PCF Group – 35p

4 December 2019 – final results

The specialist bank has announced its results for the year to 30 September and these have come in as expected.  Operating income rose 51% to £22.2m (2018: £14.7m) with pre-tax profit up 54% to £8.0m (2018: £5.2m) whilst earnings per share were up 35% to 2.7p (2018: 2.0p).  The group’s loan portfolio had risen to £339m at the year end from £219m a year earlier with new loans during the year up by 86% to £276m (2018: £148m). At the end of the financial year the group had over 6,250 retail customers with total deposits of £267m (2018: 191m).  A final dividend of 0.4p has been proposed (2018: 0.3p).  These are clearly excellent results with the group close to its portfolio target of £350m a year ahead of schedule.  The next target is a loan book of £750m by September 2022 and the group is well on track towards this.  Although the current political situation remains a risk we believe that medium term prospects are very encouraging and maintain our recommendation of BUY.

 

Cineworld – 197p

3 December 2019 – trading statement

The company has issued a trading update for the period from 1 January to 1 December and this has confirmed that trading for the full year is likely to be slightly below expectations.  This is largely due to disappointing box office revenues although this has been partially offset by cost savings.  The integration benefits of Regal are greater than expected and with some impressive new film releases to come the medium term prospects for the group are encouraging.  We re-iterate our recommendation of BUY.

Hargreaves Services – 304p

3 December 2019 – trading update

Hargreaves Services has released an update on trading ahead of reporting its interim results for the six months ended 30 November 2019.  Trading has been satisfactory and interim results are set to be in line with expectations.  Group underlying operating profit for the first half is expected to be slightly ahead of the same period last year.  Revenue will be lower than the comparative period mainly due to reduced levels of activity in Specialist Earthworks following the completion of site work on certain civils contracts.  Net debt as at 30 November was £34.7m, compared with £28.6m as at 30 November 2018. The net debt figure excludes the proceeds of the sale of Drakelands Restoration Limited, which has also been announced this week.  As expected, working capital increased in the first half of the year, mainly due to higher coal inventory levels.  Interim results for the six months ended 30 November 2019 are due to be released on 29 January 2020.  Although the shares have crept up recently we keep our BUY rating.

Ramsdens Holdings – 202p

3 December 2019 – interim results

Interim results covering the six months ended 30 September 2019 have revealed revenue of £32.5m, up 30% on the adjusted figure of £25.1m for the same period last year.  Profit before tax was £6.2m (2018: £5.0m) and underlying profit before tax £5.7m (2018: £5.1m).  Basic earnings per share were 15.9p (2018: 13.0p) and the interim dividend was increased from 2.4p to 2.7p per share.  Net assets were up £3.1m from the financial year end of 31 March 2019 to £34.0m.  Net cash was £12.3m at the period end, a £4.1m increase from 31 March 2019 due to cash generated from solid trading and stock realisation.  The shares remain a BUY.

600 Group – 18.5p

3 December 2019 – interim results

Interim results have been released, covering the six months to 30 November 2019.  Revenue was up 13% to US$35.7m from US$31.6m.  Pre-tax profit before adjusting items was up 28% at US$1.7m (2018: US$1.3m) and US$1.5m (2018: US$0.8m) after adjusting items.  Basic earnings per share were 0.92c, the equivalent of 0.72p per share versus 0.88c (0.63p) in the same period last year.  Underlying continuing earnings per share (excluding adjusting items) were 1.31c (1.03p), up from 1.08c (0.77p) last year.  The interim dividend was held at 0.25p per share.  The shares remain good value and we see no reason to change our BUY rating.

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