Good afternoon! It's Paul here.
Graham's already written an article today, which is here, in which he covers;
Just Eat (LON:JE.) - Q1 trading update - not a small cap, but it's one I've covered before, as it's a very interesting internet disrupter/platform type growth stock - which is a very topical (and lucrative) investment area. We stray outside our brief occasionally, when interesting, topical mid or larger caps are reporting.
PPHE Hotel (LON:PPH) - trading update from this hotels group. I know quite a few readers hold this stock, and the shares have done very well over the last 3-4 years.
In this article, I will be reporting on 3 RNSs which caught my eye today, as follows;
Plastics Capital (LON:PLA) - trading update
Premier Veterinary (LON:PVG) - trading update & disposal
Digital Barriers (LON:DGB) - trading update & framework contract
Plastics Capital (LON:PLA)
Share price: 121p (down 2.0% today)
No. shares: 35.8m
Market cap: £43.3m
Trading update - for the year ended 31 Mar 2017.
This is a small group of niche plastics products manufacturing companies.
Overall, trading is slightly below expectations, which is what the phrase below means;
...expects trading for the financial year ended 31 March 2017 to be broadly in line with market expectations.
Forex - some interesting comments here on the impact of big currency moves post Brexit vote, and the impact of hedging;
The impact of currency movements, particularly post-Brexit, have been substantial with differing impacts across the Group.
For the time being, our export based business have become significantly more competitive.
However, in aggregate over the financial year, the impact of currency has been broadly neutral because of the forward contacts we have in place as part of our hedging policy.
The effect our hedging policy is to delay the impact of currency movements on profits by approximately two years.
It's worth thinking more widely about this point. Many companies hedge their currency exposure, thereby fixing future profits on particular contracts. However, as stated above, this will only delay the impact of big currency movements. Therefore, companies which should benefit from the weaker pound (mainly…
