Small Cap Value Report (Wed 8 August 2018) - SHRE, TTG, IDP, SCS, STCK

Wednesday, Aug 08 2018 by

Morning folks!

A couple of interesting RNS announcements to cover today.

In the US last night, we had further entertainment from Elon Musk at Tesla ($TSLA), who tweeted: "Am considering taking Tesla private at $420. Funding secured."

It looked like it was probably a joke to me (and to others), but Musk went on to write a blog post on Tesla's website about it. From a legal point of view, it can be expensive to joke about these things.

Tesla's share price increased by 11% to close at $380 last night, not far off its all-time highs. Stormy weather in Shortville.

Today we have:

  • Share (LON:SHRE) - interim results. I'm conducting an interview with the company shortly.
  • TT electronics (LON:TTG) - half-year report
  • Innovaderma (LON:IDP) - appointment of CEO. Roots haircare brand to be ranged in Tesco.
  • SCS (LON:SCS) - trading in line with expectations
  • Stock Spirits (LON:STCK) - H1 results

Share (LON:SHRE)

  • Share price: 26p (unch.)
  • No. of shares: 144 million
  • Market cap: £37 million

Half year results

This is a stockbroker many of you will be familiar with as clients. It trades as The Share Centre.

I've just finished an interview with Richard Stone (CEO) and Mike Birkett (CFO).

My impression of the company hasn't changed. It seems to be providing clients with a very nice service, and is one of the safer brokers.

Beaufort clients will be keen to study their new service provider, as Share won the transfer of 15,000 Beaufort accounts in what must have been a competitive process.

Combining the Beaufort transfer with two other agreements, Share will soon be welcoming 38,000 new customers for a total of £1.5 billion in new assets under administration (AuM).

AuM is making serious headway. From £4.3 billion a year ago, it now stands at £5 billion and that is with the additional £1.5 billion still to arrive. This should translate to significantly greater revenues.

The Share Centre is not the cheapest out there when it comes to execution-only dealing, but it does have an excellent net promoter score (better than all other execution-only…

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All my own views. I am not regulated by the FSA. No advice.

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Share plc is a United Kingdom-based company, which is engaged in stockbroking related activities. The Company's principal business includes its subsidiary, The Share Centre Limited, which is engaged in retail stock broking. It is also engaged in fund administration business through its subsidiary, ShareFunds Limited. It operates in two segments: The Share Centre, which provides stock broking and custodian services to retail investors, and Sharefunds, which operates a fund administration service. The Sharefunds segment provides a range of administration services to the authorized funds. Its subsidiaries include The Share Centre (Administration services) Limited, which is engaged in providing administration services; Share Nominees Limited, and Sharesecure Limited. The Share Centre Limited provides services to personal investors on a self-select basis, including account types, such as share accounts, self-invested personal pension and individual savings account. more »

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TT Electronics plc is a provider of engineered electronics applications for performance-critical applications. The Company works with customers in the industrial, medical, aerospace and defense, and transportation sectors. The Company’s designed and manufactured products include sensors, power management devices and connectivity solutions. more »

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InnovaDerma PLC is a holding company. The Company develops a range of male and female at-home and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation. It operates through hair and beauty division. Its products include Leimov Personal Hair Laser Starter Kit, Leimov Hair Treatment Pack, Leimov Bio Cleansing Shampoo, Leimov Thickening Conditioner, Leimov Scalp Therapy Day Treatment, Leimov Scalp Serum Night Treatment, Leimov Deep Cleansing Scalp and Body, Leimov Hair Treatment Pack for Her, Leimov Personal Hair Laser Starter Kit for Her, Leimov Vitality Shampoo, Leimov Follicle Boost Therapy, Leimov BioPlex Scalp Serum, Leimov Scalp and Body Exfoliating Spa, Leimo Instant Hair Introductory Pack, Leimo Instant Hair Regular Pack, Leimo Instant Hair Building Fiber, Skinny Tan-Ab Shader, Skinny Tan-Dermabrasion Pre-tan Primer, and Tan and Glow. It operates in the United Kingdom, the United States, Australia, New Zealand, the Philippines and South Africa. more »

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  Is LON:SHRE fundamentally strong or weak? Find out More »

44 Comments on this Article show/hide all

Carcosa 8th Aug '18 1 of 44

Graham, Could you take a look at Share (LON:SHRE)  the  leading independent retail stockbroker, which operates as The Share Centre? Interims are out this morning here. Appears the near term future is going to be very strong " have plans to substantially increase the scale of the business, both organically and through acquisitions and partnerships."

| Link | Share
jonthetourist 8th Aug '18 2 of 44

I will second Share (LON:SHRE) and hope you revisit TT electronics (LON:TTG), which you covered positively in March. It's been a fantasstic long term hold for me.


| Link | Share | 1 reply
MrContrarian 8th Aug '18 3 of 44

My morning smallcap tweet:

Share (LON:SHRE)

Share (SHRE) H1 rev up 15% but EPS -0.2p (0.0p) due to new regulations, principally MiFID II and GDPR. Did not find warning about this in previous RNSs this year. MiFID II has lengthened many offline interactions. Has taken steps to mitigate this. Underlying profit after tax £50k (£250k). Has grabbed 38k ex-Beaufort clients. Outlook: "Benefits of these new acquisitions are expected to be felt from Q4 2018, and the Bank of England's recent increase in the base rate will assist in raising interest income." They have some work to do to hit F/C of 0.47p EPS.

| Link | Share
Edward John Canham 8th Aug '18 4 of 44


I find out whats happening to my Beaufort assets from Share's accounts rather than the Administrator.


| Link | Share | 1 reply

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About Graham Neary

Graham Neary

Full-time investor and independent analyst. Prior to this, I spent seven years in the financial markets as an analyst and institutional fund manager. I'm CFA-qualified, also holding the Investment Management Certificate and the STA Diploma in Technical Analysis.Away from finance, my main interests are recreational poker and everything to do with China, especially Mandarin Chinese. more »


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