Good morning, it's Paul and Jack here.

Agenda -

Paul's Section:

Gresham Technologies (LON:GHT) - a positive, ahead of expectations year end update. Repeated broker upgrades to forecasts throughout 2021 is good. Looks interesting. Valuation looks about right to me.

Shoe Zone (LON:SHOE) - very impressive results for FY 9/2021, following several positive updates in Oct-Nov. My initial view is positive, but I need to clarify an accounting detail about changes in the net lease liabilities, which may have boosted profits by £2.9m. I've lodged a call with the company, so hopefully they might get back to me.

Jack's Section:

Robert Walters (LON:RWA) - another profit upgrade from this international recruiter. The shares have rerated but the outlook remains positive, with ongoing signs of wage inflation, and it’s been buying back stock and investing in headcount. It suggests, on balance, that the good times might continue for a while yet.

Knights Group (LON:KGH) - another acquisitive legal and professional services company. Revenue is growing but the group makes an H1 loss after tax after accounting for contingent consideration payments relating to acquisitions. It is more expensive than some of its listed peers, while margins and ROCE have so far fallen, so I’m not yet sure why you would pick this one over the others.

Explanatory notes -

A quick reminder that we don’t recommend any stocks. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be right, and sometimes wrong, because it's anybody's guess what direction market sentiment will take & nobody can predict the future with certainty. We are analysing the company fundamentals, not trying to predict market sentiment.

We stick to companies that have issued news on the day, with market caps up to about £700m. We avoid the smallest, and most speculative companies, and also avoid a few specialist sectors (e.g. natural resources, pharma/biotech).

A key assumption is that readers DYOR (do your own research), and make your own investment decisions. Reader comments are welcomed - please be civil, rational, and include the company name/ticker, otherwise people won't necessarily know what company you are referring to.

Paul’s Section

Gresham Technologies (LON:GHT)

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