“Well run banks are vital to …

… the economy”.

Tony Blair


Last week …

… the FTSE 100 dipped -0.4% to 5627,while the Aim All Share at 668 fell 2.46% with the FTSE 250 a marginal 0.1% higher. The extra bank holidays and bad-weather may have mitigated the larger than expected fall in GDP to -0.7%, as it is surely a statistical tick. The Euro was supported with a strong  statement fromthe ECB President Mario, “we will do what-ever it takes to preserve the Euro”, this sentiment was reinforced by the French and German Presidents.

This week …

… it is all about gold medals and an increasing UK feel good factor. The Bank of England’s Interest Rate Meeting is on Wednesday before then there are Consumer confidence Indices on Tuesday. The forward looking Purchasing Managers Index for Manufacturing and Construction are Wednesday and Thursday. The Euro could be calm with perhaps some positive policy statements.    Market’s are likely to improve particularly the Small Caps.


Company Reports

Coral Products (CRU) – £4.4m at 11.5p

Improving package

Injection moulded plastic media and increasingly food packaging supplier, Coral returned to profit for the year to April 12. This was mainly a results of interpack acquisition as revenues grew 31%  to £17.3m, with EBITDA up to £1.2m from £0.6m and operating profit of £250k, compared to a loss of £700k.The Interpack food packaging acquisition contributed £3.1m in eight months. The Interpack acquisition and reorganisation costs led to an exceptional charge of £554,000. The original CD and DVD packaging remains a core product range but it is becoming less important. A three year strategy envisages that media packaging will be less than 50% by April 2014. Management expects further growth this year as the product mix continues to be developed. Profits for  April 13 are forecast at £1.7m on turnover of £23m this would give an EPS of 3.1p for a prospective P/E of 4x while maintaining a yield of 3.8% .


Net debt was £1.85m at the end of April 2012, and since then new loan facilities of £500,000 have been negotiated to finance additional tooling.


Access Intelligence (ACC) – £7.68m at 3.38p

Medium term growth

At the interims the Board stated a  belief that 2012 will be transformational, with significant investment in product development, group marketing and organisational capabilities Risk control software supplier Access Intelligence continues to build up its infrastructure and marketing. A new finance director has been appointed and other management employed, while the York-based development centre is now up and running. The divisions have also been rebranded with the AI prefix. Revenues from continuing activities improved 10% from £3.57m to £3.93m in the six months to May 2012 but the loss increased from £31k to £216k. This was down to a rise in administration expenses from £2.4m to £2.8m. Private sector customers are becoming increasingly important as public sector business takes longer to secure. A new version of the company’s procurement software aimed at the private sector has helped it to add to its customer base. Training services provider AI Talent is recovering but still losing money. Incident management software supplier AI ControlPoint increased its revenues from £80kto around £200k. Typical contracts can be worth £150k but this is taken to revenues on a month by month basis over the length of the contract. Messaging costs have been reduced so this division can move nearer to profitability in the second half. Group contracted income net yet invoiced was £4.4m at the end of May 2012.  Breakeven  is expected for the current year end to Nov 12, but profits are forecast for 2013 of £0.6m for an EPS of 0.2p and a prospective P/E of 17x..


Net cash was £3.2m at the end of May 2012 with a further £250,000 received in July for the Solcara sale.


Ashley House (ASH) – £8m at 13.75p

Positioned for recovery

The recently reported finals reflect a challenging time as Ashley reported a fall in EDITDA to £0.2m compared from £3.1m. The proposed changes to the NHS commissioning structure affected its clients’ willingness to make decisions on new primary and community care facilities. Ashley House supplies project management and consultancy services primarily for  new medical facilities for NHS-led primary care, social care housing, management of assets and clinical services. It seems that until a replacement for primary care trusts (PCTs), due to be abolished in 2013 is in place, GPs are finding it very difficult to get funding commitments. In order to offset this the group implemented a strategy to access customers in distinct markets unaffected by NHS reforms, recruited relevant staff and developed defined products to sell into these markets. Pent-up demand for upgraded primary care facilities should assist the recovery, but short term revenue growth is predicated upon growing contributions from non-core sources. For the April 2013 year-end profits, if they can beforecast are for £1.7m for an EPS of 2.8p giving a prospective P/E of 4.8x


The sale of three schemes reduced net debt is £3.3m. Going forward Ashely  debt will reduce as it  does not undertake speculative development, but secures buyers for the properties before starting construction.

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