Good morning!

I've had a quick look at the sparkling interim figures from JD Sports Fashion (LON:JD.) - it just shows that, even in tough conditions, the best companies can still deliver good figures. The numbers benefit from an acquisition in the USA. The narrative talks about further international expansion, including in the biggest potential market, the USA - which could be exciting.  It looks very impressive, apart from the now loss-making outdoors division - affected by the hot summer (not many people buying outdoor coats for hiking, etc). Worth a closer look, when I have more time. Although I am uneasy about a highly profitable retailer distributing other brands' stock - there's the potential risk of big brands squeezing JD's profits at some point.


Here are some late comments from Monday's announcements. More people will see them if I put them into today's report (I wrote these comments below last night. They're brief, because I'm concentrating my energies more on companies which interest me.


Brady (LON:BRY)

A trading & risk management software company.

Interim results (6m to 30 Jun 2018)  look poor (loss-making), but it expects a better H2. With 95% visibility on 2018 revenues, that seems well underpinned.

Balance sheet looks quite weak, but software companies get paid up-front, so can often operate fine with a weak balance sheet.

5b96cde387cabBRY_graphs.PNG


With such a poor track record, it's difficult to understand why this company is valued at anything like the current market cap of £55m (at 66p per share). Maybe the client relationships would be attractive to an acquirer?

The narrative talks about a 3 year turnaround plan. It doesn't interest me. Why pay up-front for a turnaround that hasn't yet delivered profitability?




Luceco (LON:LUCE)

Poor H1 results, but a more positive outlook for H2;

The Group's outlook remains unchanged from the July 2018 Trading Update.  The second half of 2018 is anticipated to be a stronger period than the first six months with a return to profitability expected.

Although UK consumer confidence remains fragile the Group has moved into the third quarter with: a 30% increase in the UK Retail order book, lower commodity prices,…

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