WYG – 106.5p

23 March 2017 – trading update

Shares in WYG have fallen sharply this morning following a disappointing trading update.  Although revenues for the year ending 31 March 2017 are likely to exceed £15m, representing growth of some 13%, profits are likely to be lower than previously expected.  This is largely due to project delays and deferrals with many of these being in the group’s higher margin service lines.  The group has also invested in building its UK capacity in anticipation of higher levels of activity which as yet have not materialised.  The result of this is that UK profitability is likely to be lower than last year.  However, the group’s international operations have performed better than expected and so overall pre-tax profits before exceptional items are expected to be around £8.7m (2016: £7.0m) for adjusted earnings per share of 11.8p (2016: 9.8p).  Although these are less than previous expectations the fall in the share price looks overdone and with further growth forecast for the next financial year we re-iterate our recommendation of BUY.

IQE – 50p

21 March 2017 – final results

IQE, the global supplier of advanced wafer products and wafer services to the semiconductor industry, has announced its final results for the year to 31 December and these have revealed a 16.4% increase in revenues to £132.7m (2015: £114.0m).  Adjusted pre-tax profits increased by 17.4% to £20.6m (2015: £17.6m), with earnings per share on the same basis rising 15.4% to 3.0p (2015: 2.6p).  There is no dividend.  These are clearly excellent results and the company continues to make significant progress.  The group’s strong cash flow meant that net debt at the year end was just £16.3m higher at £39.5m after capital expenditure of £19.1m and the payment of deferred consideration of £17.1m for previous acquisitions.  The current year has started well though and the directors have issued a very positive statement for the year as a whole.  Although the shares have enjoyed a strong run in recent weeks we believe they remain a BUY.

Goals Soccer Centres – 99.5p

21 March 2017 – final results

Results for 2016 have been released.  After strong recovery in the second half of the year turnover was marginally higher at £33.5m (2015: £33.0m).  Profit before tax was £3.7m (2015: £6.2m loss). Underlying profit before tax fell 6.1% to £7.8m (2015: £8.3m) but grew by 4.5% in the second half.   Underlying earnings per share declined by 32.6% to 9.7p (2015: 14.3p).  No final dividend was declared.  The results appear to have been well received and we continue to rate the shares as a BUY.

Augean – 51.5p

21 March 2017 – final results

Final results for the year to 31 December 2017 have been released.  Total revenue increased by 25% to £76.0m.  Profit before taxation excluding exceptional items increased 16% to £7.0m.  Basic earnings per share decreased 5% to 4.42p.  A dividend of 1.0p per share (2016: 0.65p) was declared, payable in June.  We continue to believe that the shares are undervalued given the nature of the business and maintain our STRONG BUY rating.

Flowgroup – 6p

21 March 2017 – Flow Energy update

The company has announced that it has selected a preferred bidder for Flow Energy and has entered into an exclusivity agreement with this party.  There is no certainty that a deal will be concluded and if not then the company will need to look at alternative financing.  Hence the shares remain a SPECULATIVE BUY.

cityconfidential © 2017 | T&Cs | Privacy | Wealth Warning