Good morning, it's Paul & Jack here, with the SCVR for Tuesday.

Timing - today's report is now finished.

Agenda -

Paul's Section:

Loopup (LON:LOOP) (I hold) - results for FY 12/2020 are in line with expectations. A big profit, but it was all generated in H1.

Mpac (LON:MPAC) - FY 12/2020 results. I summarise key points from today's webinar. Nice company, but huge pension scheme worries me.

Jack's Section:

Ekf Diagnostics Holdings (LON:EKF) - new supply contract announcement and upgraded FY21 expectations.

Animalcare (LON:ANCR) - Covid disruption and business restructuring for this veterinary sales and marketing company.

S&u (LON:SUS) - sequential improvement in trading, 4% dividend payment, and brighter outlook for this motor finance and specialist lender.


Paul’s Section

Loopup (LON:LOOP)

(I hold)

83.5p (up 14% at 08:10) - mkt cap £49m

There’s a strongly positive early market reaction to this cloud telephony company’s FY 12/2020 results. On quite high volume too, with 721k shares already having changed hands in the first 10 minutes of trading.

Although this does have to be seen in the context of a big disappointment late last year, when management dropped a bombshell that highly profitable trading in H1 2020 had hit a brick wall in H2. To this day, I still don’t understand what went wrong, they haven’t explained it clearly enough.

As you can see from the long-term share price chart, performance has been erratic, and overall disappointing -

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I think it’s fair to say they over-paid for a not very good acquisition along the way too, called Meeting Zone. Let's hope management don't do any more acquisitions!

Preliminary Results

For FY 12/2020.

The headline numbers are in line with the trading update on 8 Feb 2021 -

  • Revenues £50.2m (H1: £31.9m, H2: £18.3m)
  • Adj operating profit £9.0m (H1: £9.2m, H2: £(0.2)m)
  • Net debt £0.7m

Note the huge drop off in performance from a profit bonanza in H1, to just below breakeven in H2. Why? Customers must have switched to a competing product, Microsoft Teams maybe? Or Google Meetings, Zoom, etc? LOOP seems to have retained its “professional services” clients a lot better than more casual users. So perhaps LOOP should be seen as a high-end, niche service, that seems to be…

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