Small Caps Value Report (Tue 12 July 2022) - SDG, SOS, SYS1, WIN, CRL

Good morning! Paul amp; Graham here again. Let's hope we don't have any profit warnings today (EDIT: I spoke too soon, unfortunately), although I think there are probably plenty more to come, where broker forecasts are still unrealistic in some places. 

Agenda - 

Paul's Section:

Sanderson Design (LON:SDG)   (I hold) (£87m) - a surprisingly upbeat AGM trading update, with performance tracking full year expectations. Macro conditions don't seem to have dented performance, so maybe high end products is the place to be, to ride out tougher macro conditions that don't impact spending by the rich? Shares look cheap. Great balance sheet too.

Sosandar (LON:SOS) (£43m) - Fantastic growth, and it's now reached profitability. Given that, and a £6m cash pile, I think it shouldn't need any more placings. There's something special going on here, in my opinion.  Fashion risk, so won't appeal to everyone.

Wincanton (LON:WIN) (£448m) - an in line trading update, so no great shakes. This share does look interesting, and I suspect a re-rating could be in the pipeline, if the pension deficit payments (currently massive) reduce as expected. Looks largely recession-proof too, and has pricing power from cost-plus contracts. Interesting. Overall, I like this share. 

Graham's Section: