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  • Writer's pictureMark Watson-Mitchell

Small Cap Catch Up – CURY, ELIX, GPH and KITW

Currys (LON:CURY) – Now Looking Even More Attractive To Global Bidders


On Tuesday of this week this £800m capitalised technology products and services group issued a Trading Update for the year to 27th April.


It was very positive and helped to give a quick fillip to the company’s shares, boosting them from the recent 62p level up to 72.60p before easing back fractionally to close at 70.25p last night.


The Update was better than expected, leading to a guidance of pre-tax profits being upped from at least £105m to £115m to £120m for the last year, which would be worth around 7.9p per share in earnings.


Analysts Adam Tomlinson and Wayne Brown at Liberum Capital have rated the group’s shares as a Buy, looking for a chunky 135p as their Price Objective.


They go for current year sales of £8.42bn and £128.3m of profits, worth 8.7p per share in earnings.


For the year to end April 2026 their figures suggest £8.58bn sales, £152.5m profits, while earnings could come in at 10.3p per share.


The Finals are due to be announced on Thursday 27th June.


On the basis of those estimates, the Currys shares are for buying and certainly not for selling yet.


(Profile 10.07.23 @ 49p set a Target Price of 61p*)

(Profile 18.12.23 @ 50.05p set a Target Price of 61p-65p*)


Elixirr International (LON:ELIX) – Strong Growth Attractions


The global consultancy group’s results for the end December 2023 year showed a 20% uplift in revenues to £85.9m, while pre-tax profits were 40% better at £22.1m, with earnings 22% up at 37.2p and also with a 37% increase in its dividend to 14.8p per share.


For the current year analyst Guy Hewett at Cavendish Capital Markets looks for £107.0m revenue, £28.8m profit, 40.0p earnings and 15.9p per share in dividend.


Hewett has a Price Objective of a walloping 998p on the group’s shares, which closed last night at 605p, at that level they continue to hold good growth attractions.


(Profile 21.09.20 @ 227p set a Target Price of 285p*)

(Profile 06.02.23 @ 517.5p set a Target Price of 650p*)


Global Ports Holding (LON:GPH) – 51% More Passengers


The Q3 Trading Update to end December 2023 reported a 47% increase in adjusted revenues at $135.8m, with a 48% improvement in adjusted EBITDA at $87.7m.


In that period the world’s largest independent cruise port operator processed 51% more passengers at 10.2m.


Greg Johnson at Shore Capital is looking for the year to end March 2024 to record $160.4m revenues, $103.7m EBITDA, helping to almost double adjusted pre-tax profits to $5.7m ($3.0m).


For the current year now underway, his estimates are for $212.1m revenues, $136.6m EBITDA, adjusted pre-tax profits of $32.3m, lifting earnings up to 19.8c per share.


Taking a medium-term view, Johnson has a massive ‘fair value’ of 550p on the group’s shares, compared to the 205p at which they closed last night.


Still so much more to go for, so hold tight.


(Profile 11.11.22 @ 81.5p set a Target Price of 100p*)

(Profile 19.06.23 @ 196.5p set a Target Price of 220p*)


Kitwave Group (LON:KITW) – Continuing To Deliver And In No Rush To Do So


Following the Interim Trading Update issued by this delivered wholesale business, issued on Thursday 2nd May, its shares hit 409p before gradually easing back over the last few days to close last night at 382p.


The benefits of recent investments and acquisitions will gradually come into play.


Analyst Mark Photiades at Canaccord Genuity Capital Markets has a Buy note out on the group’s shares, looking for them to rise to 455p in due course.


His current year estimate for the period to end October is for £678.8m (£602.2m) in sales, £29.0m (£27.5m) of adjusted pre-tax profits, with earnings of 29.9p (28.7p) and a dividend of 11.3p (11.2p) per share.


For his 2025 year he goes for £710.1m in sales, £31.0m of profits, 32.0p of earnings and a 14.0p per share dividend.


The analyst considers that the valuation of this group’s shares is too low given its strong cash generation, its robust balance sheet combined with the considerable consolidation opportunities available.


We have had a good run in this group’s shares of late, so it is only reasonable to expect some ‘top-slicing’, which could give fresh scope for investment at lower prices.



(Profile 14.02.22 @ 145.5pp set a Target Price of 180p*)

 

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

 

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