Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CRESTON PLC. We currently have 36 research reports from 4 professional analysts.
|22Dec16 09:43||RNS||Scheme of arrangement|
|21Dec16 15:09||RNS||Form 8.3 - Creston Plc|
|21Dec16 12:55||RNS||Scheme of arrangement|
|19Dec16 12:08||RNS||Form 8.3 - Creston Plc|
|16Dec16 12:23||RNS||Result of Meeting|
|16Dec16 11:42||RNS||Form 8.3 - Creston Plc|
|13Dec16 15:13||RNS||Form 8.3 - Creston Plc|
Frequency of research reports
Research reports on
Interim results and agreed 125p cash bid
17 Nov 16
Creston has published its interim results to end September, which show flat revenues with a like-for-like 4% decline. There was, however, a step up in PBIT margin from 10.3% to 11.6%, reflecting operational efficiencies from the Unlimited initiative and other planned overhead reductions, along with some benefit from currency. The company has this morning received a cash bid of 125p per share from DBAY Advisors, which controls 28.0% of the equity, recommended by the independent directors. Our forecasts for Creston are therefore withdrawn.
06 Sep 16
Creston’s AGM statement this morning confirms that trading is in line with expectations for the current year and our forecasts for both FY17 and FY18 are unchanged. Revenue in the first four months of FY17e was broadly flat over the previous year, but profits are more strongly ahead. This is partly currency-related, partly reflecting improvements to margins stemming from FY16’s operational initiatives showing through more strongly. The valuation remains at a marked discount to peers, despite the strong balance sheet and well-covered, premium dividend yield.
13 Jun 16
Creston’s full year results exceeded the expectations that had been set in January, with constant currency like-for-like revenues and headline PBT flat on the prior year. The group is making good progress in leveraging its Unlimited group branding, with an increasing number of clients working with several group agencies. Good cash conversion has led to a higher year-end cash position – there is no debt, enabling a progressive dividend (up 5% year-on-year) on a yield well ahead of sector and market. The shares trade on an unjustifiably large discount to peers and market.
Strong cash performance
18 Apr 16
Creston’s brief year-end trading update indicates that FY16 revenue and earnings figures will be in line with indications given in January and our expectations. However, the cash performance is significantly better than we had anticipated at over £1m. FY17 should benefit from more focused recent attention to overhead management after the less consistent trading in H216, with no trading improvement currently factored in. The valuation remains at a significant discount to other smaller marketing agencies and the shares carry a premium yield on a well-covered dividend.
27 Jan 16
Continuing strong new business wins over the first nine months of Creston’s financial year have not been sufficient to offset the revenue impact of project delays and retrenchment of some client budgets in Q4. The group’s underlying positioning, with its broad spread of clients and capabilities, is sound, its cash conversion is strong and the balance sheet is only likely to show c £0.5m net debt by the March year-end. These shortterm revenue setbacks will dampen the rating until more consistent delivery starts to come through.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
10 Mar 17
We have run our new quantitative Slide Rule over the Support Services sector. Of the c.500 stocks we have ranked on a Quality, Value, Growth and Momentum basis in the small to mid-cap space, 21 Support Services stocks appear in the top 100. Fulcrum leads the pack, ranked no. 6 out of 500 (and not coincidentally our top pick for the year), closely followed by Brainjuicer (no.7), Sanne (no.8), Learning Technologies (no. 12) and Next Fifteen (no.16). These stocks have high ROCE on both an EBIT and cash basis, strong growth prospects, earnings and share price momentum and valuations that, in this context, remain attractive. At the other end of the spectrum, HSS, Management Consulting, Serco, Mitie and Lakehouse appear towards the bottom of the rankings. Strong returns could, of course, be made if any of these turn their fortunes around, and management has been changed at Lakehouse, Serco and Mitie.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
21 Mar 17
NAHL has a track record of being highly innovative around changes in regulation and we believe the changing personal injury landscape presents an opportunity to build market share. The recent strategy statement provides forecast benchmarks to base long term investment decisions. Whilst the shares are up 21% over the last month, valuations remain very modest with a FY17 PE of just 6.5x and a dividend yield of 10.4%. We believe the shares are meaningfully oversold and expect a recovery bounce to over 200p short term.
Mission on track
23 Mar 17
The mission has again posted good growth in revenue and earnings, with both increasing by 8%, well ahead of FY16 ad spend at 4.4% (WARC). FY17 forecasts are unchanged. Start-ups and acquisitions are adding to the mission’s reach and breadth, increasing opportunities for cross-selling to the loyal client base (20% of revenues are from 20-year+ relationships). Margins should improve as recent start-ups move into profit and investment in technology and software products translate into sales and profit. The shares trade on an overly large discount.