Titon Holdings – 180p

13 December 2018 – interim results

The company has announced results for the year ended 30 September 2018, also stating that trading in the first two months of the new financial year was in line with expectations. Group net revenue was £29.9m (2017: £28.0m) and profit before tax was £2.98m (2017: £2.49m).  The final dividend of 3.0p per share (2017: 2.7p) took the total for the year to 4.75p, an increase of 13% (2017: 4.2p).  Net cash at 30 September 2018 was £3.42m (2017: £3.27m).  These are solid figures and the shares remain a BUY.

Filtronic – 8.25p

12 December 2018 – trading update

The company has released a very disappointing trading update.  Demand for the recently introduced Massive MIMO  antennas is now expected to be ‘substantially lower’ than had been forecast in the second half of the year and a loss is now anticipated in the current financial year as a whole.  Net cash at 30 November 2018 was £2.3m which should allow the company to operate at the revised level of revenue until an alternative strategy has been developed for the antenna business.  At the current level it does not really make sense to sell so those who are already invested should HOLD.

Pressure Technologies – 92.5p

11 December 2018 – final results

The specialist engineering group has announced its results for the year to 30 September and these have shown a reduction in revenue to £32.2m (2017: £34.6m), whilst adjusted pre-tax profits have emerged at £153k (2017: £1.23m).  Adjusted earnings per share fell to 0.7p (2017: 10.0p) and no dividend was declared.  Net debt at the year end was £6.7m (2017 : £11.1m).  These results were broadly in line with expectations although following the disposal of non-core activities the group is well-placed to take advantage of an upturn in the oil and gas markets in the current financial year.  Order intake at the group has improved and the balance sheet will be strengthened further following the disposal of the Alternative Energy business announced earlier in the week.  In the current year, pre-tax profits could rise to £1.9m for earnings per share of 9.0p and this would put the shares on a very modest p/e ratio.  The shares remain a BUY.

Pressure Technologies – 98p

10 December 2018 – disposal

The group has announced that is has agreed to dispose of its Alternative Energy business, which has been a disappointing performer to Creation Capital for £11.1m.  In a relatively complicated deal, Pressure Technologies will receive £5m in cash, £2m of shares in Creation Capital and a £4.1m promissory note issued by the latter.  This will mature in 24 months and will pay interest at 7% during its life – half will be denominated in Canadian dollars and half in sterling.  The funds received will be used to pay down debt although more will become apparent tomorrow when the group announces full year results.  As the stock was only recommended last week we maintain our recommendation of BUY.

Tricorn Group – 19p

5 December 2018 – interim results

The group has announced its interim results for the six months to 30 September revealing that revenues were similar to the previous year at £11.4m (2017: £11.4m). with adjusted pre-tax profits rising to £553k (2017: £370k).  Earnings per share on the same basis rose to 1.52p (2017: 1.00p) although again there was no interim dividend.  Net debt at the period end had reduced to £3.29m (2017: £3.47m).  The group has made good progress during the period with the focus on margins paying off as shown by the increase in profits on same again turnover but the group has cautioned that it has started to see some slowing down in its end markets.  As a result it expects revenues in the second half to be similar to those just reported with pre-tax profits for the full year to be in line with expectations.  Andrew Moss, the non-executive chairman, has purchased 100,000 shares at 19.5p to take his holding to 550,000 shares.  After the recent fall in the share price we believe the shares

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