Good morning! It's Paul here. I'll be writing today's report.

Loads of results today, so I'll probably be doing shorter sections, so I can get through more companies.

Please note that I added several new sections to yesterday's report last night, on;

Finsbury Food (LON:FIF) - underwhelming results & prospects

Michelmersh Brick Holdings (LON:MBH) - very strong balance sheet & big increase in divis

Maintel Holdings (LON:MAI) - very brief comment, doesn't interest me, but market liked its results

Please click here to revisit yesterday's full report.


Share price: 47.0p (down 14.4% at 08:28)
No. shares: 675.7m
Market cap: £317.6m

Final results - for the year ended 31 Dec 2016.

The share price has been volatile so far this morning, on heavy volume, hence why I've added the time in the price snapshot above. It's a popular private investor stock, so perhaps some stop losses were triggered this morning, with a larger fall earlier?

The share price of this company has been roaring upwards, tripling in price since Jul 2016, so perhaps good news is now already priced in?

Results today look good to me;


Adjusted EPS of 3.0p puts this share on a PER of 15.7. This seems to be ahead of the broker consensus figure on Stockopedia, which is 2.91p.

It's interesting to note that the company includes deferred consideration within its leverage figure, which seems prudent. I think many investors focus too much on just bank debt, and hence give enterprise value calculations too much emphasis. At many companies, other creditors (especially trade creditors) are often greater than bank debt. Yet many investors ignore those creditors (which are easy to manipulate, to reduce reported net debt on balance sheet dates).

Outlook comments sound upbeat to me;

The Group's technology and market leadership, and its strong pipeline of high growth opportunities positions it well to continue its growth profile over the coming years.

The current financial year has started well and trading is in line with expectations.

The outlook for the full year remains very positive, with good upside potential.

The Board remains confident that the Group is on track to achieve expectations for the full year, and anticipates that…

Unlock the rest of this Article in 15 seconds

or Unlock with your email

Already have an account?
Login here