As easy as A, B, C – comments on ANG, AVG, AVON, BMS, BRCK, and CAU
Angling Direct (LON:ANG) – other fish in the sea?
Gross margin gains and operational enhancements have helped to boost the interim results from this leading fishing tackle and equipment retail group.
The six months to end July showed a 19.5% increase in revenues to £38.4m. It saw online sales not as progressive as before, but still 3.2% ahead at £18.5m, while retail store sales were up 40.1% at £19.9m.
That pushed pre-tax profits up 174.2% to £3.7m, with earnings leaping 83.2% to 3.7p per share.
Accordingly, the group has upped its guidance for the full year to end January 2022, stating that its EBITDA will be not less than £5m for the year, comfortably ahead of market expectations.
Analyst Matthew McEachran, at the group’s brokers Singer Capital Markets, is now estimating that the full year pre-tax profits will rise from £2.6m to £3.5m, worth 3.4p in earnings (3.3p).
Going forwards he is somewhat guarded, which makes me think that the shares at the current 76p may be edging above their weight.
However, McEachran puts out a 12-month fair value of 105p on the shares.
A very cautious Hold at these levels.
(Profile 29.10.19 @ 58p set a Target Price of 100p)
Avingtrans (LON:AVG) – on a handsome rating, but not for chasing
We have had a good run to date with the shares of this £145m group.
It has an excellent corporate strategy, which has paid off well so far.
But will it do well with the recently announced £2.5m investment in Adaptix, a disruptive developer of new generation x-ray products. It gives AVG a 5.9% stake.
David Buxton at finnCap has a 495p price objective on the group’s shares, now 448p, up 15p on the stake news.
He has pencilled in 23.1p per share of earnings to end May 2022, followed by 24.8p in 2023.
That puts the shares on a handsome rating, but not one for chasing.
I am bullish that Buxton’s price will be achieved, the shares are for holding, not for buying yet.
(Profile 04.11.20 @ 260p set a Target Price of 325p*)
Avon Protection (LON:AVON) – a penetrating event
This personal protection products group is taking a hit – of some $4m in write-down on its ballistics side.
The figures for the year to end September will be reported on Tuesday 23 November.
They are expected to see sales up from $213.6m to $248m, while pre-tax profits will be slashed from $36m to just $25.6m, with earnings dropping from 96.2c to 66.7c per share.
Analyst Andy Chambers at Edison Investment Research is now estimating current year sales to rise to $328.9m, with profits leaping to $46.8m for the year to end September 2022, worth 122.2c per share in earnings.
The group’s shares have moved up to 1918p subsequent to Wednesday’s Trading Update, which detailed a strong order book and a very visible contract pipeline.
They have been more than double the current price and could well be up there again in due course.
In the meantime, I would be happy to see them again touching my previously achieved price objective.
(Profile 03.10.19 @ 1700p set a Target Price of 2250p*)
Braemar Shipping Services (LON:BMS) – Trading Update makes these shares even more attractive
Wednesday 3 November will see the interim results for the six months to end August being announced by my favourite shipbroking and services group.
Across its Shipbroking, Financial and Logistics divisions Braemar employs some 520 people in 30 offices worldwide.
Thursday morning’s Trading Update stated that the strength in many of the group’s markets should have seen its operating profit lift from £5.6m, for the period last year, up to £6.9m this year.
That should see guidance now firming on a 21.5% advance for the full year to end February 2022 to £10.8m (£8.9m). Very positive indeed.
Nice to see a company really gaining from the higher rates within the shipping sector.
The group is a leading international Shipbroker. It also provides expert advice in shipping investment, chartering and risk management.
Yesterday, after touching 275p at one stage, the group’s shares closed at around the 263.5p level.
Only a few months ago the shares were up to 323p, I feel that they will be up there again in a very short time frame.
Will the immediate change of broker, to Investec Bank, help?
Who knows – but we can only hope that they back their new corporate client.
(Profile 20.05.20 @ 185p set a Target Price of 250p*)
(Profile 28.02.20 @ 99p set a Target Price of 150p*)
Brickability Group (LON:BRCK) – building up superbly, very well placed
“The UK housebuilding sector remains in good health following a strong post-pandemic recovery, driven by changing demographics, significant pent-up demand and assisted by government incentives. Brickability was initially well positioned to benefit from these structural tailwinds and remains in a position to continue profiting from these prevailing themes.”
Well, that comment from Brickability certainly sounded strong enough to me, to back the ‘buy’ advice of analyst Kevin Cammack at Cenkos Securities.
For the year to end-March 2022 he has a current estimate of sales of £391.3m (£181.1m), with pre-tax profits jumping from £15m to £25.5m, worth 7.3p in earnings per share, compared to 5.6p previously.
This ‘buy to build’ group is now the UK’s leading brick factor, distributing both domestic and imported product.
It also distributes roofing products, towel rails, and radiators, as well as wholesaling and merchanting timber.
The company’s latest Trading Update, issued on Wednesday, went on to state that
“The number of homes being built domestically continues to rise with Q1 2021 recording the UK's highest number of homes built in a single quarter for over 20 years. This trend is reflected globally, contributing to globally inflated building materials prices in almost all sectors.
Our order book remains extremely strong and as one of the UK's leading building materials distributors, Brickability is well placed to supply UK's housebuilders as demand is expected to continue to strengthen.”
The post-pandemic recovery is well underway now, especially in the construction sector. It offers this group so much upside, furthermore despite higher material prices its products are still in strong demand.
It has other acquisitions being lined up, so the group is expected to grow even larger.
The shares, at the current 105p, have been a magnificent mover in the last eighteen and could easily double again in due course.
(Profile 16.04.20 @ 39p set a Target Price of 55p*)
Centaur Media (LON:CAU) – well up with the info
This group is an international provider of business information, training and specialist consultancy.
Yesterday it published a Trading Update for the Third Quarter of its year to end December.
Its operational performance shown earlier in the year, has continued into Q3. It was sufficient for its broker's Singer Capital Markets to upgrade its 2021 estimates.
The broker is going for sales to lift up from £32.4m in 20220, to £37.1m this year. Then up to £41.3m next year, with £45.7m estimated for 2023.
In the same period, it sees pre-tax profits of £1.9m this year against a £0.3m loss, then £4.1m in 2022 and £6.8m in 2023.
Earnings per share this year could be 1.1p, then up 2.2p next year, with 3.7p in 2023.
On the back of the Update the group’s shares put on another couple of pence at it recent high levels.
Now at 55p, they are well up with events, so do not add to holdings until more is known to justify even higher values.
(Profile 03.03.21 @ 33p set a Target Price of 41p*)
(Asterisks * denote that Target Prices have been achieved subsequent to profile publication)