Good morning, it's Paul here with Tuesday's SCVR.

Please see the header above, for the list & order, of small cap trading updates/results that I'll be reviewing today. I've also included a couple of mid caps that are particularly noteworthy, and interest me (BOO and GAW).

Estimated time of completion - I'll have the bulk of the report done by 1pm, but as there is so much to report on today, I might need to carry on further into the afternoon, after lunch.
Update at 12:55 - I'm taking a break for lunch now, and will carry on writing this afternoon, as there's loads more I want to cover. the main bit's done, so the 1pm readers have got your money's worth! Look at the extra stuff this afternoon as a bonus. 5pm revised finish time.

Update at 17:24 - today's report is now finished.

Profit warnings

It seems to me that there is a potential opportunity at the moment. The fact is that 2019 was dominated by political uncertainty, and once a general election is called then it is only sensible for businesses to put investment & hiring decisions on ice, and await the result.

Therefore, it could well be the case that some businesses might have had a poor Q4, due to this factor, yet be fundamentally sound businesses which should quickly recover in 2020. There could even be a bounce back effect, with Q1 2020 being better than expected, because;

  • The general election result is by far the best outcome for businesses - i.e. a business-friendly Govt with a large majority, also committed to increasing public spending (hence stimulating the economy at least in the short to medium term)
  • The Deloitte survey (mentioned in yesterday's SCVR) shows a huge recent rebound in business confidence - suggesting that some investment decisions which were on ice may now be implemented
  • Consumer confidence should also rebound strongly, in my opinion, because we have full employment, and good wages growth (above inflation), prolonged low interest rates, etc. Plus minimum wage is going up by c.6% soon, and it has a domino effect upwards as higher paid staff demand that pay differentials are maintained. Therefore, I'm expecting a strong recovery in consumer sentiment & spending in 2020

Put that all together, and I think shares which put out profit warnings now, caused by a soft Q4 2019, could (as always, only very selectively) make…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here