Small cap round up: featuring Braemar Shipping, S&U, Angling Direct and more

By
5 mins. to read
Small cap round up: featuring Braemar Shipping, S&U, Angling Direct and more
Master Investor Magazine

Master Investor Magazine Issue 57

Never miss an issue of Master Investor Magazine – sign-up now for free!

Read the latest Master Investor Magazine

In this weekly summary, Mark Watson-Mitchell updates his readers on previous company profiles and other news of interest from the exciting world of small cap stocks…

Hollywood Bowl (LON:BOWL) – a handy Christmas special

Friday’s results from the UK’s leading ten-pin bowling group to end-September were excellent. A 7.8% rise in turnover to £129.9m helped push pre-tax profits up a useful 15.3% at £27.6m. Earnings came out at 14.86p, up 18.7%, while the final dividend was up 22% at 5.16p, making 7.43p for the year, against 6.26p last year.

However, what came as a pleasant pre-Christmas surprise was the gift of a 4.5p per share special dividend.

With the current year already having started well, I am happy that there is a lot more left to go in the upside.

The shares end the week at 256p, up 21p on the good news.

Profile: 14.11.19 @ 240p. Target Price: 300p.

Angling Direct (LON:ANG) – record takings and strong trading

The opening of yet another shop, this one is in Barnsley, aided the shares to move higher to 69p at the start of the week.

They also got help from a report that the company’s Black Friday sales were 11.3% up on last year at an impressive £1.86m – a record figure. Trading is strong, so that bodes well for the group’s Christmas sales.

The shares close the week at 67p – a lot more to go for yet.

Profile: 29.10.19 @ 58p. Target Price: 100p.

Futura Medical (LON:FUM) – not the rise that we were expecting

Tuesday’s report on the results of its MED2005 Phase 3 study, from the erectile dysfunction drug delivery company, obviously disappointed the market.

The shares flopped from 29p at the close on Monday to as low as 7.95p the next day in response to the announcement. However, revival kicked in and they closed that day at 14.75p, having since fallen back to hold steady at around the 9.5p level.

Hopes are that the company has now found a simpler route on gaining necessary approvals for its Dermasys formulation.

Unperturbed, Liberum Capital have kept their ‘buy’ rating on the shares, looking for 60p. After such a fall I am convinced that they will bounce back up again.

Profile: 14.03.19 @ 15p, with no end-2020 Target Price.

Circle Property (LON:CRC) – boosted values and rental income

With its portfolio 99% focussed upon the office sector and nil retail exposure, this tight little company increased its interim portfolio valuation by end-September to £135.6m. Its rental income was up 7.2% at £8.2m, which has been further boosted since then by an additional £598,478 of contracted rent.

Master Investor Magazine

Master Investor Magazine Issue 57

Never miss an issue of Master Investor Magazine – sign-up now for free!

Read the latest Master Investor Magazine

This group is confident for the second half and thus for the full year to end-March 2020. It is continuing to invest in its pipeline and its momentum is positive.

With its shares now at around 205p, I remain very confident in the company.

Profile: 19.11.19 @ 206p. Target Price: 235p.

Anglo Pacific Group (LON:APF) – increased royalties add to interest

News that Schroders had increased its stake in ‘the mining group with no mines’ from 7.19% to nearly 10.48% helped to push the shares back up again to trade around 195p.

That is still well below my view of where the shares should be – but I remain patient that my goal will be achieved.

Profile: 10.10.19 @ 196p. Target Price: 250p.

Bloomsbury Publishing (LON:BMY) – dramas and plays with Oberon

Last week expanding into China – this week the Harry Potter publisher buys into Oberon Books.

Paying just £1.2m for the plays and drama publisher, this latest acquisition will fit in superbly with its Academic and Professional division. The company states that it should break even in its first year.

During the week the shares have been trading in a 30p band from a low of 256p to the closing 285p level.

I just love this stock – it is total quality and great value.

Profile: 28.02.19 @ 231p. Target Price: 257p.

Profile: 27.03.19 @ 238p. Target Price: 270p.

Braemar Shipping Services (LON:BMS) – anchors aweigh

Last Friday the shares of this undervalued group were trading at around 182p. By Wednesday of this week they were a frisky 219p. Surely that rapid rise had nothing to do with the useful 5p per share interim dividend being paid today.

Or was it that investors have suddenly realised that the company is on the recovery track and that they feel just as positive as I do about the prospects for a further price rise as it happens.

The shares close the week at 214p.

Profile: 05.12.19 @ 185p. Target Price: 250p

discoverIE Group (LON:DSCV) – broker positivity 

Brokers Panmure Gordon have initiated coverage of this electronic components designing and manufacturing group. They rate the shares as a ‘buy’, looking for them to rise to 615p, which is not as high as Peel Hunt are aiming for – they go for 650p and also state that they are a ‘buy’.

The recent 33% rise in first-half profits and a record order book suggests that these brokers are onto a winner.

Closing the week at 538p the shares still have big upside potential.

Profile: 08.08.19 @ 438p. Target Price: 550p.

S&U (LON:SUS) – update sees lower rating

This financial services group – motor finance and property bridging finance – issued a trading statement on Tuesday and it sounded cautiously positive.

Chairman Anthony Coombs declared that the political environment had not been helping either of its main operations in the motor and property markets. However, for the group’s shareholders, he was expecting the group to show its ability to respond with resilience, stability and with sensible ambition.

Master Investor Magazine

Master Investor Magazine Issue 57

Never miss an issue of Master Investor Magazine – sign-up now for free!

Read the latest Master Investor Magazine

I continue to rate the shares despite some analysts easing back their pre-tax profit estimates.

They are closing the week at just 2,140p, remaining fairly steady on the update.

Profile: 29.08.19 @ 2010p. Target Price: 2,500p.

Speedy Hire (LON:SDY) – Schroders buying more

The investment house has this week added another 2.06% to its holding in the UK’s leading tools, equipment and plant hire services company’s equity – it is now up to 13.104%.

On Tuesday Speedy Hired another broker, Panmure Gordon, to be joint broker with Liberum Capital.

The shares have been a good market over the last six weeks or so, closing at 70p after peaking the week at almost 72p. So much more to come yet – so hold tight.

Profile: 15.10.19 @ 52p. Target Price: 75p.

Take part in our poll

Of the stocks covered by Master Investor in the weekly Small Cap Round Up, which ones do you hold?


The Master Investor Show 2020 tickets are now available. Join us at the Business Design Centre on Saturday 28 March 2020.

Book your FREE tickets today using code: MIBLOG

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

YOUR FREE INVESTMENT MAG

Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.