Surgical Innovations – 1.5p

17 September 2019 – interim results

The company has announced its interim results for the six month period to 30 June and these are much as expected with declines in revenue and profitability as indicated in the group’s trading statement of 7 June.  Revenue for the period fell to £5.10m (2018: £5.28m) and this resulted in an adjusted pre-tax loss of £49k (2108: adjusted pre-tax profit of £154k).  Adjusted earnings per share were 0.02p (2018: 0.05p) helped by a tax credit for the period.  Net cash at the end of the period was £0.34m (2018: £0.38m).  These results reflect the difficult trading environment which has been adversely affected by constraints on UK health spending and uncertainty relating to Brexit.  However, despite this, the group has continued to invest in people and product development, strengthening the senior management team with the appointment of a new chief executive in March as well as other senior appointments.  Although trading in the short-term seems unlikely to improve, the longer term picture is more encouraging and we maintain our recommendation of BUY.

21st Century Technology – 3.1p

16 September 2019 – interim results

Results for the six months ended 30 June 2019 have been released.  Revenue was £5.7m (2018: £6.4m) with passenger revenue up 11% but fleet revenue down 22%.  An underlying loss before depreciation and amortisation of £0.02m was reported versus profit of £0.2m for the same period a year earlier.  Cash was £0.4m, up from £0.2m last year.  Despite what was on the face of it a weak set of numbers, order intake in passenger systems is up 50% and fleet systems up 3%.  Over £0.5m was invested in R&D during the period.  This means that the company is well placed to deliver better performance moving forwards.  The company has a market capitalisation of just £3m and there is scope for strong capital growth over the long term.  We keep our BUY rating.

Morrison (Wm) Supermarkets – 202p

12 September 2019 – interim results

The supermarket group has announced its interim results for the six months to 4 August and these have revealed that total revenues increased by 0.4% to £8.83bn, with profit before tax and exceptional items rising by 5.3% to £198m (2018: £188m).  Earnings per share in the same basis were 4.1% higher at 6.38p (2018: 6.13p).  The interim dividend was raised by 4.3% to 1.93p (2018: 1.85p) and there was also a special dividend declared of 2p.  Net debt at the end of the period was little changed from the year end at £2.35bn.  These are solid results in a period when consumer confidence is low due to concerns over Brexit and in the face of strong figures last year helped by the hot summer, royal wedding and the World Cup.  The company has extended its partnership with Amazon and will extend the roll out of its same day delivery service to 5 new cities this year.  We continue to believe that the shares are GOOD VALUE.

Anpario – 330p

11 September 2019 – interim results

The producer and distributor of natural animal feed additives has reported interim results for the six months to 30 June and these have shown a reduction in revenue to £14.3m (2018: £14.8m) although pre-tax profit actually rose to £2.3m (2018: £2.2m).  Diluted earnings per share actually increased to 8.88p (2018: 8.66p) and there was a 14% increase in the interim dividend to 2.5p (2018: 2.2p).  The group had net cash balances of £13.7m (31 December 2018: £12.9m).  There were strong performances from Latin America and the Middle East whilst the USA also delivered double-digit sales growth, but on the other hand China and certain other territories in South East Asia experienced weak trading affected by African Swine Fever.  However, the fact that the group managed to increase profits demonstrates that the group’s geographic and species diversity is a major strength.  We believe that the second half will see a slight increase is sales and pre-tax profits for the year should come out at around £4.75m for earnings per share of 18.8p.  With the benefit of a strong balance sheet we believe that the shares are a BUY.

Xeros Technology – 6.7p

10 September 2019 – trading agreement

The water saving and filtration technology group has announced that is has signed an agreement with Washco Limited, granting the latter the exclusive rights to take over the servicing of Xeros’ hospitality laundry customers in the UK.  The group’s hospitality laundry business is branded Hydrofinity.  Washco, which is based in Newbury, specialises in the specification, installation and maintenance of industrial laundry equipment throughout the UK and is one of the largest sales and service providers in the country.  Following similar agreements that have been struck in the US at the end of last year, this latest agreement continues the strategy of reducing its physical presence in the markets to zero as it moves towards a licensing model.  We continue to rate the shares as a SPECULATIVE BUY.

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