Small cap round-up featuring: Inland Homes, Capital Drilling, Augean and more

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Small cap round-up featuring: Inland Homes, Capital Drilling, Augean and more
Master Investor Magazine

Master Investor Magazine Issue 57

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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…

Inland Homes (LON:INL) – Looking for further good news

The 15 months to end-September 2019 will prove to have been quite monumental for this very enterprising property development group.

I have followed the two main men in the company for two decades now and believe that they are sensible, shrewd and steady in developing their company.

Their previous company was Country & Metropolitan Homes, which they sold off to Remo Dipre’s Gladedale Group way back in 2005, a couple of weeks before they set up Inland Homes.

Last year it achieved planning success on a number of useful developments, but none more important than the redevelopment of the old Tesco headquarter site at Cheshunt Lakeside.

The company should be announcing its results in the next few weeks and its shares at 82p are still looking undervalued.

Profile 14.08.19 @ 68p set an end 2020 Target Price of 110p.

Profile 24.10.19 @ 77p set an end 2020 Target Price of 110p.

Capital Drilling (LON:CAPD) – Trading update due soon

Well, this drill rig and mining services company’s shares gave me a bit of a jolt a few weeks ago – having dropped from a healthy 73p at the end of November.

They eased back to a recent low of 51p at one stage, with no reason apparent.

So, to see them recover over the last two weeks has been pleasing.

The company will be announcing a trading update in a couple of weeks or so. The advances that it has made in its corporate development over the last year have been impressive.

The shares, now at 63p, have a lot further to climb and the forthcoming news may well help to spur them a great deal higher.

Profile 23.07.19 @ 48p set an end Target Price of 76p.

Profile 22.10.19 @ 61p set an end 2020 Target Price of 100p.

Augean Group (LON:AUG) – Another trading update due next week

This Yorkshire based hazardous waste handling and landfill site group has seen its shares perform extremely well since being profiled two months ago, having risen from 158.5p then to peak at 232p just before Christmas.

Ahead of its finals update being announced in the next week or so the shares end the week, still looking strong, at 224p.

Profile 31.10.19 @ 158.5p set an end 2020 Target Price of 200p.

Carr’s Group (LON:CARR) – Positive AGM comment expected next week

Next Wednesday this Carlisle based agriculture and engineering group will be holding its AGM.

Despite unseasonal weather impacting the group, it still managed to deliver a strong financial performance for the year to end August 2019.

I would hope that next week’s AGM might well see a positive update on current year trading.

The shares close the week at 154p, so they have further to climb – perhaps the AGM might give some impetus.

Profile 11.07.19 @ 153p set an end 2020 Target Price of 200p.

Johnson Service Group – Ahead of expectations

News that this workwear and linen textile services provider’s plans to open a new £10m high volume linen plant in Leeds are on course, were well received at the end of the week. It should be on stream in the spring of this year.

The company stated that its full-year results will come in slightly ahead of market expectations, after strong strategic and operational performance in the last year.

Master Investor Magazine

Master Investor Magazine Issue 57

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Read the latest Master Investor Magazine

Peel Hunt suggest adding to holdings as they up their forecasts to £47.1m pre-tax profit and earnings of 10.3p per share. The finals should be due in early March.

The shares close the week at 201p.

Profile 24.12.19 @ 196p set an end 2020 Target Price of 250p.

Avon Rubber (LON:AVON) – Broker upgrade

Broker Peel Hunt has stated very clearly just how much it likes the shares of this innovative technology group, especially after it announced on Thursday that it had completed the 3M ballistics protection business acquisition.

From its previous 2,000p a share it has upgraded its sights to 2,500p for the shares, which is now well above my own ‘far out’ end 2020 figure.

The shares were up 70p to 2,150p on Friday morning on the news, but that is still 165p below their peak achieved ahead of the Christmas shut down.

I feel that Peel Hunt will soon not be alone in jacking up their estimates.

Avon, which is a recognised global leader in respiratory and ballistic protection for the world’s First Responders and Militaries, is undervalued at the current price.

Profile 03.10.19 @ 1,700p set an early TP of 2,000p and then an end 2020 Target Price of 2,250p.

Hotel Chocolat (LON:HOTC) – Was it a good Christmas?

In less than three weeks we should hear from this iconic speciality retailer on just how well it traded in the run-up to Christmas.

It has not been easy out there on Britain’s high streets but has this group shown its ability to be that something special?

Friday’s results from the Next retail group pleased a few operators in the retail sector (or did it emphasise their own failings).

Will this premium British chocolatier and omni-channel retailer have fared well too?

The group not only sells into the UK marketplace but also through a network of stores abroad. It also operates online, it owns a cocoa plantation and eco-hotel in Saint Lucia, while back in the UK in London’s Borough Market it has ‘Rabot 1745’, a flagship restaurant and cocoa roastery.

The group’s shares end the week at 467.5p and looking very positive indeed. Let us hope that its trading update will be as bullish.

Profile 21.03.19 @ 340p set an end 2020 Target Price of 402p.

Speedy Hire (LON:SDY) – Positive interims

On Friday morning the shares of the UK’s leading tools, equipment and plant hire services company were a good market.

They touched 78.8p before easing back to 75.5p, which is still a good price performance.

The company, which operates across the construction, infrastructure and industrial markets, showed a good set of interim results to end-September in mid-November last. Revenue was up 5.7% and profits up 15.2% at £16.4m.

We will have to wait until late March to get the update on the group’s trading in the second half-year.

Even so the recent price performance indicates to me that things are going well. My end-2020 price has been well achieved, a year ahead, and I remain bullish of further price ascent.

Profile 15.10.19 @ 52p set an end Target Price of 75p.

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