Small Cap Value Report (Wed 30 Mar 2022) - BMY, SHEP, KETL

Good morning! It's Paul and Jack here, with Wednesday's SCVR.
Agenda -
Jack's section:
Bloomsbury Publishing (LON:BMY) - another material profit upgrade here, with frontlist consumer titles performing well in February. BDR remains small but has beaten its 2016 targets and improves the group’s growth potential in future. Probably worth spending more time on.
Shepherd Neame (OFEX:SHEP) - the UK’s oldest brewer is listed on Aquis and I’m not convinced of the growth prospects, but there is some useful readacross for other businesses with exposure to London footfall. As we move away from lockdowns inflation becomes more of a concern, but at least these businesses can now trade normally again.Strix (LON:KETL) - mixed results. Adjusted profit is up, but margins are down due to cost headwinds. The company is pushing through price increases, so we will see how Strix fares in an inflationary environment. The FY25 target of doubling revenue remains intact and the valuation is becoming more attractive but, given the shorter term risks and challenges, I’m staying neutral for now.


Explanatory notes -
A quick reminder that we don’t recommend any stocks. We aim to review trading updates amp; results of the day and offer...