SCVR weekly roundup – Paul & Jack Podcast – 14 Jan 2022

Small caps specialists Paul Scott and Jack Brumby write the long-running Small Cap Value Reports each weekday on (subscription required).

Here we trial our first weekly roundup podcast, summarising the trading updates & results statements that we reviewed this week. See below for agenda & times.

NB. This is NOT financial advice, or recommendations! The ethos of Stockopedia is all about doing your own research, and taking responsibility for your own portfolios. Remember that we are not time travellers, so we don’t know what the future share price of any share is going to do!

Audio starts at 00:46

Companies mentioned below & timings

(green = out-perform trading update, red = profit warning or financially distressed balance sheet)

01:49 – Quiz (QUIZ) (Paul holds) £20m – Xmas trading update, in line with exps. Interesting turnaround.

02:18 – Senior (SNR) £591m – In line update. Jack thinks it looks potentially interesting.

03:15 – Xaar (XAR) £157m – Moved into profit in H2. No opinion from us.

03:42 – Smartspace (SMRT) £22m – in line with exps trading update. Small, and loss making. We’re lukewarm.

05:19 – Bear market in US for speculative tech. Impact of lockdowns. Flow of PI money in/out UK market.

06:45 – Cineworld (CINE) £554m – update doesn’t mention elephant in room – $5bn debt pile! Very high risk of heavy dilution or insolvency.

07:30 – Sensyne Health (SENS) £35m – has run out of money. Shares down 69%. Very high risk of equity wipeout.

08:15 – Equals (EQLS) £142m – earnings in line with exps. Good revenue growth, but high valuation.

10:57 – Asos (ASC) £2,340m – in line update, surprisingly good, given supply chain issues impacting sector.

11:08 – Card Factory (CARD) £188m – good current year update, but profit warning for next year, due to huge increase in costs (£30m)

11:57 – Royal Mail (RMG) £4,950m – Should we be worried about wage inflation?

12:36 – Circassia (CIR) £180m – scraped into a small positive EBITDA for first time, ahead of mkt exps. But valuation a concern.

14:53 – Countryside Properties (CSP) £1,810m – shares down heavily on profit warning. Poor figures & CEO walks the plank.

15:15 – Science Group (SAG) £205m – positive trading update. Figures look good, a decent GARP share (growth at reasonable price)

15:48 – Finsbury Food (FIF) £127m – reassuring trading update. Valuation looks reasonable. Mitigated cost increases so far.

16:06 – Quixant (QXT) £118m – Jack likes this ahead of expectations update.

17:42 – Accrol (ACRL) £71m – another profit warning, due to delays in passing on more cost increases. Paul is sceptical of the business model.

18:07 – Portmeirion (PMP) £99m – positive trading update, profits 9% ahead of exps.

19:00 Gateley (GTLY) £264m – Interim results. “Strong position to deliver” mkt exps for the full year. Jack prefers this legal firm to Knights Group (KGH). Paul briefly mentions RBGP – another legal group with impressive CEO.

20:47 – MPAC £111m – year end trading update is in line with exps. Positive outlook, with increased order book & pipeline. Don’t ignore the huge pension scheme though.

23:30 – Shoe Zone (SHOE) (Paul holds) £71m – good results for FY 9/2021. Helped by Govt support measures, and release of provisions relating to closed shops.

24:44 – Robert Walters (RWA) £660m – another profit upgrade. Jack continues to like this share.

26:50 – Cambridge Cognition (COG) (Paul holds) – contract win.

26:55 Unbound Group/ Electra Private Equity (Paul holds) – decent current trading for Hotter Shoes, it’s operating business.

27:05 – Audioboom (BOOM) – turnaround continues, with another positive trading update. Valuation now looks high though, for modest profitability.

27:20 – Tortilla Mexican Grill (MEX) £72m – strong finish to 2021, results “materially ahead”.

29:59 – Nightcap (NGHT) £38m – strong trading in Dec, and 70% of Xmas bookings deferred into 2022, not cancelled. Suggests hospitality sector could have a better Jan/Feb than imagined? Lots of new bars planned. Cash position is gross, not net (misleading).