Park Group – 68p

25 September 2018 – AGM statement

The company has confirmed that trading continues in line with expectations although being a seasonal business it will report a loss for the six month period to 30 September,  As usual, most revenue will be reported in the second half, with some £300m expected for the full year, a marginal increase on last time.  Pre-tax profits should also rise slightly to £13m for earnings per share of around 5.8p.  Although not a very exciting stock, it does have steady growth prospects and thus the shares remain ATTRACTIVE.

RhythmOne – 223p

25 September 2018 – trading update

The company has confirmed that performance for the first half is expected to be in line with management expectations.  Revenue should be up by approximately 50% from the same period a year earlier to between US$170m and US$180m (2018: US$114.5m).  Adjusted EBITDA should be between US$19m and US$21m (2018: US$3.1m).  Mark Zorko has also been appointed as Chief Financial Officer.  The share price is somewhat volatile but is half way between the year high and low so we keep our BUY rating.

WYG – 55p

25 September 2018 – trading update

A trading update has been released to coincide with the company’s Annual General Meeting.  Revenue and operating profit (before separately disclosed items and share-based payments) for the half year should be broadly in line with the comparative period for the prior year.  Expectations for the full year are unchanged, with revenues set to be at a similar level to last year and there should be a modest improvement in operating profit for the year as a whole.  Current net debt is approximately £15.0m including a £3.0m receivable where receipt of the outstanding balance is expected very shortly.  Expectations for year end net debt are also unchanged from previous guidance.  The Group’s order book of secured contracts stood at £161.3m as at the end of August.  We keep our BUY rating.

Flowtech Fluidpower – 123.25p

14 September 2018 – director purchase

Nigel Richens, Non-Executive Director, has purchased 23,500 shares at a price of 128.5p each.  This takes his holding to 73,500 shares.  We keep our BUY rating.

Thomas Cook – 60p

24 September 2018 – trading statement

The travel operator has issued a profit warning, stating that the results for the year to 30 September will be less than expected.  The company has suffered from the hot weather in the UK over the summer which has meant that many people have delayed booking holidays abroad – in turn this has also led to increased competition from other tour operators as significant discounting has taken place.  The long hot summer has also impacted winter trading.  The fall in the share price has left the stock looking cheap with one broker estimating that the shares trade on only 8 times 2018 earnings.  The full year results are due to be announced on 29 November and another update will be given then.  Clearly, this is disappointing news for investors nut we do not believe that selling at the current depressed price makes sense.  Existing holders should hang on – HOLD.

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