten about the potential bid for Hayward Tyler (LON:HAYT) by Avingtrans (LON:AVG) .

Regards, Paul.

Hi larksrise,

Paul - Michelmersh Brick Holdings EBITDA quote in the announcement also adds back directors emoluments if I'm reading that correctly?

I wasn't entirely sure about that bit, so didn't comment on it.

The way I read it, seems to be saying that Directors are leaving, but with a 2-year consultancy agreement, to ensure orderly handover.

The announcement was rather unclear on capex as well. It seemed to simultaneously suggest that not much would be required, but it might be!

Regards, Paul.

LovelyLovelyGorgeous

"if you're nearest the door, you must repeatedly press these switches a little early"

Totally brilliant and true - it shows that we are professional commuters and not tourists

jonesj

We have too much health & safety nonsense with these train doors. As soon as the train is stopped in the station, it should be possible to open the doors.
On my last train journey in Thailand, the lady from Thai rail opened up the electrical box flicked a switch and opened the door a good half mile before the station. Therefore bypassing the silly switch. That's the way to do it.

AnonymousUser252054

Talking about health and safety, I wonder if our government will consider forming a select committe to look at fining, or at least billing, US firm Arconic. They are the tower block cladding supplier whose flammable product graces many British buildings. I think it would only be reasonable. After all Obama's adminstration got every last penny they could wring out of BP - or as he preferred to call it after the Deepwater Horizon disaster, 'British Petroleum'.

barnetpeter

Interesting comments about Aim companies....so much rubbish. Dire stuff. Too many 0.1 prices that attract the pump and dump merchants and are just director salary vehicles. How many resource cons have raised 20 million in cash and never drilled a single hole despite director "confidence". A few hit a huge natural resource abroad and were then told by the government they had changed their minds and they were taking it all back ...for nothing.

Yet must admit some huge winners too. A couple of solid property companies went up 20 to 50 fold for me. Yet a non aim medium reit went from £6 to bankrupt in the middle of a property boom. Currently watching and buying a tiny 500K company that is rated contrarian on here (which quite impressed me).....did a 3 million dollar deal earlier this month and didn't bother to tell anyone! Someone spotted the news in specialist press by chance.

Beginner

27th Jun '17

Go on then peter, name names! You're dying to really! ;)

Mac is the company but unfortunately the rest of the free stock has now gone today and the four market makers are sulking and refuse to play any more. So the normal spread of 1.30 to 1.4 has been widened to a bonkers level to stop anyone else buying.

peterg

On my last train journey in Thailand, the lady from Thai rail opened up the electrical box flicked a switch and opened the door a good half mile before the station. Therefore bypassing the silly switch. That's the way to do it.

Not hard to think of good reasons for not doing that!

lightningtiger

28th Jul '17

VCP 's Stock Rank has now gone up from 55 to 84. Time for another breakout I recon.Profits look extremely good. With a fibonacci retracement puts a target price of about 610p and also connecting the last two highs together and projecting the line forward comes about the same.

Small Cap Value Report (Mon 26 Jun 2017) - VCP, W7L, MBH, AVG, LPA, SUN

Mello Beckenham

Victoria (LON:VCP)

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Paul Scott

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