Good morning from Paul & Graham!
That’s all for today’s report..
I have to finish early today, so I’ll start early and rattle through as many sections as possible! What you miss today can always be seen tomorrow.
Annotation –
simple reminder Stock not recommended. We aim to review Deal update & result that day opinion If interested, look them up as candidates for further research. Our opinion may or may not be correct. Because no one can guess which direction market sentiment will take, and no one can predict the future with certainty.analyzing the company foundationdoes not attempt to predict market sentiment.
We stick to companies that made news that day, with market caps up to around £700m. We avoid the smallest and most speculative companies, as well as some specialized sectors (natural resources, pharmaceutical/biotech, etc.).
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Pole section:
Porvair (Longitude: PRV)
616 pence – £285 million cap
Porvair issued a positive trading update (“exceeds market expectations”) briefly mentioned here on December 9, 2023. Key takeaways were 18% revenue growth (5% from foreign exchange), EPS better than forecast and £’s net cash. 18.1 m. That caused a big vertical rally in stocks, some of which has since fallen.
Here are the latest news –
Fiscal Year Ending November 2022 Results
Revenue up 18% (as expected) to £172.6m
Adjusted PBT £19.4m (up 31%) – Impressive.
Adjusted base and diluted EPS up 23% to 33.2p (adjustments seem small)
Net cash £18.3m
A gross division of 5.7 pence per year – a yield of less than 1% seems stingy given the ample cash, but this is only 17% of the earnings. Why should a company hold on to the bulk of its revenue? Perhaps more acquisitions?
Outlook – The comments are a little mixed. This is probably why the stock has softened a bit recently –
“As we enter 2023…
