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The OMG newsletter recommends at least 15 companies each month, using the writers’ experience of small caps to give you a winning edge. Last week they wrote about Air Partners and Aukett Swanke. Read about these Opportunities 4 Material Gains!
Wednesday Tip 5th May
We tipped Air Partners (LSE: AIR) at 76p on Wednesday. It is the only listed air charter broker and aviation safety & security consultancy and is reporting finals for the Year End January tomorrow Tuesday. These are set to show the positive benefits of sociality distancing on private jet travel. The Trading Update on 21st of April reported a climb up in bookings for private travel as activity pickup as restrictions ease in both the UK and US. Full year to January 2021 should show that despite global travel restrictions, it performed ahead of market expectations and underlying profit before tax of no less than £11.5m, which is a prospective P/E of less than 8x with a potential yield of 2%. It raised £7.5m at 75p in June 2020 with institutions such as Schroder’s, Amati and Milton. Following the strong half year of trading and the share placing, bank facilities were repaid and after repaying some material outlays there should be net cash of around £5m. The shares would not seem over expensive at twice the price.
Results Preview
Aukett Swanke principally provides architectural and interior design services internationally to offices, residential, education, industrial, hospitality and mixed use or ‘hybrid’ developments a post Covid growing building trend. The finals for the Year/ End September, reported in February stated the current year had started slowly with revenues below expectations due to further project delays and below average new enquiries. SO, the interims to March 21 are expected to report continuing losses from the year end loss of a mere £46k against a profit of £292k, its revenue fell 21% to £12.2m and costs have been tightly controlled. The Interims due in June should show increased levels of enquiries and recent notable project wins could make for a much better second half and earnings are highly operationally leveraged.
Reviews from 2nd May
PEN – 42p – Learning recovery
WSG – 4.1p Travelling in hope
REAT – 3.1p – Facilities management contract
CKT – 61p – Take some profit
ANX – 132p – VW cases await developments
LOK – 630p – Long-term prospects
PHD – 74p – Private equity bid
ELCO – 124p – Strong first quarter but shareholder dissent
IUG – 18.6p – AI promise
W7L – 126p – Recovery gains momentum
AGL – 116.5p – Waiting for FDA approval
CRU – 15p – Gyllenhammar reduces stake
IQG – 124p – Kestrel buying
TIME – 30.5p – Signs of improvement
Finally
On Wednesday 12th UK GDP is reported and the rate of GDP decline is reversing with yoy 1.2% lower compared to 7.7%. In the US Retail Sales may be slowing to 0.2%, while Inflation could pick-up to 2.3% from 1.6%, yoy, which is not a good combination if it becomes a trend. Some markets may pause to reimagine the impact of resetting economic priorities now the Covid Recovery is established.
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