Good morning, it's Paul & Jack here with the SCVR for Monday. Today's report is now finished.

Agenda -

Paul's Section:

French Connection (LON:FCCN) (I hold) - finally we get a reasonable exit from this problematic fashion brand. Founder Stephen Marks (unanimously with the board) has agreed a 30p cash takeover bid from 2nd largest shareholder led consortium. Not an amazing price, but it's 3-times the level before the announcement of bid talks, and 10 times the pandemic low in March 2020. So overall, I'm happy with this.

Cake Box Holdings (LON:CBOX) - another positive update from this fast-growing franchise cake retail business. However, it's only in line with FY expectations, so shouldn't move the price much really. I'm really impressed with this company, and it deserves a premium rating.

Renewi (LON:RWI) - another positive update from this European recycling group. Heavily indebted, but that doesn't seem to be causing any problems. Looks potentially interesting, although I don't understand this sector, so don't have a strong view either way.

Castings (LON:CGS) - It's a profit warning, but no guidance provided. Tough Q2 (July-Sept) is entirely predictable, given that its main customers (heavy truck manufacturers) are experiencing semiconductor shortages, hence have cut production considerably. Fabulous balance sheet, and divis are being at least maintained. Demand is likely to return in due course, so I don't think long-term holders have anything at all to worry about, given the financial strength of the business. Not cheap enough to make me want to buy though.

Jack's section:

Cerillion (LON:CER) - short but positive update. FY revenue slightly ahead and adjusted profit significantly ahead. Higher mix of license revenue is increasing margins. The shares appear expensive but the momentum is hard to argue with and the outlook remains positive so there could be further to run on a multi-year view.


Explanatory notes -

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