Gamesinvestor1
11 Jan 2019
In - First time Looked at this long enough, decided yesterday to buy in. With the founders holding 25%, their wives owning another 4% and institutions another 40% that a smaller pool of chips to influence. All the company has to do now is stabilise the sales in the UK in the next 6 months and … That might be a big ask I don’t know, but the share of the overall pie for the UK is 44% compared to a much higher % last year and the year before that. With 60% growth in the US, entering China and a stable European business, it looks interesting. Balance sheet seems reasonable with very little net debt and a low cost base with just a handful of employees. Coty bought out Rimmel London – could this also be a bid target? Games - 90p seems reasonable, below the float price even - famous last words lol!
IOMINVESTCOM
25 Apr 2018
Paul Scott's view Warpaint LondonShare price: 192.5p (up 1.3% today, at 9:54)No. shares: 76.7mMarket cap: £147.6mFinal resultsWarpaint London plc (AIM: W7L), the specialist supplier of colour cosmetics and owner of the W7 and Technic brands, is pleased to announce its audited results for the year ended 31 December 2017.These figures don't look madly exciting.Pro forma adjusted EPS is up 8.0%, to 9.4p - this seems behind forecast, of 9.8pThis gives a historic PER of 20.5 - seems expensive for limited earnings growthForecast for 2018 is 13.1p EPS, which reduces the PER to 14.7Very good operating profit margin of 22.8% (pre-exceptional)A large acquisition ("Retra"
was made end Nov 2017, which is probably why earnings forecasts for 2018 show stronger profit growth. Retra is heavily weighted to H2, which will affect group results in future (increased H2 bias)Positive outlook comments -"After a successful first year as a quoted company, we look to the future with considerable optimism. We have had a promising start to the current year, in line with the Board's expectations, and with a sound financial base, including net cash, prospects are encouraging.I believe we are well positioned to continue to deliver increasing shareholder value in 2018 and the outlook for the Group remains positive."Balance sheet - is excellent.Intangible assets have shot up, due to the acquisition, from £1.9m to £18.6m.NAV: £40.4mNTAV: £21.8mCurrent ratio: 5.5 - this is extremely high, which I think is probably distorted by the acquisition made near the end of the year. This is because the acquired company's inventories & receivables are included in the year end balance sheet, but there wouldn't have been much impact on the P&L.Share capital has risen, indicating that new shares were issued. Checking the archive of RNSs, in Nov 2017 the company did a placing of £21.2m (before costs) to fund the acquisition. I like this, it's a nice prudent way of doing things. Although an increased share count will inevitably dampen EPS in future years, compared with if the acquisition has been debt-funded.My opinion - I can't get excited about this share - possibly because I know nothing about its market.It looks a reasonably good business - with a very strong operating profit margin, and a great balance sheet. If it achieves 2018 forecast earnings, then the PER would be reasonable.Overall then, it might be worth a look, if you understand the sector.[link]
peddlar
04 Apr 2018
oversold these have had a good TS
IOMINVESTCOM
07 Feb 2018
Paul Scott's view Warpaint (LON:W7L)Price: 212.5p (up 2.4% today)No. shares: 76.75mMarket cap: £163.1mTrading updateWarpaint London PLC (AIM: W7L), the specialist supplier of colour cosmetics and owner of the W7 brand, is pleased to announce the following trading update for the year ended 31 December 2017.This looks to be a satisfactory performance:The Group continued to perform well during 2017 and the Board confirms that it expects to report results in line with management expectations for the financial year.I understand why companies use the phrase "management expectations" during the year - because analysts usually don't produce forecasts for partial years. However, when reporting on a full year, I think companies should refer to "market expectations", not "management expectations". Also, companies should always include a footnote, to say what they believe market expectations are. Or provide the range of broker forecasts, where they differ significantly. This is becoming much more important, now that MiFID II has considerably restricted the ability of private investors to access research.Forecasts - there's an update from one broker, available on Research Tree, which I'm just having a look at now. They forecast 10.2p EPS for 2017, which puts the shares on a PER of 20.8,which looks fully priced to me.However, the 2018 broker forecast is for EPS to rise to 13.1p, which if achieved, would drop the PER to 15.5 - much more attractive.Acquisition - is going well so far;The integration of Retra, acquired in November 2017, has been completed and the Retra business is performing well...The company issued 11.16m new shares in a placing, priced at 190p, in Nov 2017, to fund the acquisition of Retra. Checking back to the details given late last year, Retra looks to have been acquired at a relatively cheap multiple of earnings;Retra recorded profit before tax of £2.3 million on sales of £17.5 million in the year to 31 December 2016.The Acquisition is expected to be immediately earnings enhancing before anticipated (but not quantified) synergiesAlthough a word of caution when interpreting the accounts of private companies - Directors often draw de minimis salaries, and instead pay themselves mainly through dividends. So that tends to inflate PBT, which would then need to be adjusted down to reflect the payroll costs of Directors once the company is acquired by a listed group.[link]
Dogberto
26 Jun 2017
Re: Sudden fall market was expecting a beat, also Europe sales flat unexpected.
Enthusiast
26 Jun 2017
Sudden fall Announcement of meeting market expectations resulted in 10% fall. Why?
T_Hunkster
26 May 2017
Info SCSW are a big fan. Added to GP3 20Jan at 146p
missmolly
26 May 2017
lots of hefty trades today I guess that there is some good news out there somewhere, I bought in this week after last weeks Investors Chronicle buy recommendation.Does anyone have any news/views?Be good to populate this board a bit more!good luck holders and pleasant weekend
nimbo1
11 May 2017
Re: looking good v good
jake_walker
10 May 2017
Re: looking good Yes!Watched today's roller coaster - down to 1.88 in the initial reaction sell off but now looking good.
nimbo1
10 May 2017
looking good moving into other geographies, decent growth ahead. Anyone else out there?
