Good morning! Paul & Graham here for Wednesday.

Agenda - 

Paul's Section:

Motorpoint (LON:MOTR) (I hold) (£178m) - a Q1 (Apr-Jun) trading update. Tough comps for Apr & May saw volumes down, but June & July have returned to normal. It's a bit vague about the outlook. Tough conditions in this sector, and forecasts have come down a lot. Expansion with new sites is underway. Tough short term, but I think this is a winner long-term, especially when the high spending  internet-only startups have gone bust. Broker forecast (Shore) unchanged today.

PCI- PAL (LON:PCIP) (£42m) - a very interesting little niche software business, that is generating stunning organic growth internationally, low customer churn, and growing recurring revenues. Still loss-making and cash-burning though, and it is defending a patent infringement case, creating ongoing uncertainty & risk. Today's update for FY 6/2022 indicates trading has been ahead of market expectations, and there's more cash left than expected. I like this share a lot, but risk from legal case means I wouldn't want big exposure to it at this stage.

Skillcast (LON:SKL) - brief comments are in the comments section below main article.

Graham's Section:

Nichols (LON:NICL) (£481m) - An excellent recovery in “out-of-home” soft drink consumption is confirmed by these results, after normal socialising resumed in the UK. With 75% of its revenues generated in the UK, these results show an excellent recovery from the Covid blues. International revenue is more challenging, in particular with respect to shipping difficulties. Overall, this is another very clean and very impressive set of results from Nichols, as expected. The dividend is almost “back to normal”, too. Valuation is at the upper end of the spectrum because few companies can match the quality and safety characteristics of Nichols.

Quartix Technologies (LON:QTX) (£160m) (+0.6%) [no section below] - we covered the H1 trading update from Quartix in detail here. Today’s H1 results confirm what we were told then: the company is confident of meeting unchanged full-year market expectations for £27.4m of revenues, £5.7m of adjusted EBITDA, and £4.1m of free cash flow.

Annualised recurring revenues have reached £26m, as flagged previously. The new electric vehicle product has launched, and the vehicle checking product is coming in H2, creating some additional growth opportunities.

This appears to be a high quality company in many respects but price erosion…

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