You might want to run for the hills, as that’s what’s happened to Sinclair Pharma (LSE: SPH), whose share price dipped a further 10% Monday after the firm release full-year results and warned that 2018 margins are going to be weaker than expected.

Although the company, which makes aesthetics products, recorded sales of £45.3m (up from £37.8m the year before), and saw sales of most of its products rising, we still saw an operating loss of £2.2m — and net debt stood at £3m at December 2017.

The company is expected to make a very small profit this year, followed by something more substantial in 2019 when forecasts suggest a P/E of 12.5 on the latest share price.

The other news today, which is a bit of a double-edged sword, is the announcement of a new €23m debt facility. Part of that will be used to repay more expensive bank debt of £5m, and some will be used to fund growth.

On the upside, it should mean that Sinclair now has the funds to see it through to renewed profitability. But the downside lies in the potential effective dilution of shareholders’ interest depending on how much of it is drawn. It has to be repaid by April 2023, and there’s a risk now that the company might overstretch itself in the use of that facility. If it can’t repay on time, there could be more funding needed.

I still think this is a buying opportunity if you can handle the risk, and I’d be looking for Sinclair to be as conservative as it can with the level of new debt it actually draws.

Dividend cash

What better to accompany a risky growth pick than a big dividend payer? It’s PayPoint (LSE: PAY) I’m thinking of, and the special dividends its been paying as it returns surplus cash to shareholders. 

Forecasts for the current year suggest a total payment of 83p per share, which would provide a yield of 9.6%, and that should be followed by two more years of similar cash returns. It won’t be covered by earnings, and it obviously can’t go on for ever.

But even if payments should revert to last year’s ordinary portion of 44p when the surplus capital is exhausted, that would still yield 5.1% — and I can see the ordinary dividend doing better than that and at least keeping pace with inflation in the next few years.

Long term, I can only see PayPoint’s business growing. It’s already pretty much dominated the point-of-sale payment terminal business in the UK, and it’s growing in other countries too, starting with Romania.

At the interim stage, the company was making gross margins of 48.5%. That’s slightly down from 49.1% a year previously, but unless that should evolve into a long-term decline, it doesn’t worry me.

The company enjoyed first-half pre-tax profit of £24.4m, with operating cash flows amounting to £29.5m. 

Forecasts suggest a 4% decline in EPS for the full year, but it should soon turn back up again. And with the shares on a forward P/E of under 14, I’m seeing an undervalued cash cow here that I reckon could have a great decade and more ahead of it.

The post One 9% dividend stock and one growth stock I’d buy and hold for a decade appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of PayPoint. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

With that in mind, here are two smaller companies which could realistically offer high returns in the long run. Both released updates on Monday and could be set to deliver rising share prices in future.

Improving performance

Scientific instrument specialist Judges Scientific (LSE: JDG) released a positive trading update for the 2017 financial year. It has seen strong demand for its products in the second half, with organic order intake increasing by 16% versus the prior year. This means that the company enters 2018 with a robust order book that totals almost 15 weeks of sales compared to almost 14 weeks at the same time last year.

Encouragingly, the two businesses within the group that had experienced lower demand in 2016 recovered to normal levels of orders, sales and profitability. The business, which had been affected by production and supply chain problems, has made progress, while wider group sales and profits were driven by a healthy order intake and favourable exchange rates. As such, it is anticipated that earnings for 2017 will be ahead of expectations.

Due to its positive update, the Judges Scientific share price increased by 6% on Monday. However, it continues to trade on a price-to-earnings growth (PEG) ratio of just 1.3. This suggests that it could offer upside potential from its current price level and may be worth buying for the long term.

Growth potential

Also reporting on Monday was aesthetics company Sinclair Pharma (LSE: SPH). It announced a trading update for 2017 which showed that sales increased from £37.8m in 2016 to £45.3m. This represented headline growth of 20%, with sales up 25% between H2 and H1. A modest EBITDA (earnings before interest, tax, depreciation and amortisation) is expected for the year as a while.

The restructuring of its European operations started to bear fruit during the year. Growth potential in Korea and in the Middle East also remains high in the long run, while the company remains upbeat about its potential to increase sales in the next 12 months.

With Sinclair Pharma forecast to return to a black bottom line in 2018, and then deliver 290% profit growth in 2019, now could be an opportune moment to buy it. The company appears to have a sound strategy which could provide solid growth for a number of years. Having a forward price-to-earnings (P/E) ratio of 9.5 using 2019’s forecast earnings figure, it appears to offer a wide margin of safety.

The post 2 small-cap stocks that could be millionaire-makers in 2018 appeared first on The Twelfth Magpie.

More reading

• Down 26% this year! Should I keep buying shares in this UK growth company?

Peter Stephens owns shares in Judges Scientific. The Motley Fool UK has recommended Judges Scientific. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Emerging markets

The AIM-listed group specialises in providing aesthetic dermatology solutions through collagen stimulation for facial volume loss, thread lifting for facial contouring and dermal fillers for wrinkles and lines. The company has an established sales and marketing footprint in the UK, France, Germany, Italy and Spain, as well as a rapidly-growing presence in emerging markets around the world.

For the six months to 30 June, revenues reached £20.1m, compared to £17.3m for the first half of 2016, with gross profit up 19% to £14.5m, together with a strong improvement in gross margin from 70.5% to 72.4%. Sales were bolstered by strong demand in Brazil, with the South American country becoming an increasingly important market for the group.

Facelift

In recent years, there has been growing demand for plastic surgery and other aesthetic treatments from the country’s rapidly-growing middle class population. Indeed, Sinclair’s Brazilian affiliate, created in July 2016, has already become the group’s largest direct operation in terms of sales.

I think a combination of vanity and an ageing population should help to drive growth both in Europe and worldwide long into the future. So right now, I feel that Sinclair Pharma could be the perfect stock to give your portfolio a much-needed facelift.

LED technology

Another London-listed small-cap worthy of a closer look at the moment is LED lighting specialist Luceco (LSE: LUCE). The £380m firm is a rapidly growing manufacturer and distributor of high quality and innovative LED lighting products and wiring accessories for a global customer base.

The Luceco LED lighting brand continues to benefit from the shift away from old-fashioned lighting technologies as a result of recent advancements in LED technology. The brand has continued to successfully leverage the group’s existing customer base and low-cost Chinese manufacturing facility, and remains well positioned to build on an already-impressive record of organic growth.

Meanwhile, in the electrical wiring accessories market, Luceco’s BG and Masterplug brands have continued to reinforce their market-leading positions through further new product development initiatives, expanding into new products and gaining market share.

Chinese expansion

Luceco operates a fully-integrated operating model which includes wholly-owned manufacturing and product development facilities in the UK and China that enables it to maintain strong control over its cost base and the quality of its products, while allowing it to bring products to market quickly and at low cost.

The business is also well positioned for future growth with recent investment made in the expansion of its Chinese manufacturing facility and sales network, both in the UK and internationally, to support the group’s existing and new product ranges.

Luceco’s shares have performed well since last October’s Stock Market debut, soaring from their IPO price of 130p to today’s levels around 237p, and I’ve no doubt they’ll continue to outperform. With double-digit earnings growth forecast for the next couple of years, I believe today’s valuation at 23 times forward earnings is still not too demanding given the promise of further expansion.

The post 2 ‘under the radar’ growth stocks I’d consider buying today appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended Luceco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

With this in mind, here are two shares which could be worth a closer look. Both of them have improving outlooks, and could offer value appeal for the long term.

Growth potential

Reporting on Tuesday was international aesthetics company Sinclair Pharma (LSE: SPH). The company released a trading update for the first half of the year. It showed further progress is being made as per the company’s strategy, with sales rising by 16.3% versus the same period of the prior year.

Looking ahead to the second half of the year, the company has noted several potential catalysts which could lead to an improving top line. For example, order phasing, the seasonality of sales in Brazil and strong anticipated US growth could all boost the company’s financial performance. The FDA label change for Silhouette Instalift is also positive news for the company and should make training simpler and cheaper. Meanwhile, the acquisition of the Refine system should also improve the growth outlook for the overall business.

Despite Sinclair Pharma being a lossmaking business at the present time, it is expected to report a black bottom line next year. This could prove to investors that its strategy is bearing fruit and may lead to a higher valuation. Beyond next year, the company appears to have a grip on its costs and alongside strong revenue growth this could lead to rising profitability over the long run.

Consistent performer

Also offering growth potential for the long term is sector peer Alliance Pharma (LSE: APH). The company has a wide range of products which have historically provided a very consistent revenue stream and rising profitability over recent years. This means that the stock is relatively reliable and stable, which could make it popular if the wider market experiences a negative period following the bull run of recent months.

Looking ahead, Alliance Pharma is expected to report a rise in its earnings of 5% this year and 11% next year. This puts it on a price-to-earnings growth (PEG) ratio of just 1.1, which suggests that it offers a wide margin of safety.

As well as this, it has strong income potential. Dividends are currently covered 3.1 times by profit and this suggests they could move higher at a brisk pace. With a dividend yield of 2.5%, Alliance Pharma could be a sound income play for the long run. With inflation moving higher, this could make it a worthwhile growth, value and income play.

The post Can these growth shares provide high total returns? appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Peter Stephens owns shares of Alliance Pharma. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

A cracking 10 years

Accesso Technology (LSE: ACSO), formerly known as Lo-Q, does ticketing and virtual queueing systems for amusement parks, water parks and other attractions.

And it’s been very profitable for Accesso shareholders, who have seen their shares soar from around 30p a decade ago to 1,570p today. But is there any more growth to come? Reading Tuesday’s full-year results, I’d say there is.

For 2016 we saw pre-tax profit rise by 40.3% to £10.1m, with operational cash generation up 26.5% to £18.6m (and a healthy 97.4% cash conversion ratio). Adjusted EPS put on 25.7% to 51.48p, and net debt was slashed from £9.4m to £3.4m.

Executive chairman Tom Burnet told us that “2016 has been the year in which I believe Accesso has achieved meaningful scale.” He also spoke of “a significant global opportunity in the medium term,” and that’s what I see as key to Accesso’s future growth now as it turns from a ‘blue sky’ pipsqueak into a more mature global business — but we could be entering something of a two-sided phase now.

What concerns me a little is that when a growth darling starts getting towards maturity and its initial rate of earnings appreciation starts to slow, we can suddenly be facing a forward P/E ratio that’s a little high without the EPS growth to support it in the short term, and that can lead some early investors to jump ship. At today’s share price levels, forecast P/E multiples stand at 35 and 30 for the next two years, which is perhaps discouraging.

I reckon we could be in for a volatile year for Accesso investors with slowing overall share price growth, but I see the company as still being near the start of serious profitability and a good long-term buy.

Pharma prospects

There’s no ambiguity about the growth status of Sinclair Pharma (LSE: SPH), as it’s still in a net-investment and loss-making ‘jam tomorrow’ phase — but that should be coming to an end pretty soon.

Results for 2016 showed a 51% rise in sales to £37.8m, with gross profit up 56% to £26.7m and with a gross margin improving from 68.3% to 70.7%. And the firm’s adjusted EBITDA loss is coming down, from £8m in 2015 to £61.m last year.

Sinclair sold off its non-aesthetics business in 2015 for £132m to become, in its own words, “a fast growth high margin pure-play aesthetics business,” and that looks to be paying off. Chief executive Chris Spooner told us that the board “expects Sinclair to be adjusted EBITDA positive in 2017.”

Analysts seem to be in agreement and are forecasting positive earnings per share by 2018, which would put the 35p shares on a P/E of around 27 — that’s pretty meaningless for a year in which a loss turns into profit, and it wouldn’t take much growth beyond that to drop the P/E to something irresistibly low.

The share price has been erratic over the past year, and I expect more of the same as we’re going through a stage in which it’s hard to assign any meaningful short-term valuation. But I’m optimistic for the longer term.

The post 2 AIM growth stocks to consider buying before it’s too late appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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.

Tiny upstart?

Sinclair Pharma (LSE: SPH) shares are down in the dumps, having fallen 32% so far in 2016 to 27.3p, although that includes a modest 1% rise after Wednesday’s first-half results.

Sinclair, which specialises in aesthetic pharmaceutical products, reported a 125% rise in revenue over the previous six months, to £17.3m, though that appears to be largely due to de-stocking in the prior period. Compared to the same half in 2015, revenue was flat. Sinclair’s pre-tax loss did fall, from £7.16m a year previously to £3.39m this half, and chief executive Chris Spooner told us the firm is “on track to meet our guidance of 40% sales growth for calendar year 2016” now that it has disposed of its non-aesthetics business.

The biggest seller at the moment is something called Silhouette Soft, a non-surgical face-lift thing, though sales growth across the company’s product range looks impressive.

The big problem for investors is that there are no sustained profits forecast yet, so it’s hard to quantify the value of the company — but there was £24.4m in next cash on the books at 30 June, so I don’t foresee any liquidity problems on the horizon.

The market for Sinclair Pharma’s products must potentially be very large, especially in the US, and the firm has successfully launched products in Brazil, Hong Kong, Japan, Malaysia, and Singapore too. It’s risky for sure, but if you don’t mind that then Sinclair’s share price weakness could provide a nice opportunity to stock up on a strong growth candidate.

Sleeping giant?

On the other hand, I’ve considered GlaxoSmithKline (LSE: GSK) shares to be undervalued for some time, and though the shares have gained 28% over the past 12 months to 1,637p, I still think so. What we’re looking at is a forward P/E of 17 this year, dropping to 16 next, as the firm’s return to earnings growth finally looks like it’s on the cards after a slump caused by the expiry of some key patents and the resulting competition from generic alternatives.

On top of that, analysts have pencilled-in dividend yields around the 5% mark, and they look super reliable to me. Glaxo has maintained its dividend throughout the tough spell, even when last year’s wasn’t covered by earnings, and the firm has sensibly decided to freeze its annual payments for a few more years. Cover should remain weak for a while, but I can only see it strengthening over the longer term.

Glaxo is in the news right now for the replacement of its chief executive. The head of its Consumer Healthcare division, Emma Walmsley, is to take over from the incumbent Andrew Witty in March 2017. While such a transition can lead to a spell of uncertainty, Ms Walmsley’s internal promotion suggests to me that we’re unlikely to see anything traumatic and that it’ll be business as usual.

Which of these should you buy? How about a bit of both?

The post Is Sinclair Pharma plc a better bet than GlaxoSmithKline plc? appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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

Sinclair Pharma’s restructuring means that it will incur a one-off restructuring charge of around £2.8m which will be fully recognised in the current financial year. The company expects the restructuring to lead to an annual cost saving of at least £2m, highly beneficial to its bottom line.

Most of the one-off cost will be used to pay compensation to Sinclair Pharma’s chief 0perating officer, Christophe Foucher. He has stepped down from the board with immediate effect and his departure is down to Sinclair Pharma becoming a simpler and more streamlined business. It’s now focused on fast-growing spaces and on high margins. Its sale of multiple products to Alliance Pharma quickened the pace of its transition and a new management structure therefore seems to be appropriate.

Looking ahead, Sinclair Pharma is expected to remain lossmaking in each of the next two financial years. However, its loss is due to narrow between 2016 and 2017, with pre-tax losses set to fall from £9m this year to £3m next year. This shows that the company is moving in the right direction and with its multiple growth opportunities and strong portfolio of leading aesthetics products, it has a bright long-term future.

What’s the alternative?

Sinclair’s appeal is lacking when compared to Shire (LSE: SHP) and GlaxoSmithKline (LSE: GSK). In Shire’s case, it’s forecast to grow its earnings by 89% this year and by a further 18% next year.

This is at least partly because of the synergies expected to arise from its combination with Baxalta. While such synergies are welcome and the merger could prove to be a success, it also provides additional risk to Shire’s shareholders. For example, the integration process may not be as smooth as predicted and the fit of the two companies may be less optimal than has been anticipated.

For this reason, buying GlaxoSmithKline at the present time could be a better move. It offers strong growth potential due in part to its pipeline of potential treatments. Notably, GlaxoSmithKline’s ViiV Healthcare division offers multiple new treatments for HIV and could prove to be a major catalyst on the company’s share price. And with it forecast to increase its bottom line by 27% this year, it remains a strong growth play.

Alongside this, GlaxoSmithKline offers less risk than both Shire and Sinclair Pharma. It has vaccine and consumer goods divisions, which provide greater stability than its two sector peers. For example, if its pipeline disappoints, GlaxoSmithKline can potentially offset this to a degree with upbeat performance from its other divisions. And with it having a sound balance sheet and a high degree of diversity, GlaxoSmithKline offers the most compelling risk/reward ratio of the three healthcare stocks for now.

The post Is this the best healthcare stock money can buy after today’s update? appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Peter Stephens owns shares of Alliance Pharma and GlaxoSmithKline. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

In addition, Sinclair Pharma’s current trading remains strong and it expects to record a 40% rise in revenue in the 2016 financial year. And with its strategic review being completed, Sinclair Pharma is now at the end of its offer period, with the company concluding that it has bright prospects for shareholder value creation as an independent entity.

With Sinclair Pharma expected to remain lossmaking in each of the next two financial years, its share price may come under a degree of pressure in the short-to-medium term. That’s especially the case since other healthcare companies offer rising profitability at a low price. As such, it may be prudent to await a lower share price before piling-in.

Bright future

Also reporting today was Close Brothers (LSE: CBG). It reported a positive third quarter, with the banking company recording growth in its loan book, tighter cost control as well as improved trading conditions for its Winterflood division.

Encouragingly, Close Brothers’ banking division continues to see robust demand for its specialist lending services, with improving levels of new business. Its loan book rose by 4% versus the same quarter of last year, with the return on the loan book being strong as both the net interest margin and bad debt ratio have remained flat on the first half of the year. And with Winterflood delivering improved performance after a tough first half of the year and Close Brothers’ asset management segment posting a solid net inflow, the future of the overall business remains bright.

With Close Brothers trading on a price-to-earnings (P/E) ratio of 10.6, it seems to offer excellent value for money. Therefore, buying now could lead to strong share price gains over the medium-to-long term.

Share price jump

Meanwhile, shares in betting company Ladbrokes (LSE: LAD) have jumped by as much as 10% today after it was announced that it may have to sell 350-400 shops in order for its merger with Gala Coral to proceed. That’s because the Competition & Markets Authority said that there may be competition concerns in specific local areas and while it means that the two companies may end up being smaller than first hoped post-merger, the deal appears to at least be on track.

Clearly, the betting industry is undergoing a period of consolidation as revenues and profitability come under pressure. With Ladbrokes trading on a P/E ratio of almost 22, there appear to be much better value options elsewhere.

The post Don’t buy or sell Sinclair Pharma plc, Ladbrokes plc or Close Brothers Group plc until you’ve read this! appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Peter Stephens 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.

But the shares took a tumble today, dropping 18% by the time of writing, to 4.05p, caused by a 27% fall in revenue for the six months to December 2015. That was, we were told, due to the deferment of some orders combined with increasing project lead time. The deferments were known in October, so might the price fall be a bit of an over-reaction?

Well, there was an increased net loss, of A$1.3m, and the firm reported cash reserves of just A$0.9m — although a new patent licence agreed after the end of the period should bring CAP-XX an up-front payment of at least A$2.4m. There are no forecasts for profits yet — in fact, there are no forecasts at all —  so it’s hard to quantify. A big risk or a company with great potential? Possibly both.

Pretty skin

We also had interim results from Sinclair Pharma (LSE: SPH) today. They were greeted with a little more enthusiasm and the share price gained 3.4% to 34.6p as a result. Sinclair, which specialises in aesthetic dermatology (skin lifiting, collagen stimulation, and things like that), reported a loss of £14.1m for the period, up from £10.7m, with a 2.8p loss per share compared to 2.1p a year previously.

That came from an expected fall in sales to £7.7m, from £10.5m, attributed to “planned distributor de-stocking“. But the third quarter is expected to bring revenue in excess of £8m, and along with an amendment to the payment terms for Sinclair’s acquisition of AQTIS Medical BV, that pleased the markets. The disposal of Sinclair’s non-aesthetics brought in £132m, enabling it to clear all debt and leaving net cash of £75.4m at 31 December.

With losses expected to continue for at least the next two years, making any valuation of the company pretty difficult, it’s a big risk — but it could be one worth taking.

A great start

Since flotation in February 2014, shares in Manx Telecom (LSE: MANX) have put on 34% to reach 215p. And on top of that, the company paid out a 5.6% dividend for 2014, and has just announced a 5% rise in its 2015 dividend to 10.4p — yielding 4.8% on today’s elevated share price.

Revenues were pretty flat for the year, but underlying pre-tax profit gained 27.9% with underlying EPS up 19.4%, and the company recorded strong operational cash flow of £25.4m. How does it do so well? Having a monopoly on fixed-line communications in the Isle of Man certainly helps (and the firm has just renewed its government contract for another five years), and it also has about three quarters of the island’s mobile business.

With 4G rollouts continuing (after helping boost mobile revenues by 9.3% in 2015), forecasts suggest more of the same over the next couple of years, with the firm’s progressive dividend policy set to boost the annual cash handout by 5% per year.

The post Should You Buy Cap-XX Limited, Sinclair Pharma PLC And Manx Telecom PLC After Today’s Results? appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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.