Good morning from Paul & Graham!
Agenda/Summaries – to follow.
Explanatory notes –
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Firstly, 3 stragglers from yesterday:
33p – market cap £55m
Summary: FY12/2022 slightly ahead, cashflow lots ahead, 2023 outlook cautious. Broker slashes 2023 profit forecast by half.
FY 12/2022 underlying operating profit guided at £11.6m (up 13% on 2021), which becomes adj PBT of £9.0m, or 4.7p adj EPS.
Net cash £5.0m (but large working capital, so this could swing about a lot, I reckon – average daily net debt/cash would be more meaningful to report the true picture).
Claims balance sheet is strong, which it isn’t (so how can I trust anything else they say?) – last reported NTAV was negative at £(2)m. Zeus appointed to join Liberum as joint broker – why? Fundraising maybe? Altman agrees with me, not STAF management, with a Z-score that is alerting us to a weak balance sheet –
All was looking reasonably good, until I read broker update today – FY 12/2023 forecast slashed by almost half! (from 5.8p adj EPS to 3.1p) – a tiny sliver of profit, PBT margin is under 1% of revenues.
Says that macro conditions are worsening.
The wheels fell off in 2019 (pre-pandemic) as you can see below. Just after the former CEO…