Small cap award winners 2018
Company of the year
ZOO Digital (ZOO)
The ZOO Digital share price is ten times the level it was one year ago. ZOO localises film and television content and it has been investing in upgrading its technology and services over the past few years. This investment is paying off and the ability to offer cloud-based services is helping the business to grow and move into profit. Hollywood studios have been customers for many years and ZOO is winning market share. Newer entrants to the market such as Netflix have grown the demand for localisation of content. ZOO is expected to report an underlying pre-tax profit of £500,000 for the year to March 2018.
NEX company of the year
Crossword Cybersecurity (CCS)
Cyber security technology developer Crossword Cybersecurity originally floated on GXG and then switched to NEX. It was one of the youngest companies that was on the shortlist for this award. Crossword is generating modest revenues and it is developing cyber security products with partners. The real potential for the business will not be realised for a few years.
Impact company of the year
Walls and Futures REIT (WAFR)
Walls & Futures REIT is an ethical housing REIT that develops new housing for people with learning and physical disabilities or requiring extra care. In 2017, Walls and Futures achieved a total return on its portfolio of 11.5%, ahead of its benchmark total return of 7%.
IPO of the year
K3 Capital (K3C)
Business sales and corporate finance company K3 Capital Group joined AIM at 95p a share in April 2017 and the share price has more than trebled. Bolton-based K3 helps owners to sell their businesses and it gains clients through a direct marketing strategy. The AIM quotation and the related higher profile appears to have helped to accelerate growth. A move up the Thomson Reuters deal rankings is also helping. Last year, revenues rose by 26% to £10.8m, while pre-tax profit improved 18% to £3.6m. In the six months to November 2017, revenues were 34% ahead at £7.5m and pre-tax profit moved from £2.48m to £3.21m.
Fintech company of the year
FAIRFX Group (FFX)
Foreign exchange and e-banking services provider FAIRFX has a low cost model while offering an improved experience to the more established rivals. Turnover was £1.1bn last year, while revenues were £15.5m and this enable the company to move into profit. Corporate turnover was 52.3% of the total, up from 45.5%. The company recently moved its international payments book onto the City Forex platform following its acquisition. The focus is increasing scale to improve efficiency combined with the rolling out of new products.
Transaction of the year
Proactis (PHD) – merger with Perfect Commerce
Spend control software provider Proactis merged with Perfect Commerce in August 2017. The deal significantly increased the scope of the business and added to the management team. The integration of the businesses appears to be going well but the loss of a couple of large customers has held back progress in the year to July 2018. Even so, annualised contracted revenues are still £45.5m. Progressive Equity Research still expects a near-doubling of this year’s pre-tax profit to £10.2m, rising to £13.2m next year. That means that earnings per share growth is modest this year because of the additional shares in issue.
Executive director of the year
Bobby Kalar – Yu Group (YU.)
Electricity and gas supplier Yu Group floated on AIM in March 2016 at 185p a share. The current share price is more than four times that level. The focus is on commercial customers. Yu increased its revenues from £16.3m to £47m last year and annualised bookings continue to grow. Underlying pre-tax profit jumped from £195,000 to £3.08m. The dividend was increased from 2.25p to 3p a share. Trading continues to be strong and average annualised bookings per month were £6.6m. The cash pile has increased to £18.6m at the end of April 2018. Yu has obtained a licence to supply water.
Journalist of the year
Paul Scott – Stockopedia
Fund manager of the year
Nick Williamson – Old Mutual
Microcap fund manager of the year
Guy Feld – Canaccord Genuity
Analyst of the year
Kevin Ashton – Cantor Fitzgerald
Lifetime achievement award
Katie Potts – Herald Investment Management
Special services to small caps
John Jenkins (Founder of Ofex/NEX)
Daniel Thwaites (THW) increased its 2017-18 by 9% to £92.2m, while operating profit improved by 7% to £12.9m. There was a 79% increase in earnings per share to 13.8p, mainly due to a swing from a loss on interest swaps to a profit. The total dividend is unchanged at 4.46p a share. Investment in the pubs and hotels operations and in the new craft brewery at Mellor Brook has led to a rise in net debt from £47.6m to £63.7m. The old brewery will be demolished and the land will eventually be sold or developed. Poor weather means that the new financial year has started more slowly than last year.
Hellenic Capital has changed its name to Pelican House Mining (PHM) and is focusing on investing in early-stage resources projects in Africa. The focus is making capital gains on the investments. Pelican is trying to supplement its cash resources by selling a commercial property in Leeds, but the buyer withdrew. Pelican has retained the deposit. The investment property in Leeds is in the books at £204,000. Two directors, Simon Grant-Rennick and Mark Jackson, have been granted options over a total of seven million shares exercisable at 0.55p each.
Newbury Racecourse (NYR) says that its conference and events division is 22% ahead of the same time last year and the revenues of the hotel have risen by the same percentage. There has been a 17% rise in revenues for the nursery business on the back of occupancy rates rising by six percentage points. There are longer-term worries about the financial ability of bookies to provide sponsorship and other revenues. Management says it will not be paying any dividends until 2022 at the earliest after the current development projects are completed.
PCG Entertainment (PCGE) has raised £303,000 at 0.15p a share and around £119,000 will go towards paying the £119,000 settlement with D-Beta, which provided an equity sharing facility. D-Beta has sold its existing stake. PCG is talking to Cavitation Solutions Ltd about distributing cavitation technology, which deals with oil and other water pollutants, in China. It is also talking to ChainZy about distributing its blockchain-based technology in Asia. There is interest from third parties concerning the use of PCG’s media and gambling licences in China.
IMC Exploration (IMCP) has raised £250,000 at 0.7p a share and the cash will be used to develop the company’s three main gold and zinc projects.
South Africa-focused investment company Inqo Investments Ltd (INQO) has made a second investment in Uganda-based Four-One Financial Services, which manages the Mazima micro-pension scheme. This is the second tranche of the original investment and is in the form of a $100,000 convertible loan.
NWF (NWF) says that last year’s trading was much better than expected and net debt is lower than forecast. The feeds business improved its performance and trading of the fuels division was strong. The food distribution operations wee hit by reorganisation requirements and did not perform as well as expected.
Diversified Gas and Oil (DGOC) has got another large deal on the blocks and trading in the shares has been suspended. The Appalachian Basin oil and gas producing assets will be acquired for $575m and it will more than double the group’s daily production. This should be an earnings enhancing deal. A $225m share placing is required to help finance the deal.
RedstoneConnect (REDS) chief executive Mark Braund intends to leave the smart buildings technology company. Frank Beechinor will move from chairman to chief executive. The disposal of the systems integration and managed services divisions has been completed and the group can focus on its software business.
Ilika (IKA) has gained government funding of £4.1m for two battery technology projects in the automotive sector. The PowerDriveLine project is developing a solid state battery for hybrid and electric vehicles. The other project is headed by McLaren Automotive and is developing a battery for performance cars.
Secure payment products provider Eckoh (ECK) increased its full year revenues by 3% to £30m but pre-tax profit was 61% higher at £2.4m thanks to an improvement in operating margin. Growth in the US made up for a weaker contribution in the UK.
Redhall Group (RHL) slumped back into loss in the first half due to a delayed contract. However, it is still on course to make an improved profit in the full year. Interim revenues were 22% lower at £14.7m. There is strong demand for the company’s specialist doors from the nuclear and transport sectors.
Evgen Pharma (EVG) has enough cash to get to the end of 2018. There should be further positive news about the two ongoing clinical trials prior to the end of the year. Interim analysis of phase II trial of SFX-01 as a treatment for breast cancer show that six out of 20 patients, who had tumours that had initially responded to treatment but had become resistant, saw some benefit from the treatment of their tumours. The treatment has also been shown to be safe. The final results of the trial should be published before the end of the year.
Life sciences company Abzena (ABZA) has decided to focus on monetising its technology rather than raising money via a share issue. A non-binding heads of agreement with a third party would involve the sale of an interest in future royalties. If this deal is completed there would be enough working capital for the short-term.
Active Energy Group (AEG) has signed a memorandum of understanding with Young Living Farms for the sale of a PeatSwitch plant, which makes environmentally friendly peat replacements. The first plant is in Mona, Utah and the client is paying $3.4m in cash. There could subsequently be other plants at the client’s other sites.
Trading has resumed in the shares of Audioboom (BOOM) following publication of its accounts. The share price fell from 3.6p to 2.18p. The podcasts publisher has raised £4.5m from a placing at 3p a share.
WideCells Group (WDC) managed to raise £513,000 at 3p a share via a bookbuild on the Teathers app. That includes £183,000 from directors. The total amount raised by the stem cell services provider is £2.04m, including conversion of debt of £165,000. Shareholder approval is required for the share issue.Trading in the shares has resumed and the share price has fallen below the placing price. WideCells is using £615,000 of its £624,500 overdraft, which will be reviewed at the end of June. Shareholders have loaned £120,000.
China-based Gamfook Jewellery is planning to join the standard list. The online retailer customised jewellery wants to raise £5m in order to invest in retail sites. Gamfook has managed to generate cash from operating activities in the past few years, although next year there will be a significant working capital outflow according to forecasts. Gamfook is offering an 8.5% yield on its potential placing price of 15p a share and that would rise to 12.5% in 2019.
Air Partner (AIR) has completed its accounting review and the net assets overstatement of £4m net of tax is in line with indications. There were accounting errors and subsequent attempts to cover up the problems going back to 2010. The review has cost £1.3m. Air Partner still intends to pay a final dividend of 3.8p a share.
BATM (BVC) has won a $3m follow-on cyber security for a government department. The total contract value will be $7m.
Falcon Media House (FAL) has raised £500,000 via a convertible loan note issue. The conversion price is 1.5p a share.
Cash shell AIQ Ltd (AIQ) has raised £250,000 from an oversubscribed open offer at 20p a share but there was a delay of one day before the shares were admitted to trading on 14 June. The share price has slumped from a high of 160p to 24.5p over the past month.
Dukemount Capital (DKE) has agreed a 30-year lease on a second property in north west England. Housing association Inclusion Housing is paying £168,740 a year for the lease subject to planning permission for extra rooms. The property needs to be refurbished.
Bluebird Merchant Ventures Ltd (BMV) has executed the 50/50 joint venture agreement with Southern Gold for the Kochang mine and the feasibility report is expected before the end of September. The required $500,000 investment has nearly been completed by Bluebird and it is on course to invest the required $250,000 in Southern Gold. First gold is expected before the end of 2019.
The Company notes recent social media discussion regarding the potential purchase of an interest in an oil and gas asset in Indonesia, the Bunga Mas PSC. In accordance with the Company’s previously stated strategy, the Company continues to evaluate a number of oil and gas projects, of which Bunga Mas is one. However, discussions remain at an early stage and commercial terms are yet to be agreed. There is no guarantee that terms will be agreed in respect of Bunga Mas but, should they be, or indeed should the Company reach agreement in respect of the acquisition of interests in any other projects, it will update investors at the appropriate stage.
The Company makes no comment regarding speculation on the potential resource or working interest.
For further information, please contact:
|Simon Gorringe||Andalas Energy and Power Plc||Tel: +62 21 2965 5800|
|Roland Cornish/ James Biddle||Beaumont Cornish Limited
|Tel: +44 20 7628 3396|
|Colin Rowbury||Novum Securities Limited
|Tel: +44 207 399 9427|
|Christian Dennis||Optiva Securities Limited
|Tel: +44 20 3411 1881|
|Stefania Barbaglio||Cassiopeia Services Ltd||Stefania@cassiopeia-ltd.com|
Macarthur Minerals Completes Sediment Sampling at Bonnie Scot Tenement in Pilbara, Western Australia
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Macarthur Minerals Limited (TSX-V: MMS) has announced that it has completed a sediment sampling programme at its Bonnie Scot tenement in the Pilbara region of Western Australia, with encouraging results.
During the geochemical survey a total of 45 samples were collected from selected drainage courses across the tenement area. Multi-element assays were received confirming several anomalous sediment values ranging from 13 parts per million (“ppm”) up to 113 ppm Au. This area was previously identified from historical rock chip sampling program with values of up to 3.5 g/t.
Cadence holds approximately 12% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on lithium, iron ore and gold in the Pilbara region of Western Australia. It also has the lithium project in Nevada, USA.
The full release can be found at: https://web.tmxmoney.com/article.php?newsid=7910034685905990&qm_symbol=MMS
– Ends –
|For further information, please contact.|
|Cadence Minerals plc||+44 (0) 207 440 0647|
|WH Ireland Limited (NOMAD & Broker)||+44 (0) 207 220 1666|
|Hannam & Partners LLP (Joint Broker)||+44 (0) 207 907 8500|
|Square1 Consulting||+44 (0) 207 929 5599|
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.
About Cadence Minerals:
Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale – upcoming supersized passenger vehicles, lorries and buses – require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over GBP20 million vested in key assets globally, Cadence is helping us reach tomorrow, today.
Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.
The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
The logistics sector has been the first to adopt hydrogen fuel cell electric vehicles as the most efficient way available to decarbonize, but so far that transition has been sparked mainly by the humble forklift. Now it looks like the industry is ready to step up its game into street legal territory, in a big way. Earlier this month Anheuser-Busch announced that it has pre-ordered hundreds of hydrogen fuel cell electric semi trucks — 800, to be exact — from the US startup Nikola Motors.
The sheer size of that order is interesting news for fleet owners looking to expand their decarbonization options. The EV company Tesla made a big splash last year by launching its first battery electric semi. Anheuser-Busch also put in a pre-order with Tesla a few months ago, but only for 40 trucks.
Why hydrogen is “the future of logistics”
Anheuser-Busch is clear on the decarbonization opportunities behind the deep plunge into hydrogen fuel cell technology. In a press statement, CEO Michel Doukeris noted that “the transport industry is one that is ripe for innovative solutions and Nikola is leading the way with hydrogen-electric, zero-emission capabilities.”
The company is looking at reducing its carbon emissions from logistics by more than 18% through the adoption of 800 hydrogen trucks, helping to meet the company’s 2025 goal of reducing emissions 25% across its value chain.
For those of you new to the topic, fuel cells convert hydrogen to electricity through a chemical reaction with oxygen (think H20 and you’re on the right track). Aside from water, there are no emissions from a hydrogen fuel cell electric vehicle.
The advantage over battery electric vehicles is relatively simple: fuel cells can be refueled with hydrogen in about as much time as it would take to refill any other fuel tank. Fuel cells also offer a potential advantage in size and weight over battery packs.
The refueling advantage comes into sharp focus for warehouse operations, where the time and space dedicated to forklift battery recharging and swapping cuts into razor thin margins.
Anheuser-Busch also sees that advantage applying to long haul operations. The company anticipates refilling within 20 minutes, which will reduce idle time. The company also expects a safety advantage due to Nikola’s “surround viewing” design.
On Nikola’s part, CEO Trevor Milton makes it clear that his company is aiming to put the squeeze on the Tesla electric semi before it hits the ground:
Hydrogen-electric technology is the future of logistics and we’re proud to be leading the way…By 2028, we anticipate having over 700 hydrogen stations across the USA and Canada. With nearly 9 billion dollars in pre-order reservations, we are building to order, not speculation, and are very excited for what’s to come.
So, where is the hydrogen coming from?
That doesn’t just mean keeping the lights on. Back in 2017, the company envisioned an initial network of 16 fuel stations that produce hydrogen on site, by “splitting” water with an electrical current.
Water-splitting is a green step up from the conventional source of hydrogen, which is natural gas. It also means that Nikola can take advantage of any available wind or solar energy to power the process.
With the Anhueser-Busch deal in hand, Nikola has stepped up its plans. The company is now aiming for an additional 28 stations in its network. Although that still may not seem like enough to cover the whole continental US, the truck’s range of up to 1,200 miles cuts down on the need for large numbers.
King of the road: Tesla, Nikola or both?
With high profile entreprenuer Elon Musk at the helm, Tesla clearly has the edge over Nikola in terms of publicity.
However, Nikola’s 800-truck partnership with Anheuser-Busch finally put the company on the public radar, and it has been making some moves that undercut Tesla where the rubber hits the road.
One example is Nikola’s pledge to make its hydrogen fuel station network available to any vehicle. That’s a contrast with the Tesla business model, which makes its battery charging stations available only to Tesla owners.
Back in April, Nikola teased news about a forthcoming deal that would enable it to accept pre-orders without requiring a deposit. Nikola also announced that it was refunding all previous deposits on pre-orders while reassuring those customers that they would still retain their position in line. That’s another strike at the heart of Tesla’s business model, which runs into thousands of dollars for deposits on pre-orders.
If Nikola comes through on its vision for water-splitting powered by renewable energy, that would be the icing on the sustainability cake.
Nikola vs. Tesla, round 1… and 2
The gloves really came off earlier this month, when word came out that Nikola filed a $2 billion lawsuit against Tesla in Arizona, claiming patent infringement.
The point of contention is the design of the semi cab. Nikola holds patents for several design elements that it alleges Tesla copied, including its unique wraparound windshield and mid-entry door.
That was just for starters. Nikola plans to leverage its truck refueling network to help kickstart the hydrogen fuel cell vehicle market for passenger cars, which would be in direct competition with Tesla’s battery EVs.
Here’s what Nikola tweeted out last week under the hashtag #emissionsgameover:
Each of Nikola’s 700 hydrogen stations will produce up to 8,000 kg’s per day. @Toyota,@Honda,@Hyundai, @audi, @Daimler or any other OEM that wants #hydrogen are welcome to fill at our 700 bar stations at around $6.00 per kg.#emissionsgameover
— Nikola Motor Company (@nikolamotor) May 7, 2018
It’s certainly not game over for battery EVs, but it looks like the hydrogen economy is going mainstream in a big way now.
Although the rivalry may be causing heartburn among executives at both companies, the good news is that fleet owners will have more zero emission options to choose from in the near future.
Photo (cropped): via Anhueser Busch.
View Original Triple Pundit Article Here
Aveva Group AVV There are now so many ways of calculating profits that the figures have become almost meaningless and companies have the freedom to chose between profit before tax, on a diluted, adjusted, normal or statutory basis and the difference between these four can be and often are enormous. Companies can elect the headline for their results as ranging from a whopping loss to a thumping big profit. For the year to the 31st March Aveva has chosen to present them on a combined basis which shows an 8.6% rise in revenue and profits slumping by 34.3% unless you prefer the statutory figure with a rise of 8.8% or, even better, a rise of 23.3% on an adjusted basis. Thus Chairman and CEOs are left with complete freedom as to how they can best describe the company’s performance. Aveva decides the year as being transformational and promises that the years ahead are going to be even more exciting. Nobody can agree or disagree with these comments when all we know is that the company is either making a loss, or if not, then it is making a profit.
Majestic Wine WINE returned to profit and describes itself as making headway in headwinds in the year to the 2nd April. Last years loss of 1.5m was turned into a profit of 8.3m, with Naked Wines, where sales rose by 11.8%, being the key driver. UK retail remained challenging. Reported revenue rose by 2.3% but the final dividend reflects the transformation into profit with a rise from 3.6p to 5.2p. More important for the future is the fact that 20% of the business is now in the growth markets of the US and Australia.
PZ Cussons PZC has given plenty of notice of the bad times from which it is suffering in Nigeria and the UK and it now updates that trading in both these countries has continued to be difficult, with Nigeria actually getting worse. In other markets results have been robust and profit before tax for the full year is now expected to just scrape into the bottom end of the previously forecast range. Still worrying though to see how many of these household name companies are being dragged down by poor UK performances.
NWF Group NWF updates that it has delivered an outstanding performance, especially in fuels in the year to the end of May. Trading has been significantly ahead of both current market expectations and the previous year.
The board of IMC is pleased to announce that it has raised GBP 250,000 before expenses by way of a placing of 35,714,285 new ordinary shares of EUR0.001 each in the Company (“Ordinary Shares”) at a price of 0.7p per share (the “Placing Shares”) (the “Placing”). 7,142,857 warrants have been issued to subscribe for an additional 7,142,857 Ordinary Shares at a price of 1p per share, excercisable for three years from today. The total number of shares in issue following the Placing is 240,014,285.
The net proceeds of the Placing will be used to continue with IMC’s three main projects: IMC’s feasibility study on PL 3850 on its spoils and tailings project in Avoca, Co. Wicklow, IMC’s north Wexford gold project and IMC’s zinc project in Tulla, Co. Clare.
IMC further confirms that the directors’ shareholdings and their percentages of voting rights in the issued share capital of IMC, as it has been enlarged by the Placing described above, are as follows:
|DIRECTOR||NUMBER OF ORDINARY SHARES||PERCENTAGE OF ISSUED SHARE CAPITAL|
|Dr. Glenn Millar||3,600,001||1.50|
Dublin, 14th June 2018
The Directors of the issuer accept responsibility for this announcement.
IMC Exploration Group Plc
Mr. Eamon O’Brien
Telephone (Ireland): +353 87 6183024
Keith, Bayley, Rogers & Co. Limited
Mr. Brinsley Holman
Telephone: +44 20 7464 4098
Mr. Graham Atthill-Beck
Telephone: +44 20 7464 4091/+44 750 643 4107
Mulberry Group plc MUL Revenue in the year to 31st March rose by 1% and retail sales by 3%. On the international front sales were good with a rise of 20% but the UK was flat and has gone even flatter since the year end with a drop of 9% and leading to a 7% fall in like for like goup retail sales for the 10 weeks to the 2nd June. Mulberry tries to put a brave face on the dismal news but can a fall of 9% in UK like for like retail sales over10 weeks be passed off as significant progress. New subsidiaries have been opened in China, Hong Kong, Taiwan and Japan but that has not been able to offset the lame excuse of a fall in UK footfall. Mulberry has a problem ad it seems to be getting worse.
Redhall Group plc RHL Despite a strongly growing order book, a strong tender pipeline and major contract awards in nuclear new build Redhalls first half performance has been impacted by programe delays. An adjusted operating profit of £0.2m has been turned into an operating loss of £1.9m. and a net cash position of £0.1m has been turned into debt of £4.5m Never mind, it has a transformation strategy underway.
Dewhurst plc DWHT did not have good first half. Sales and profits fell and group revenue declined by 5%. Profit before tax was down by 4% and operating profit collapsed by 19%. The strength of sterling had a 5% negative impact – presumably they must have found a part of the UK which had a different exchange rate to he rest of the country.. The interim dividend remains unchanged at 3.5p. per share. The business climate is seen as being reasonably positive, except of course for the UK., so presumably there my be a good chance of them getting a positive impact from the continuing fall of the pound.
Eckoh ECK at least brings some cheer into what is otherwise a gloomy day for UK plc. A strong performance in the US saw revenue there rise by 16% for the year to the 31st March and the UK order book grew strongly in the second half. Profit before tax increased by 61% and the final dividend is being increased from 0.48p to 0.55p, a rise of 15%. It is good to see that there some companies with management whose eye is on the ball and is not content to just sit back and whinge about the results of its own incompetence.
Reiterate buy Speedy Hire #SDY says VectorVest. Solid results & bullish technical picture warrant a revisit to the investment case.
Newton-le-Willows based Speedy Hire (SDY.L) was founded in 1977, and provides tool and equipment hire services to construction, manufacturing, industrial, and related industries. It offers a range of tool and equipment for hire, which include access towers, light plant, fencing, heating and cooling equipment, portable accommodation, pumps, generators and compressors, lifting equipment, safety equipment, rail equipment, heavy duty hammer drill, headroom hoist, and power pipe cutter, as well as instruments for surveying, civil engineering, and construction applications. SDY provides various asset services, including product specialization, testing and inspection, fuel management, survey service centre, on-sites, and hire direct, as well as a range of advisory services. It operates from over 200 depots across the UK and Ireland.
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On May 16th2018, SDY announced a strong set of FY results, which revealed a 59.9% hike in adjusted PBT to £25.9m, on revenues up 6.4% to £371.6m. Group net debt fell to £69.4m (2017: £71.4m) after £21.3m of acquisition spend (Prolift and PSHL), while adjusted EPS rose to 4.04p (2017:2.45p). SDY shareholders benefitted from a 65% increase in the FY dividend to 1.65p. CEO Russell Down said the board “are delighted with these results which reflect a strong operational performance, robust capital management..”He added the current year “has got off to an encouraging start with revenue ahead of the comparative period on a like for like basis. Whilst we are early into the new financial year, and some of the benefits from the acquisitions have been realised, we are confident of delivering further progress in the year ahead in line with our current expectations.”
On November 22nd2017, VectorVest published a buy note for Speedy Hire at 55p, noting that the stock first flagged across key metrics as far back as November 2016. View that article here. Shares moved higher, hitting our then 64.1p target intraday during mid December before falling back during March. Following a solid set of results in May, SDY shares continue to push higher backed by the VectorVest RT (Relative Timing) metric, a fast, smart, accurate indicator of a stock’s price trend. Today at 63p the SDY RT metric still logs a rating of 1.51, which is excellent on a scale of 0.00 – 2.00, while a GRT (Earnings Growth Rate) of 16% is still considered very good by VectorVest. Despite the push higher, VectorVest still sees more to come, and recommends a price target of 71.7p.
The weekly chart of SDY is shown above over the past two years. The share appreciated strongly in the period of June 2016 to June 2017. Since this time the share has charted a double bottom pattern which after a strong move upwards is a strong technical signal. The first technical target from the double bottom is approximately 75p which is similar to the VectorVest valuation.
Summary: The VectorVest November note was very much based on the strong set of half-year results. SDY followed that with another solid set of FY results, so it was entirely logical that VectorVest should revisit the investment opportunity. Both RT and GRT metrics are indicating there is more to come, and this backed by the 65% increase in the FY dividend is once again a clear and confident signal from the SDY board of more growth to come. As such VectorVest reiterates a buy rating for SDY.
June 13 2017
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