Small Cap Value Report (Tue 27 Nov 2018) - PRSM, ALT, CHH, QUIZ, IGR, VCP, GRG

Tuesday, Nov 27 2018 by
68

(Graham is on SCVR duties, but Paul has left us the following note. - GN)


Hi, it's Paul here!

I'm not entirely sure whether it's me or Graham meant to be writing Tuesday's SCVR? So I thought it might be best to just put up a placeholder, and then see what happens tomorrow!

We're both a bit pre-occupied with Mello London, and making sure that this investor show has the highest ever recorded per capita consumption of Guinness! 

There were literally no taxis around, and Uber wasn't working either. So when we were all thrown out of the hotel bar at Mello c.1 am, after a very jolly time with Gromley & Bestace in particular, I had little choice but to mount a Mobike, and cycle 11 miles back to my Islington pad.

Only to be told by my flatmates to (1) not make any noise, definitely no singing to Queen or Chaka Khan, (2) microwave some macaroni cheese, as that's all we have left, oh and some broccoli, and (3) go to bed please.


I'm due to be released from Twitter prison in a few hours - apparently hurling abuse at our democratically elected Prime Minister, is not de rigueur these days. Sorry, I didn't get that memo, I foolishly thought we still have some semblance of civil liberties, and freedom of speech. Clearly not. Now we are all snowflakes.  I'm offended!!

Thank goodness we live in a relatively civilised country, where you just get banned from Twitter for 7 days, for pouring scorn on the useless ruling class. As opposed to recent examples abroad which show just how primitive & uncivilised humans can be.

Actually, the history of mankind is appalling. It's full of violence and hatred. We are so lucky to be living in a brief interlude, of peace. Let's make the most of it. We'll all be dead in 100 years anyway.



Morning, Graham here.

I only have about an hour/90 minutes to look at company updates before I have to leave for the conference venue and present this blog. So this is going to be a turbocharged (i.e. short but very fast) SCVR.



Blue Prism (LON:PRSM)

Trading update - year-end update from this robotics group.

Key points:

  • strong sales momentum has continued, particularly in…

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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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Blue Prism Group plc is engaged in robotic process automation (RPA), enabling blue-chip organizations to create a digital workforce powered by the Company's software robots that are trained to automate routine back-office clerical tasks. The Company is engaged in Licensing for the provision of software licenses, where the agreement is established of a legally binding contract between the Company and its customers. It is also engaged in the Professional Services and training where the customer requires consultancy or training on a project by project basis. It provides an execution platform for artificial intelligence (AI) and cognitive technologies. Its enterprise-grade software enables the automation of manual, rules-based, administrative processes to create back-office. It operates in Manchester and London (the United Kingdom), and Miami, Chicago, New York and San Francisco (the United States). Blue Prism Limited and Blue Prism Software Inc are the subsidiaries of the Company. more »

LSE Price
1062p
Change
-6.8%
Mkt Cap (£m)
764.6
P/E (fwd)
n/a
Yield (fwd)
n/a

Altitude Group plc is a technology and information business providing services to the promotional merchandising and print industries across North America and the United Kingdom. The Company operates through Technology & Information segment that enables the buyers and sellers of products to interact and trade, through the provision of technology, catalogues and exhibition services, in the promotional merchandising and printing sectors. The Company provides technology services, specializing in cloud and server based software. Its Technologo offers a range of interactive image solutions, which are used for increasing engagement from online business-to-business (B2B) and business-to-consumer (B2C) buyers, and reduced cart abandonment rates. It also provides a Website solution for companies in the promotional product industry. It publishes catalogues annually for the promotional products industry, which include Spectrum and Envoy. It also hosts the Promotional Product Roadshows. more »

LSE Price
77.5p
Change
-1.9%
Mkt Cap (£m)
43.2
P/E (fwd)
11.0
Yield (fwd)
n/a

Churchill China plc is a United Kingdom-based manufacturer and distributor of tabletop products to the hospitality and retail sectors across the world. The Company's customers include pub, restaurant and hotel chains, sports and conference venues, health and education establishments, and contract caterers. The Company's segments include Hospitality and Retail. The Company primarily offers ceramic tableware. The Company also manufactures and sources product sold through Retail customers for consumer use in the home, in various markets across the world. The Company offers Churchill branded manufactured products. The Company offers various types of products, such as accessories, beverage pots, bowls and dishes, cake stands, cookware, cups, mugs, cutlery, dip pots and sauce dishes, glassware, jugs, melamine items, plate towers, plates, saucers and wooden items. Its collections include Alchemy Fine China, Churchill Super Vitrified, Art de Cuisine, Sola Cutlery and Lucaris Glassware. more »

LSE Price
985p
Change
-2.6%
Mkt Cap (£m)
110.8
P/E (fwd)
15.0
Yield (fwd)
2.9



  Is LON:PRSM fundamentally strong or weak? Find out More »


35 Comments on this Article show/hide all

Edward John Canham 27th Nov 16 of 35
2

In reply to post #421864

T Clarke (LON:CTO)

N+1 Singer have increased their EPS forecasts by 12% for 2018 and 15% for 2019.

Would have said today's sp movement so far is pretty muted on that basis.

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andrea34l 27th Nov 17 of 35
4

In reply to post #421834

I personally don't see value in accesso Technology (LON:ACSO) even at this level. The fact that their interim profit before tax was DOWN on the previous year indicates to me that they are chasing growth at the expense of, uh, something else. There are far too many, significant, adjustments in the results for my liking.

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andrea34l 27th Nov 18 of 35
1

In reply to post #421824

IMHO, I feel Severfield (LON:SFR) are losing steam, and it is the Indian joint venture keeping things looking as good as they are... which isn't that great. Underlying operating profit is DOWN (slightly) at 12.5m (12.7m) with operating margin down quite a bit. The Indian JV showed a big increase in profit (albeit at low numbers) so excluding that the picture is worse. Also, the order book is down (as was the case in their last report). I see this as fairly valued.

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dscollard 27th Nov 19 of 35
1

finnCap have published a note on D4T4 Solutions this am and updated the price target to 240p from 215p (they are the house broker btw)

splendid results they are too with bags of cash and improved margin. Believe it is still free to sign up for finnCap's research

https://researchlibrary.finnca...

Excellent H1 results

A combination of the large contracts won just prior to the period, together with the IFRS 15

adjustment bringing £1.7m sales (and £1.0m profit) from H2 2018 into H1 2019, saw the

first half revenue almost treble YoY to £14.0m.

The new segmental analysis provided breaks down what had previously been shown as

‘Project Work’ and the greater clarity shows high-margin ‘Own-IP’ products in the mix

rising from 17% in H1 LY to 46% of total group sales in this half. Thus the Interim gross

margin rose from 44% to 51% and gross profit jumped 243% from £2.1m to £7.1m.

Overheads grew 52% to £3.8m on the back of heavy US sales investment but with the

step change in profit, H1 Adj. EBIT swung from -£0.4m LY to a £3.4m profit and Adj. PBT

(Adj. FD EPS of 7.4p). This is a sustainable 25% operating margin – in line with those

seen in FY 2017 and FY 2018.

These numbers exclude an £0.8m exceptional FX gain and the usual £0.2m of SBP and

amortisation in the half. The effective tax rate of 13% was in line with expectations.

Website: runprofits.com
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dscollard 27th Nov 20 of 35
1

In reply to post #421943

can't get the EPIC link to work for £d4t4 or £D4T4 or LON:D4T4 or LON: d4t4 : needs fixing!

Website: runprofits.com
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sharw 27th Nov 21 of 35
3

The £ system will not work with any epic containing a numeral so you just have to create it yourself the long way thus:
D4t4 Solutions (LON:D4T4)

The worst is System1 - SYS1. If you put a £ in front it produces a different company SysGroup (LON:SYS)1


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Ben1 27th Nov 22 of 35
2

I'm not able to make Mello, but would be very interested in some of the presentations (I have holding T Clarke and Duke for example). Are these made available anywhere or is it dependent on the companies themselves to do this?

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gbjbaanb 27th Nov 23 of 35

In reply to post #421859

Nope, they're just reorganising the company to be dual-listed in London and Ireland.... no doubt a premature Brexit thing.

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DavidWithers 27th Nov 24 of 35

I don't understand why £QUIZ  has been registered in Jersey since March 2017.  There must be some advantage but it just looks suspicious to me.  Can anybody clarify?

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kuronagi 27th Nov 25 of 35

Curious that Paul does not comment on D4T4 which released stonking results today. Even though a strong performance was predicted in the last trading update, these results appear to be well ahead of expectation. Also with news of further contact gains, new large customers (e.g. US, Swedish banks etc).

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Cleeve 27th Nov 26 of 35

Graham if you get time could you cast your eye over Treatt the results looked pretty good to my untrained eye

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rmillaree 27th Nov 27 of 35
1

In reply to post #421978

QUIZ (LON:QUIZ) and Jersey

i would guess the option to minimise uk corporation tax and possibly some other taxes might have something to do with it.



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sharw 27th Nov 28 of 35
1

In reply to post #422003

re QUIZ (LON:QUIZ)


It looks as if it was set up in Jersey in preparation for the July 2017 IPO when it took over Shoar, the previous group company and now an intermediate company. To find out more go to
https://beta.companieshouse.gov.uk/
and enter SHOAR (HOLDINGS) LIMITED in the search box.

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DavidWithers 27th Nov 29 of 35
1

In reply to post #422003

I would guess the option to minimise uk corporation tax and possibly some other taxes might have something to do with it.

If that is the case they are not very good at it.  £1.7m tax paid on pre tax profit of £8.5m is a tax rate of 20%.    



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DJCP 27th Nov 30 of 35
5

Graham (mainly, as this [financial sector] is more his forte than Paul's.

AJ Bell have just released details of their IPO, and I wondered if you (or SCVR readers) have any thoughts.

At 208 pages, the prospectus looks likely to be keeping me occupied for a couple of hours (or possibly more) !

Deadline is 5pm on 5th December, so I would imagine any serious investors could have a busy weekend !

I've an initial thought on my (possible) investment, and have approx. 70% of the cash at the ready, so may need to trim my 'folio to get the little extra before Wednesday. .. IF I decide to invest :o)

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Robert Smith 27th Nov 31 of 35
1

Completely off -topic but your intro. was interesting and thought- provoking. Think you're being a bit optimistic about the 100 year time span though. FWIW, and IMHO, we'll be fortunate to reach 2050 the way things are shaping up.

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Trident 27th Nov 32 of 35

In reply to post #421978

Possibly it puts it technically outside the takeover code for the LSE?

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Gromley 27th Nov 33 of 35
1

Bloomin miraculous those mobikes obviously  and we're supposed to believe that driverless cars are 'clever'.  ;-)

A thoroughly enjoyable two days at Mello - excellent presentations, excellent company ( a good start on my would like to meet up with list )

Huge congratulations to David and the team - have you organised next week's event yet? :-)

I can't wait.


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Frankyboy 27th Nov 34 of 35

"Aided and abetted by the wonderful head honcho from Ideagen (LON:IDEA) (who makes me look sober, and that's saying something!)"

SELL IDEAGEN NOW, WHILE YOU CAN!!!!! :)


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dscollard 28th Nov 35 of 35

In reply to post #421958

thanks, clearly a glitch in the Matrix

Website: runprofits.com
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About Paul Scott

Paul Scott

I trained as an accountant with a Top 5 firm, but that was so boring that I spent too much time in the 1990s being a disco bunny, and busting moves on the dancefloor, and chilling out with mates back at either my house or theirs, and having a lot of fun!Then spent 8 years as FD for a ladieswear retail chain called "Pilot", leaving on great terms in 2002 - having been a key player in growing the business 10 fold. If the truth be told, I partied pretty hard at the weekends too, so bank reconciliations on Monday mornings were more luck than judgement!! But they were always correct.I got bored with that and decided to become a professional small caps investor in 2002. I made millions, but got too cocky, and lost the lot in 2008, due to excessive gearing. A miserable, wilderness period occurred from 2008-2012.Since then, the sun has begun to shine again! I am now utterly briliant again, and immerse myself in small caps, and am a walking encyclopedia on the subject. I love writing a daily report for Stockopedia.com on most weekday mornings, constantly researching daily results & trading updates for small caps. Cheese! more »

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