I generaly wont go into a small cap without asset backing, however, thats only becuase I dont intend to hold a "basket" of these plays.


Ok so (forecast) numbers first..

market cap 257m
p/s 0.38
p/e (hist) 11.5
p/e (2012) 8.6
ev/ebitda 6.1
ptbv 15 ---> Yikes!!!
Net Debt 38.6 million
Yield 4.57
peg 0.27


brokers forecast for 25.44 eps & 10p dps, AKA significant growth for next year and more to come the following year.

Its largly owned by institutions, allowing for them to take riskier strategies in corp finance.


Assets

Clearly this is no asset play. Need I say more? I guess this is an qualitative knowledge company in part and as such is carried as goodwill.


Revenues..

These appear to be rising nicely, due to both organic and, sadly, aquasitive growth. They have effectivly doubled revs in last 5 yrs.


profits...

a P/e of 8 seems light for such growth if it can make it and this the essense of the play highlighted by the peg of 0.27. Profits have also doubled in the last 5 years though this dipped in 09 significantly and a rights issue ensued to shore up the balance sheet.


Yield

A well covered nicely rising yield with more to come. This appears to be unbroken rising dividend and wasnt cut during the 09 debacle according to sharelock & morningstar, however, stockopedia thinks it was held.


Gearing.

As with the Assets, here the play breaks down a little due to ~38 million debt.. however, interest is covered significantly @ 11 times and it has been paying down debt. In additon, is a small pension deficit (I think as its quite confusing) and some operating leases.


The outer then is the strongly rising EPS .. So its all about making it and whether our weaker friends p/e & Yield are strong enough to cope with this going awry.


Directors are backing this up while being incredibly bullish adding credence to the forecasts from the recent interims.


The business..

A distributor of industrial maintenance, repair and overhaul products and services. It was setup in 1920 by an inventor who the companiy is named after. They are widley diversified across Europe and reckon they are the market leader. They also seem to be quite an aquasitive firm with the most recent, last sept, being UK distributer "Buck & Hickman".

They split there business into the following but interestingly report segmental on region.

--Food & drink
--Pulp & Paper
--Utilites
--Automative
--Metals

The operations across europe have grown reveneues in double digit figures in all areas while profits have simalry grown in double digits except benilux region.

They business appears to be valued on SPWD (Sales per working day) vs an exit rate and apparently this slowing of growth (Still growing) combined with euro issues has smacked the share price. I think if you really want to deep analyse this share then SPWD appears the place to dive in.

So in summary a speculative peg play, where we hope the mgmt has been shrewd to pick up aquasitions in their fragmented markets for good value and they indeed can hit the expected high growth rates in spite of the downgrades/slowdown to SPWD & Europe.

I wonder if James the train would be interested, though I noted his use of TA for the when to buy decisions.


ps. My fav pyad plays are DTG/VTU/SBRY/IGG/.. Although I am, overwight via options in Aviva (pleased since friday)