“Every hour worked in Britain produces between 27% & 22% less than in the US, France and Germany, as Britain becomes a low wage/low productivity economy.”
Where shares can be bought and sold for £6 a trade.
It is an informative share trading site and our new share tip will be posted there on Wednesday 20th
Last week …
… the FTSE 100 ended barely changed with a 0.8% rise to 6328, but did managed to reached a five year high. The FTSE 250 improved 1.4% while the Aim All Share at 750 increasing 0.5%. UK inflation stood still at 2.7% and the BOE no longer anticipates inflation falling to 2% until 2016. Retail Sales volume was buried by snow and fell by 0.6% against a hoped for increase. There was evidence of the Eurozone’s deepening recession with Germany’s GDP falling 0.6%
This week …
… in the UK the BOE Interest Rate Minutes will be reported and are likely to indicate the continuation of loose fiscal stance. Also on Wednesday Unemployment figures will be reported and growth seems inevitable. The US Inflation rate is on Thursday with much to do with Eurozone numbers in- between. It seems most likely that markets will drift down.
Electric Word (ELE) – £8.2m at 2p
4 Letters- Grow
Finals for the 12 months to 30th November recently reported were in-line with the expectations re-set in December and after a £1.4m placing at 1.5p. Electric Word is a media group specialising in professional education and compliance with three main divisions; Education, Health and Sports & Gaming. ELS aim to provide higher-value services and decision-critical data to niche markets with content providing 64% of sales. Total Revenue for the year fell 5% to £14.3m but with a profit before tax of £0.2m showing strong improvement against a loss of £4.7m. . All of the business is being refocused with online increasingly replacing print product. Progress was made with the new range of school management products on digital format allowing further innovation and 16 new products were successfully launched last year. New investment in developing sales and product will be made in the two other divisions. The high value niche content is provided in many different formats, including subscription websites, journals, magazines, events, face-to-face training, online training, books, special reports, bespoke research and consultancy. Profits of £0.5m for November 2013 would give a no-tax prospective P/E of 16x.
There is net cash of £0.1m and cash flow is usually strong due to the 24% subscription element of the revenue.
HOGG ROBIINSON (HRG) – £163m at 50.5p
The Quarterly Statement from this corporate services company, specialising in travel, expenses and data management showed resilience with travel activity reported 2% lower. A much slower rate of decline than the 10% fall reported at the interims. Uncertainty remains at the macro-economic environment level but HRG seem confident of an improvement for the full-year. It is encouraging that indicators such as global air traffic remain cautiously positive travel (IATA expects stable air passenger growth in 2013). There should also be a boost from increasingly important technology sales and key new business and extensions, notably Unilever with service in over 70 countries, as well as Bayer and Pirelli. Profits for the full year to March 2013 are forecast at £38m for an EPS of 8p giving a prospective P/E of 6.5x while yielding 4.4%. Growth is expected for the 2014 year-end.
Net debt had increased at the interims to £100m but includes an acquisition and is well within banking covenants. The interest is 1.8x covered EBIDA so seems save enough to maintain the divided.
SILVERDELL (SID) – £63m at 19.75p
Silverdell reported a confidence boosting £12m decommissioning power station contract win in Canada which exactly supports the group’s ‘Changing the Landscape’ strategy set out in the finals. Silverdell was transformed in 2012 with the earnings enhancing acquisition of EDS, which doubled its size. SID is a specialist support services company that operates in highly hazardous regulated environments with a mix of high and low margin business. It undertakes asset maintenance and recovery, decommissioning, asbestos management and consulting services to the built environment, industrial and energy sectors. The £15m EDS acquisition helped the expansion from the UK into Canada and Australia and brought in nuclear decommissioning capacity. The greatest potential for Silverdell is with the decommissioning of nuclear power stations, as half the world’s reactors are expected to be closed by 2030 suggesting the decommissioning of some 200 reactors. Profits for the September 2013 year–end are forecast at £11m which gives an EPS of 2p so a prospective P/E of 10x while yielding 1%.
Net was £11.2m at the 2012 year-end with interest covered by EBITDA while new banking facilities are in place with HSBC.