Small-cap round-up featuring Robinson, Dekel, discoverIE, SDI Group and K3 Capital Group

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Small-cap round-up featuring Robinson, Dekel, discoverIE, SDI Group and K3 Capital Group

Robinson (LON:RBN) – a stylish acquisition

Yesterday’s announcement of this packaging group’s £7.7m acquisition of Shela Plast A/S, a Danish designer and manufacturer of blow moulded containers, looks to be a great fit into the Chesterfield-based company’s product portfolio.

The finals to end December 2020 are due to be announced on 25 March. Raymond Greaves at brokers finnCap has estimated sales £2m ahead at £37.1m, while pre-tax profits are pencilled in at £2.6m (£2.3m), worth 13.8p per share in earnings. That easily covers a handsome 8.5p per share dividend.

For this current year he is looking for sales to leap to £48.6m and adjusted profits to rise slightly to £2.7m, generating a 14.4p per share earnings estimate.

After yesterday’s deal he has lifted his price projection to 185p.

They closed last night 6.5p better at 161.5p, so there is still more left in the price.

(Profile 02.04.20 @ 55.5p set a Target Price of 80p*)

Dekel Agri-Vision (LON:DKL) – getting hotter on the nuts

Now with 70.7% of the Tiebissou Cashew Nut Processing Plant under its belt, the West African focused agriculture company is expecting the project to swiftly become the second major producing asset for the group.

Its palm oil operations obviously being the main earner – however the cashew nut side helps to grow the group into a multi-project, multi-commodity outfit.

Brokers to the company Arden Partners upgraded their share price goal for the group this week to 9p, which offers a big upside on the 4.95p at which they closed last night.

(Profile 23.09.20 @ 2p set a Target Price of 3.5p*)

discoverIE (LON:DSCV) – better than expected

News came earlier in the week from this customised electronic products group – it appears that trading in its second half year to end March 2021 has beenstronger than expected.

Accordingly profit estimates for the year now come in at around £29.35m, worth 24p per share in earnings, enabling the group to more than treble its estimated dividend to 10.4p, from just 3p, per share.

Despite the good news, the group’s shares at 694p are well up with events now.

(Profile 08.08.19 @ 438p set a Target Price of 550p*)

SDI Group (LON:SDI) – sensing more to come

Designers and manufacturers of analytical technology products for digital imaging, as well as sensing and control applications, SDI has been proved to be an absolute cracker in just a few months.

On Wednesday of this week, it published its own expectations for revenue and adjusted pre-tax profits for the years to end April 2021 and 2022.

Last year it reported sales of £24.99m and profits of £4.35m, this current year to end April 2021 it is looking for £34m of revenues and £6.7m in profits. For the coming year to end April 2022 it is anticipating a turnover of £42m and an increase in profits to £8.7m.

Well, those estimates certainly more than justify my hopes for the group when I profiled the company in late October last. In just over 107 days the shares have turned a magnificent 106% improvement to 157.5p.

I note that finnCap, its brokers, have increased their price objective from130p to 180p.

Too early to get out yet then.

(Profile 28.10.20 @ 76p set a Target Price of 95p*)

K3 Capital Group (LON:K3C) – investor presentation next Tuesday

The multi-disciplinary professional services group is looking proud currently.

Its shares have performed exceptionally well since the late October profile, almost doubling to close last night at 284p.

There could well be a lot more left in this current head of steam.

Next Tuesday (16th) the company is due to announce its interim results to end November 2020.

On the same day, at 4.30pm, its CEO and CFO will be holding an investor presentation, open to existing and potential shareholders.

That should be well worth watching.

(Profile 21.10.20 @ 147.5p set a Target Price of 200p*)

Asterisk * denotes that Target Prices have been achieved since publication


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