Good morning!

In case you missed it ("ICYMI" - which I keep seeing on Twitter, but have only just realised what it means) - I wrote 4 more sections in yesterday's report last night. So yesterday's report now covers;



Quartix Holdings (LON:QTX)

Vertu Motors (LON:VTU)

Joules (LON:JOUL)

You might like to revisit that report whilst I'm busy writing today's.

Bonmarche Holdings (LON:BON)

Share price: 101.7p (up 13.7% today)
No. shares: 50.0m
Market cap: £50.9m

Trading update - the market clearly likes today's update, judging by the share price rising 13.7% at the time of writing. This company is a value ladieswear retailer, operating from 322 sites, and online.

This update covers the 13 weeks to 1 Jul 2017, being Q1 in its financial year.

The numbers look good;

  • Total Q1 sales up 7.6% vs last year.
  • LFL stores sales up 4.2% - I'm impressed, as many retailers are struggling to achieve any significant LFL sales growth.
  • Online sales are up an impressive 39%, but bear in mind that is from a low base.
  • Overall, trading is in line with expectations for the full year.

You could argue that, as it's only an in line update, then the share price shouldn't really have moved very much, if at all. However, in this case I think there might be an element of relief that things are not getting any worse, after a period of considerable disappointment after the Dec 2015 profit warning. The share price has dropped by two thirds since then, from c.300p to c.100p.

Also the PER, and divi yield, are deep into value share territory. So a positive update should reinforce the market's perception that very generous divis may be sustainable after all.

BON has a solid balance sheet, with net cash.

My opinion - I mentioned in a recent report here, that the Q2 retail sales data from the ONS was actually very good. The total amount spent for Q2 was up 5.6% on the same period last year. For that reason, I'm more bullish on…

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