Tuesday, September 18, 2012

Tue 18 Sep (Part 2) - WIL, SUN, HOME

Part 2 here, as lots more results to look at. Fairly poor start to the day so far, with the FTSE100 down 43 points. Although I see inflation has come in slightly under expectations, at 2.9% Y-on-Y. Twitter is great for receiving up to the second economic information, and of course my Tweets are @paulypilot.
I must get round to changing that ropey picture of me on Twitter, just awful.

Wilmington Group (WIL) is a publishing & training group, mkt cap £91m at 108p a share. Their results for y/e 30 June 2012 look OK - adj profit before tax is up 4.6% to £14.0m. Quite a bit of debt though, at £36.2m. Final divi of 3.5p means full year divis of 7.0p, giving a rather decent yield of 6.5% - very much better than the Bank or Building Society.

Adj EPS rose 5% to 12.4p, so that's a PER of 8.7, which rises to about 12 when you adjust for the net debt. Market likes the results, shares up 10p to 118p. That probably looks about right to me, can't get massively excited about chasing it any higher. There are lots of good businesses around on a PER of about 10, so unless I see spectacular profit growth potential, really can't see the point in paying more.

Surgical Innovations (SUN) results don't look particularly exciting. £37m mkt cap at 8.7p/share, yet it only did £3m turnover in the half year to 30 June. Admittedly on high margins, delivering £976k of EBITDA, about 10% up on last year. Small numbers though, so not for me.

Looking at the top 5 movers this morning (excluding resource stocks & shares under 1p each);


1. Pentagon Protection (PPR) - up 43% to 5.0p on an RNS about "further contract gains" - might be worth a look?
2. Ceres Power (CWR) - up 8.9% to 12.25p on "technology update..." RNS
3. Ceramic Fuel (CFU) - up 8.6% to 4.75p
4. Ukrproduct (UKR) - up 8.5% to 11.5p - results were last week, only £4m mkt cap though.
5. Simigon (SIM) - up 7.2% to 16.75p - never heard of it before.


1. Volex (VLX) - down 29.5% to 180p on profits warning, although recovered a bit from earlier, steeper loss. Covered in my Part 1 report earlier.
2. Work Group (WORK) - down 19% to 8.5p on interim results.
3. K3 Bus. Tech (KBT) - down 19% to 143p on end of offer period, and results which look OK but not helped by vague outlook statement. I've nibbled at these at 143p, as that puts them on a PER of under 5, which looks interesting.
4. Brady Explor. (BRDY) - down 10.2% to 1.98p, not sure why.
5. Greatland (GGP) - down 9.6% to 0.85p - never heard of it before.

I've also been buying more Home Retail Group (HOME) which has been extensively covered here before. Perplexed as to why the shares have sold off from 100p at time of Q2 Tr Stat last week, to 91p now, given that trading is as hoped for, ie. showing stabilised LFL sales at Argos, and an improving trend (although still down, as you would expect from a garden centre in a wet summer) at Homebase.

I still think it's great value, mainly because the operating businesses are in for free, and are still profitable, with the mkt cap = net cash + storecard debtor book. Sooner or later HOME is likely to be bid for in my opinion. But please do your own research ("DYOR") as usual! Have a good day.

1 comment:

  1. Read your blog on 24th August for the first time noting your comments on Aga/pension deficit.Having done my own research(i.e. studied the accounts)invested in Trinity Mirror via SIPP&ISA about a week later,liking your point regarding freehold property versus pension deficit.Monitoring Staffline and will maybe hold alongside my Harvey Nash shares(results out 28th september),the idea being they cover different sectors of the market.Well done on your blog's first 100% gain - hopefully there will many more!