• Mark Watson-Mitchell

ABC was BAC on yesterday’s performance

Yesterday saw Braemar (LON:BMS) announce its results to end February this year, as well as a separate Trading Update for the first five months of the current year.


Both Statements were very positive indeed – certainly enough to impress the market, which took the shipbroking group’s shares up a cracking 20% during the day.


After having risen 59.5p to 347p, the shares closed at 333p, up 45.5p, showing a 15.8% gain on the day. Some 600,000 shares were traded on the day, which is almost twice the highest dealing volume reached in the last year


Analyst Ian McInally at Cenkos Securities rates the shares as a Buy, with a valuation of 470p a share.


He sees sales rising to £127.8m (£101.3m) for the year to end February 2023, with underlying pre-tax profits more than doubling to £19.5m (£8.9m), with underlying earnings of 51.0p (27.9p) and a small increase in dividend to 11.3p (9.0p) per share.


Over at Edison Investment Research, their analyst Andy Murphy raised his

current year estimates to £130.6m sales, £19.1m profits, 46.3p earnings and a 12.0p dividend per share.


He raised quite significantly his valuation up from 400p to 520p per share.

An incredibly strong hold.


(Profile 05.12.19 @ 185p set a Target Price of 250p*)

(Profile 20.05.20 @ 99p set a Target Price of 150p*)

·

It has just taken one heck of a hit – selling off its loss-making Levolux windows making operation for just £1,000,001, bringing about a £14.9m impairment charge in the process.


However, on the positive side that leaves The Alumasc Group (LON:ALU), the building products group, now to be classed as a ‘supply-only’ business.


The finals to end June, which are due to be reported next Tuesday, 6 September, will be up to market expectations.


Now the big question is just how well the company can perform in the current year.


The group’s shares, which have not been a good performer this year, are almost half the price of this time last year.


But they put on a useful 11p to close at 144p, showing a useful 8.3% gain on the day.


(Profile 13.02.20 @ 116p set a Target Price of 145p*)

(Profile 08.06.20 @ 80p set a Target Price of 105p*)

·

A ‘transformational increase in revenues and EBITDA’ is how CentralNic Group (LON:CNIC) described their first half results to end June.


The global internet platform reported revenues up 93% to $334.6m ($173.8m) and a 97% uplift in its adjusted EBITDA at $38.6m ($19.6m).


Group CEO Ben Crawford stated that:


"CentralNic has enjoyed a strong first half of the year with year-on-year organic growth now reaching a record 62%, with our high cash conversion driving our net debt down to below our consensus EBITDA for 2022.


CentralNic continues to deliver sustainable growth thanks to our hugely scalable and privacy safe proprietary solutions and the enormous size of the market opportunities we are addressing".


Analyst Bob Liao at Zeus Capital viewed these results as demonstrating the company’s resilient growth, margin potential and steady deleveraging.


Ahead of a Q3 Update on 17 October his estimates remain unchanged at $617.1m ($410.5m) revenues for the year to end December 2022, with EBITDA of $70.0m ($46.3m) and earnings of 17.4c (11.3c) per share.


He sees upside to his forecasts, which no doubt will change in seven weeks.


After hitting 129.80p in response to the results, the shares closed up just 3.3% on the day at 123p, and that was after a massive 1.86m shares were traded.


These shares, which are currently valued well below others in its sector, still have a lot of upside potential.


(Profile 12.07.21 @ 89p set a Target Price of 110p*)


(Asterisks * denote that Target Prices have been achieved since Profile publication)

Recent Posts

See All