Yes, Simon Thompson is also pointing out the significant rerating potential if the new management team can execute their plans and end markets hold steady
As per last Equity Dev research note with a 160p Fair Value, free access here: |
Tipped by ST in the IC |
Any reason for the jump.... Takeover in the offing? |
Well, would you believe it.
This is better. |
No buyers in here , hard to sell |
Gataca just moved to super stock status on stocko! FWIW... |
I like Liberum who has predicted CURY shares double by Xmas & it's slowly hiking lol. https://www.google.com/amp/s/capital.com/amp/cury-currys-share-price-double |
Who to believe: you or Liberum??..... |
Numbers no good , loss & negative equity |
From LIBERUM:
FY22 underlying PBT (£0.3m) and net cash (£16.0m ex leases) were in line with expectations. After a difficult year, a new management team has been quick to implement cultural and operational changes which are already starting to bear fruit in FY23E. Gattaca’s STEM focus positions it well even in a tough UK macro environment. While it is early days and the new team has much to prove, FY23E has started well and there are plenty of self-help levers to pull. No change to FY23E PBT. A CY23E EV/EBIT of 2.9x is cheap. TP raised from 100p to 110p. Maintain Buy. |
 From EQUITY Development:
Gattaca plc
Preliminary Results note
Engineering a lasting turnaround
There are many challenges facing the UK economy, but a company that we think is ahead of the recovery curve is STEM recruiter Gattaca - having already ‘cut its cloth’ over the past 2 years. Plus, the UK job market still remains the tightest it’s been for years, with 1 vacancy for every unemployed person – particularly across their sweet spot of ‘difficult-to-find’ engineers and technologists, where widespread shortages exist.
At today’s FY’22 results, the group posted in-line numbers, with adjusted PBT coming in at £0.3m on NFI up +5% to £44.1m. It also added that “demand is robust” which - alongside further self-help measures, favourable mix & an industry shift towards using more contractors vs permanent placements (re austerity) - is expected to lift FY’23 underlying PBT to £2.5m with profits being H2 weighted. The dividend has been prudently suspended, whilst the balance sheet remains rock solid, sporting net funds of £16m (or 49p/share) as at Jul’22, after generating strong H2’22 cashflow.
It was tempting to upgrade our modest FY23 forecasts & 160p/share fair value, but we prefer to conservatively retain both pending December’s AGM trading update. Nonetheless, we note the stock at 80p trades below NTAV (86.5p/share) and on a 0.4x EV/NFI multiple vs peers at >1.0x |
Update on Thurs 3 Nov I think |
Decent rise on small volume. Way undervalued imo |
https://www.google.com/amp/s/capital.com/amp/cury-currys-share-price-double |
Dare I say it, Russia v Ukraine and China v Taiwan may be helping us. |
An in-line trading update was a good start for the new CEO and CFO, and Equity Development raises its fair value/share to 160p on the back of better than expected net funds.
That new research note is freely accessible here: |
"The Group has improved its financial position from the half year (31 January 2022: net debt £(0)m), with statutory net cash as at 31 July 2022 of £12m (31 July 2021: net cash £14m). During the financial year the Group repaid deferred VAT of £5.6m, which was the key driver of the decrease in cash from the prior year." |
Stabilisation of sorts. The announcement we'd hoped for 6 months ago. |
Today's update reports 'in line' trading for FY to end July. CEO also says that new financial year has 'started well' with 'robust demand in our key markets' . Sales headcount has been increased by 7%
FY22 continuing NFI is seen at £44m (+4%) and PBT flat vs prior year. Net cash at 31/7 was £12m.
FY results set for 3 Nov release |
Best stocks to buy in Europe https://www.gurufocus.com/news/1849001/currys-plc-a-diamond-in-the-rough |
MCB ( LSE) strong products & revenue growth https://www.mcbride.co.uk/media/lrxmnfyf/mcbride_web_presentation_hy2122.pdf |
A bit of early/current buying prior to the trading update could perhaps indicate a good sign. |
17th August is Trading Update, so that's 5 weeks from now, perhaps the early birds are out. |
Register to chat with like-minded investors on our interactive forums.
Hot Features
Premium
