Small-Cap catch-up featuring D4T4, TLY, CBOX and SUR

D4T4 (LON:D4T4) – a 32% leap in its ARR

Yesterday’s Trading Update from this data solutions provider were inspiring.

After a strong second half for its year to end March, the company anticipates reporting figures at the higher end of market expectations.

Of course, what pleases me was the announced fact that the group’s annual recurring revenues have increased significantly, some 32% better at £14m (£10.6m).

Furthermore, its management is confident of announcing more contract wins over the next few months.

The finals will be declared in July, but I would expect more news before then.

Analysts Lorne Daniel and Kimberley Carstens at brokers finnCap are estimating £24.3m of sales revenue for the last year (£22.8m) with adjusted pre-tax profits of £3.2m (£4.4m) and earnings of 6.9p (9.5p) per share.

Confidence in the longer-term prospects is shown in the expected dividend of 3.1p for last year against 2.8p previously.

Going forward £27.0m of sales, £4.7m of profits, earnings of 9.8p and a 3.4p per share dividend are very positive estimates.

The brokers have a 450p a share price objective.

The shares, which saw a year’s High at 410p last August, are now only 240.50p and that is too low for such potential.

(Profile 09.04.20 @ 170p set a Target Price of 215p*)

Totally (LON:TLY) – looking very fit ahead of its next Update

This healthcare services group will be announcing its End of Trading Year Update next Monday (25).

The financial year to end March 2022 is expected to show through with much better-than-expected figures.

The group has been busy in the last year and that culminated with two significant acquisitions – Energy Fitness Professionals last December and Pioneer Health Care just last month.

The group, which is a leading healthcare services provider in both the UK and in Ireland, contracts with the NHS and other providers to offer its now wide and varied services.

The strategy over the last couple of years has been to ‘buy-and-build’ and it has done so very successfully to date.

The group’s shares, which peaked last July at 44.50p and fell back to 30.25p at the start of March, closed last night at 40.75p.

I like this group and consider that its shares are undervalued, taking a medium-term view.

My price aim of 50p stands very firm.

(Profile 12.03.20 @ 12p set a Target Price of 18p*)

(Profile 25.06.21 @ 38.5p set a Target Price of 50p)

Cake Box Holdings (LON:CBOX) – coming to the top

Cream cakes have been going down well across the country – it certainly seems that way when judging the Trading Update yesterday from this specialist retailer.

A strong showing was made by the ‘egg free cake’ franchise group in the second half of its trading year to end March.

The year had seen a good number of store openings, which helped to pump up both the revenues and the cash balances. It is now up to 220 stores.

Since it came to the AIM market the group has continued to show very good sales and profits.

And that seems to be continuing apace.

Sales last year are estimated by analysts Darren Shirley and Clive Black, at the group’s brokers Shore Capital, to have expanded from £21.9m to £32.8m, with adjusted pre-tax profits of £7.0m (£4.7m), generating earnings of 14.7p against 9.7p previously, but with slightly lower dividend payments of 7.4p (8.8P) per share.

Net cash balances could be £5.2m (£3.6m) at the last year end.

The current year is looking positive, with £35.1m of sales, £7.8m profits, 16.3p of earnings and 8.1p of dividends per share.

The brokers state that the Update confirms the potency of the Cake Box store format and the attractiveness of its franchise model.

In the last year the group’s shares have been as strong as 428p, last November, and as weak as 135p at the start of March this year.

They put on 17p on the day to close at 209p. At which level I would suggest that they look to be a very good hold.

(Profile 30.07.19 @ 180p set a Target Price of 240p*)

Sureserve Group (LON:SUR) – soon to edge over 100p again

We will have to wait until Tuesday 17 May to see the interim results announcement from this social housing energy services group.

It is a fair bet that the group’s order book has grown since the end of January this year, when it stood at a massive £527.1m. That certainly gives the company a very good longer-term visibility of where it will be making its money.

Early February saw the group declare it had signed a £20m ten-year contract with Tower Hamlets Homes for domestic gas servicing, repair and maintenance for the homes group’s 11,500 tenanted properties.

In the middle of January, the group’s shares were trading at around the 106p level, since when they eased back to 79p before closing last night at 82p.

I see them advancing again up over the 100p barrier as good news continues to flow through to investors.

(Profile 14.01.20 @ 36p set a Target Price of 50p*)

(Asterisks * denote that Target Prices have been achieved since Profile publication)