Archive for the ‘General News’ Category

Cineworld – 197p

3 December 2019 – trading statement

The company has issued a trading update for the period from 1 January to 1 December and this has confirmed that trading for the full year is likely to be slightly below expectations.  This is largely due to disappointing box office revenues although this has been partially offset by cost savings.  The integration benefits of Regal are greater than expected and with some impressive new film releases to come the medium term prospects for the group are encouraging.  We re-iterate our recommendation of BUY.

Hargreaves Services – 304p

3 December 2019 – trading update

Hargreaves Services has released an update on trading ahead of reporting its interim results for the six months ended 30 November 2019.  Trading has been satisfactory and interim results are set to be in line with expectations.  Group underlying operating profit for the first half is expected to be slightly ahead of the same period last year.  Revenue will be lower than the comparative period mainly due to reduced levels of activity in Specialist Earthworks following the completion of site work on certain civils contracts.  Net debt as at 30 November was £34.7m, compared with £28.6m as at 30 November 2018. The net debt figure excludes the proceeds of the sale of Drakelands Restoration Limited, which has also been announced this week.  As expected, working capital increased in the first half of the year, mainly due to higher coal inventory levels.  Interim results for the six months ended 30 November 2019 are due to be released on 29 January 2020.  Although the shares have crept up recently we keep our BUY rating.

Ramsdens Holdings – 202p

3 December 2019 – interim results

Interim results covering the six months ended 30 September 2019 have revealed revenue of £32.5m, up 30% on the adjusted figure of £25.1m for the same period last year.  Profit before tax was £6.2m (2018: £5.0m) and underlying profit before tax £5.7m (2018: £5.1m).  Basic earnings per share were 15.9p (2018: 13.0p) and the interim dividend was increased from 2.4p to 2.7p per share.  Net assets were up £3.1m from the financial year end of 31 March 2019 to £34.0m.  Net cash was £12.3m at the period end, a £4.1m increase from 31 March 2019 due to cash generated from solid trading and stock realisation.  The shares remain a BUY.

600 Group – 18.5p

3 December 2019 – interim results

Interim results have been released, covering the six months to 30 November 2019.  Revenue was up 13% to US$35.7m from US$31.6m.  Pre-tax profit before adjusting items was up 28% at US$1.7m (2018: US$1.3m) and US$1.5m (2018: US$0.8m) after adjusting items.  Basic earnings per share were 0.92c, the equivalent of 0.72p per share versus 0.88c (0.63p) in the same period last year.  Underlying continuing earnings per share (excluding adjusting items) were 1.31c (1.03p), up from 1.08c (0.77p) last year.  The interim dividend was held at 0.25p per share.  The shares remain good value and we see no reason to change our BUY rating.

XPS Pensions Group – 135p

28 November 2019 – interim results

Interim results have been announced.  Total revenue for the six months ended 30 September 2019 was £56.3m (2018: £52.2m).  Pensions Administration revenue was up 19%, Pensions Investments up 11%, NPT up 56% but Pensions Actuarial and Consulting and SASS/SIPP revenues were flat.  Adjusted EBITDA was £13.3m (2018: £12.0m) due to higher revenue as well as the adoption of IFRS 16 – Leases.  Lease expenses which were previously included in administrative expenses are now included in depreciation and finance costs and therefore excluded from EBITDA.  Adjusted fully diluted earnings per share were 4.1p (2018: 4.2p).  The figure for 2019 includes the impact of adoption of IFRS 16 – Leases.  Cash of £2.6m was generated from operating activities.  As at 30 September 2019 net debt was £65.7m (2018: £48.0m).  The interim dividend was held at 2.3p per share.  We believe that this is a very interesting niche business.  BUY.



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