RKW - Ticker AI Digest

Across the rest of the portfolio robust results were issued by Galliford Try, <mark style="background-color:yellow">ahead</mark> of market expectations. Their margins continue to progress to industry averages whilst their extremely strong balance sheet is now supporting a stock buy-back. Finsbury Food also generated resilient results where huge industry cost pressures were successfully offset through higher pricing and operating efficiencies. Titon is starting the process of change with new CEO, FD, and 2 new NEDs appointed during the period. Its current operating performance is poor and the business has considerable scope for improved returns, profitability and, we believe, underappreciated asset value. Van Elle produced excellent results also ahead of market expectations. 48% revenue growth led to much over 100% Ebitda improvement, whilst the business retains a net cash position for investment and enhancing bolt-on acquisitions. Their market leading position in Rail infrastructure services will benefit from entering an expected robust phase of industry spend, not least on HS2. Seraphine has been struggling alongside all internet based retailers with the huge increases in customer-acquisition costs. Their stock position is elevated, but the brand well positioned and gross margins holding firm. Having listed at £150m valuation last year, we see potential to meet our target returns from the current market value of £9m. Finally, we have purchased RM Plc a leading educational supplies, service and technology provider. The company has poorly executed an internal IT project, alongside warehouse consolidation with a consequently negative impact on financial performance. Rising debt and falling profits have been punished by a risk averse market. We believe there is a huge potential for value realisation from strategic and operational change at the company and have since period end acquired 7.9% of the company.

Across the rest of the portfolio robust results were issued by Galliford Try, <mark style="background-color:yellow">ahead</mark> of market expectations. Their margins continue to progress to industry averages whilst their extremely strong balance sheet is now supporting a stock buy-back. Finsbury Food also generated resilient results where huge industry cost pressures were successfully offset through higher pricing and operating efficiencies. Titon is starting the process of change with new CEO, FD, and 2 new NEDs appointed during the period. Its current operating performance is poor and the business has considerable scope for improved returns, profitability and, we believe, underappreciated asset value. Van Elle produced excellent results also ahead of market expectations. 48% revenue growth led to much over 100% Ebitda improvement, whilst the business retains a net cash position for investment and enhancing bolt-on acquisitions. Their market leading position in Rail infrastructure services will benefit from entering an expected robust phase of industry spend, not least on HS2. Seraphine has been struggling alongside all internet based retailers with the huge increases in customer-acquisition costs. Their stock position is elevated, but the brand well positioned and gross margins holding firm. Having listed at £150m valuation last year, we see potential to meet our target returns from the current market value of £9m. Finally, we have purchased RM Plc a leading educational supplies, service and technology provider. The company has poorly executed an internal IT project, alongside warehouse consolidation with a consequently negative impact on financial performance. Rising debt and falling profits have been punished by a risk averse market. We believe there is a huge potential for value realisation from strategic and operational change at the company and have since period end acquired 7.9% of the company.