The Lemon Fool

GrahamPlatt wrote:

WickedLester wrote:There's been a few trading updates on some of the companies mentioned here today. (21st Jan)

....
Thirdly Robinson also posted that their earnings would be above market expectations and are paying a bumper 8.5p dividend this year.

https://www.investegate.co.uk/robinson- ... 00033894M/

Jan trading statement says “we’ll do 37m revenue this year”. Yesterday, the full year results are out: revenue = 37.2m. SP falls 10%. ???

Just tried to buy a starter position of 5,000 shares. Seems EMS is just 500! Really not much point in getting involved then. I'm not sure why it is even listed if that is the liquidity. Possibly just as well I didn't get to see the size of the bid/offer spread.

dealtn wrote:Just tried to buy a starter position of 5,000 shares. Seems EMS is just 500! Really not much point in getting involved then. I'm not sure why it is even listed if that is the liquidity. Possibly just as well I didn't get to see the size of the bid/offer spread.

I bought 6000 in Dec 19 @ 84p. No issue with EMS, just placed trade & got the offer to accept.

GrahamPlatt wrote:

dealtn wrote:Just tried to buy a starter position of 5,000 shares. Seems EMS is just 500! Really not much point in getting involved then. I'm not sure why it is even listed if that is the liquidity. Possibly just as well I didn't get to see the size of the bid/offer spread.

I bought 6000 in Dec 19 @ 84p. No issue with EMS, just placed trade & got the offer to accept.

Well not for me today it seems. Unable to quote!

simoan wrote:Somero announced FY results today and everything is in-line with the Jan trading update. PBT tax was down 9% but they ended the year with a record cash balance of $35.4m of which $0.31 (equivalent to ~22p) per share is being returned as a final+special dividend. That's equivalent to 6.2% at the current price. If only those HYPers were allowed to hold small companies that are highly profitable cash generating machines that can knock out huge dividends and still have plenty left to invest for the future

Results are here: https://www.investegate.co.uk/somero-en ... 00067118R/

All the best, Si

Nice positive trading update from Somero today and the price currently over 450p at an all-time high: https://www.investegate.co.uk/somero-en ... 00046989X/

The Board is pleased to report that as a result of stronger than anticipated trading momentum in the US in the first four months of the year alongside signs of improving activity levels in Europe and Australia, it now expects to exceed previous guidance for FY 2021 established in the 10 March 2021 final FY 2020 results statement. The Company's previous guidance for FY 2021 indicated revenues were expected to grow in the single mid-digit percentage range from the US$ 88.6m reported for FY 2020, adjusted EBITDA would grow modestly from the US$ 26.1m reported for FY 2020 and ending net cash would approximate US$ 27.4m. The Board now expects FY 2021 annual revenues will approximate US$ 100.0m, adjusted EBITDA will approximate US$ 31.0m, and a consequential improvement in the anticipated year end net cash position.

Shame I had to top slice a couple of weeks ago in accordance with my rules on size of any one holding, but onwards and upwards! The very large dividend payment that hit my account last Friday will soften the blow...

All the best, Si

dealtn wrote:Well not for me today it seems. Unable to quote!

Someone was looking after you!

WickedLester wrote:
Wynnstay Group (WYNN)

I traded these successfully once up from about 230p to 300p but bought back in at 259.5p. At that price they are trading at around the level of net current assets and a substantial discount to net tangible assets value. It's a very low margin business but seems to make a profit every year and should remain largely unaffected by the pandemic. The results were out the other day and they are still paying a dividend.

Lester

Looks like this is gonna pop tomorrow--ST from Investors Chronicle wrote up the name after the close today.

Unfortunately once again I sold these way too early but still did well out of them so the ST write up won't help me!

simoan wrote:

simoan wrote:Somero announced FY results today and everything is in-line with the Jan trading update. PBT tax was down 9% but they ended the year with a record cash balance of $35.4m of which $0.31 (equivalent to ~22p) per share is being returned as a final+special dividend. That's equivalent to 6.2% at the current price. If only those HYPers were allowed to hold small companies that are highly profitable cash generating machines that can knock out huge dividends and still have plenty left to invest for the future

Results are here: https://www.investegate.co.uk/somero-en ... 00067118R/

All the best, Si

Nice positive trading update from Somero today and the price currently over 450p at an all-time high: https://www.investegate.co.uk/somero-en ... 00046989X/

The Board is pleased to report that as a result of stronger than anticipated trading momentum in the US in the first four months of the year alongside signs of improving activity levels in Europe and Australia, it now expects to exceed previous guidance for FY 2021 established in the 10 March 2021 final FY 2020 results statement. The Company's previous guidance for FY 2021 indicated revenues were expected to grow in the single mid-digit percentage range from the US$ 88.6m reported for FY 2020, adjusted EBITDA would grow modestly from the US$ 26.1m reported for FY 2020 and ending net cash would approximate US$ 27.4m. The Board now expects FY 2021 annual revenues will approximate US$ 100.0m, adjusted EBITDA will approximate US$ 31.0m, and a consequential improvement in the anticipated year end net cash position.

Shame I had to top slice a couple of weeks ago in accordance with my rules on size of any one holding, but onwards and upwards! The very large dividend payment that hit my account last Friday will soften the blow...

All the best, Si

Yet another very positive trading update from Somero today: https://www.investegate.co.uk/somero-en ... 00033746E/

The Board is pleased to report that due to stronger than anticipated trading in the US to end H1 2021 and with this momentum carrying over to begin H2 2021, it now expects to exceed previous guidance for FY 2021 established in the 6 May 2021 trading update. The Company's previous FY 2021 guidance indicated revenues were expected to approximate US$ 100.0m, adjusted EBITDA would approximate US$ 31.0m and net cash would improve consequentially from the original US$ 27.4m target established in our 10 March 2021 final FY 2020 results statement. The Board now expects FY 2021 annual revenues will approximate US$ 110.0m, adjusted EBITDA will approximate US$ 35.0m, and year end net cash is expected to exceed US$ 33.0m.

Wow! What a great little company this is - they're going to generate an additional US$ 5.6m of free cash from the extra US$ 10.0m of revenue.

Happy Days, Si

I have now sold most of the shares I bought after the market crash last year but one I am still holding is Synectics (SNX) as they have not yet recovered and once they do I am hopeful that the company will be sold for a premium.

They published their interims this morning and they are pretty much as expected. Revenue is still a long way down from normal but the order book is improving. They have been particularly hard hit by the pandemic and the closure of casinos but this market should recover in time.

https://www.investegate.co.uk/synectics ... 00029899E/

The CEO commented:

"Trading in the first half of the year was as expected, with significantly reduced operating losses, and major successes for the latest Synergy product. We expect that the Group will trade profitably in the second half of this financial year."

I'll keep holding these for recovery.

Afternoon all.

I have bought some H&T shares (HAT) over the past week as I think they look good value. Operating cash flow and free cash flow looks good, debt is about 20% against market cap, ROCE/CROCI/FCF conversion good and PE 8.

I am aware that there is an ongoing investigation by the FCA on their lending history and what financial affordability checks they made to their clients, but I'm assuming that all the potential 'bad news' was already priced in when this was announced a few years ago. The board also stated that they had the cash to cover any fines if needed (assuming their fine assumption was accurate!).

With the high street opening up next week and perhaps some people wanting to exchange goods / jewellery for cash to spend, perhaps pawnbroking has a robust future. Also pleased they have an online outlet as well.

Cheers, OLTB.

Hi OLTB

I also bought some HAT recently for the reasons you outline. I'm not sure you're correct about debt though, don't they have a large net cash pile at the moment?

The shares trade at a small premium to Net Current Assets and it pays a dividend.

I can see profit falling this year due to the contraction of the pledge book but I think there is a good 50% upside potentially in a couple of years time.

WickedLester wrote:Hi OLTB

I also bought some HAT recently for the reasons you outline. I'm not sure you're correct about debt though, don't they have a large net cash pile at the moment?

The shares trade at a small premium to Net Current Assets and it pays a dividend.

I can see profit falling this year due to the contraction of the pledge book but I think there is a good 50% upside potentially in a couple of years time.

Hi WL

Yes, you are quite right and I've just re-read the Preliminary Results for year ended 31 Dec 2020 and they do state, "We have no debt and significant cash resources to rebuild the pledge book when underlying customer demand increases".

The notice of publication of 2021 Interim Results issued today is also worded encouragingly with the statement, "an update in respect of current trading, which has shown good momentum since the relaxation of pandemic trading restrictions during April".

Cheers, OLTB.

I recently bought back into RBN after the results and the fall in price to under £1. Although the first half was poor the full year outlook is better and it looks like they're finally going to get rid of some of that surplus property for a tidy profit.

Debt is a bit high but property sales should almost eliminate this in time and they remain comfortably within their facilities.

The dividend yield is now around 5.5% and I believe it should be maintained.

Hopefully at £1, in a couple of years' time this will be on a modest multiple, pretty much debt free and at a respectable discount to NTA's.

I'm surprised Simoan didn't comment on SOM's excellent interims the other day. Very large increase in profitability and the interim dividend has been more than doubled.

https://www.investegate.co.uk/somero-en ... 00060500L/

WickedLester wrote:I'm surprised Simoan didn't comment on SOM's excellent interims the other day. Very large increase in profitability and the interim dividend has been more than doubled.

https://www.investegate.co.uk/somero-en ... 00060500L/

Yes, sorry! Very good H1 results from my biggest equity position. The new broker estimate from Finncap also upgraded FY21 EPS to 55c US with a FY dividend forecast of 41c US (I presume including yet another special), so even with yesterdays strong rise it's on a current year dividend yield of 5.4%. I think the EPS estimate is also a bit light and would not be surprised if it ends up 60c US plus. You'd think HYP'ers would be wetting themselves over Somero but the rules preclude investment in quality small companies. It is a bona fide cash machine with strong margins operating in a sweet spot i.e. flat concrete floors for e-commerce distribution warehouses.

This is my favourite section from yesterdays results announcement which encapsulates what a great little company Somero is:

The significant revenue growth in H1 2021 translated efficiently to strong profits and robust cash generation. The strong profits were underpinned by a considerable expansion of gross margin to 58.6% (H1 2020: 54.7%) driven by the benefits from increased volume and pricing increases offset modestly by higher material and logistical costs. The strong gross margin in turn supported a significant increase in adjusted EBITDA margin to 38.1% (H1 2020: 24.5% margin) an improvement that reflects considerable leveraging of support costs. These operating results underscore the scalability of the Company's operations and support functions to meet increased demand levels. H1 2021 operating cash flow of US$ 16.0m (H1 2020: US$ 7.0m) was particularly strong leading to a June 30, 2021 cash balance of US$ 32.8m notwithstanding the payment of a US$ 17.4m dividend in April 2021.

All the best, Si

Yet another excellent update from Somero, they are ahead of revised expectations again.

https://www.investegate.co.uk/somero-en ... 00027424U/

The Board is pleased to report that it has seen strong trading momentum continue throughout H2 2021. This, combined with the Company's ability to consistently deliver on customer orders, means that the Company now expects to exceed previous guidance for FY 2021 established in the 8 September 2021 interim results statement. The Company's previous FY 2021 guidance indicated revenues were expected to approximate US$ 120.0m, adjusted EBITDA would approximate US$ 42.0m and net cash would approximate US$ 36.0m. The Board now expects FY 2021 annual revenues will approximate US$ 130.0m, adjusted EBITDA will approximate US$ 45.0m, and year end net cash will approximate US$ 39.0m.