Should You Buy BowLeven PLC, Learning Technologies Group PLC And Circle Holdings PLC After Today’s Results?

Alan Oscroft — Wed, 30 Mar 2016 13:46:03 +0000

Shares in oil and gas explorer BowLeven (LSE: BLVN) had been picking up along with the firming price of oil, having gained 27% from their low on 4 February until close of play on Tuesday. But then Wednesday’s interim results knocked them back 13% to 20.1p, after the company reported a $132m loss for the six months to December 2015 (down from $81m in the first half of 2015).

But that does include a $133.5m impairment due to the downgrading of the firm’s intangible exploration assets, compared to an impairment of $76m in the same period last year, all due to the ongoing cheap-oil environment. And the company remains upbeat, pointing out that it had $108m of cash on the books at 31 December, and no debt.

By 29 March, there was approximately $100m of that left, and BowLeven should have around $40m coming in from its farmout agreement for its Etinde project in Cameroon, so it shouldn’t be facing any funding squeeze any time soon. Is BowLeven a good investment today? I’m not one for oilies in their loss-making phases myself, but I see it as one of the less risky ones.

Transformational

Shares in Learning Technologies (LSE: LTG) have shot up by 81% since a recent low on 1 December, to 37.25p. Acquisitions, including a couple announced in January, have helped, but the rise has surely been mainly in anticipation of the e-learning firm’s maiden full-year pre-tax profit.

With revenue up 33% to £19.9m in a year that has been dubbed as “transformational” by chairman Andrew Brode, that pre-tax figure came in at £1.55m compared to a loss of £127,000 a year previously. Adjusted EPS doubled to 0.756p, and the dividend was lifted by 50% to 0.15p per share, albeit for a yield of only 0.4%.

Looking forward, a “landmark” contract, in alliance with KPMG UK, to provide the UK Civil Service with learning facilities for 400,000 staff over three years could well mark a real turning point for the company.

Volatility

Shares in Circle Holdings (LSE: CIRC) have had a very erratic 12 months, reaching 57p in May 2015 before crashing as low as just 9p in January this year. As I write today they’re back up at 21.25p, though that is after a 4.5% fall on the day of the company’s 2015 full-year results.

The healthcare services group saw revenue rise by 15% to £127.8m, with EBITDA losses reduced by more than half to £4.9m — and we heard that all segments of the business, excluding Head Office, are now EBITDA positive. Chairman Michael Kirkwood CMG opines that the company is “well poised to realise its potential through a sustainable business model while generating consistent returns for our shareholders“.

He may be right, but with no profit yet and no forecasts, I’d hold off a little while longer myself before making any commitment.

The post Should You Buy BowLeven PLC, Learning Technologies Group PLC And Circle Holdings PLC After Today’s Results? appeared first on The Twelfth Magpie.

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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

3 Great Growth Picks For 2016: Go-Ahead Group plc, Michael Page International plc, Crest Nicholson Holdings PLC?

Alan Oscroft — Thu, 18 Feb 2016 11:15:23 +0000

So the FTSE 100 has had a rocky start to 2016. And people are deserting shares due to fears of China, banks, recession, or whatever… Is that a good time to be looking for growth shares? Most definitely.

Growth in travel

Shares in Go-Ahead Group (LSE: GOG) have actually fallen by 17% since their December peak, but interim results released Thursday gave them a 6% boost back up to 2,380p. Go-Ahead operates bus and commuter train services, and provides ground handling services for the aviation industry too, which might perhaps not sound all that glamorous.

But a 25% rise in EPS forecast for the year to June 2016 puts the shares on a lowly PEG ratio of 0.5 — the PEG compares the firm’s P/E (currently 12.2 for Go-Ahead) with its earnings growth, and anything under 0.7 tends to get growth investors salivating.

The first-half figures suggested everything is on track, with the firm’s full-year expectations unchanged. Adjusted earnings per share rose by 25%, bang on the full-year forecast target, and the interim dividend was lifted by 6.5% to 28.33p per share, nicely ahead of inflation.

Recruitment strength

Michael Page International (LSE: MPI) has seen its shares lose 24% in the past 12 months after a depressing fall since the turn of the year to 377p. That’s despite the global recruitment specialist having put in two years of healthy EPS growth, and despite a Q4 update telling us of a 9.2% rise in gross profit to a record £555.9m. Fourth quarter conditions did apparently deteriorate a little, and the fear might now be that EPS growth could come in below the tipsters’ forecast of 11% — results are due on 10 March.

But the 23% EPS growth currently forecast for 2016 keeps the P/E down to a modest 15 and gives the shares a PEG of 0.7. There’s a 3.2% dividend yield predicted too, which is around the FTSE average and better than a bank savings account. So could we be looking at a great growth opportunity with a decent dividend thrown in for good measure? The City seems to think so, offering a healthy buy consensus.

Bricks and mortar

My third growth candidate is FTSE 250 housebuilder Crest Nicholson (LSE: CRST), whose shares are up 27% in the past 12 months to 572p, and by 110% in five years.

For the year ended October 2015, Crest Nicholson reported an 8% rise in completed homes, and a 32% boost in pre-tax profit to £154m from revenue of £805m, and lifted its dividend by 38%. The whole sector has been enjoying a very rosy spell of late with massive profits for those who invested in the downturn, and the thing is there’s no sign of it stopping.

With a strong forward sales book, Crest reckons it’s on target for £1bn in revenue in 2016, and is aiming for £1.4bn by 2019. Analysts are forecasting a further 20% rise in EPS this year, and that puts Crest Nicholson shares on a very low P/E of 9.5 and a PEG of just 0.5. Oh, and there’s a 4.9% dividend predicted too.

The post 3 Great Growth Picks For 2016: Go-Ahead Group plc, Michael Page International plc, Crest Nicholson Holdings PLC? appeared first on The Twelfth Magpie.