IHP/AJB/BEG/KGH

Hits: 81

Integrafin Holdings  – H1 Results

Share Price 497p

Mkt Cap £1,648m

Conflict Disclosure: No Holding

 

  • Results Revenue up 13% to £53.8m. PBT up 21.9% to £27.3m (51% PBT margin) and EPS up 23.6% to 6.8p. H1 dividend declared of 2.7p. Average FUD was £38.3bn while at the end of March FUD was £35bn so the the outlook refers to H2 depending upon the effects of CV-19.

 

  • Estimates  £102m of revenue for the full year assumes a 10% decline in H2 which seems about right.

 

  • Valuation PE 42.2X Yield 1.6%

 

  • Conclusion It is hard to see the triumph of expensive growth stocks changing given the wall of cheap money leaking into markets.  Perhaps we are in a new era.  But this is to expensive for me.

AJ Bell – H1 Results

Share Price 448p

Mkt Cap £1,836m

Conflict Disclosure: No Holding

 

  • Results Revenue up 22% to £60.9m. PBT up 28% to £22.7m (37.2% PBT margin). EPS up 25% to 4.36p. H1 dividend 1.5p. Outlook is “positive”.

 

  • Estimates AUA was down 8% over H1. £114.9m for the full year assumes a 11% revenue decline in H2. A little too conservative.

 

  • Valuation PE 56.7X Yield 1.2%

 

  • Conclusion See comments as per Integrafin.

 

Begbies Traynor–Year End update

Share Price 109p

Mkt Cap £139m

Conflict Disclosure: No Holding

 

  • Update Revenue is expected to increase 16% to £70m and adjusted PBT up 31% to £9.2m. Net debt much lower down from £6m to £2.8m. Commercial property valuations and business sales have declined in April while insolvency appointments have grown with higher average fees. Dividends are intended to be recommended by the board. Outlook is positive but the group says the timing of insolvencies may be influenced by short term government measures.

 

  • Estimates Results are in line with expectations. Forecasts anticipate 7% revenue growth and 16% PBT growth in the year ahead.

 

  • Valuation 2021 PE 16.3X and 2.7% yield. FRP advisory trades on 23X.

 

  • Conclusion Having thought about FRP I was disappointed that despite implying 50% EBITDA margins in the prospectus the forecast margin is in fact 28%, a little ahead of 20% for Begbies. It is the high pay at FRP that makes me suspect that Begbies is a more sustainable business.

 

Knight Group – Full Year trading update

Share Price 380p

Mkt Cap £311m

Conflict disclosure: No Holding

 

  • Update 40% revenue increase anticipated to £74m of which organic growth is said to be 10%. Underlying PBT expected to be £13.5m, a 44% increase. Trading was strong in March but in April the group experienced disruption. Net debt is £15.9m with £24m undrawn facilities. No dividend. Acquisitions are said to be performing well.

 

  • Estimates A 40% increase in revenue in anticipated to March 21, most of which can be accounted for by the 5 acquisitions since January this year.

 

  • Valuation 17.8X April 21 PE.  Gateley trades at 10X. DWF 7.3X.

 

  • Conclusion The shares are expensive and the company is doing well. Which is a little at odds with the lack of dividend. The dividend has been stopped in the light of recent cost savings including salary reductions. Perhaps the shares are a little ahead of themselves.