LONDON (Thomson Financial) - The following is a compilation of UK smaller
company results due out in the two weeks to July 11.
MONDAY JUNE 30
Accident Exchange Group Plc.'s May update showed the strategy of cash
collection is obviously working with average cash daily collections at 642,000
pounds, compared with 476,000 pounds for the three months to January 31.
Moreover, the conclusion of the General Terms of Agreement rate review --
increasing rates to 3.5 percent -- suggest, according to Neil Shah of Edison
Investment Research, that there are signs of resolution of tension between
credit hire companies and insurers, and the meeting of forecasts suggest there
is now improving stability in the business.
Accident Exchange's daily cash breakeven is estimated at 730,000 pounds. The
rate of improvement in cash collections suggest to Shah that the year-end cash
position is likely to be better than the analyst's current 15 million pounds
forecast.
This, he says, puts the company in a stronger position in defending claims
with insurers. Valuation upside, he adds, is more likely to unlock as investors
focusing on CEPS are likely to see the company move into positive territory in
the coming financial year.
In the meantime, Shah sets his sights on year to April 2008 pretax profits
of 15.8 million pounds, down from the previous year's 18.0 million pounds, for
EPS of 13.4 pence against 18.0. The dividend is likely to be cut to 2.6 pence
from 3.0.
Internet fashion retailer ASOS Plc. is to launch an online discount
operation in September, with the aim of doubling its turnover within the next
three years, according to a recent report in the Sunday Times.
The AIM-listed company is eyeing the 2.7 billion pound market currently
dominated by TK Maxx Plc., part of TJX Companies Inc., the newspaper reported.
Meanwhile, ASOS' strong trading update in April once again draws attention
to the advantages of online retailing as the company has successfully resisted
the pressures of the consumer slowdown in the high street. In its update, ASOS
said it expected to deliver year to March 2008 pretax profits 'slightly' ahead
of market estimates of around 6.8 million pounds.
As a result, Natalia Marisova of Investec Securities upgraded her 2007-08
pretax forecast by 5 percent to 7.0 million, and increased the ensuing year's by
1 percent to 12.3 million pounds. ASOS made 3.6 million in 2006-07.
The analyst's revised 2007-08 numbers imply EPS of 6.5 pence against a
previous 4.7, but no dividend (same) is anticipated until 2008-09, when a 3.27
pence payout is envisaged.
The recent share price slide in Clapham House Group Plc., although not out
of sync with peers, suggests bad news will be forthcoming.
Broadly speaking, Matthew Gerard of Investec Securities does not think this
is likely -- GBK should be trading well, given the London focus, and the analyst
is optimistic that the new menu launch in Tootsies has had a positive impact.
Corporate action is possible over the next few months and this will focus
the market on the value in GBK, Gerard suggests.
Following December's profit warning, a detailed full-year pre-close update
in March was generally more upbeat, particularly with respect to the core GBK
brand where new openings and mature sites have been trading strongly.
Gerard believes management will consider sensible offers for Tootsies or the
other non-core brands as it would a) release further funds to invest in the
high-growth, highly profitable GBK brand, and b) lead to a re-rating of the
shares given the focus on GBK (particularly in the light of Capricorn's declared
24.9 percent stake).
While credit markets clearly remain difficult, this would be a relatively
small transaction and the analyst would not rule out some form of corporate
action on this over the next few months.
It has been a year of significant progress at Cyril Sweett Group Plc., the
international construction and property consultancy, and results are on course
to be in line with management's expectations. is
pleased to provide an update on trading for the year ended March 31 2008, prior
to going into close period. Results for the year ended March 31 2008 will be
announced on Monday June 30 2008.
The group, which floated on AIM in October 2007, has continued to make
strong progress in all of its main market sectors together with incorporating
the benefits of recent acquisitions.
As at the beginning of the new financial year, the group order
Book, including newly-acquired businesses, stood at 84 million pounds and the
board is confident of delivering 100 million pounds of turnover by 2010.
For the year to March 2008, Brewin Dolphin's Michael Parkinson predicts
pretax profits of 5.8 million pounds, up from 5.0 million pounds, suggesting EPS
of 7.3 pence against 7.1. A 2.4 pence dividend (nil) looks on the cards.
Plastics Capital Plc.'s March acquisition of Palagan, a producer of high
performance polyethylene film packaging, will be earnings-enhancing for the year
to March 2009 and 9.4 percent in March 2010.
The addition of Palagan is in keeping with the strategy stated at the time of
the IPO late last year. Peter Read of Cenkos Securities estimates that net debt
will reach 14.1 million pounds by March 2009, leaving plenty of headroom for
further opportunities.
The analyst assumes Palagan will contribute 8.8 million pounds to the top
line for the year to March 2009, 1 million pounds at the EBITDA level and has
budgeted for 6 percent growth thereafter.
For the year to March 2008, Read looks for group pretax profits of 2.3
million pounds, implying EPS of 6.2 pence.
THURSDAY JULY 3
Trading at NCC Group Plc. has been in line with management expectations and
the integration of Escrow Europe is proceeding according to plan. Performance
has been strong across all divisions, resulting in 17 percent organic growth.
Escrow again benefited from a combination of further expansion of further
expansion of the renewals base and mid-single digit price increases.
The various Testing businesses all saw strong demand and, perhaps most
encouragingly, the Consultancy division witnessed a good recovery from a weak H1
to register 25 percent order book growth since November, says Jonathan Imlah of
Altium Securities.
Imlah has adjusted his forecasts to account for a small underlying upgrade
as a result of the strong organic growth, the expected contribution from Escrow
Europe, and an adjustment arising from a higher share option charge for 2007-08
than previously flagged.
The net effect is a small drop in pretax for 2007-08 but an increase of just
under 6 percent for 2008-09.
For the year to May 2008, the analyst now looks for pretax profits of 10.4
million pounds, up from the previous year's 7.8 million pounds, for EPS of 21.9
pence against 16.8. He expects the payout to rise to 5.5 pence from 4.8. For the
ensuing year, Imlah has pencilled in 13.0 million pounds pretax.
MONDAY JULY 7
Full-year trading at Omega Diagnostics Group Plc., the AIM-listed medical
diagnostics company, was in line with market expectations with turnover showing
an increase for the year of around 70 percent over the previous year's 2.03
million pounds.
The hefty increase in revenue followed the acquisition of Genesis
Diagnostics and Cambridge Nutritional Sciences in September 2007, which chipped
in around 68 percent of the growth, and organic growth of around 2 percent.
Landsbanki's Stephen Thomas forecasts year to March 2008 pretax profits of
100,000 pounds, compared with breakeven in the previous year.
Analysts left their year to April 2008 forecasts for Spice Plc., the utility
support services provider, unchanged in the wake of May's solid trading update,
but the strength seen in the group's Electricity and Energy divisions prompted
upgrades to current year predictions.
The integration of Billing Services is going according to plan and there has
been an impressive rise in market shares in both the gas (to 89 percent from 40
percent) and electricity (to 35 percent from 8 percent) markets, albeit with a
delay to earnings.
Particular strength continues to be seen in the Electrical and Energy
divisions (including further contract wins with EDF and Total). Telecoms and FM
businesses both continued to perform in line and several contracts were
renewed/won in Water, a market which continues to have positive drivers.
Commercial Services also performed well, with strong demand for energy
procurement services, as did Public Services.
For the year to April 2008, analysts look for pretax profits of around the
22.0 million pounds mark, up from 13.5 million pounds. This implies EPS of about
28.4 pence against 20.6, from which a 5.0 pence (4.0) dividend total is thought
likely.
On the 2008-09 upgrades, Investec lifted it pretax forecast by 3.4 percent
to 30.0 million. Cazenove, too, now sets its sights on 30 million pounds, while
WH Ireland plumbs for 29.7 million pounds.
Meanwhile, the group plans a move to the Official List from AIM at the end
of this month.
WEDNESDAY JULY 9
Begbies Traynor Group Plc.'s full-year results are expected to be in line
with market expectations. The core activity of business insolvency, which
accounts for some 75 percent of turnover, has had a significant recovery in work
flow since the company reported last December.
The group's other main operating divisions, corporate finance and tax
consulting, also delivered good second half performances.
It is clear from the recent insolvency statistics that the levels of
corporate insolvency have been increasing in recent months, but there may have
been concerns over the amount of time available for this to feed into the
company's 2008 results, says Phil Carroll of Shore Capital Stockbrokers.
Over at Charles Stanley, Ben Archer is leaving his 2009 and 2010 forecasts
unchanged. However, he expects demand for the group's insolvency services to
accelerate, which together with spare capacity of around 25 percent and the
inherent operational gearing, offers the potential for upgrades.
The analyst sets his sights on year to April 2008 pretax profits of 6.5
million pounds, down from the previous year's 8.3 million pounds, for EPS of
5.26 pence against 7.34. He looks for an unchanged payout of 2.5 pence,
nevertheless.
Shore Capital's Carroll, on the other hand, predicts pretax of 7.1 million
pounds, EPS of 5.6 pence, but also a 2.5 pence dividend.
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