Good morning! Paul & Graham here again. Let's hope we don't have any profit warnings today (EDIT: I spoke too soon, unfortunately), although I think there are probably plenty more to come, where broker forecasts are still unrealistic in some places. 

Agenda

Paul's Section:

Sanderson Design (LON:SDG)   (I hold) (£87m) - a surprisingly upbeat AGM trading update, with performance tracking full year expectations. Macro conditions don't seem to have dented performance, so maybe high end products is the place to be, to ride out tougher macro conditions that don't impact spending by the rich? Shares look cheap. Great balance sheet too.

Sosandar (LON:SOS) (£43m) - Fantastic growth, and it's now reached profitability. Given that, and a £6m cash pile, I think it shouldn't need any more placings. There's something special going on here, in my opinion.  Fashion risk, so won't appeal to everyone.

Wincanton (LON:WIN) (£448m) - an in line trading update, so no great shakes. This share does look interesting, and I suspect a re-rating could be in the pipeline, if the pension deficit payments (currently massive) reduce as expected. Looks largely recession-proof too, and has pricing power from cost-plus contracts. Interesting. Overall, I like this share. 

Graham's Section:

System1 (LON:SYS1) (£39m) - a disappointing and cautious Q1 update today, published with final results which appear to have slightly missed profit forecasts. The company has allowed costs to rise as it spends on a new strategy. While it used to behave more like a traditional ad agency, it has spent a few years attempting to automate as much of its work as possible and to build automated products that it can sell on a subscription basis to its customers. In tandem with this, it's also seeking to raise its industry profile. The strategy appears to be working, though is still at a very early stage. Shareholder patience is required to see if it can ultimately achieve its ambitions.

£CRL   (£28m) - inflation has hit this manufacturing company quite hard, at the same time it integrates new companies it bought during the most recent financial year. Financial risk has increased with borrowings and other financial liabilities taken on at perhaps the wrong time. Revenues fell slightly in FY March 2022, but within that, its core business and its own labels performed well. This is another one…

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