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A reasonable set of interims today. Revenues are up nicely, contract wins and cloud growth mean H2 looks good, the dividend is up and there's much confidence going forward. Adjusted EPS was down slightly, but this was due to increased investment costs written off which will come to fruition later, and IOM had already flagged an H2 weighting.

The huge recurring income and growth in the cloud mean that this remains a hold for me, but I'll top up if there's an opportunity at the right price.

The Times' Tempus column tips WJG this morning:

Https://www.thetimes.co.uk/edition/business/aviva-s-policy-can-deliver-profits-rkntxq7h2

"Watkin Jones

Watkin Jones is one of those companies not easily slotted into an obvious category. It is a construction group (in as much as it builds properties), a commercial developer (in that it designs and sells them on to institutional investors) and a landlord (in that in the majority of cases it also manages the tenants). Above all, though, it serves the residential rental market, whether it be with university accommodation, young professionals or families. In that, it is exposed to compelling structural moves in its favour.

Watkin Jones was founded in Wales by a carpenter named Jones in 1791 and was a family-run business until it was listed in March 2016. Mark Watkin Jones, 50, stepped down as chief executive only last year, being replaced by Richard Simpson, 44, formerly of Unite, the student accommodation group.

Watkin Jones also has a residential housebuilding business, constructing mid-market homes in Wales and northwestern England with an average price tag of about £230,000.

Several elements underpin growth at the company, which has built 46,000 of the 290,000 student “beds”, or rooms, that have been created in the UK since 1998. As well as benefiting from the long-term increase in the university population, it also is plugged into the rise of the rental market, with buying a home being increasingly unaffordable because of high property prices.

Its pipeline of properties is healthy: just under 8,700 student beds over the next four years and just under 2,900 flats to rent over the same time, with a substantial number already sold before the projects have been completed. At 23.7 per cent, its gross margin belies its links with construction, which has wafer-thin returns, and led Watkin Jones into pre-tax profit of £23.4 million on revenues of £159.1 million during the six months to the end of March.

The shares, which were priced at 100p apiece for the 2016 listing, have more than doubled in value, Yesterday they rose 6p, or 2.8 per cent, to 224p. Watkin Jones’ stock is not expensive, changing hands for 11.8 times Jefferies’ forecast earnings, and carries a dividend yield of more than 4.2 per cent. It looks worth having.

ADVICE Buy
WHY Favourably positioned for solid long-term growth"

Nice summary from the respected Techmarketview:

Https://www.techmarketview.com/ukhotviews/archive/2019/11/26/imimobile-enjoys-strong-first-half

"Tuesday 26 November 2019

IMImobile enjoys strong first half

Cloud communications software provider IMImobile has released a strong set of interim results with revenues up 24% (18% organic) to £83m (H1 18: £67.2m) and adjusted EBITDA up 27% to £9.8m (H1 18: £7.7m).

The company saw organic growth in all regions and business units underpinned by things like increased demand from financial services clients dealing with fraud issues, communications service providers switching to RDS - the SMS upgrade technology, as well as a strong period of new client wins (see - IMImobile delivers Vauxhall win).

Acquisitions remain a key part of company strategy, buying 3CInteractive Corp a private US cloud-based customer engagement platform for £42.8m, as a route to significantly expand its North American presence. Access to the US market should play a major role in the second half of the year and with many customers perceived to be ‘less mature’ in their use of digital comms, offers up significant opportunities to grow.

The company also made a post period end acquisition of Rostrvm, a UK-based contact centre software provider for up to £3.5m, that should allow access to the wider customer services market and capitalise on the huge amount of disruption being felt there at the moment.

Things are looking up for IMImobile – not only does entry into the US offer significant opportunity (and of course challenges!) but customer experience remains one of the largest areas of investment and increasingly central to value propositions throughout client operations, no longer confined solely to the front office."

Breaking upwards now above prior chart highs....but still only on a P/E of 9 for the coming year.

Numis are very positive and also say Buy with a 500p target:

"Renew Holdings' Organic Growth Benefits From Business Model: Numis

0959 GMT - The consistent organic growth of Renew Holdings' engineering services is a tribute to the quality of its business model, according to Numis. The company showed a steady 8% through-year organic growth in its engineering unit, the brokerage says. Furthermore, going forward there are signs of strong growth in rail especially, while energy and environmental markets should also not be underestimated, it added. "We retain the view that quality of management and business model are not reflected in the absolute or relative rating," Numis said. The brokerage has a buy rating on the stock with a target price of 500 pence."

Finncap retain their 57p target price today.

And their forecasts of 4.7p EPS, 0.5p dividend and £2.5m adj.PBT.

including a record order book and a confident outlook as regards meeting expectations.

Interesting to see the booster effect the US acquisition had on EPS last year despite only one month of inclusion post-acquisition due to the timing, which means the EPS increase doesn't quite reflect the large increase in profitability.

I'll continue to hold, despite relatively uninspiring results today, since the value is there even if the growth is (currently) not.

With 2.1p adjusted EPS in H1 alone, the group are weathering a slowdown in the property market with only a tiny reduction in that H1 EPS.

Turnover is up nicely, but AFAICS they don't disclose how much of that is due to acquisitions and how much (if any) is organic. And the fabled delivery in systems integration is supposedly there or nearly there.

Hopefully more acquisitions will follow soon, and maybe the long-awaited renaissance will occur.

Finncap say Buy today with a 500p target.

Shore Capital also say Buy (no target price):

Https://investing.thisismoney.co.uk/broker-views/

Good H1 results, with success and confidence across all regions. The problems in Africa are now well and truly behind them, and "significant" new tenders have been won.

The commentary and outlook are self-explanatory:

"Outlook

The Board has been encouraged by the strong first half of the year having delivered growth in all regions in which the Group operates. We remain excited by the structural growth opportunity in customer communications and, with an experienced team established in key geographic markets, the Board believes that the Group is well positioned to continue to deliver on its strategic priorities in the second half with current trading in line with expectations."

"Jay Patel, Chief Executive Officer of IMImobile PLC, commented:

"89% of companies are now competing primarily on the basis of customer experience(1) , meaning demand for customer communication software has never been greater. Our enterprise-grade offering, and comprehensive set of applications addresses the needs of the largest complex global organisations. With the introduction of new, richer communication channels, we are excited about the possibilities for dramatically improving customer experience."

"We have made strong organic progress throughout the first half of the year and expect the positive momentum to continue through to the year end and beyond. The acquisition of 3Cinteractive provides a solid foundation in the US and we are very confident of success in this market. The outlook for the year is positive and we are trading in line with Board expectations."

Great results - well ahead of forecasts. And a strong, confident outlook.

Terrific EPS of 40.4p, which compares to consensus 38.89p expectations. And the 11.5p dividend is also ahead of the 11.25p forecast.

Every division is doing well, order books are well up, and prospects from the new regulatory frameworks in rail and water are great as they concentrate more on RNWH's specialisms.

The turnover increase is impressive considering Building turnover fell by £38m (and Building improved its operating profit even on this fall, which shows their strategy is working).

Net debt is down to levels where we can expect another acquisition.

RNWH are now on a single-figure P/E, but these results should impress the market.

It's worth noting the still very low valuation here given the forecasts, which are:

this year to 31/10/20 : 32.7p EPS, 10p dividend
next year to 31/10/21 : 36.6p EPS, 11p dividend

Investment bank upgrades the entire sector given the rising prices:

Https://www.theedgemarkets.com/article/positive-cpo-price-sentiment-likely-sustain-2020

"Positive CPO price sentiment likely to sustain into 2020
Hong Leong Investment Bank Research
November 21, 2019

Plantation sector

Upgrade to overweight: We are turning more positive on the plantation sector as we believe the current positive crude palm oil (CPO) price sentiment will sustain into 2020 due to supply constraints arising from potential palm production deficits in Malaysia and Indonesia, lower soybean output in the US and more positive demand prospects (arising from higher biodiesel mandates in Malaysia and Indonesia from 2020 as well as the spreading of African swine fever [ASF]). Given our more bullish stance on the sector’s prospects, we raise our average CPO price assumption for 2020 to 2021 by RM200 per tonne to RM2,400 per tonne, and upgrade our rating for the sector to “overweight”....

...The price spread between soybean oil and CPO has narrowed to approximately US$75 (RM312) per tonne from a historical five-year average of US$100 per tonne. We believe the price spread between the two will likely remain (if not narrow further) as the ASF outbreak and the biodiesel mandates in Malaysia and Indonesia will continue to drive palm oil consumption.

Corresponding to the change in our CPO price assumption, we raise our financial year 2020 (FY20) and FY21 core net profit forecasts for plantation companies under our coverage."

Interview with an NED about today's results - interesting comment about the cost base being fixed, so any additional revenues largely drop straight through to the bottom line:

Https://www.youtube.com/watch?v=cU9-FhJmc0U

The H1 results will hopefully be out this week (27/11 last year and 30/11 the year before).

Given the optimistic outlook in the prelims they will hopefully show decent progress.

I noticed the 5k buy this morning, so went online, which looks encouraging and hopefully indicates a buyer out there and a lack of stock.

You can sell 20,000 shares at 31.2p, whilst you can only buy a maximum 2k shares at 33p.

Good to see you here Qd22.

Here's a link to Allenby's new report with the increased 46p target (from 38p):

Http://www.allenbycapital.com/research.html

Summary:

"Q3 results from MTI Wireless Edge, the provider of communications and radio frequency solutions to multiple sectors, were in line with expectation with 9m revenue up 12% to $29.0m and operating profit by 33% to $2.5m. Distribution and Professional Consulting Services was the standout performer (+36% to $8.1m) but Mottech also continues to perform well (+13% to $12.0m).

Cashflow from operations was particularly strong at $4.0m (9m FY18: $1.6m) and period end net cash was $6.2m.

Management reports significant growth in the order book for all three divisions (Antenna, Water Control & Management (Mottech) and Distribution & Professional Consulting Services). FY19 and FY20 forecasts remain unchanged but we introduce FY21 forecasts. The shares have performed well over the past year but still offers an attractive yield, cash on the balance sheet and growth opportunities. We increase our fair value to 46p/share, equivalent to a 13x FY20 PER and 11x FY21, representing a 30% upside to the current price."

Cheers, an interesting interview. The disparity of valuation between CNIC and the larger players in the sector is huge - hopefully, as discussed here, CNICs new enlarged scale will bring a re-rating in the share price as well as in profitability.

Especially if CNIC becomes a target for those larger players:

Allenby Capital have today increased their target price to 46p (from 38p).

It's a shame these last Q3 results are not separated out.

Because they're excellent.

Remember these are just for one quarter:

Revenues - $9.9m (9 mths - $29.0m)
PBT - $1.0m (9 mths - $2.43m)
EPS - 0.89c (9 mths - 2.36c)
Net cash - +$1.2m to $6.2m

Every division is performing well:

- Consulting is showing "remarkable" growth
- "substantial demand" for 5G antennae
- expansion in water in Australia and China, and the new acquisition going well

Looks very good indeed:

Https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/results-for-the-nine-months-to-30-september-2019/201911250745024404U/

"MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, today announces its unaudited results for the nine months ended 30 September 2019.

Highlights
· Revenues increased by 12% to $29.0m (nine months ended 30 September 2018: $25.9m)
· Operating profit increased 33% to $2.5m (nine months ended 30 September 2018: $1.9m)
· Profit before tax increased 44% to $2.43m (nine months ended 30 September 2018: $1.7m)
· Earnings per share increased 30% to 2.36 US cents (nine months ended 30 September 2018: 1.8 US cents)
· Shareholder's equity grew during the period to $21.5m (30 September 2018: $19.9m), equivalent to 19 pence per share*
· Cash flow from operations increased 155% year-on-year to $3.96m (nine months ended 30 September 2018: $1.55m) providing a net cash balance of $6.2m on 30 September 2019"