Small Cap Value Report (Wed 30 Nov 2022) - IGR, MUL, LINV, KETL
Good morning from Paul amp; Graham.
Agenda
Paul's Section:
IG Design (LON:IGR) - H1 figures look good, but the outlook is only for about breakeven for FY 3/2023, so I'm publishing the first part of this section to alert readers to this point - caution needed! The rest of this section is now up. It could be an interesting turnaround, especially if input costs fall in future, but so far there's not enough evidence to convince me. Plus there's bank refinancing risk to consider.Strix (LON:KETL) - drops about a third today, on a profit warning. I raise several concerns over the historic accounts, so this share gets a thumbs down from me.
Graham's Section:
Mulberry (LON:MUL) (£150m) - disappointing numbers from this luxury handbags and leather goods company. It swings to an H1 loss and also suffers a large cash outflow as it builds up a large pile of inventories, betting on a big festive season. Expenses have ramped up across marketing, technology, and expanding the store network. It’s an ambitious plan and hopefully it will pay off over time with improved revenues and operating margins. We’ve seen false dawns here before and I believe that Mulberry should allow...