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.

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.

Shares in Capita (LSE: CPI) fell by more than 7% today, with investor sentiment in the company declining as doubts continue regarding its bid pipeline and contract losses. Indeed, Capita has secured £1.6 billion of contracts so far this year, which is well behind the figure of £2.9 billion from the same time last year, with its bid pipeline also down at £4.1 billion from £5.7 billion at the same time last year.

Despite this, Capita has stated that it remains on track to meet full-year expectations, which include a 100% cash conversion rate. Furthermore, additional acquisitions are planned and, together with organic growth, means that Capita is set to post earnings growth of 8% in each of the next two years. With shares in the company trading on a price to earnings (P/E) ratio of 16.2, though, they still seem to be rather richly priced even after today’s share price fall.

Rare Earth Minerals

Shares in Rare Earth Minerals (LSE: REM) dropped down 4% this morning despite the company releasing encouraging news regarding its Yangibana project in Western Australia. Indeed, the mineral resource at the project has more than doubled, with the total mineral resource of rare earth oxides increasing to 103,000 contained tonnes, up from the previous 45,000 contained tonnes.

Furthermore, Rare Earth Minerals also announced that recently taken aerial photography also shows that mineralisation continues to the west of Yangibana North, which could provide the opportunity for additional shallow mineralisation to take place.

In addition, the company also announced today that it is assessing its strategic options in the development of its interest in two joint ventures (Fleur-El Sauz and Megalit), as well as increasing its stake in its joint venture partner in the Sonora Lithium Project in Mexico, with its holding in Bacanora now being 12%.

Therefore, the share price fall of Rare Earth Minerals today could be due to profit taking, since news flow seems to be encouraging.

Proteome Sciences

A 15%+ fall in the share price of Proteome Sciences (LSE: PRM) has taken place today, with the protein biomarker company announcing that full-year revenue will not meet market expectations.

The reason for this is further contract delays, some of which were highlighted in its September interims, with Proteome not expecting to realise the revenue next year, either. The result is a top line that looks set to be below last year’s level and weak sentiment in the company’s shares.

Although there could be more positive news on the horizon, with Proteome currently in talks to out-license diagnostic applications for the detection of Alzheimer’s disease and cognitive impairments, sentiment could weaken further due to the relatively large degree of uncertainty surrounding the company’s near-term prospects. As such, further share price falls could take place until more detail is provided regarding future sales levels.

The post 3 Shares Falling Today: Capita PLC, Rare Earth Minerals PLC And Proteome Sciences plc appeared first on The Motley Fool UK.

There isn’t much individual company news today, but some shares are on the up. Here are three from the various indices that are rising:

Serco

A pre-close announcement from Serco Group ahead of first-half results sent the shares up 24p (4%) to 625p. The government services firm told us that 2013 is going as expected, and that it should achieve a “modest” improvement in the rate of organic revenue growth — with strong growth in the first half due to record levels of new contracts last year.

Results for the half should be with us on 28 August, with current analysts’ forecasts for the full year suggesting a 2% rise in earnings per share. That would put the shares on a forward price-to-earnings (P/E) ratio of 14, and there’s a dividend yield of 2% predicted.

Entertainment One

Film, television and music firm Entertainment One (LSE: ETO), also known as eOne, saw its shares rise by 3.5p (2%) to 190p this morning, after the company issued a statement ahead of measures to move to the Premium Segment of the Official List.

Just two months into the current financial year, the company has seen revenues rise by 50% over the same period last year, boosted by a doubling of digital revenue. The firm has also doubled its investment in content over last year, and says that earnings are currently in line with expectations.

With the price up more than 20% over the past 12 months, the shares are on a forward P/E of a modest-looking 9.5.

Proteome

Shares in biotechnology firm Proteome Sciences (LSE: PRM) recovered a little this morning, up 2.8p (7%) to 43p after the firm responded to speculation stemming from the recent US decision on the ineligibility of patents for genes — the shares had crashed from around the 70p level since the start of the month.

Specifically, there had been some concern regarding Proteome’s biomarker patent portfolio, but the diagnostics specialist has now reassured us that its intellectual property is not under threat and that it has, in fact, been told its latest patent related to Huntington’s disease has been allowed.

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> Alan does not own any shares mentioned in this article.

The post Why Serco Group plc, Entertainment One Ltd And Proteome Sciences plc Should Beat The FTSE 100 Today appeared first on The Motley Fool UK.