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

Mello Monday

Starts at 17:30 this evening. Click here for more details.

There are some interesting companies giving presentations. Of particular interest to me tonight is Smiths News (LON:SNWS) (I hold) which is developing into a good turnaround, as recently reported here. With divis set to resume later this year, I reckon buying now could lock in a 5-10% future dividend yield. Management present very well (but you can be the judge of that!), and now have a very clean business that generates reliable cashflows, now that the problem division, Tuffnells, has gone. Also the pension scheme problems have been resolved, with the possibility of repayment to the company of a surplus in the scheme. Debt is set to reduce quite quickly from now on. The current PER of about 4.5 is obviously the wrong price, in my view, when you factor in that debt is set to reduce to 1x EBITDA in the coming 2 years, on top of divis.

Also presenting are Smartspace Software (LON:SMRT) which Jack has written about below, as well as Panoply Holdings (LON:TPX) and Vr Education Holdings (LON:VRE)


Timing - TBC

Agenda -


Greggs (LON:GRG) - positive trading update - quick comment, as not a small cap, but could have interesting read-across to gauge the health of the High Street.

Begbies Traynor (LON:BEG) (I hold)- acquisition of a finance broker. Highly geared (to future profits) earn-out looks interesting.

Hotel Chocolat (LON:HOTC) - positive trading update.

Midwich (LON:MIDW) - another company reporting trading ahead of expectations.


Smartspace Software (LON:SMRT)

Not a small cap but…

Greggs (LON:GRG) has issued a positive trading update this morning. Key points -

Strong recovery in sales levels following easing of restrictions

Delivery is now 8.2% of sales - quite significant

Considerable uncertainty remains but profits for the year could be around 2019 levels, materially higher than the Board's previous expectation

As the company points out, it doesn’t have a lot of competition at the moment, so it will be interesting to see how things fare once all the other cafes/restaurants open up in about a week.

It’s good to see Gregg’s using 2-year…

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