Just one micro-cap to your draw attention to today which is a company called Grafenia. Essentially the company is involved in the graphic design and printing industry.
Grafenia released their interim results today which are a bit of a mixed bag. As far as I can make out, they appear to be in the process of re-positioning the business following structural changes in this particular industry? Certainly, they recently sold their Dutch subsidiary for 2.35m euros, and as a consequence, the business has been scaled down significantly. For investors, I suppose it's a question of whether they can build the new model into a profitable and viable concern going forward. Today's report does give some encouragement.
In the first instance, the company does boast a healthy balance sheet. At the interim stage the company had £5.5m in Net Assets, although nearly £3m is made up of intangibles. Cash reported is £121,000, but this does not include £1.8m to be added to the coffers from the sale of it's Dutch subsidiary. The business is cash generative, but cash used in investing activities was up significantly at over £1m.
Grafenia have declared an interim dividend of 0.25p which is half it's previous dividend to reflect the reduced scale of the business. Last year's total dividend was 1.5p. If the final dividend is also halved then the yield will be around 5%.
In the narrative about the dividend they state that this "reflects the Board's cautious optimism for new initiatives."
Interestingly, later today both the acting CEO and the Finance Director bought shares worth around £60,000 between them. Perhaps they're a little bit more optimistic than they're letting on?
I haven't bought shares yet, but I will watch with interest.
N.B. I should mention that the current market cap. stands at around £7.1m.
Monday, 9 November 2015
Thursday, 5 November 2015
Croma Security Systems are a company that I have commented on before, they have progressed well in recent years and the increasing share price has reflected this. Croma released their full year results this morning where they have reported record figures. Turnover was up to nearly £16m with net profits of £358,000 giving an EPS figure of 2.4p. This puts the group on a p/e ratio of just over 20. The group boasts a solid balance sheet with NTAV of £2.3m which leaps to £9.1m if you include goodwill and intangibles. This is against a market cap. of £7.3m. The company is cash generative.
Overall, the tenor of the report reads positively. However, the outlook statement is cautious:-
"The Board views the coming year with optimism tinged with caution."
Croma have maintained a small dividend payment of 0.3p which equates to 0.6%.
All in all whilst Croma have made excellent progress in recent years, there isn't enough in today's report to tempt me in yet. I shall continue to monitor their progress and reconsider if there is sufficient price weakness.
Another company I have looked at before is Snoozebox. In essence, it is a company that supplies substantial temporary accommodation at events. Snoozebox released a trading statement today.
When you cut through the waffle then the company is going to make a £5m EBITDA loss. I would anticipate that operating costs at the company will continue to be high for some time to come.
Yes, Snoozebox are expanding with increasing revenues, but with a market cap. of £20m and possibly with further fundraisings to come, it's not a company that would interest me.
A quick visit to Avesco. Their website has been updated again today, and it appears that they continue to win more recognition for their excellence and are increasingly being called upon to implement complex projections. This is a new client:-
http://www.ct-group.com/na/en/posts/ct-s-av-inflates-la-dance-party
A glance at facebook is also interesting. Are they gaining more traction in Asia? The last three posts are projects in Malaysia, Macau and Tokyo.
https://www.facebook.com/creativetechnologygroup
Update - Love the prompt dividend payment from AEO. Ex-dividend today with payment on the 27th of the same month (November). Other companies should take note. Also notice on twitter that they were working with Vodafone yesterday:-
https://twitter.com/cheerful21st
Overall, the tenor of the report reads positively. However, the outlook statement is cautious:-
"The Board views the coming year with optimism tinged with caution."
Croma have maintained a small dividend payment of 0.3p which equates to 0.6%.
All in all whilst Croma have made excellent progress in recent years, there isn't enough in today's report to tempt me in yet. I shall continue to monitor their progress and reconsider if there is sufficient price weakness.
Another company I have looked at before is Snoozebox. In essence, it is a company that supplies substantial temporary accommodation at events. Snoozebox released a trading statement today.
When you cut through the waffle then the company is going to make a £5m EBITDA loss. I would anticipate that operating costs at the company will continue to be high for some time to come.
Yes, Snoozebox are expanding with increasing revenues, but with a market cap. of £20m and possibly with further fundraisings to come, it's not a company that would interest me.
A quick visit to Avesco. Their website has been updated again today, and it appears that they continue to win more recognition for their excellence and are increasingly being called upon to implement complex projections. This is a new client:-
http://www.ct-group.com/na/en/posts/ct-s-av-inflates-la-dance-party
A glance at facebook is also interesting. Are they gaining more traction in Asia? The last three posts are projects in Malaysia, Macau and Tokyo.
https://www.facebook.com/creativetechnologygroup
Update - Love the prompt dividend payment from AEO. Ex-dividend today with payment on the 27th of the same month (November). Other companies should take note. Also notice on twitter that they were working with Vodafone yesterday:-
https://twitter.com/cheerful21st
Wednesday, 4 November 2015
Not much to report regarding my holdings this morning, although I note that some profit taking has taken place in Audioboom in the last two trading days. This was to be expected with no news from the company, and it's a healthy pull back. Nothing goes up in a straight line.
Having said that, note what's happened with a company called Plethora Solutions today. The share price has risen by well over 100% this morning. As far as I can make out the offer is around 12.5p. The shares stood at 2.75p yesterday. Plethora, whilst making good progress in their field, are yet to make any meaningful revenues and they carry net liabilities. The offer values the company at around £123m. Clearly, the acquirer sees huge potential here. Well done if you're a shareholder that has picked these up at recent lows.
Why do I mention Plethora? Well, they are an example of how a knock-out take-over offer can suddenly appear out of the blue. Nothing wrong with taking profits, but watch this space on Audioboom. I'm certainly holding tight.
Having said that, note what's happened with a company called Plethora Solutions today. The share price has risen by well over 100% this morning. As far as I can make out the offer is around 12.5p. The shares stood at 2.75p yesterday. Plethora, whilst making good progress in their field, are yet to make any meaningful revenues and they carry net liabilities. The offer values the company at around £123m. Clearly, the acquirer sees huge potential here. Well done if you're a shareholder that has picked these up at recent lows.
Why do I mention Plethora? Well, they are an example of how a knock-out take-over offer can suddenly appear out of the blue. Nothing wrong with taking profits, but watch this space on Audioboom. I'm certainly holding tight.
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