Good morning from Paul & Graham! I got the date right, that's a good start! Right we'll leave it there for today. Thanks for reading & commenting, some interesting discussions today.


Paul's Section:

Headlam (LON:HEAD) - a very mild profit warning, with FY 12/2022 results now expected to be slightly below expectations. Not a cause for alarm in  my view, although it might put a stop to the recent bounce in share price, maybe? Volumes are down, as consumers retrench, but commercial is partly offsetting this. Plenty of self-help measures are also helping. I remain a long-term bull on this share, with some shorter term uncertainty due to macro. The tremendous balance sheet means little to no solvency risk, even in a recession. Good divis. Still a thumbs up overall from me, on fundamentals. No idea what the short term share price will do, that's just down to market sentiment.

Michelmersh Brick Holdings (LON:MBH) - this is becoming a brick-themed week, with me taking a positive view of larger competitor Forterra (LON:FORT) in Tuesday's SCVR. I also like MBH today, with a share buying, acquisition, and positive trading update announced today. It also has a lovely balance sheet. Despite macro conditions, brick manufacturers seem to be in a good position. Thumbs up from me.

Macfarlane (LON:MACF) - in line with expectations, although the revenue growth rate has moderated a little from H1. This looks a resilient company, and has shown it can pass on cost increases to customers. Valuation seems undemanding. I like it, a thumbs up from me.

Dr Martens (LON:DOCS) - brief comment below, in reader comments section, as too big for main report.

Graham's Section:

XPS Pensions (LON:XPS) (£279m) - the outlook for the full-year is slightly ahead of expectations at this provider of pensions services and investment advice. Revenues are up thanks to acquisitions, inflationary price increases, and higher levels of client activity. While I’m always cautious in the professional services sector, XPS appears to offer more to investors than your typical advisory business: it also provides a range of non-discretionary services, and its contracts allow for annual, inflation-linked price increases. The balance sheet offers no support but cash flow is not bad and there is a dividend yield of nearly 6% to keep investors interested.

Hornby (LON:HRN) (£47m) - this model…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here