Small Cap Value Report (Weds 2 June 2021) - TND, BMY, DISH, BRCK, HSP
Good morning, it's Paul & Jack here with the SCVR for Wednesday.
Timing - there's not much news today, and I have an investor lunch to attend, so we'll be finished by mid-morning today.
Agenda -
Paul's Section:
Tandem (LON:TND) - trading update for Jan-May 2021, says revenues up 24% vs LY, and profit "considerably ahead". No outlook guidance, and no broker coverage, so we're in the dark. Cost/margin pressures & supply chain problems mentioned, but nothing is quantified.
Insurance sector - FCA ruling on "price walking"
Bigdish (LON:DISH) - operational update on its new meat-free food startup. I've decided to drop coverage, as it's too small & speculative now.
Brickability (LON:BRCK) - big Director selling. Plus a primary placing to fund a significant sized acquisition.
Jack's Section:
Bloomsbury Publishing (LON:BMY) - third profit upgrade of the year, with momentum carrying on into the new year and expectations revised upwards.
Hargreaves Services (LON:HSP) - transformation continues here but a good run sees the shares priced at around net asset value
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Paul's Section
Tandem (LON:TND)
665p (pre market open) - mkt cap £35m
This share has had a remarkable run since the covid low in March 2020, rising nearly 6-fold.
The current financial year is FY 12/2021.
Tandem Group plc (AIM: TND), designers, developers, distributors and retailers of sports, leisure and mobility equipment, announces a trading update, arrangements for the 2021 AGM and Board change.
Trading has “remained robust” -
… Group revenue to 31 May 2021 was approximately 24% ahead of the same period last year.
Profitability was also considerably ahead of the prior year augmented by our cost base not yet returning to pre-COVID levels.
- Tougher prior year comparatives, from lockdown 1 (which boosted Tandem) - see update on 28 May 2020, which said bicycle sales were up 77% on 2019
- Bicycle sales this year are up 21% on 2020 - impressive against tough comparatives
- Ebike revenues up 112% - clearly a strong growth area
- B2B division (which I think must be sales to UK retailers) revenues up 32% on last year, for Jan-May 2021 - impressive
- Ben Sayers golf business doing very well - revenue more than doubled vs LY, and order book strong (“well ahead” of last year)
Supply chain problems -
One of our biggest challenges continues to be stock availability, particularly on bicycles, which once more is being hindered by worldwide shipping capacity and container availability.
Freight costs have increased again in recent weeks and global demand for components, particularly for bicycles, remains high which has impacted our margin.
We also continue to be concerned by ongoing cost increases, with significant rises in input costs such as steel, oil, plastic and cardboard all of which also put pressure on margin.
Further, we remain mindful that COVID-19 is a continuing problem in some of our supplier countries.
Broker forecasts - there doesn’t seem to be anyone covering Tandem, so we’re in the dark. The company really does need to give some guidance to the market.
Today’s update tells us that 2021 has gone well so far, but gives no indication about full year outlook.
The comments about supply problems & margins coming under pressure is a concern, but the company doesn’t say if cost increases are likely to be passed on to customers or not.
Valuation - last year Tandem delivered a very good result, of 68.5p EPS (up 69% on 2019 result of 40.5p EPS). We’re told that for Jan-May 2021 the company is “considerably ahead” of prior year. However, we’re not given any guidance on how the rest of 2021 is likely to pan out. Therefore the range of outcomes for 2021 as a whole is unknown. So valuing this share is guesswork at this stage, not very satisfactory.
My opinion - based on the current share price of 665p, the PER on 2020 earnings is 9.7, which looks about right.
Given that 2021 so far is “considerably ahead”, then an optimist might pencil in say 80p for 2021, which would drop the PER to 8.3 - quite cheap.
Or, if you’re worried that cost increases & supply chain disruption could damage H2 trading, then maybe 2021 could see a fall in earnings, maybe to 50-60p? That would raise the PER to between 11.1 to 13.3 - still reasonable.
Divis - it paid out 8.62p last year and is committed to a progressive policy. The yield is only 1.3%. Note that divis are linked to pension deficit recovery payments, which is a nuisance.
Balance sheet - when last reported at end Dec 2020 looked OK, with NTAV of £11.1m
Pension deficit required £477k funding in 2020.
Overall then, we don’t have enough information to accurately value this share, due to lack of guidance from the company, and no broker forecasts available. It looks to me to be valued in the right ballpark. Note the very high StockRank below -
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FCA price ruling on insurance
This article from Shares Magazine last week caught my eye.
The FCA ruling is designed to stop the process of “price walking” - where a cheap deal is offered to new customers (of e.g. car insurance), then the price goes up each year on renewal.
Under the new rules, insurers will have to re-jig their prices, to be fairer to existing customers. The new rules come into effect on 1 Jan 2022.
It seems to have given a small boost to insurance company shares, because the FCA stopped short of imposing penalties for past price walking.
Saga (LON:SAGA) (I hold) has felt a little more perky of late, so this could be a factor helping investor sentiment there too maybe? I can vaguely recall on a previous results webinar, SAGA management said they were expecting to be able to mitigate a lot of the impact of this widely expected ruling.
It strikes me as a good move to eliminate this unfair practice of price walking, and removes an uncertainty for insurance company shares.
I’ve just looked at a couple of them, and the dividend yields look remarkable - e.g. 8.4% forecast yield on Direct Line Insurance (LON:DLG) , 6.6% forecast yield at Legal & General (LON:LGEN) , 5.7% at Admiral (LON:ADM) - this could be a good sector for income seekers to look at maybe?
Here’s a screenshot of the insurance sector, which I’ve selected “Value” view, then clicked on dividend yield as the column to sort in descending order. This is a quick & easy way to rummage around in a particular sector, looking for ideas.
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Bigdish (LON:DISH)
(I hold - small position)
There’s an operational update today, on its latest new venture - a meat-free food company.
The market cap is now only £5m. I’ve sold most of my previous position here. After giving it some thought, I decided that I’m not interested in holding a food production start-up company. I liked the original concept of the BigDish discount dining app. It wasn’t their fault the hospitality sector had to shut down for the best part of a year, so that just didn’t work.
Illogically, I’ve kept a small position remaining, just in case it multi-bags again.
Going forwards, I have zero appetite for any more moonshot type shares - blue sky things that promise the world, but hardly any of them actually succeed. Apologies to anyone who followed me into this one, we all knew it was high risk, but it just hasn’t worked, so time to move on. Hence unless something transformational happens, we won't be covering this share anymore here.
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Brickability (LON:BRCK)
100.5p (down 3%, at 09:18) - mkt cap £231m
Acquisition, Placing & Secondary Placing
A fairly substantial acquisition is being made, of Taylor Maxwell, a supplier of timber & non-combustible cladding. Consideration is up to £63m, that’s 27% of BRCK’s market cap (pre issue of new shares).
Placing - of £55m, being 57.89m new shares, priced at 95p, an 8.2% discount. Cenkos has done the deal.
Secondary Placing - this is a sell down by insiders, taking £38m off the table by selling 40m existing shares to institutions.
Directors & management are reducing from 54% to 28.3% of the company - that’s a big reduction, although also still a big remaining shareholding.
My opinion - I’m not keen on large Director sales. If the people who know the business best want to bank their profits (or some anyway), then that seems to be telling us that risk:reward may not be that favourable from here on?
Jack’s section
Bloomsbury Publishing (LON:BMY)
Share price: 309p
Shares in issue: 84,122,346
Market cap: £260m
Bloomsbury Publishing (LON:BMY) is the Harry Potter publisher but it also has a growing portfolio of non-consumer and consumer titles. Today the group is focused on international expansion and diversifying its revenue streams so that it is less dependent on the UK market.
There’s a lot to like about Bloomsbury. It publishes good books. It has a long heritage. And it also figures well quantitatively speaking as a potential investment, with a StockRank of 91, reassuring financial health scores, stable quality metrics, and steady revenue and profit growth over the years.
In fact, the StockRank has remained strong throughout the Covid crisis but, as with so many shares, we are seeing a full recovery to pre-pandemic levels with shares surging to multi-year highs.
So where to from here?
It looks like the easy money has been made. I say ‘easy money’ loosely - at this point in 2021 the hindsight bias is kicking in. It all felt quite different back in October.
Nevertheless, the rebound to previous levels has occurred. So now Bloomsbury has to show that it can grow from here as, on a forecast PE ratio of 18.9x, it is not obviously a bargain.
Excellent revenue and profit performance; Third profit upgrade this year; Special dividend declared
Financial Highlights
- Revenues increased by 14% to £185.1m, (162.8)
- Adjusted profit before taxation grew by 22% to £19.2m and unadjusted PBT grew 31% to £17.3m,
- Diluted earnings per share +15% to 18.68p, cash conversion of 142%
- Net cash of £54.5m, up 74%,
- Final dividend of 7.58p and special dividend of 9.78p.
That combined final and special dividend is worth just over 5.6% of yesterday’s share price, and the 18.98p of diluted earnings is comfortably above the 17.3p penciled in with the Stockopedia estimates. It’s a beat of nearly 10% and gives an historic PE ratio of 16.3x.
Meanwhile, cash conversion is exceptionally strong at 142% and the group’s comfortable net cash position further bolsters its quality credentials.
Bloomsbury’s Consumer Division grew revenue by 22% to £118.3m (64% of group revenue, up from 59%). PBT at this division jumped 61% to £14.2m (74% of total PBT, up from 57%). Within the division, Adult Trade performed well (revenue +17% to £43.7m revenue and PBT +145% to £3.9m). Children’s Trade was also up 26% to £74.6m of revenue and +42% to £10.4m of PBT.
Non Consumer was ‘resilient’ - read notably less impressive - with revenue growth of 1% to £66.8m (36% of group revenue) and PBT down 19% to £5.4m. Within this segment, Bloomsbury Digital Resources (BDR) revenues growth of 49% to £12.4m (2019/20: £8.3 million) and profit jumped from £0.7m to £2.9m. Digital format sales now make up 33% of Non-Consumer revenues, a CAGR of 31% over four years. The recent acquisition of Red Globe Press' assets in April 2021 for £3.7m, should add further momentum to this transition.
On this note, the group adds:
Bloomsbury has a strong and successful track record in strategic acquisitions, with 17 acquisitions completed since 2008. We are actively targeting further acquisition opportunities in line with our long-term growth strategy.
And Bloomsbury adds that the start of the new year has seen a continuation of strong trading, which ‘increases our confidence in the strength of the business and long-term strategy.’ Impressively, ‘considering the ongoing momentum and strength of our business, Bloomsbury expects revenue to be ahead and profit to be comfortably ahead of market expectations for the year ended 28 February 2022.’
Current consensus market expectation for the year ending 28 February 2022 to be revenue of £177.5m and profit before taxation and highlighted items of £17.4m.
Conclusion
It’s a very good update from a worthy company that does its bit to make life more enjoyable. But is it still a good investment above 300p?
The momentum and longer term quality attributes suggest it might be, although it could be more a case of steady growth rather than shooting the lights out. Bloomsbury’s IP-led strategy and the potential to augment organic growth with selective acquisitions could be sustainable, and digital is growing well.
The publishing portfolio will have to be sufficiently robust as to avoid any ‘faddiness’ though - to take the biggest and most obvious example, imagine how different life might have been for Bloomsbury if J K Rowling had never written Harry Potter.
But she did, and so here we are. Bloomsbury benefits from being the publisher of what is, at this point, almost its own little fictional wizard-based industry. This has helped to drive fairly consistent top line growth over the years.
But there’s much more to Bloomsbury than just Harry Potter. This is a company with a lot of IP, which communicates well with the market, has been around for a long time, and is, at present, consistently surprising the market.
Given the attractive mix of longer term quality and ongoing trading momentum this share is worth looking at in more detail, assuming it can maintain current growth rates and is not benefitting too much from a temporary lockdown reading boost.
Hargreaves Services (LON:HSP)
Share price: 282p (-0.52%)
Shares in issue: 32,311,606
Market cap: £91.1m
Hargreaves Services (LON:HSP) is a bit of an oddity that has shapeshifted over the years into the provider of industrial services we see today.
In the past, Hargreaves was largely dependent on the coal and industrial sectors, with the company specialising in transporting coal from mines. Following the decline of the coal industry the company has been working to drastically reshape its business and is now focused on its earthworks and property and land divisions.
Quantitatively, this stock stacks up well in terms of Ranks (with a StockRank of 90) and it’s classified as a Balanced Super Stock, but it’s a company whose individual history demands attention.
Long term shareholders have not been well rewarded for their patience here.
For many, it might just be too risky or too complicated to spend time on. Others might spy a potentially attractive special situation. Today’s update is short, and is unlikely to sway your view.
The board expects to report results in line with market expectations which have recently been materially upgraded in the light of the very strong performance at its German Joint Venture (HRMS) and the accelerated completion at the Unity Joint Venture in Hargreaves Land.
Hargreaves ended its financial year with no bank debt and cash reserves of £28.3m, compared with a net bank debt of £13.5m at 31 May 2020. The group has approximately £12.0m of leasing debt relating to specific assets, resulting in an overall net cash position of £16.3m compared with £28.1m of net debt at 31 May 2020.
More detailed preliminary results for the year ended 31 May 2021 will be released on Wednesday 28 July 2021.
Conclusion
There’s not much new in this update, save for Hargreaves re-emphasising the ‘very strong’ performance at HRMS.
Hargreaves is moving on from its past and it looks like the financial health is improving. But after a good run, shares are now trading at around book value so the margin of safety has closed and this is no longer in bargain territory.
There are signs of positive momentum here and a notable 5%+ dividend yield, but the share price has been strong recently.
I’d be looking for more of a discount to compensate for the patchy track record, poor longer term share price performance, and significant shift in strategy.
Disclaimer
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33 comments
Bloomsbury Publishing (LON:BMY)
For any holders, here is some Bloomsbury Publishing (LON:BMY) news.
It will be interesting to see if the Nobel Prize win makes any material positive impact on sales..
http://email.bloomsburynews.co...
My Tandem shares were up 10% and lost that following Paul's comments. Obviously a man with influence! But I'm holding my shares and we'll see how they perform. I'm positive.
Bloomsbury Publishing (LON:BMY) (I hold)
CONCLUSION
Very happy holder.
It's one of the few holdings that I've actually topped up this year and I am tempted to top up again.
Underlying cash generation of c.£15m looks great vs the current EV (£230m), which gives me a multiple of c. x15.
This is the lowest multiple I would personally assign to this business.
Some further observations that I found interesting:
DIGITAL GROWTH
Nice growth in digital sales of +56.1%.
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Whilst I would prefer young readers to use physical books, I believe the +152.1% in Children Digital sales achieved this year helps to lay down the foundations for future digital sales.
The +57.2% in Academic Digital sales was also encouraging.
Note Digital sales in this segment were £19.0m vs the traditionally large print sales, which achieved £23.3m.
I believe the rapid rise in Digital here is being masked by a slowdown in off-line revenues (which in some ways reminds me of Best Of The Best (LON:BOTB) a few years ago), and that it's only a matter of time before sales in the former significantly exceed the latter.
ACADEMIC GROSS PROFIT MARGINS
What is perhaps less obvious from the results is the lower gross margins achieved in the Academic Segment.
67.9% to 59.7% in less than 2 years is quite a drop, no doubt driven by the higher digital sales (which oddly appear to generate lower gross margins - from memory I believe someone here mentioned that this might have something to do with royalties).
However, it's worth noting that a lot of this is likely from highly recurring revenues - the company mentioned a very high 90% customer retention rate in this segment - so a drop in gross margin, whilst not desirable, is perhaps a price worth paying for more reliable, long term revenues.
ACADEMIC OPERATING PROFIT
If there was one concern, it was the higher Marketing + Distribution spend which at 11.3% of Academic Revenues is the highest it's been in the last 2 years.
Hopefully those gross margins level off soon, and the Marketing/Distribution costs don't rise too much.
FUTURE
For 2021/22 there will be a £6m in-year boost from the latest acquisition so I personally am expecting revenues to rise, though I remain more cautious on operating profit, primarily due to the concerns noted above.
Looking further ahead the company has a fast growing, high revenue-recurring segment and generates so much cash that growing by acquisition should help alleviate any downside risk for the foreseeable future.
As someone else here mentioned I'm surprised that the share price is not higher, but then as holders we would say that.
A
This saved me an awful lot of work! A big thanks for the post - from one happy holder to another!
Here's the Cerillion (LON:CER) H1 presentation given last week. A super set of results delivered by Louis Hall, CEO and Oliver Gilchrist, CFO. Video & podcast.
Summary: Revenue is up 26% to £12.8m. Annualised recurring revenue is up 43% to £9m. Adj PTP is up 124% to £3.8m. EPS is up 105% to 11.5p. Back order book is up 74% to 42.1m. Net cash up 60% at 7.7m. H1 dividend is up 20% to 2.1p. Over the last three quarters CER have signed two of the largest contracts in the Company’s history. Not surprisingly management believes they are well-positioned to deliver their full year targets.
Other PIWORLD presentations forthcoming which you can attend:
Ig Design (LON:IGR) FY results webinar, on Tuesday 15th June, 12 noon, with Paul Fineman, CEO & Giles Willits, CFO, followed by Q&A. Register here.
Michelmersh Brick Holdings (LON:MBH) investor webinar, on Friday 18th June, 10am, with Frank Hanna, Joint CEO followed by Q&A. Register here.
And, we are back with another Stockopedia/piworld StockSlam on Wednesday 23rd June, 6-7.30pm! Damian Cannon will host another event where 10 investors 'Slam' their best stock idea live in 3 minutes. Register here.
"The FCA ruling is designed to stop the process of “price walking” - where a cheap deal is offered to new customers (of e.g. car insurance), then the price goes up each year on renewal. "
Presumably this isn't good news for car insurance brokers and comparison sites.
Indeed, probably bad news for Moneysupermarket.com (LON:MONY)
I'm still on the fence whether this is beneficial or bad for Saga (LON:SAGA)
In the past, their 3 year fixed price policy attracted customers that loathed other insurers for raising premiums every year. But if all insurers need to now treat renewals better, than is the 3-year-fixed prop going to be as powerful as before in pulling in new customers?
Also, Saga's customer base is one that has been unused to "online price comparison" for 20-40 years of their prior adult lives. Not about to start when they hit theirs 50s, 60s. So were going to be loyal, despite any price rises. Will they be less of a cash cow now for Saga?
Intuitive Investments is a new recently floated investment company with interim figures today run by David Evans and Rob Naylor who have a great track record in the bio /pharma sector. In my opinion they have the potential to do very well compared to the market.I hold shares.Ken Ford
I made the decision to dump Bigdish (LON:DISH) in September 2020. Wasn't keen on the complete change in direction along with the pandemic having a negative impact on its dining app. I agree with your view Paul and have moved on to better opportunities:)
I made the decision not to invest in this fantasy despite urgent recommendations from a friend. I simply couldn't understand why anyone would throw their money down the drain here except as a straight high odds against bet.
Marks And Spencer (LON:MKS) - online sales 50% - reviewing stores. This supports Paul's view across retail and my own personal. Maybe they will turn into a Debenhams with private brands renting space in larger stores and they reduce their stock lines. Stick to what they are good at underwear and food and rent the fashion to those better placed. Keep the quality and reasonable price not quantity. Sorry know they are not small cap and hope never will be.
Marks And Spencer (LON:MKS) are the reason why I cancelled the Investors Chronicle after very many years. I know it is difficult for them to give a view on practically every share but it was obvious to me that the link up with Ocado, who we have used for years, would be hugely successful. The share was in a wide range last year between 80p and 120p. It was either a buy at the lower support or on a break of the upper resistance. I was getting ready to make a very large investment when the IC called it a sell at not much more than 80p. I let It put me off buying and I didn't join in on the break of 120p but I thought if they could be so wrong on something that was so obvious to me what was the point. It may well now have gone high enough for now but the Ocado link was always going to be a game changer.
The other daft forecast last year was when the Telegraph made Royal Mail a sell at around 200p when there were more parcels being delivered than newspapers! Fortunately, I hold that but I do despair.
doublelutz
Re that Marks and Spencer (LON:MKS) Investors Chronicle sell advice.
Best not imo to take too much notice of the Investors Chronicle buy/sell advice unless it’s from one of their specialist writers like Simon Thompson. He is excellent as is the performance of his bargain portfolio year after year.
But some of their writers are very inexperienced and you are likely to be a better judge than they are. You can check out who wrote the tip comment when the writer isn’t named as they print their initials in bold capitals at the end of the article. Then go to the contents page to find their full name under the “specialist writers” heading and then check out them out.. They all have to start somewhere and sometimes their very first job is at Investors Chronicle.
I think the same about broker buy/sell advice. Research has shown that often the shares with the most broker buys do worse than those with the most sells, and often sells do better, NOT by going down, but UP! A couple of years ago BATS was the most popular FTSE100 share of all with brokers and it ended up being the worst FTSE100 performer that year! The broker and Investor Chronicle content is often much more useful than their buy/sell or equal weight (whatever that means!) conclusions.
The comment here from the likes of Paul, Jack, Roland etc is way superior to that available in some of the Investors Chronicle articles. I subscribe to I/C because there is enough there, especially online to justify it, but we need to be very selective with their investment advice.
I agree that Marks And Spencer (LON:MKS) looks interesting . The company recently gave guidance of £300-350m pre-tax profit for FY22 which, with c.20% tax added, is a EPS of around 12-15p although this assumes no further lockdowns. There is excellent food growth here from the Ocado tie-up where Marks And Spencer (LON:MKS) are looking to expand their capacity by 50%. Plus the strong online clothing and home growth bodes well even if clothing and home has been in long-term decline. As a short-term (one to two year) play I can see this getting to 220p+ and potentially higher if the clothing and home turnaround works. The main 'bear' argument in my view is that a lot of their growth initiatives feel lower-margin - i.e. selling more lower margin everyday food products and lower margin clothing from third-party brands. But maybe customers visiting for those products might drive higher margin sales too?
It seems bonkers to me that travel companies are priced so highly right now but market is pricing Marks And Spencer (LON:MKS) people around 11x current year estimates in a bull market and seemingly not really factoring in the Ocado and online clothing and home growth. (I hold)
So basically have third party brand concessions in their department stores?
Not quite sure that would be a winning strategy... seeing how Debenhams did it but still went to the wall...
Sparkling results from Bloomsbury Publishing (LON:BMY), which in my view should have been anticipated by the market given the two previous trading updates, but appear not to have been so. It will be interesting to see the reaction.
I hold.
To be honest the reaction to Bloomsbury Publishing (LON:BMY) results is always less than I expect. I suppose there are people who bought at 300p over a year ago who thought they had lost money who are now glad to get out and others who bought at 200p after the crash who are happy to take a very good profit. There are going to be dividends paid in September of 17.35p out of their large cash resources. 64% of group sales and 81% of academic sales are from overseas. They have just added 7,000 new titles from their latest takeover. When they say 2022 results will be in excess of recent forecasts they will be, knowing how conservative they are when discussing prospects! I think it should be 400p now. Perhaps I am biased as I see it is now my largest holding but the results over the past nine months are why I made it my largest holding!
Bloomsbury Publishing (LON:BMY) (I hold)
"64% of group sales...are from overseas."
I can't make sense of this.
The UK is actually 64% of group revenues, international is 36%.
Did the company make a typo?
Or am I misunderstanding something?
A
Without referring back to the report that looks like an error. International sales are not bad in any event. Not sure why India is down but my son uses programmers there and they have certainly had big problems due to Covid.
P.S. I see there is another RNS announcing a further acquisition on top of the one the other day. Bloomsbury Publishing (LON:BMY) certainly seem to be going there best to keep moving forward.
abtan - Bloomsbury Publishing (LON:BMY) I was also puzzled by those figures so asked Hudson Sandler and received the following reply:
"They are slightly different metrics.
The 64% overseas revenues referenced in the CEO statement refers to revenue measured by destination, whereas in Note 2, this shows revenue by source. So, for example, a sale from the UK company to Europe would show in note 2 as UK, as the source is UK, but is an overseas sale by destination".
Whereas note 2 gives last year to compare the statement "increased overseas revenues to 64% of Group revenue" does not. We have to go back to last year's prelims to read under 'Strategy': "Accelerating the growth of Bloomsbury's sales in the USA, Australia and India: International sales 63% of revenue".
63% to 64% is hardly significant but, never mind, the results overall and outlook are good so I'm happy to hold for as long as the streak of delivering more than promised continues.
[Edit - it is 17 30 and this is post 25 - record low?]
Bloomsbury Publishing (LON:BMY)
Thanks Sharw
If you or anyone else can help me understand why the "source" of the revenue is important it would be much appreciated.
It seems a bit pointless.
Cheers
A
Bloomsbury Publishing (LON:BMY)
abtan - I suspect it is one of those things done that way because it always has been! Most companies have a geographic split as a note to the a/cs. Taking a random sample of three of mine -
Amino Technologies (LON:AMO) "For this disclosure revenue is determined by the location of the customer".
Spectris (LON:SXS) "The following is an analysis of revenue by geographical destination".
Venture Life (LON:VLG) "The Group's revenue from external customers by geographical location of customer is detailed below"
So by this admittedly small sample their way is not the norm.
Thoughts on the Tandem (LON:TND) TU please. Another company signalling inflationary pressures. Demand very strong, but they seem to be a price taker rather than a price maker.
Teslanian hyperbole comment of the day in the Sopheon (LON:SPE) commentary this morning about their global Accolade deployment with leading customer 3M. Apparently “3M's commitment to innovation is extraordinary," said Greg Coticchia, CEO, Sopheon. "With 8,000 scientists and researchers working on 51 technology platforms in 650 different countries”.
Now given the UN says there are 195 independent sovereign nations and at tops 256 countries if you count separate non-independent states, this suggests 3M have presumably gone interplanetary with their R&D without telling us. Notwithstanding the geography it does look to be good news.
Gus.
I'm currently holding Concurrent Technologies (LON:CNC), does anyone have a view on prospects, seriously stagnated this past 12/24 months, thinking about seeking better value else where
To me it was a simple decision: Revenue growth very flat over five years, same for profitability (check the Stockreport graphs of Revenue and EPS-run the cursor over it)..so i saw no improvement in operational efficiency or new market growth (so I sold)..I'd say you need to find a reason, an inflection point why they can kick off new growth potential. IMHO
probably , myself dumping the shares should set them on fire, :)
Yes, I might pick them up if you give me a good deal... Steady-as-she-goes, good gross margin and very high return on tangible assets, so if growth were to pick up at some point, I'd expect nice leverage. Huge cash pile, relatively speaking - which I adjust for when looking at valuation multiples. New CEO is interesting - but too early to tell. Rock solid - not one to worry about.
New CEO and Chairman possible catalyst for change..
I sold out in December last year. I couldn't determine how big Concurrent Technologies (LON:CNC) s market is. I was worried growth was limited as they are specialists. We have also been hit by a world wide chip shortage since, which might be impactin the current price? I also sold out of Sdi (LON:SDI) at 70p per share and they are now over 190p. Oh well :)
Strong set of results from Bloomsbury Publishing (LON:BMY) this morning.
https://www.investegate.co.uk/...
Further profit upgrade and a special dividend announced. Already predicting “ahead of expectations” performance for year end Feb 2022. Appears to be firing on all cylinders albeit with the favourable tailwind of the extended COVID lockdown sending customers looking for something to read. Is there a reasonable comparison to Games Workshop (LON:GAW) to make? Strong recurring franchise around the Harry Potter and spin off catalogue plus good growth in other areas such as academic digital. I hold.
Gus.
My morning smallcap tweet:
BigDish (LON:DISH) Belvoir (LON:BLV) St Peter Port Capital (LON:SPPC) Tandem (LON:TND) Active Energy (LON:AEG) Quantum Blockchain Technologies (LON:QBT), Hargreaves Services (LON:HSP)
Amala Foods (DISH) development of plant-based products in JV progressing to plan. A lot of padding. Maybe they should sell padding, there's big demand. [SP=1.3 Cap=5m]
Belvoir (BLV) buys Nottingham Mortgage Services for £600k, immediately earnings accretive. [SP=246.25 Cap=87m]. I hold.
St Peter Port Capital (SPPC) auction of assets taking 2 months longer than guided. [SP=3.5 Cap=2m]
Tandem (TND) rev up 24% Jan-May. Costs rising but profitability "considerably ahead of the prior year augmented by our cost base not yet returning to pre-COVID levels." In line? [SP=656.9 Cap=34m]
Active Energy (AEG) production of CoalSwitch has commenced in US and delivery to a power station for testing will start this week. [SP=0.69 Cap=27m]
Quantum Blockchain Technologies (QBT) hires expert to optimise mining. Co "believes that there are tangible and disruptive optimisations that can be made at multiple levels within the end-to-end Bitcoin mining process". Well they can't be tangible for a start can they? And disruptive? Do they really think one consultant can get a jump on the whole world working feverishly on this? [SP=1.3 Cap=13m]
In line: Hargreaves Services (LON:HSP)
Bloomsbury Publishing (LON:BMY) - great results from one of my largest holdings. Not only have they exceeded the two increased profit projections they had given but have stated that revenue will be ahead and profit comfortably ahead of forecasts for 2022. Their digital services for education are expanding on a worldwide basis and it is a very well run business. They are always modest in their projections and I am very hopeful they will have continuing success.