Small Cap Catch-up featuring GPS, ALU, GLE, BILN, AVG, CARD and BMY
Global Ports Holding (LON:GPH) – positive strategic review due
Well, I have to say that I do like the sound of the latest bit of news from the worlds largest independent cruise port operator.
Last Friday the £107m capitalised group informed shareholders that
“In light of the continued emergence of significant and exciting opportunities in its cruise business it is undertaking a strategic review of the Group’s current capital and financing structure.
The purpose of the strategic review is to explore ways to maximise value for all stakeholders and includes a range of potential corporate activity including strategic investments, joint ventures and new partnerships.”
No doubt we will have to wait a short while yet for further information, but it has done no harm to the group’s improved share price.
After touching 170p at one stage in reaction, they closed last night at 163p.
That has shown more than a 100% increase since I profiled the group two months ago.
It will be very interesting to note what this is all about, I hope for more news very soon.
(Profile 11.11.22 @ 81.5p set a Target Price of 100p*)
The Alumasc Group (LON:ALU) – shares ready to lift upwards again
This premium sustainable building products, systems and solutions group is due to be declaring its interim results within three weeks, on Tuesday 7 February.
The group’s shares have been treading water since the late November announcement of a number of new international contract wins.
Analysts David Buxton and Michael Clifton at brokers finnCap currently have a 315p a share price objective, offering significant scope for a rerating on any good news.
They have already numbered into their figures a slight sales lift in the current year to end June, for £91.0m (£89.4m) but have allowed for a pre-tax profits fall back to £11.3m (£12.7m), taking earnings down to 24.2p (28.2p) but still paying an increased dividend of 10.3p (10.0p) per share.
They are a little more bullish for the coming year, going for £96.0m sales, £12.0m profits, 25.7p earnings and a 10.8p per share dividend.
It is against those estimates that the shares, currently just 156p, look significantly undervalued and capable of a 2023 climb back above the 200p price level, at least.
Good news with the interims will help such an upward reaction.
(Profile 13.02.20 @ 116p set a Target Price of 145p*)
(Profile 08.06.20 @ 80p set a Target Price of 110p*)
MJ Gleeson (LON:GLE) – ready to build up again?
After a period of decreasing price levels falling back from 774p a year ago before scoring a low of 331p by late November, it has therefore been pleasing to see an upward pull in this construction groups share price.
In the last fortnight alone, they have lifted from 333.7p to close last night at 419.5p.
The price movement has been helped by the group’s Trading Update on Friday of last week, which inferred that the previous rate of plot purchase contract cancellations has slowed down significantly.
The market is hopefully looking for the housing market to up its recovery, which no doubt would be reflected positively in Gleeson’s share price.
(Profile 11.04.22 @ 613p set a Target Price of 750p)
Billington Holdings (LON:BILN) – a very attractive upside
Looking very strong is a good way to describe the recent share price climb by this leading steel structures group.
They closed last night at 320p after some heavier dealing activity earlier in the week.
The mid-December 2022 issued Trading Update reported continued improving trading while pre-tax profits will be significantly ahead of market expectations.
CEO Mark Smith stated that:
"The recovery in activity we experienced in the first half of 2022 has continued into the second half. We have been focused on implementing efficiency improvements throughout the Group that are now being realised. I am therefore pleased to report that whilst revenue will be in line, I expect the Group to achieve profits for the current year and for 2023 significantly ahead of the Board's previous expectations."
Brokers finnCap have estimates out for the year to end December 2022 for revenues of £90.0m (£82.7m) while adjusted pre-tax profits could rise to £5.9m (£1.3m), generating 39.5p (8.1p) of earnings and covering an increased dividend of 11.0p (3.0p) per share.
The finals are due to be announced in April.
Understandably such analyst estimates warrant a very much higher share price, with the broker going for 475p a share, leaving a very attractive upside.
(Profile 02.04.19 @ 266p set a Target Price of 314.5p*)
(Profile 13.06.22 @ 217.5p set a Target Price of 295p*)
Avingtrans (LON:AVG) – as expected at half-way
In the last year or so this group’s shares have been as high as 492.5p.
In mid-October they were down to 337.5p, since when their recovery has been quite impressive, closing last night at 445p, following Monday’s Trading Update and Acquisition news.
Avingtrans, with operations spread across the world, is involved in the design, manufacture and supply of original equipment, systems and associated aftermarket services to the energy, medical and industrial markets globally.
The ‘in line with expectations’ half-year Update shows that the group is on course to improve its May year-end sales to £109.0m (£100.4m), with adjusted pre-tax profits rising to £8.6m (£8.3m), lifting earnings to 22.8p (21.8p) while maintaining its 4.0p dividend per share.
Analyst David Buxton at brokers finnCap has a price objective on the shares of 495p each.
The interims will be published on 22 February, so hold tight.
(Profile 04.11.20 @ 260p set a Target Price of 325p*)
Card Factory (LON:CARD) – will take time for new Highs
A very good showing by this greetings card retailer, despite the postal strikes, has helped to recently edge the group’s shares higher to 97.5p at the best.
Last night they closed at 91p, which is up some 14p over the last month or so.
There was a 7.1% rise in sales in the eleven months to end December. The firm said its strong Christmas performance means it is set for underlying earnings of at least £107m for the full year, against the £96.9m expected in the City, meaning that it could be on track to report pre-tax profits of some £48m, worth 11p per share in earnings.
Its shares at 91p, which are still a long way below its 247p High peaked in 2018, will, in my view, take a very long time to regain such heights.
(Profile 05.08.20 @ 42p set a Target Price of 60p*)
Bloomsbury Publishing (LON:BMY) – Trading Update due shortly
Within the next week or so this fabulous publishing group should be announcing its year-end Trading Update for the twelve months to end February.
The leading independent publisher had a very strong first half-year, with sales growing 22% to £122.9m and profits increasing 23% to £15.9m.
Consensus analysis looks for £240m (£230m) sales, with pre-tax profits improving yet again to £24.2m (£22.2m), lifting earnings up 10% to 22p while maintaining the 11p dividend per share.
Looking at the group’s share price chart I would envisage an early ascent toward the 500p level.
The shares, now at 457.5p, remain a very strong hold.
(Profile 28.02.19 @ 231p set a Target Price of 257p*)
(Profile 27.03.19 @ 238p set a Target Price of 270p*)
(Asterisks * denote that Target Prices have been achieved since Profile publication)