You can receive this report by email in the morning by clicking here.
Zamano (ZMNO, 16p, £12.97m) Interim trading update for June 2009 for the provider of interactive applications and services for mobiles is that revenues have been lower than expected, offset by better margins and lower costs. Overall EBITDA is expected to be in-line with market expectations around €2.3m with a reduction in net debt to€5.9m from €7.2m at the December year end. Forecasts for 2009 around £3.47m with 3.64p EPS put the group on a prospective PER around 4.4 times. Normally that would be regarded as cheap, but with application stores for mobiles based on Apple, Symbian and Microsoft operating systems available and the surge in the number of mobile based payment systems we remain cautious regarding the outlook for the second half. HOLD.
Tribal Group (TRB, 81.25p, £73.75m) Trading update from the provider of consultancy, support and delivery services to the public sector is slightly cautious with increasing competition seen in consultancy and generally softer trading conditions in the regeneration activities. The group has increased its cost saving measure and now expects to realise annual savings of more than £6m. The group had previously warned that the year would be second half weighted and the board has confirmed it remains happy with market expectations. The group has reduced debt from £19.7m at the December year end to £17m in June. Forecasts of £22m pre-tax profits with 15.5p EPS and 4.6p DPS put the group on a prospective PER of 5.3x with a forecast yield of 5.7%. We repeat our BUY recommendation with a reduced target price of 100p.
Get this report in the morning
Trafficmaster (TFC, 29p, £39.63m) Interim trading update for June 2009 for the provider of traffic information systems is in line with market expectations. The US saw notable successes in corporate accounts and overall the first half results for fleet operations will be ahead of the comparable period in 2008. The group is seeing longer selling cycles however with smaller fleet operators delaying purchasing decisions. The consumer related activity has been hit hard by the downturn in car purchasing but cost controls have ensured that operation has remained profitable. Forecasts of £5.3m pre-tax profits with 2.49p EPS put the group on a prospective PER of 11.6x. Reasonably priced - but next year should see a better performance so we maintain our BUY recommendation, albeit with a lowered price target of 32.5p.
Finsbury Food (FIF, 18.75p, £9.65m) Has announced that discussions regarding a bid approach have been terminated. We repeat our SPECULATIVE BUY recommendation based on an extremely low PER, and our note of caution regarding the high level of debt being carried by the group that may see the need for a dilutive share issue.
Get this report in the morning
Sportech (SPO, 77p, £77.50m) Has launched its social networking platform and partnered with the Daily Telegraph, the Daily Mail and the Metro to make it available to their fantasy football leagues. As a result Sportech’s on-line football prediction teams will be available seamlessly from the partner’s fantasy football websites and so gives Sportech an additional 400,000 potential users. With forecasts of £20.5m pre-tax profits with 14.4p EPS the group is sitting on a prospective PER of 5.3x, low due to the high level of debt at £83.2m at the December year end and only 2 times interest cover. Nevertheless we maintain our BUY recommendation with a slightly reduced price target of 94p.
Burst Media Corporation (BRST, 6.625p, £4.68m) Trading update for the 6 months to June is in-line with expectations, with a recovery in advertising in Q2. Total revenue is expected to be $12.1m ($13.4m) - lower primarily due to the loss of a significant customer in its adConductor business – though underlying sales were growing 70%. Revenues from the media related businesses were flat at $10.8m ($10.7m). The group has net cash of $9.4m ($11.1m), post share repurchases of $0.8m. HOLD – not least as the shares trades as REGS, i.e. a US company so trading only available with paper certificates.
Get this report in the morning
System C Healthcare (SYS, 46.5p, £41.77m) Has announced the acquisition of LiquidLogic for a maximum consideration of £14.2m, including deferred consideration of up to £4m, and an accompanying placing of 25m new shares at 48p to raise £12m. LiquidLogic is a provider of software and related services to the social care sector and has over 43,000 users including 29 children’s and 11 adult social care services and NHS organisations. To March 2009 LiquidLogic reported sales of £6.5m with an underlying operating profit of £0.9m. The acquisition expands the group presence in a growth area at a sensible cost. We are published as buyers to the 49p level so the recommendation falls to a HOLD.
Kewill (KWL, 72.25p, £58.74m) Trading statement covering the period from March confirms lower levels of licences sales, though the group still expects a flat performance against last year. The group believes it will secure larger licences in the US and Europe as well as an increasing contribution from the software as services, so it will be able to show growth for the year. Forecasts to March 2010 are for pre-tax profits of £8.23m with 9.95p EPS - putting the group on a prospective PER of 7.3x, we repeat our BUY recommendation to 83p.
No comments:
Post a Comment