Despite being in line with revised management expectations, DX posted a fall in revenue and pre-tax profit, with the former falling by 3.9% and the latter by 86.9% versus the same period of the previous year. The key reason for this is a challenging trading environment, with DX implementing measures to try and overcome such difficulties.

For example, it has completed the managed exit of a number of unattractive contracts and has enjoyed some success in securing new contracts on more favourable terms. Furthermore, DX believes that it will meet current guidance for the full-year and is focused on positioning itself for long-term growth, with its strategic OneDX programme set to improve financial performance in the coming years. However, it may be a stock to watch rather than buy at the present time given the scope for further short-term disappointment.

Value for money

Also reporting today was British Polythene (LSE: BPI), with its shares rising by 7% after it delivered an increase in pre-tax profit. It rose by over 4% despite revenue coming under pressure after total volumes declined due to lower demand from multiple UK sectors. Sales were also hurt somewhat by reduced polymer prices and the impact of currency headwinds.

But with its North American division moving back into the black, British Polythene’s overall profit improved and this has enabled it to increase dividends for the full-year by 12.5%. This puts it on a yield of 2.8% which, while low, is covered 3.9 times by profit. This indicates that rapid dividend growth is on the cards and with British Polythene trading on a price-to-earnings (P/E) ratio of just 9.4, it offers huge upward rerating potential, too.

Despite the challenges that British Polythene faces, it seems to offer excellent value for money. That’s especially the case since earnings are due to rise by 5% in each of the next two years, thereby showing that it’s set to perform relatively well even during a rather difficult period.

Take a risk?

Meanwhile, shares in biotech company Proteome Sciences (LSE: PRM) have risen by over 8% today following the release of an upbeat trading update. The company has reported a positive start to the 2016 financial year, with a strong order book and a growing pipeline in biomarker services.

Notably, following the addition of a further Fusion mass spectrometer in the latter part of 2015, the increased capacity that it brought (through doubling the levels of SysQuant/TMTcalibrator production) is being fully utilised this year. In fact, it has resulted in four customer projects already being completed and an increase in customer enquiries. In addition, partnering has also started well in 2016 and Proteome Sciences is optimistic regarding its long-term prospects.

Clearly, Proteome Sciences may be of interest to less risk-averse investors, although it remains a lossmaking smaller company and therefore, most investors may find more appealing risk/reward ratios elsewhere.

The post Do Today’s Updates Make DX (Group) PLC, British Polythene Industries plc And Proteome Sciences plc 3 ‘Must-Have’ Stocks? appeared first on The Motley Fool UK.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Very tiny

Nanoco Group (LSE: NANO) is an intriguing proposition. To quote the company itself, “Nanoco leads the world in the research, development and large-scale manufacture of heavy-metal free quantum dots and semiconductor nanoparticles for use in displays, lighting, solar energy and bio-imaging“.

The company has a patented technology for making these little doodahs on a large scale, and the demand for the LCDs in which they’re used can surely only grow — especially as rules restricting toxic heavy metals are imposed.

Now, Nanoco is not expected to record a profit until July 2016, with forecasts suggesting a P/E of 65 for that year on today’s 109p share price — and there are quite a few shorters out there. I wouldn’t buy right now, but I’ll be examining this year’s results.

Biotech

Proteome Sciences (LSE: PRM) develops protein and peptide markers for clinical use, including the diagnosis of things like Alzheimer’s, stroke and cancer. That’s clearly a technology with great potential, but again we’re looking at a company that’s not yet in profit.

Results for 2014 released in May showed a 9% rise in revenue and told us of “strong underlying growth in biomarker services“. And though the year ended with a post-tax loss of £3.6m, chairman Christopher Pearce said he expects to see “strong growth in revenue and news flow in 2015“. With no profit forecast yet it’s hard to value the 27p shares, but Proteome is worth keeping an eye on.

Watching

Vislink (LSE: VLK), a company that develops advanced video technology for the media, law enforcement and defence markets, has not grown as quickly as some earlier investors had hoped. But at 60p the shares have still trebled in five years and have gained 32% in the past 12 months. After a steady climb since the start of 2015, could we be heading for a golden period?

Vislink recorded its first profit in 2012, and by 2014 it beat expectations with an adjusted operating profit of £7.2m from revenue of £61.9m — and paid a decent dividend too. At the time of the report in May, chairman John Hawkins reckoned that 2014 had been “a transformation year“. And with forecasts putting the shares on a P/E of 12.5 this year, dropping to 11.4 next, there might be a transformation in investors’ rewards, too.

The post Are Nanoco Group PLC, Proteome Sciences plc And Vislink plc Heading For The Big Time? appeared first on The Motley Fool UK.

More reading

• Could Greggs shares bounce back and pull a Rolls-Royce?
• Should investors consider buying Palantir stock after its stellar earnings?
• A huge opportunity for growth investors looking for stocks to buy in May?
• £8,580 invested in Rolls-Royce shares shares 5 years ago is now worth…
• £7,500 invested in Santander shares 3 years ago is now worth…

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.