Good morning, it's Paul here.

Please note that yesterday's completed report is here, which includes my reviews of the results/trading updates from Tristel (LON:TSTL) , Tracsis (LON:TRCS) , and Synectics (LON:SNX) .

I see that shares in AA (LON:AA.) are down 30% today, on a big cut in the dividend. I'm kicking myself for not shorting this actually, as it has one of the worst balance sheets I've ever seen. I must do a screen for companies with terrible balance sheets & excessively high dividend yields. That would probably be a good starting point for finding good short positions. It's not something I do a lot of, but having a smattering of large cap shorts can be a nice shock absorber for market downturns. Shorting is high risk of course, and best avoided altogether for most people, in my opinion.

Bilby (LON:BILB)

Share price: 107p (up 12% today, at 09:29)
No. shares: 40.3m
Market cap: £43.1m

Trading update

Bilby Plc (AIM: BILB.L) the holding company to P&R Installation Company Limited, Purdy Contracts Limited, Spokemead Maintenance Limited and DCB (Kent) Limited, a leading gas heating, electrical and building services provider...

The group's focus seems to be on providing housing-related maintenance services to Local Authorities and Housing Associations, in the South East.

Checking back through the archive, this group listed on AIM in March 2015. It's been a bit of a roller-coaster for shareholders, with a profit warning in 2016. The share bottomed out in April 2017 at 39p, and has since gone on to almost triple in price - an impressive turnaround.

The current financial year ends 31 March 2018.

We didn't cover its interim results to 30 September 2017, but looking through the figures here, they show a strong improvement in trading. Although I'm not keen on a rather weak balance sheet. NAV of £15.2m drops to only £0.3m NTAV once intangibles are stripped out. This is the problem with acquisitive groups - the balance sheets tend to become top-loaded with intangibles, relating to acquisitions, which can leave the financial structure weak & vulnerable to setbacks.

Today's update - key points;

  • New contract…

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