Good morning, it's Paul & Jack here with the SCVR for Tuesday, a very busy day for updates.
Timing - today's report is now finished.
Explanatory notes -
A quick reminder that we don’t recommend any stocks. We aim to cover 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 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) - don't blame us if you buy something that doesn't work out. Reader comments are welcomed - please be civil, rational, and include the company name/ticker.
Agenda -
Paul's Section:
Preamble about current market volatility.
Sanderson Design (LON:SDG) (I hold) - a strong trading update for H1. Cash rich, trading well, and priced on a PER of 14 (before today's rise). Looks good, and modestly valued.
Sosandar (LON:SOS) (I hold) - Results for FY 03/2021 show decent revenue growth, and slashed costs, but still loss-making. However, I focus on the superb 256% revenue growth in Q1 (April-June 2021), suggesting Sosandar should now be at breakeven or better, for the new financial year FY 03/2022. Looks like a game-changer, if current stellar growth can be maintained.
Sdi (LON:SDI) - I review the in line results for FY 04/2021. Excellent figures. Finncap flags that one-off large orders completing could cause earnings to fall next year, so this is a key point to be aware of. Although more acquisitions are likely, and could offset this headwind, with management very experienced in M&A. Taking into account the one-off orders, I think the valuation looks a bit too high maybe.
Jack's Section:
GTLY - solid results from expanding professional services firm. This has been a year of consolidating existing acquisitions and ensuring safe passage through lockdowns, but management is optimistic of the acquisition pipeline going forward.
Wilmington (LON:WIL) - resilient results and net debt is down. There…
