LONDON (Thomson Financial) - The following is a compilation of UK smaller
company results due out in the two weeks to June 20.
MONDAY JUNE 9
Trading during the year at Hyder Consulting Plc., the international advisory
and design consultancy, has been in line with expectations. The group has
secured significant new work with the order book at record levels.
Numis Securities predicts year to March 2008 pretax profits of 13.84 million
pounds, for growth in EPS of 20 percent to 31.8 pence. For 2008-09, the broker
predicts pretax of 17.7 million pounds and EPS of 39.5 pence.
Post the Holfords acquisition, around 50 percent of 2008-09 group EBITA is
in the Middle East/Australia/Far East where prospects are very good. U.K.
exposures are relatively favourable (eg Water and Roads with private property <6
percent of group turnover), Numis says.
Trading in the final two months of the financial year at Latchways Plc., a
designer and maker of fall protection systems, was in line with management's
expectations.
Analysts put year to March 2008 pretax profits at around the 9.0 million
pounds mark, up from the previous year's 7.8 million pounds. A dividend of 21.3
pence against 17.8 would be covered by EPS of 55.8 pence (50.6).
April's update from specialist retail chain Printing.com Plc. reassured
about current volumes at a time when investors may have been concerned about the
economic environment's effect on the business.
Volumes were said to be broadly in line with budget and bolt-on additions
are continuing apace. This, says Jon Lienard of Brewin Dolphin, bodes well for
prospects in 2008 and beyond.
Management also believes that Printing.com's lower price point means it
should not suffer and may even benefit when small businesses are looking to
shave costs.
Lienard forecasts year to March 2008 pretax profits of 2.5 million pounds,
up from 2.3 million pounds, throwing up EPS of 3.7 pence against 3.5. A 2.8
pence (2.5) total payout is anticipated. The analyst expects the group to have
net cash of 400,000 pounds at the year end.
TUESDAY JUNE 10
Overall, H2 trading at Carclo Plc. proved to be as expected. The improvement
in Technical Plastics came through as hoped. Equally, new lighting products
drove Precision Products ahead. Gains were also been made in the low-cost
manufacturing operations in both Asia and Eastern Europe.
However, within the detail of February's update, there was some more
significant changes, according to Mike Costello of Dresdner Kleinwort. U.S. auto
(sub 10 percent of turnover), proved progressively more difficult than expected.
But this was offset by stronger growth in Medical as contracts move to a more
mature phase, says the analyst.
The growth volume in automotive is creating the potential to shift moulding
capacity to medical from automotive, says Costello. The growth of the automotive
LED lighting business for super cars has been better than expected. This, says
the analyst, boosts short-term engineering revenue and creates a future income
stream.
The set up of the contract conductive ink-jet facility in Cambridge is on
track and a number of contracts has been gained. An additional machine is likely
to be installed. Most, but not all of the applications, are in the RFID area.
Revenues from this could start to become significant in 2008, says Costello.
Meanwhile, he forecasts year to March group pretax profits of 5.6 million
pounds, up from 4.6 million pounds, for EPS of 8.89 pence against 6.93. The
payout total is expected to rise to 1.90 pence from 1.60.
THURSDAY JUNE 12
Volumes, revenue and operating performance at Wagon Plc., the European
automotive components group, remain broadly in line with the board's
expectations.
Order intake continued at a higher rate than last year, as was the case in
the first half, with contracts from a wide spread of customers. In particular,
further significant contracts were secured in the period for Iveco and
Honeywell.
The group's largely euro-denominated net debt has been running ahead of
previous expectations, partly due to inventory and tooling recovery timing.
However, recovery of these balances is expected before the year end.
Since the half year, further invoice discounting funds were drawn as
planned, in order to repay more expensive existing bank debt. As a result,
interest costs remain in line with previous expectations.
Analysts predict year to March 2008 pretax profits of 14.0 million pounds,
up from 4.2 million pounds, for EPS of 8.63 pence against 2.0. A reduction in
the payout total to 4.00 pence from 5.0 is expected.
MONDAY JUNE 16
April's update from Kewill Systems Plc., a provider of supply chain
control software and solutions, said full-year numbers would be better than
market expectations, showing significant growth on the previous year.
The One Kewill plan is delivering real value to the business as more
examples of cross-selling are seen between regions and early benefits are
realised from consolidating the back office operations in countries where there
were overlaps.
This will continue during this financial year as operations in
the United States and Europe are consolidated.
Meanwhile, the most recent acquisitions are performing strongly, with the
result that margins in Europe and Asia will be particularly strong, says Ian
Mitchell of Charles Stanley Securities.
Following the update, the analyst cranked up his year to March 2008
operating profits forecast by 150,000 pounds to 6.9 million pounds. At the
pretax level, he looks for 7.0 million pounds, up from the previous year's 5.0
million pounds, for EPS 8.48 pence against 6.69.
The dividend total is expected to double to a penny.
January's trading update from Majestic Wine Plc. saw like-for-like sales for
the nine weeks to end-December 1.2 percent ahead. This was a weaker trend than
experienced earlier in the year due to a difficult November, although December
was much better with like-for-like sales up 4.1 percent.
Q3 LFLs to end-December were up 1.5 percent after LFL growth in H1 of 2.4
percent.
Paul Deacon of Landsbanki has assumed 3 percent like-for-like sales growth
for Q4 to end-March, an acceleration over Q3 due to the timing of Easter this
year when the company got the Easter uplift, but avoided the usual fall-off in
trade thereafter.
This assumption leaves like-for-like sales growth for the year of 2.3
percent. Combined with the expansion programme, store sales should be ahead
around 7 percent on a comparable basis, says the analyst, although the absence
of last year's 53rd week means Deacon expects about 5 percent store sales growth
to be reported.
At the pretax level, the analyst forecasts year to March 2008 pretax profits
of 16.7 million pounds, up from 15.7 million pounds, implying EPS of 18.0 pence
against 16.4. Analysts expect the total payout to rise to 9.8 pence from 8.5.
TUESDAY JUNE 17
H2 trading at Brulines (Holdings) Plc., a provider of real time monitoring
systems and data management services for the UK leisure sector, was robust.
New installations, system replacements and upgrades progressed successfully,
continuing the ongoing year-on-year growth in recurring revenue from support
services. The group continues to increase market penetration as well as broaden
its customer base.
The integration of Nucleus Data, purchased in January 2008, is delivering
the expected synergies and will be earnings enhancing in 2008/9.
Brulines has made further progress with the commercial development of its
beer quality and AWP monitoring products within the tenanted and managed
sectors, and the wider leisure market.
Analysts predict year to March 2008 pretax profits of around 4.3 million
pounds, up from the previous year's 3.1 million pounds. A payout of around 4.4
pence is anticipated.
Trading at Focus Solutions Group Plc., a provider of proven enterprise
solutions to the financial services market, is broadly in line with
expectations. It has a strong pipeline of new business and remains confident
about the prospects for the group and further sales of the focus: 360degrees
product suite.
More importantly, both the HSBC programme and April announced contract with
a major European IT company add further support to FY09 forecasts, according to
Andrew Bryant of Edison Investment Research.
The contract with a leading European IT company is worth 710,000 pounds
initially. It highlights, says Bryant, the group's strong technical offering in
the B2B mortgage market and crucially provides an opportunity for Focus to
market its 360degrees product multi-channel solution to a further 36 of the IT
company's clients.
Meanwhile, the analyst expects Focus to turn in year to March 2008 group
pretax profits of 1.5 million pounds, compared with 1.2 million in the previous
12 months. This implies EPS of 4.8 pence against 4.1, from which a dividend of
0.5 of a penny (nil) is anticipated. For the ensuing year, Bryant looks for
pretax profits of 1.8 million pounds, EPS of 5.9 pence and a dividend of 0.7 of
a penny.
WEDNESDAY JUNE 18
Full-year numbers from RPC Group Plc. will be at least in line with
consensus expectations. The maker of rigid plastic packaging has initiated a
strategic review, and Nick Spoliar of Altium Securities sees the key options as
encompassing a sale or a reorganisation of the business.
In terms of a reorganisation of the business, the analyst believes there is
scope to broaden and expand the process which RPC has already initiated of
driving efficiencies within the operations, and thus halting the erosion of
value which has been a feature of the business in recent years.
Its successful consolidation of the European market has left RPC with a
varied portfolio of sites, including underperformers. With a disparate portfolio
of 49 sites, the objective would be to lift the underperforming sites to a
higher level, says Spoliar.
Some opportunities, he added, might also arise to capitalise on property
values within the group, given that most sites sit on the balance sheet at
values dating back to the early or mid 1990s.
Assuming the appointment of a new chairman in July in time for the AGM, the
analyst would not exclude the possibility of further management changes.
Returning to the results, Spoliar predicts year to March 2008 pretax profits
of 27.5 million pounds, down from the previous year's 29.4 million. This implies
EPS of 18.8 pence against 20.6, from which a 9.1 pence (8.4) total payout is
anticipated.
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