Paper from TexRAD collaboration with Neuroradiologists presented at BSNR conference at Queens’ College, Cambridge – Feedback (FDBK)
The first output from the collaboration between TexRAD and Neuroradiologists from the prestigious National Hospital for Neurology and Neurosurgery, Queens Square, London, UK was presented at the British Society of Neuroradiologists annual conference at Queens’ College, Cambridge, 15th to 16th September 2017. Conference website here
The paper entitled – “Volumetric texture analysis of clinical MR imaging for identification of IDH wild type glioma” was presented by M Lewis (presenting-author), B Ganeshan, A Barnes, L Mancini, S Bisdas, A Groves, R Endozo and S Thust.
Amerisur AMER increased production significantly to 4475 BOPD in the half year to the 30th June. compared to 2016’s 2641 barrels. At the same time the average realised sale price rose from $38.4 per barrel to $47.3. These two factors resulted in revenue for the half year rising by more than 57% with the Platanillo field alone having producing 8MMBO so far this year. Average production by the end of the year is expected to have reach 7,000 barrels of oil per day compared to the present rate of 6,000 barrels. By the end of 2018, 16 wells are expected to be operational, all of them fully funded from cash resources and operational cash flow.
M&C Saatchi SAA enjoyed strong revenue momentum and earnings growth in the 6 months to the 30th June and interim dividend is to be increased by 15%. The UK as so often is the case, was the geographical laggard with only 5% like for like growth compared to 15% in Europe and 14% in the USA. Profit before tax and like for like revenue, both rose by 17% and earnings per share by 11%. The second half is said to have started well.
Elecosoft plc ELCO Saw profit before tax rise by 81% in the 6 months to the 30th June and shareholders are rewarded with a 30% proposed increase in the interim dividend. On a constant currency basis the rise in profits came to 68%. Revenue for the half year rose by 14%, basic earnings per share by 83% and EBITDA by 66%. Growth was experienced in all of the company’s geographical regions.
Osirium Technologies plc OSI which came to aim in 2016, has produced strong progress in sales momentum in the six months to the end of June with invoiced sales rising by 393% and revenue up by 59%. High profile data breaches and new regulations which are due t come into force in 2018 have attracted new customers and ensured the renewal of existing contract. Profitability has not yet been achieved because of high investment in sales and marketing and operating losses for the half year more than doubled but the company is pleased with its operational and financial progress which has resulted in it being declared a “cool vendor” by Gartner.
Shepherd Neame (SHEP) improved both beer volumes and like-for-like sales in its managed pubs last year. The first phase of investment in the brewery has been completed and new beer brands have been launched to replace the contract brewing of Asahi lager, which comes to an end next February. In the year to June 2017, revenues were 12% ahead at £156.2m, while underlying pre-tax profit was 8% higher at £11.2m. The total dividend has been raised by 3% to 28.35p a share, which is more than twice covered by earnings. Net debt was £60.1m because of investment in the brewery and pub acquisitions. In the first ten week of this financial year, like-for-like managed pub sales were up by 1.5% and beer volumes were ahead by 4.4%. Graeme Craig has resigned as brewing and brands director. Peel Hunt has become corporate broker.
Equatorial Mining and Exploration (EM.P) had £5,000 left in the bank at the end of June 2017 but since then £40,000 has been raised via loan securities. Equatorial has signed a three year exploitation rights agreement covering an open cast coal mine in central Nigeria, which will be called the St Leonard mine. The mining will be outsourced and production should build up over a six month period.
Kryptonite1 (KR1) is investing £200,000 in Vo1t Ltd, a digital custodian of bitcoin assets, for a 5% stake. Kryptonite1 is the first beta client.
Walls & Futures REIT (WAFR) says the refurbishment of the first supported housing investment in Stroud is complete and the first residents will move in during October. There is a pipeline of other supported housing projects.
Lombard Capital (LCAP) has identified an investment product around which it intends to build a business. This involves the provision of reinsurance to reduce the risks relating to investments secured on Senior Life Settlement (SLS) policies. The details of the product are still to be finalised. Lombard has issued a total of £150,000 of 7.5% convertible unsecured loan notes 2020, out of a potential £3m note issue. The conversion price is 10p a share and there are ten warrants for each £1 loan note exercisable at the same share price.
Primorus Investments (PRIM) is investing $200,000 in Stream TV Networks Inc, which has developed a glasses-free 3D technology. The strategy is to licence this technology for TVs and smartphones, followed by PCs and other uses. Stream is valued at $336m and plans to join Nasdaq in 2018. Primorus still has £350,000 in the bank.
Electronic coupon and loyalty technology developer Eagle Eye (EYE) reported faster than expected growth in revenues in the year to June 2017 and they are likely to grow by around one-third in the first quarter of this financial year thanks to the new John Lewis contract. Full year revenues improved from £6.5m to £11.1m, while the underlying loss was slightly lower at £3.8m. Recurring revenues were 68% of the total and this percentage is likely to increase. There was £3.7m left in the bank and there is likely to be net debt by the end of June 2018.
Safestyle UK (SFE) is not immune to the tough consumer climate but it still performed well in the first half of 2017. There was a small increase in interim revenues to £82.1m but there was a 15% fall in underlying pre-tax profit to £9m. The full year profit forecast is £16m, down from £20.4m. This means that the forecast dividend is flat at 11.3p a share. Safestyle is taking share in the replacement windows market and new manufacturing facilities will make it more efficient.
Bango (BGO) says that end user spend via its mobile billing platform doubled to £92.3m in the first half of 2017. This prompted Cenkos to lower its forecast loss for 2017 from £800,000 to £600,000 and raise its 2018 profit forecast from £1.1m to £1.5m. There is room for improvement if there is further roll outs around the world by Amazon.
Electricity supplier Flowgroup (FLOW) continued to make significant losses in the first half of 2017 but it has raised £25m to improve the strength of its balance sheet. The rate of customer acquisition will be lower but Flowgroup should make more money from the customers it does obtain. Breakeven is possible by the end of 2018 and there could be positive cash flow in 2018.
Macfarlane Group (MACF) has acquired Nottinghamshire-based packaging distributor and manufacturer Greenwoods for up to £16.75m, which was partly funded via an oversubscribed £8m placing at 66p a share. The deal helps Macfarlane move into the clothing and apparel sector. The acquisition will be earnings enhancing in its first full year.
Sportech (SPO) is undergoing a strategic review and it expects to update shareholders on 9 November. Chief executive Ian Penrose, who is leaving at the end of 2017, and his wife have sold 300,000 shares at an average price of 95.2916p each, which takes their stake to 561,800 shares.
Last Thursday, telecoms-focused cash shell Stapleton Capital (STC) joined the standard list. Stapleton raised £1.5m, £1.4m net, at 5p a share. The potential acquisition would be valued at between £2m and £3m. Cash shell Baskerville Capital (BASK) started trading on the standard list last Friday, having raised £1.8m, £1.65m net, at 5p a share. The focus of the Chris Akers-backed shell is on companies in the technology sector that have strong management and the potential for scaling up their business. Rodger Sargent is a director of Stapleton and Baskerville, and he was previously a founder of the shell that became Satellite Solutions Worldwide (SAT).
Standard list shell Spinnaker Opportunities (SOP), which is focused on the energy and industrial sectors, still has £1.1m in the bank. Management is pressing ahead with discussions for the acquisition of the most attractive of its potential acquisitions.
Intelligent Energy Holdings (IEH) expects its current year revenues to decline from £91.8m to around £21m but the loss after tax should fall from £82.7m to around £24m. If the large Indian contract is excluded then the decline in revenues is from £6.7m to £4.3m. There is still £2.7m in the bank but this will not last long if the loss is not stemmed. The cash burn is currently £1.6m per month, although an R&D tax credit is anticipated in the next couple of months. Management has put the fuel cell technology developer’s assets up for sale. The fact that some of these assets are part of the security of the company’s £30m of convertible loan notes could prove a constraint. There is likely to be little, if anything, left for ordinary shareholders. That led to the share price more than halving to 2.45p.
Iofina IOF reached a number of significant operation and financial milestones during the six months to the 30th June and is now optimistic about the remainder of the year. Production during the half year exceeded expectations and spot iodine prices have risen by 25% since the start of the year, after earlier weakness which led to a fall in revenue of 18%. EBITDA has more than tripled from US$0.2m to $0.7m and the group is increasingly positive about future profitability
Saga plc SAGA pre tax profit before tax for the six months to 31st July fell by 6.3% and the interim dividend is increased by 11.1%. Saga would prefer that you concentrate on underlying profit before tax which grew by 5.5%, enabling it to claim four consecutive years of growth. Growth in travel was strong with travel profits rising by 63%.
Smiths Group SMIN claims that it is well positioned to return to growth but not just yet and the likely starting date is given as 2018. For the year to 31st July the dividend is being increased by a cautious 3% after full year revenue rose by 11%, pre tax profit by 17% and like for like basic earnings per share by 15%. Problems such as unspecified market challenges in the John Crane subsidiary and new product delays in Smiths medical impacted the years outcome.
Windar Photonics WPHO which developed and produces wind sensors for wind turbines saw first half turnover rise by 62% exceeding that for the whole of 2016 which was a challenging year. At the same time operating costs fell by 47%, resulting in the net loss for the six months to 30th June falling from last years E1.8m to 0.8m and the EBITDA loss falling by 74%. Further growth is expected in the second half.
Brand CEO Alan Green talks Watchstone Group (WTG), Just Eat (JE.) & Morses Club (MCL) on VOX Markets podcast
Brand CEO Alan Green discusses Watchstone Group (WTG), Just Eat (JE.) & Morses Club (MCL) with Justin Waite on the VOX Markets podcast. The interview is 32 minutes 48 seconds in.
APC Technology APC says unaudited FY results to 31 Aug 2017 are expected to show revenue of £15.6m (2016: £17.9m), gross profit of £5.5m (2016: £6.4m), an operating profit before interest, amortisation, depreciation and exceptional costs of £0.8m (2016: £0.3m) and a PBT in the region of £0.2m, the first PBT since Aug 2014.
Compass Group CPG says CEO Richard Cousins has decided to step down on 30 Sept 2018. He will be succeeded by Dominic Blakemore, currently COO Europe.
IG Group IGG reports a record Q1 in relatively quiet financial markets, with revenues 21% of the last quarter at £135.2m.
Mitchells & Butlers MAB says the weather in August and September has adversely affected the market, but it remains encouraged that its like-for-like sales performance continues to outperform the market. As such MAB expects to deliver a full year performance in line with the Board’s expectations.
NCC Group NCC said it continues to trade in line with expectations for the full year.
SCISYS SSY reports half year results to 30 June 2017. Half year adjusted operating profit rose 18% to £1.3m, on revenues up 23% to £27.2m. Order book stands at a record £64m, and the interim dividend is up 11% at 0.59p. Chairman Mike Love said the company currently expects to deliver FY results at the upper end of current guidance.
Kingfisher plc KGF The jargon filled half year report claims that the six months to 31st July saw a significant increase in the level of transformation activity but it can not hide the fact that sales continued to fall and profits slumped. An increase of 2.5% in the interim dividend will not fool anybody. Sales appear reasonable with a rise of 4.5% until you look at them in constant currency terms which shows a fall of 1.3% Profit figures are given in a variety of guises, all of them bad. In constant currency terms they fell by 4.6%. On an adjusted basis they were down 5.7% and basic earnings per share followed suit with a fall of 4.4% On a statutory basis pre tax profits fell by 5.9% and post tax profits by 8.1%. To add to the misery the company is cautious about what it calls the second half :”backdrop” in France and the UK.
Diageo DGE has issued a trading commentary ahead of its AGM asserting that it is expecting mid single digit top line growth for the current year, relying on the strength of its marketing, innovation and commercial execution but it expects to be impacted by a late Chinese New Year and an expected motorway ban in India, hardly signs of unbridled confidence.
600 Group plc SIXH updates before todays AGM that its current machine tool order book is up by 60% and industrial lasers by 36%, on the same time last year, which augurs well for trading in the second half of the year.
Cello Group CLL Despite a slight fall in revenue Cello claims an encouraging first half, producing a statutory profit before tax of £2.7m for the 6 months to the 30th June, compared to a loss of £0.8m last year whilst basic earnings per share came in at 2.16p compared to last years loss of 1.08p per share. The interim dividend is increased by 5%
Science in Sport SIS experienced continued strong growth in the half year to the 30th June, with revenue rising by 28% and e commerce delivering 87% growth, followed by International with a rise of 55%. Whilst still producing operating losses, profitability at EBITDA level is expected for the full year.
Buy Morses Club (MCL). The stock offers an enticing investment opportunity in the run up to October interims, says VectorVest
UK based Morses Club (MCL.L) is a home collected credit (HCC) lender. A consumer finance business focused on the UK home collected credit market, MCL operates under the Morses Club brand and provides unsecured loans to customers over 20-78 week periods, which are repayable on a weekly basis. It provides a range of loan products through a combination of traditional and online marketing channels.
On August 31 2017, MCL said trading for the 26-week period to 26 August 2017 continued to be strong. Total credit issued increased by 25% to £82.2m compared to the same period last year (H1 2017: 16% to £66.0m), reflecting the significant increase in territory builds. Customer numbers increased substantially by 12% to approximately 233k, with the gross loan book also 12% higher (H1 2017: flat) and average customer balance unchanged. Territory builds are performing ahead of management’s expectations set at the beginning of the year, and overall business performance is in line with expectations. CEO Paul Smith said the board “are delighted with all aspects of the progress of the business, reflecting the fact that we have capitalised on market conditions, whilst developing our strategy of product diversification.” MCL interim results and dividend for the period will be announced on Thursday, 5 October 2017.
MCL appeared across key VectorVest metrics in June when the shares traded around 122p. The stock triggered a series of system alerts again in the run up to the trading statement in August, before rocketing from 106p to 150p in a matter of weeks. Now at 143p, the stock still carries a reasonable RS (Relative Safety) rating of just 0.94 – fair on a scale of 0.00 to 2.00, but this only tells part of the story. The RT (Relative Timing) indicator, which is a fast, smart, accurate indicator of a stock’s price trend, shows a rating of 1.47 for MCL, which is excellent on a scale of 0.00 to 2.00. With the VST-Vector (VST) master indicator, (ranks every stock in the VectorVest database), also logging a ‘very good’ rating of 1.27 on a scale of 0.00 to 2.00, MCL remains undervalued against the current VectorVest valuation of 184p.
The chart of MCL.L is shown above in my normal notation. As discussed the share is much undervalued and growing EPS strongly. After a strong run the share has consolidated in a pattern which technical analysts refer to a “flag”. This is a bullish pattern and the probabilities favour a resumption of the trend soon. The pullback would seem to have run its course as the market has retreated to where old resistance has become potential suppport. The share is on a Buy recommendation on VectorVest.
Summary: The plethora of credit solutions in the domestic market has witnessed plenty of notable success stories in recent years. MCL is another of these success stories, and following the bullish trading statement outlined here, there is every reason to expect the stock to continue delivering growth in customers, revenues, profits and dividends. With the VectorVest stock analysis and portfolio management system alerting members to the opportunity in June, and now with an increased valuation of 184p, we believe MCL offers an enticing investment opportunity in the run up to interim results early next month. Buy.
Dr David Paul
Sept 19th 2017
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Pure Circle PURE Final results for the year to the 30th June were severely affected by it being denied access to the US market where it had been producing a third of its revenue, after it was made subject to a Withold Release Order by US Customs & Border Protection. Extensive investigations resulted in it being removed from that list but not until the 30th January and although sales to the US have now resumed, it will take time for it to rebuild the previous momentum which it had acquired in the US market. Operating profit fell by nearly half to US$17.6m. and earnings per share were also halved from 8.49 to 4.16 cents per share. The company claims it has a unique market position with 72 patents granted and a further 200 pending.
OCADO Group OCDO Revenue in the 13 weeks to 27th August continued to grow strongly with an increase of 13.1%, significantly ahead of the industry average. Orders per week increased by 16% but the average order size fell by 1.2%.
Judges Scientific JDG has made a robust recovery from a year ago with interim results to the 30th June showing new records being set for revenue, profit before tax, earnings per share and dividends. Revenue rose by 20%, (14% on a like for like basis), adjusted pre tax profit by 48%. and basic earnings per share by 65.1%. The interim dividend is being increased by 11% to 10p per share.