Alliance Pharma – 67.1p

17 July 2019 – trading update

The company has issued a positive trading update for the six months to 30 June with revenues up 29% to £70.3m, with sustained growth from the product portfolio driven by the focus on international markets and higher growth, consumer healthcare products.  Based on trading during the year to date, the company expects revenue and underlying trading profit for the year to be in line with expectations.  Strong cash flow during the period has led to a reduction in debt of £11.7m to £74.1m as at 30 June.  This is expected to reduce rapidly going forward providing scope to take advantage of future growth opportunities.  The shares remain ATTRACTIVE.

Elegant Hotels 70p

15 July 2019 – director dealing

Chairman Simon Sherwood has purchased 57,224 shares in the company at 69.9p on 12 July – this takes his holding  to over 1.9m shares representing  2.17% of the equity.  The shares are a BUY.

Northern Bear – 63p

15 July 2019 – annual results

The company has announced its annual results for the year to 31 March and these have revealed that revenue has risen to £56.6m (2018: £53.6m) with adjusted pre-tax profits rising to £3.02m (2018: £2.86m).  Earnings per share on the same basis rose to 13.5p (2018: £12.5p).  The company has also declared a final dividend of 3.25p (2018: 3.0p) and has also stated that due to the excellent results it will also pay a special dividend of 0.75p (2018: 1.0p) – there is no interim dividend and so this represents the total dividend for the year.  It can be seen that even excluding the special dividend the shares yield over 5.1% at the current share price.  Strong cash flow at the group meant that it ended the period with net cash of £2.0m (net debt of £0.8m).  These are clearly very impressive results and were helped by particularly strong performances from the Roofing and Specialist Building Services divisions.  Although the first quarter of the current financial year has been slower in terms of activity due to certain contract delays, work on these has now commenced and another good year is in prospect.  The group has a strong balance sheet and on a p/e ratio of under 5 and yielding over 6.3% if the special dividend is taken into account the shares are a BUY.

The Mission Marketing Group – 85p

15 July 2019 – trading update

The company has reported that in the first half of the year its results are expected to be in line with its KPI targets of underlying revenue growth of 5% and growth in underlying pre-tax profits of 10%  excluding discontinued operations.  These will continue the record of growth over the last eight years.  The group’s net debt at the end of the period was £5.2m compared with £7.8m a year earlier and this was after paying off £3.1m of deferred consideration due on acquisitions from previous years.  The group’s interim results are due to be announced on 25 September.  As in previous years the group expects its profits to be heavily weighted towards the second half of the year and the shares remain a BUY.

Flowtech Fluidpower – 129p

12 July 2019 – trading update

The group has issued a trading update covering the six months to 30 June revealing that revenues were up 5.7% to £59.6m (2018: £56.4m) with around half of this increase due to acquisitions.  Net debt fell £1.1m to £18.8m during the period.  Overall, despite trading conditions remaining challenging, the company remains confident about its prospects and we maintain our recommendation of BUY.

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