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Slightly messy set of results with a lot of one time transactions being stripped out.
2018 costs down H2 v H1 which is positive. They have been talking a lot about supply chain rationalisation and the associate margin benefits and good to see them delivering and starting to sweat the assets. The business continues to demonstrate tremendous operational leverage.
Key here for me is the YTD performance with Q1 ahead of expectations. I think today's result and outlook should satisfy the market - it looks like the recent SP reaction has reflected nervousness around 2019 outlook and Q2 pound weakness. Today's result takes that next step towards derisking the path to sustained profitably.
rag, i think the q1 is as you say the key result for the market not sure why you you are worried about sustaining?
Taverham I'm not particularly worried but one summer a swallow does not make, as they say. I will feel more comfortable when they string a few results like today together. I'm very happy with the maiden profit in 2017 and the huge improvement this year. And it's a genuine profit as well, ignoring all the adjustments. But I would like to see that £2.5m a lot higher and recurring. It's a very competitive market out there, we need a couple more results to reinforce the strength of the business model, the scalability of the platform and the competitiveness of the brand.
Overall I'm very pleased with today's results and trading update yet I always try to be sceptical and keep an open mind.
rag, understood but it is nice when one swallow comes along. All we get are red kites and buzzards picking over any meat they can find!
Hi Rag, Caution is a great thing and I appreciate that one swallow does not a summer make but with the last 5 years revenue figurers as follows: 5.48M; 7.97M; 10.19M; 15.41M; 26.1M plus profits for the last 2 years we have no winters anyway!
Taverham I know what you mean! A few more rises like today are very welcome. The market likes the numbers which is a relief. The recent SP action has been a bit painful.
Truro, I'm talking about profit, not revenue. A £2.5m reported profit makes a market cap of £170m look pretty punchy. A couple of years of £10m+ profit and this will be 50% higher and we may even see a dividend.
May go a bit upwardly mad towards the close today, or during lunchtime.
Some reasonably weighty buys gone through with a full ask of 107p having been paid.
Nice results, as previously guided in January. Very good start to first quarter may lead to earnings upgrades as the year progresses, despite the Brexit headwinds still in force. Should also mean continued further strong growth into 2020 as the cost streamlining comes through and hopefully a successful venture in the USA. Operational leverage superb.
This is one of the few shares you can buy and hold without worry. No need to frequently check in on the share price, or for that matter, look at the message boards! More than happy to hold till this time next year - would be expecting a SP comfortably at 150p in 12 months and 200p in 24 months. Once Brexit clears, the shares may re-rate upwards again, which would add 30-50% on to those price targets.
I have just re-watched the Proactive video from March - a good useful reminder to the company's plans and interesting comments at the end regarding the market's valuation of the business - be patient and the market will catch up.
https://www.proactiveinvestors.co.uk/companies/stocktube/12486/fairfx-ceo-ian-strafford-taylor-updates-on-supply-chain-streamlining-12486.html
Hi rag, considering this is a start-up on AIM that's never paid a divi the latest results are about as good as you can get!
I've done a couple of dozen AIM investments that have just disappeared into administration or re-appeared with the old shareholders (me) wiped out.
I've sold enough FFX in the past to make my current holding pure profit. This is only the third time I've managed that but other shares are sitting comfortably well in profit - apart of course from the ones that ain't!
The AIM is a sort of watered down Wild West. My message is don't kick a gift horse in the teeth but enjoy the rise and perhaps take a little profit?