Good morning from Paul & Graham! Today's report is now finished - 9 companies, didn't we do well! :-)

Agenda -

Paul's Section:

SThree (LON:STEM) (£529m) - sparkling interim results, from this decent quality, international staffing group. The valuation metrics remain attractive. Strong balance sheet, although cashflow has been mainly absorbed into receivables. Interim Results video presentation is here.

Shoe Zone (LON:SHOE) (£100m) - another positive update, coming just a month after the last one! Profit guidance upped from £8.5m to £9.5m. Interesting that is also notes supply chains are easing, and margins improving. I think that has potential read-across for other retailers, where bombed out valuations may contain some bargains, possibly?

Reach (LON:RCH) - this took me a lot longer than expected, as it's a complicated situation. It could be cheap (if the disputed pension scheme payments reduce), or it could wither away to nothing by the time the pensions are fully funded (last reported as expected c.2027, in the 2021 Annual Report). Short term headwinds on ad spending are becoming apparent. I don't have a strong view either way, as the pension situation is so highly material, little else matters. Digital growth story has stalled too.

OnTheMarket (LON:OTMP) (£69m) (I hold) [No section below] - an AGM statement today contains nothing new. It reassures on trading so far in FY 1/2023. This excerpt might be of interest, given that it's the latest property-related company to say that the market remains healthy -

"The Group has made a positive start to FY23, and trading has been in line with the Board's expectations. Notwithstanding the well-publicised macro-economic uncertainty, the fundamentals of the UK residential property market currently remain good, with market activity remaining high and demand for properties significantly outweighing supply."

I think many property-related shares look good value right now. Property prices go up in times of high inflation, not down. It's only when interest rates go sky high that property prices are impacted badly. No sign of that being likely, real interest rates remain massively negative, so fixed rate borrowings against property, at a historically advantageous negative real interest rate,  makes a lot of sense to me. So I suspect the property market might remain buoyant. Just an opinion, could be wrong, as always!

Brighton Pier (LON:PIER) Up 6% to 86p - [No section below] - a…

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