Good morning from Paul & Graham!


Paul's Section:

Hotel Chocolat (LON:HOTC) - preliminary results for FY 6/2022, suggest the accounts department operates at a leisurely pace, but the figures are in line. Outlook comments are vague, but seem to be a mild profit warning. Balance sheet seems OK, although inventories running high does introduce some risk of future write-downs. Overall, I'm struggling to see value here. Aggressive forecasts for next year & beyond mean more profit warnings could be a risk. The story seems a little stale.

Creightons (LON:CRL) - I have a quick skim through the H1 results. Profit has almost evaporated, due to high cost inflation, and difficulties passing that on to customers, as with so many manufacturers right now. Outlook comments suggest it's making some progress though, with a better H2 expected. Balance sheet seems just about OK. Over time I think CRL should probably at least partially recover, so maybe one to just tuck away & forget about?

Tribal (LON:TRB) - noteworthy as shares have dropped 30% today, on news of a problem contract getting a lot worse. This means most of this year's profits are wiped out. Tribal has a history of erratic performance. It's difficult to see how a large contract could go so badly wrong. Shares might be attractive to a bidder, perhaps? 

Graham's Section:

Peel Hunt (LON:PEEL) (£96m) - these H1 results are poor, as expected, but the company does succeed in achieving a breakeven result despite “multi-decade lows” in equity capital markets activity. The investment banking division saw a collapse in activity with only a handful of IPOs taking place in the UK market and with other fundraising deals only a fraction of what they were last year. The other revenue streams at Peel Hunt were more stable and thanks to a chunky reduction in pay/bonuses, this H1 result looks ok to me. I now think this share could be approaching value territory thanks to the strong balance sheet which includes £41m of cash and a very strong net current assets position.

Mortgage Advice Bureau (Holdings) (LON:MAB1) (£255m) - a profit warning is seen from this mortgage advice business. With the help of a franchise business model, it has earned excellent profits and returns in recent years. However, it is going to “slightly” miss its 2022 forecasts, and we…

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