Good morning, it's Paul here.

I updated yesterday's report with a few more sections later in the day. To see the full report, please click here. It includes my comments on;

K3 Business Technology (LON:KBT) - profit warning (looks nasty)

Accrol Group (LON:ACRL) - in line trading update

Zytronic (LON:ZYT) - decent interim results & outlook

Interquest (LON:ITQ) - lowball bid from management - company now in play

Koovs (LON:KOOV) - RNS saying no reason why share price is falling (other than that the company needs to raise more funding)




On to today, I've included in the header the companies which I intend reporting on.


Patisserie Holdings (LON:CAKE)

Share price: 333p (up 4.1% today)
No. shares: 100.0m
Market cap: £333.0m

(at the time of writing, I hold a long position in this share)

Interim results - for the 6 months ended 31 Mar 2017.

This group's main operations are the chain of "Patisserie Valerie" cake & tea/coffee shops. It's a roll out share - i.e. the company is expanding (opening around 20 new sites each year) funded from its own cashflow.

If you look at the Stockopedia historical graphs, you can see why this is one of my favourite shares - with revenue & profits growing in diagonal lines - steady, predictable growth. With no debt.


591c2d9fe42a0CAKE_graphs.PNG


Remember that the net profit figures shown on Stockopedia are post-tax. So you can ascertain by comparing graph 2 (net profit) with graph 1 (revenues) just how strong (and consistently good) the net profit margin is at this company. 

Profit growth is all well and good, but if the company is constantly issuing new shares to finance growth, then the benefit to EPS can be small. Not so in this case - as you can see from graph 3, with terrific EPS growth over the last 6 years.

Graph 4 shows us that the stock has never really been cheap - hardly surprising, given how well it's performing. So I would tend to see…

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