Ramsdens Holdings – 247p

8 January 2020 – trading update

The diversified financial services group has issued a very positive trading update and has announced that results for the year to 31 March will be comfortably ahead of market expectations. Each of the group’s business segments performed ahead of the prior year with jewellery performing well both in store and on line helped by a higher gold price.  The pawnbroking and foreign currency segments also produced good results.  Although the shares have had a good run they remain ATTRACTIVE.

Morrison (Wm) Supermarkets – 195p

7 January 2020 – trading update

The company has issued a trading update covering the 22 weeks to 5 January with like-for-like sales excluding fuel falling by 1.7%.  The group experienced challenging trading conditions during the period with customers remaining cautious ahead of the General Election.  The group has recently sold its Camden store and eight acre surrounding site to Berkeley Group for £120m and the group closed four underperforming stores during the period as well as opening the same number (including two replacements).  The group expects profits for the year to 31 January 2020 to be in line with expectations and the shares remain a BUY.

600 Group – 14.3p

18 December 2019 – trading update

The diversified industrial engineering company has announced a disappointing trading update, which came just 16 days after interim results.  Order intake for the fourth quarter is now expected to be significantly below originally predicted levels although there has been good progress in the UK business, where orders remain over 100% up on the prior year.  There has also been continued good performance at the newly acquired CMS business, driven by its focus on healthcare and pharmaceuticals.  Gross margins across the Group are also holding up well but these positive factors will not prevent the outturn for the full year being significantly below previous expectations.  Although long term prospects appear relatively sound this news was not well timed and we downgrade to HOLD for now.

Marshall Motor Holdings – 150p

18 December 2019 – acquisition and trading update

Marshall Motor Holdings, one of the leading automotive retail groups in the UK, has announced the acquisition of the business and assets of a portfolio of Volkswagen and ŠKODA passenger and commercial vehicle franchises from Jardine Motor Group UK Limited for up to £22.3m cash including £13.0m of inventory.  In terms of trading, performance has been solid in a challenging market and despite trading conditions weakening further in the final quarter of 2019, the outlook for the full year remains unchanged.  An update on the trading environment will be provided on 10 March when results for the year ending 31 December 2019 are due to be announced.  We keep our BUY rating.

Pressure Technologies – 107.5p

17 December 2019 – final results

The specialist engineering group has announced results for the year ended 28 September 2019.  Revenue was up 34% to £28.3m (2018: £21.2m) and adjusted operating profit jumped from £1.0m to £2.2m.  The reported loss before tax narrowed from £1.7m to £0.5m and adjusted earnings per share improved from 2.9p to 7.8p.  There was an adjusted net operating cash inflow of £2.0m (2018: £1.9m) and net debt at the period end was £11.4m, up from £6.7m a year earlier.  Overall there was significantly improved trading performance and operating results in line with market expectations, driven by UK and export defence contracts and increasing momentum in the global oil and gas market.  The outlook is relatively good and with the shares still languishing at a low level we rate them as a BUY.

cityconfidential © 2020 | T&Cs | Privacy | Wealth Warning