Small Cap Value Report (Mon 29 Apr 2019) - UPGS, MIND, MRL, LGRS, TRAK, PHD

Good morning, it's Paul here!

I'll be running through the 7am announcements with brief comments below, before 8am, in case there's anything time-sensitive. Your comments are also welcome, of course.

UP Global Sourcing Holdings (LON:UPGS)

Interim results - looks like a good recovery is taking place here. Although that's already been reflected in a share price that has more than doubled in the last 6 months.

I'll take a closer look later today, but only because there's not really much else to review today.

Mind Gym (LON:MIND)

Trading update - in line with expectations.

We've not looked at this company before, so I'll have a look at it later, to get something into the archive for future reference.

Marlowe (LON:MRL)

The Board expects Adjusted EBITDA for the year ended 31 March 2019 to be slightly ahead of current market expectations.

It's done eight acquisitions in the year to 31 Mar 2019.

This is a buy & build group, in building services (safety & regulatory compliance).

This sector doesn't interest me at all, so I won't be doing any more work on this one.

£LGRS 

Company name is: Loungers (in case the new ticker isn't working yet)

Here's something that does interest me! I did some work on this a week or so ago. It's a roll-out of all-day bar/bistro venues. The valuation should make a fascinating comparison with Revolution Bars (LON:RBG) (in which I hold a long position) so that is my main interest here. They're different formats, but the economics are similar.

I'll do some more work here on this later today.

Trakm8 Holdings (LON:TRAK)

Poor performance, falling revenues, too much debt. This looks a busted flush to me, so I'm not interested in looking any closer.

Proactis Holdings (LON:PHD)

Similar sort of thing here. It expanded too fast, and took on far too much debt.

Looks a mess to me, so I wouldn't be interested in delving any deeper.

If you look at the cashflow statement, the heavy development spend means that there isn't really much in the way of genuine cashflow. Could end up at zero, in my view.

OptiBiotix Health (LON:OPTI)

£514k revenues for the year. £64m mkt cap. Ridiculous, in my view.

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Please note that I've had the most horrendous chest infection/flu for the last 6 days, so am only going to be able to take things at a gentle & relatively slow pace today.