Wednesday, August 22, 2012

Wed 22 Aug - TTG, CKN, INL, VTC, SRT

Good morning! I've just been browsing through the interim results from TT Electronics (TTG). Looks OK, with PBT flat, and EPS up slightly to 6.0p for the 6 months. Although the outlook statement delivers a mild profits warning for H2.
They also refer to an additional "accordion facility" in their banking arrangements, first time I've heard that term, but expect we will hear it again, given how the financial sector loves trendy buzz-words (e.g. "no silver bullet", "add some colour to that", "risk on/risk off day", etc). Why not just call a spade a spade?

TTG did look reasonably-priced at 168p/share, with broker forecast at 16.9p for this year. However, that looks challenging now, as they only did 6p in H1, and I can't see any particular H2 bias in last year's results. So these shares likely to be under some pressure today.

I've always liked Clarkson (CKN) as a company - seems well managed, and has a lovely balance sheet stuffed with cash. Their interim results to 30 June are slightly up or slightly down, depending on which measure you look at. The PER still seems reasonable, at about 11, although they are another company mentioning "demanding conditions" in their markets. So the macro picture really isn't looking great at the moment generally - worth bearing in mind.

Housebuilder, Inland Homes (INL) announces receipt of planning permission on a site in Chelmsford with a gross value of 26.5m. Not bad for a 35m mkt cap company, if you think that residential property values are likely to hold up? I don't, and think that house prices in the UK remain grotesquely over-priced compared with household income, so am not interested in any housebuilder until house prices have adjusted to more sensible levels.

Vitec Group (VTC) results look good - adjusted EPS up 14% to 27p for H1 of 2012. But at 650p/share that looks to be in the price.

24m mkt cap Software Radio Technology (SRT) shareholders will be breathing a sigh of relief, as the rather accident-prone company announces that it has begun shipping the first batch of radio devices to a large customers. I would expect this to give the shares a nice boost today.

That's it for this morning, as my 8am deadline looms. FTSE 100 futures are pointing to an open down 44 points.

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