News 5 May 2015
GREENE KING the Bury St Edmunds based brewer, drinks wholesaler and pub operator delivered a Trading Update to the market this morning which stated that like-for-like sales in the 51 weeks to April had increased by 0.4%.
Catching Up 3 May 2015
As there is isn’t going to be anything to report on the company front tomorrow given the Bank Holiday, I thought it worth just catching up with some of the news from the latter part of last week.
CNIC Results 28 April 2015
Last week’s subject in the weekly column CentralNic, this morning delivered its preliminary results for the year ending 2014.
UBI Not Making Sense 30 April 2015
While it is always nice to see the share price of a recent subject head northwards very quickly, it is equally disappointing to see it move in the opposite direction.
Three From This Morning 27 April 2015
BRADY the Cambridge based developer and supplier of risk management solutions for the commodities, energy and recycling sectors delivered an on track message this morning.
This came in the form of its AGM statement where the company stated that it remains on track to deliver market expectations as the recently strong performing energy business continues to gain momentum.
Two new deals have been signed within this unit in the period, while the recycling business segment has both installed and recognised revenue from the sale of software to a US customer at the end of 2014.
Importantly for investors Brady expects to report further deal flow and business progress as it approaches its traditionally busier second quarter.
The shares are unchanged at £1.01p having enjoyed a good run over recent months.
Software company DILLISTONE, delivered its final results for the period to the end of December 2014 this morning, which although delivering increased revenue saw a dip in pre-tax profits.
Not that it should concern holders of the business which serves the recruitment sector, as not only was the performance a solid one, (numbers including acquisition related costs) the tone for the future appears to be one of confidence.
I originally covered this company in the weekly column a little over two years back at 66p, the attraction being a combination of a well run, financially sound operation with a chunky yield and reasonable growth prospects.
Despite being off a couple of pence this morning at £1.05p, there would seem to be scope for further upside potential over the medium term as a number of factors continue to bode well.
Recurring revenue increased to £5.9m providing a significant chunk of the £8.6m figure, which saw adjusted pre-tax profits of £1.82m returning EPS of 8.56p.
The dividend was also slightly raised ensuring a continuation of its progressive policy and now sees a total 4p figure for the year, equating to a 3.8% yield.
Commenting on the results, Mike Love, Non-Executive Chairman, said:
"The Group has enjoyed another successful year in 2014, delivering its best ever performance in terms of revenue, adjusted operating profit and adjusted EPS. The business continued to invest, delivering a major new product launch in the Dillistone Systems division, while successfully completing the integration of FCP Internet into the Voyager Software division, and in September 2014 announcing the acquisition of ISV Software.
SPRUE AEGIS a developer and provider of safety products for the home environment also announced its preliminary results today for full year ended 31 December 2014.
The company, which has been a popular share with retail holders and has seen its share price trade as high as £3.65p over the last year, reported a near doubling of pre-tax profit to a very impressive £9.7m against the previous £5.1m. Revenue was also markedly higher jumping to £65m from the corresponding £48.4m, while the balance sheet remains debt free with a period end cash figure of £15.9m.
While that all sounds very positive the shares are actually off 14% or 47p at £2.95p as it warned of pre-tax profits for this year likely to fall below market expectations, due to the strong pound adversely affecting margins. Ironically, revenue is anticipated to be higher than previous guidance with not only the UK market providing growth, but France in particular.
The shares were actually down to £2.74p at one point, where as is often the case a warning can result in a harsh and often overreaction.
That clearly saw some taking the opportunity to either add or enter the situation and the shares had recovered some of that lost ground by mid morning.
I haven’t taken a close look at Sprue Aegis in the past or run an eye over the the Broker note, so maybe I will endeavour to make a note and take a close look.
I do note, that previous guidance from Broker Westhouse was for 2015 pre-tax profits of £10.5m and EPS of 20.2p, which would see the shares standing on a PER of circa 14 at the current price.
While for a growth stock with a solid balance sheet full of cash, that looks decent value, I would want to see the revised numbers and get a better feel for the business and prospects for a continuation of the growth for the longer term.