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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 ProCook Group and Joules. Read about these Opportunities 4 Material Gains!
Mid-week Tip
ProCook share growth
Kitchenware retailer ProCook Group (LSE: PROC) floated on the full list last autumn. The share price range for the offer was 137p to 185p. The price was eventually set at 145p, and the current share price is not much higher. Strong third quarter sales indicate that trading remains impressive and market share is being gained in a fragmented sector. A full year pre-tax profit of £10m is forecast, rising to £12.4m in the year to March 2023. The company did not raise money in the flotation. Net cash is expected to be £13.6m, after £3.9m of float costs, at the end of March 2022, falling to less than £8m one year later even after dividend payments and capital investment on warehousing and new stores. Management is promising dividends of between 20% and 30% of adjusted post-tax profit. The prospective 2022-23 yield is nearly 2%. Buy for longer term
Results Preview
Premium to Tarnished
Joules (Lse: Joul) 115p (115-117)
Since this Joules Trading Statement in December the shares in this ‘premium’ lifestyle brand a have fallen back from 152.5p as it stated that for the six month to November, to be announced on Tuesday, that despite 25% revenue growth to £128m profits had fallen. Operating expenses have been hit by higher costs with labour shortages along with stock delays due to global supply chains troubles , combined to ‘unwrapped’ the critical Christmas period, which was below expectations. In April 2021 Tom Joules sold over £10m worth of shares at 232p, (around 4.7%), and retains 21%. Tuesday’s lower interims with a reduction in full year to November expectations seems to have stirred the demanding and mightily Blackrock Fund; who has been selling its holding down from 12% at the trading announcement to currently 9.9%.Avoid for now
Reviews in this week’s report
EMR – 85p- Recovery accelerating
DRV – 46.5p In the Spot-light
SUR – 92p – Acquisition opportunities
NFT – 2.475p – Pluto acquisition
IGR – 100p – Profit warning
AUTG – 20p – Flooring success
EAAS – 15p – Rising profit
KETL – 234p – Heating up
TWD – 80p – Waiting for orders
RLE – 39p – Occupancy improving
PGH – 356p – Recovering this year
RNWH – 725p – Higher order book
ELCO – 94p – Subscriptions rise
DOTD – 142.8p – Asia growth
DNL – 56p – Initial Efmody sales
ITX – 3.95p – Revenues set to jump in 2022
IUG – 15.5p – Additional GE contract
KWS – 2432p – 19% organic growth
Finally:
We can assume that looking through a long lens there will be light and wellness at the end of this economic tunnel.
OMG! Opportunity for Massive Gains is a Premium Newsletter on ADVFN with two reports each week written by experienced small cap specialists. To get trips like this every week, sign up here.
