Taylor Wimpey – 200.1p

27 April 2017 – trading statement

A trading update has been provided to coincide with the company’s AGM.  On the whole this was reassuring.  The total order book currently stands at 9,219 homes (2016 week 16: 8,811 homes), excluding legal completions to date.  The total order book value has increased by 2% to approximately £2,210m from the equivalent point last year (2016 week 16: approximately £2,168m), and by 31% from the year end.

There has been a review into historic lease structures and the company is putting aside around £130m as a provision with regards to this.  To put this in context it represents approximately 2% of the current market capitalisation.  On balance the shares remain a BUY for now but it will be interesting to see if the price remains above the 200p level in the near term.

Pendragon – 34.625p

27 April 2017 – interim management statement

An excellent trading update has been released.  In the first quarter of 2017 underlying profit before tax increased by 17.6%.  Revenue grew by 10.4% on a like for like basis with used revenue growth of 23.3%.  Online visits to Stratstone.com and Evanshalshaw.com increased by 27.5% and the Group attracted 8 million visitors to the websites.  The company has completed £10m of the £20m share buyback programme that was announced in May 2016 and this process should help mop up loose shares.  The business looks very solid and we are comfortable with a BUY recommendation.

The Mission Marketing Group – 41.5p

27 April 2017 – acquisition

The company has announced the acquisition of RJW & Partners Ltd.  This is a business which provides consultancy services to the pharmaceutical and medical devices industries, working in pricing, market access and payer communications.  Initial consideration is £1.75m for the business and £0.23m for cash balances held.  £1.88m is payable in cash and £0.1m will be satisfied through the issue of 237,117 new ordinary shares.  Further consideration of up to £4.25m is payable subject to financial performance between 2017 and 2020, of which 5% is payable in shares and 95% payable in cash.  The shares remain a BUY.

Synectics – 220p

27 April 2017 – agm statement

At the company’s AGM it noted that results for the first four months of the current financial year have been in line with expectations.  Particularly pleasing have been the number and scope of important new orders recently won across different sector.  Further to an announcement on 11 April the company has also been awarded a further contract worth around US$1m to extend an existing Synergy 3 system for a gaming customer.  We continue to rate the shares as a BUY.

Goals Soccer Centres – 107.5p

24 April 2017 – press speculation

The company has noted the recent press speculation concerning discussions with Powerleague and the possibility of combining the two businesses.  Preliminary discussions with Powerleague are just one of the strategic opportunities currently being assessed by the company.  No commercial or financial terms have been agreed and no decision on any course of action has been made by Goals and there is therefore no certainty that any transaction will proceed.  The plan announced in June 2016 is still being followed.  The company has said that it will provide a further update in due course when appropriate.  The shares are a BUY.

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