Good morning, Paul & Jack here. Today's report is now finished.

Agenda

Paul's Section:

A couple of brief company comments -  

Biffa (LON:BIFF) - not a share I’ve ever looked at (it does waste management). It announces today a possible cash takeover bid, at 445p per share - a 37% premium. From America again, where investors seem keen to buy up UK listed companies. Maybe more takeover bids could trigger a recovery in the UK market generally, as it’s signalling to us that valuations are now attractive to bidders. [no section below]

Ted Baker (LON:TED) - another company that’s up for sale, in a formal sales process. The preferred bidder has pulled out. The company is deciding whether to proceed with any of the other approaches it has received. Looks like the chances of a successful bid are receding, so it might make sense to bank profits here.

Looking at TED's FY 1/2022 results, they look poor to me (still heavily loss-making), so little tangible evidence of the turnaround working. Balance sheet looks adequate for now, but if losses continue, it would probably need an equity fundraise. I’m steering clear. [no section below]

Photo-Me International (LON:PHTM) - a positive update, with guidance raised. Finncap note reveals the profit split across the divisions - key info I've been asking for. This reveals the fast growing laundry division is producing a third of group EBITDA. That's game-changing (positive) information. A PER of 8, and a rising yield over 4%, for a growing, net cash business, which is self-funding rapid roll-outs of new machines, looks to me a highly attractive buying opportunity.

Newriver Reit (LON:NRR) - the market doesn't seem to like the results from this property REIT. I think it looks interesting, with a dividend yield now over 8% [EDIT: but set to fall next year, due to disposals], and debt has been greatly reduced from disposals, so it's not financially distressed any more. Worth taking a closer look I think.

Jack's section:

Gooch & Housego (LON:GHH) - staff absences and supply chain shortages have impacted H1 performance but the group says its record order book points to a better second half. The share price has come down quite a lot now, which makes it more interesting, but it’s far from bargain territory. I would want more tangible…

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