Petards (PEG) – FY2019 results
The main news for me today is the Petards (PEG) results.
- Revenue of £20.0m is above expectations of £18m.
- Normalised pre-tax profit up nearly 60%.
- Small contract win separately announced today (as I speculated), with work commencing immediately.
- Order book up and further orders expected.
- Net funds down only £0.3m despite £1.25m acquisition.
- Second half weighting for FY2019.
- Warning of reduced defence business in FY2019.
- Order book (at year end) is only modestly higher at £19m vs £18m of which the forthcoming year is up from £12m to £13m.
- Gross margins down.
- Normalised EPS not reported and I cannot immediately compare to forecasts.
I would expect a modest rise in the share price this morning. However I already have a moderate position and due to the negatives highlighted above I will be holding off adding until there is an unjustified price fall or further positive news.
Norcros (NXR) – FY trading update
In-line update. This is reassuring giving that they carry some debt and pension liabilities.
I had reduced my position at a higher price over concerns whether FY results could be achieved and so will be looking to re-add this morning. Note that despite its relatively small size, this is not an AIM stock.
I hold shares in Petards and Norcros.