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06 Aug 20

Cenkos: Duke Royalty Ltd -- Restoring the royalties

Trading in the royalty partner portfolio over Q1/21 shows a material rebound from May, which has been sustained to date, as the portfolio as a whole returns to more normalised trading. Consequently, Duke's cash receipts, while down 20% YoY currently, are set to step up in H2/21 as forbearance measures largely expire and deferred royalties realised. This bodes well for a rebound in earnings and a return to cash paid dividends. A share price down over 55% since Feb 20, standing at p/book of 0.56x H1/20A's NAV p/s thus appears overdone. We await further clarity on the portfolio before reissuing forecasts, thus leave our recommendation U/R.

Companies: Duke Royalty

06 Aug 20

Teams spirit

LoopUp recently unveiled a major extension to its ambitions – the group is aiming to become a leading global provider of telephony “inside” Microsoft’s Teams product. The opportunity is clear and growing, as enterprise customers look to use Teams for “normal” external phone calls, and LoopUp seems well placed to deliver a differentiated offering using its existing infrastructure and knowhow. In this document we provide an overview of the new platform and explain its strategic significance.

Companies: LoopUp Group plc

13 Aug 20

Cenkos: RA International Group Plc -- Significant commerical sector contract win

RA has announced the award of a significant US$60m Integrated Facilities Management (IFM) contract with a large engineering and construction firm in the oil and gas sector in Southern Africa. The contract will run for two years. This maintains the contract award momentum of 2019 and the strong level of operating activity during H2/19 which continued into early 2020 (FY19A order book ended the year at US$141m). The current order book is now US$188m. Despite inevitable Covid-19 interruption, RA has demonstrated its ability to continue to expand its business substantially with this current US$188m order book now representing 2.7x FY19A revenue.

Companies: RA International Group Plc

07 Aug 20

Velocys

2019 has been a transformative year for Velocys, setting the company up for further progress in the current year and beyond. Despite COVID 19 restrictions the company has continued to develop with the current year seeing further funding secured, the delivery of reactors to Red Rock Biofuels and the securing of planning permission at the Altalto sustainable aviation fuel project. The JDA at Altalto has also been strengthened with British Airways and Shell providing a further £1m funding. Demand for sustainable fuel, especially for aviation, and for negative carbon solutions is growing and Velocys is one of the few companies able to deliver here.

Companies: Velocys Plc

11 Aug 20

WHI Morning Comment: Solid State (SOLI) - Continues to trade ahead of expectations, pipeline expansion ongoing

Solid State's update on the four months to March 31st shows that the company, a manufacturer of computing, power and communications products, and value added distributor of electronic components, continues to surprise on the upside. With group revenues relatively stable and the quantum of the order intake YoY reduction on the back of the pandemic shrinking during the recent period, we view this in an encouraging light, particularly against the backdrop of “solid” cash generation as evidenced by cash remaining stable at the year end net cash level of £3.2m. The order book, which is reported to have stood at £39.9m at the year end, was only marginally below this four months on, at the July 31st level of £38.3m, a creditable achievement given that post-Covid some shorter timescales have been seen in UK domestic orders. As previously, our forecasts remain under review for the present. However, with a strong balance sheet and meaningful unutilised bank facilities, we continue to view the group as well-placed to win out as the Covid crisis recedes and indeed to be well-positioned to grow by consolidation as well as by resuming organic growth.

Companies: Solid State Plc

06 Aug 20

Hurricane Energy - Technical review and operational update

Technical review and operational update

Companies: Hurricane Energy Plc

04 Aug 20

Games Workshop Group - Winning performance

Games Workshop’s (GAW) FY20 results show that demand post lockdown, during which the company initially suspended all trading, has surprised on the upside, leading to a greater profit outturn than recently anticipated by management. Management is aiming to grow revenue in FY21e, while maintaining the operating margin given a focus on leveraging Online (19% of group revenue) as the economic environment will likely lead to lower growth for Trade (52% of group) and a decline in Retail (29% of group) revenue. Our new forecasts for FY21e are for revenue to increase by 2.1% and PBT to decline by 5% due to lower royalty income.

Companies: Games Workshop Group Plc

12 Aug 20

1HJuly21 update - sailing through the darkest hour

Checkit has released another positive update, one that reveals robust trading has continued into Q2 (possibly the business’ most challenging quarter). This thereby provides optimism that growth may rebound sooner than anticipated (FY20 CKT Europe growth: +30%). The update splits out Q1 & Q2: LFL revs +13% in Q1. For Q2 – and as anticipated - progress did moderate: LFL sales c.-11%. Importantly however, this outcome is better than internal expectations and worth noting also: even during Q2, recurring revenue grew – both y/y and sequentially. For H1 as a whole, LFL recurring revs grew an impressive 23% to £2.3m, total sales meanwhile grew +2% to £6.4m. Success in ‘recurring growth‘ can be attributed to CKT UK (acquired 2019) and its strong presence within the healthcare sector. Here the division has benefitted from new installations and the conversion of existing annual calibration and maintenance agreements to all-inclusive subscription contracts. CKT also updates the market on cash – currently £13.4m. Through this reflects a £0.5m benefit of a repaid loan (so u/l: £12.9m) this still means that YTD cash burn has been modest – evidencing that CKT has responded actively to CV19. We leave forecasts U/R for now and look forward to interims (16/09/20) for a further update on trading. The company continues to fascinate following its landmark BP deal and wider mission: to become a leading provider of cloud-based Connected Workflow Management and Automated Monitoring solutions.

Companies: Checkit Plc

07 Aug 20

Hit in advertising and production

Total advertising revenue dropped by 43% in Q2 20 and ITV Studios was affected by the stop in production. The adjusted EBITA margin collapsed to 14% of revenue (-8pts yoy) despite the reduction in the cost of programmes by £77m and overheads cost savings of £51m over £60m targeted in 2020. There is no guidance for Q3 20 and FY2020. The negative trend in advertising was reduced in July 2020 (-23%). ITV Studios restarted production in June 2020.

Companies: ITV Plc

10 Aug 20

Open Orphan* - Major New RSV Challenge Study Contract

Open Orphan has announced that hVIVO has signed a new contract for an RSV human challenge study clinical trial with a top 3 global pharmaceutical company. The contract shows the Group's ability to convert the existing hVIVO pipeline and engage with the top customers in the industry providing great encouragement for investors in the medium term. Reiterate Buy

Companies: Open Orphan Plc

11 Aug 20

CentralNic Group - Strong growth, but lower Q2 margins

In its trading update, management indicated that it expects H120 revenues in excess of US$110m, with adjusted EBITDA of at least US$15m. Cash increased to US$27.6m at 30 June 2020, while net debt fell marginally to US$76.4m. This would indicate relatively strong Q2 revenues of US$53.6m (Q1: US$56.4m), but a fall in Q2 adjusted EBITDA to US$6.9m (Q1: US$8.1m), meaning lower Q2 margins of 12.9% (Q1: 14.4%). On this basis, revenues would be c 11% ahead of our H120 estimates (US$99.1m), but EBITDA only c 2.7% ahead (US$14.6m) with H120 margins of 13.6% vs our estimate of 14.7%. At this stage, with limited visibility on the performance of the underlying businesses and with no forward guidance, we intend to leave our forecasts unchanged, pending review after the interim results on 1 September 2020.

Companies: CentralNic Group Plc

11 Aug 20

Resilient interims to May 2020

Amino has reported reassuring interims in line with the June trading update, confirming 10% revenue growth to $38.0m, including 24% organic growth in software and services, now 26% of group revenue. The July 2019 acquisition of 24i Media accelerated delivery of the January 2019 strategic shift towards software, delivering improved earnings quality from diversification as gross margins from integrated devices hold steady. With 24i moving to a positive contribution of $0.2m (1H19: $-0.2m), the group is positioned well to benefit as visibility of orders and sales pipeline supports FY20 (November y/e) expectations. Management is understandably cautious around the impact of potential COVID delays to customers and the supply chain, but the group remains well supported by a strong balance sheet with net cash of $2.1m, including gross cash of $4.3m and headroom of $13m of undrawn banking facilities. Forecasts are unchanged save for adjustment to FCF expectations to accommodate changes in credit terms, still leaving FY20 net cash of $8m. With the long-term prospects for Amino shining brightly as demand for both platform and content provider solutions is accelerated by COVID, we reiterate our 215p target.

Companies: Amino Technologies Plc

13 Aug 20

Congestion Charge Contract Renewed and Expanded

Following on from Capita’s announcement earlier this week, Eckoh announces it has secured a 6-year £4m contract renewal with Capita for the provision of Congestion Charge Services to TfL. Such contracts typically consist of minimum guarantees and volume related elements. Given the far greater reach of the LEZ and ULEZ and their 24/7 operating times, we imagine volume related elements could mean the contract ends up significantly in excess of the £4m mooted today over time. The high repeat revenue element of Eckoh’s UK business has helped it weather lockdown headwinds, with revenues and profit in April/May at comparable levels to the prior year. Today’s announcement is further validation of both repeatability and the ability to upsell in its highly cash generative UK business.

Companies: Eckoh Plc

07 Aug 20

SIMEC Atlantis

The investment in feedstock provision for the Uskmouth power station conversion adds an element of de-risking at a crucial time for financing the project in our view. The deal increases feedstock options and allows SIMEC Atlantis exposure to additional profit in a potentially improving waste management market. The proposed c.£6m funding also provides additional resource to the £9.4m cash announced at the end of June, allowing the company to continue to move forward on several fronts.

Companies: SIMEC Atlantis Energy Ltd.

10 Aug 20

Open Orphan: World-leading expertise drives growth

Open Orphan (LON:ORPH) has rapidly restructured and integrated its Venn and hVIVO subsidiaries, and is delivering on its growth strategy by maximising its specialist capabilities and is converting a pipeline with an estimated value of over £100mln, to deliver long-term, profitable contracts. This w

Companies: Open Orphan Plc

13 Aug 20

Law Debenture Corporation - fund manager interview

13 Aug 20

Solid H1 20 figures, all targets confirmed despite COVID-19

• Net profit attributable to shareholders decreased by 13% to CHF533m for H1 20 • Gross written premiums were down by 17% for H1 20 due to a special Swiss effect in 2019 but +2% on an adjusted basis • All financial targets were confirmed despite the COVID-19 crisis. The (adjusted) RoE of 10.2% for H1 20 is above the ambition range of 8-10%

Companies: Swiss Life Holding AG

13 Aug 20

Alien Metals updates on Elizabeth Hill acquisition and portfolio exploration plans

13 Aug 20

Time to take out some insurance against US stock markets says Alto Capital's Tony Locantro

13 Aug 20

Beowulf Mining - Financing secured and £300,000 invested in Vardar

13 Aug 20

SP Angel . Morning View

Atalaya Mining (ATYM LN) – Interim Results and guidance maintained | Base Resources (BSE LN) - – JORC Reserve and resource statement for 2020 | Beowulf Mining* (BEM LN) - Funding secured to restart exploration at Majdan Peak, Kosovo | Caledonia Mining* (CMCL LN) – Q2 Results and impact of Covid19 | Condor Gold* (CNR LN) – Land purchases and progress on design engineering | KEFI Minerals* (KEFI LN) – AGM | SolGold* (SOLG LN) – Drilling underway at La Hueca

Companies: ATYM BEM CNR KEFI SOLG

13 Aug 20

SP Angel Healthcare Conditions

N4 Pharma (N4P.L): Positive Covid-19 In Vitro Study Results (From yesterday)

Companies: N4 Pharma Plc

13 Aug 20

Oil & Gas Daily Flow

Bahamas Petroleum (BPC LN): Operations update, aggressive 2021 production targets set | Deltic Energy (DELT LN): 3D seismic data over the Pensacola Zechstein Reef prospect delivered

Companies: Bahamas Petroleum Co. Plc

13 Aug 20

Rapidly growing in the molecular diagnostics market with significant upside potential from further market consolidation and COVID-19 product sales

Yourgene Health is an international molecular diagnostics group which develops & commercialises genetic products & services, mainly in the area of reproductive health. It works in partnership with global leaders in DNA technology to advance diagnostic science & positively impact human health.

Companies: Yourgene Health Plc

13 Aug 20

Figures in line, guidance reiterated

Q2/20 EBITDA of USD 101m vs Cons at USD 102m 2020 EBITDA guidance reiterated Balance sheet deleveraging remains in focus Credit neutral report, but bonds remain attractive risk/reward

Companies: Teekay LNG Partners LP

13 Aug 20

Claranova - Strong finish to the year

COVID-19 lockdowns were a positive driver of demand for FreePrints photo printing services and also boosted demand for Avanquest’s proprietary software products. With FY20 revenues (€409m unaudited) coming in 7% ahead of our expectations, we have revised our FY20 forecasts resulting in a 47% upgrade to EBITDA and a 120% upgrade to our normalised EPS forecast. Our FY21 forecasts remain essentially unchanged. The company will report FY20 results on 30 September

Companies: Claranova SA

13 Aug 20

WHI First Light: Parity Group (PTY) - PTY partnership wins place on key framework supplying in-demand cyber protection services

Following PTY's announcement on July 20th of a £30m revenue outcome to H1-20E, coupled with a modest profit and net cash on the balance sheet, we view this week's REACH announcement of a new win for a strategic partnership that the company has entered with CyberGym as encouraging. The group has succeeded in placing its partnership venture in the vanguard of defence training by winning a place on the Norther Ireland Co-operation Overseas (NI.CO) Cyber Security Training Services Framework (NI.CO CSTSF). This is part of the overall NI.CO (Northern Ireland Co-operation Overseas) framework which is valued at £2bn-plus.

Companies: Parity Group Plc

13 Aug 20

WHI First Light: Verditek (VDTK) - Market updates

Yesterday's announcement from VDTK highlights a string of contracts which have been awarded in recent months since the appointment of new CEO Rob Richards, who took office in May 2020. These orders underline (1) the commercial drive that the new CEO has instilled in the business, including bringing on board a new sales team, (2) this is an in-demand product, (3) the company's manufacturing facility has proved its ability to implement and despatch the orders that have been won effectively and ahead of delivery dates. All of this is very positive, in our opinion, and it is notable that the most recent order, the meaningful, $US2.2m / 1.5MW, contract by SAF Group followed on from a rigorous evaluation process which included the placing with SAS earlier in the period of a smaller order, again reflecting the quality and potential of the product to provide a renewable solution in sectors and geographies where the weight and relative fragility of conventional panels previously made this impossible.

Companies: Verditek Plc

13 Aug 20

WHI First Light: Pennant International (PEN) - Update highlights order book progress, £1m annualised cost savings and £2m net cash

This morning's update from PEN reflects (1) good progress with the order book standing at £36m (up 9% vs. the year-end number cited in PEN's May 22nd business update, (2) a very creditable figure of £1m annualised cost savings, and (3) net cash at £2m, reflecting positive working capital movements and strong disciplines. In terms of net cash, this represents a £4m turnaround, which we view as an extremely positive result. This morning's news follows on from last month's conversion of the first tranche of the contract towards which PEN received a Statement of Intent back in February. Encouragingly, despite the difficult general situation, the company expects to make a profit in the second half, and sees a good flow of opportunities across both the training simulation / emulation equipment and the pure software sides of its business.

Companies: Pennant International Group Plc

13 Aug 20

WHI First Light: Jubilee Metals (JLP) - Offtake agreement for chrome and a new processing facility

Jubilee announces today it has both acquired a new chrome processing facility in South Africa (Windsor 8) from a private group in South Africa and arranged an offtake agreement that fully fills its existing Windsor Chrome circuits for the next three years. Jubilee will operate Windsor 8 and make circuit changes to maximise recoveries – Jubilee commits to spending £0.44m to upgrade the plant but is entitled to this (plus interest) back before sharing earnings form the JV on a 70:30 basis with its JV partner. “Windsor 8” is located ~50km from Windsor towards Rustenburg along the Western Limb of the Bushveld complex in the heart of the Bushveld chrome resources – extending Jubilee's reach for further potential parcels of additional material further west.

Companies: Jubilee Metals Group Plc

21 Oct 19

Avacta Group PLC boss sees a huge opportunity with new version of cancer treatment

19 May 17

Leading UK fund manager, Gervais Williams, discusses investing, his outlook and two companies he's excited about

30 Jan 20

Equals Group PLC chief 'phenomenally bullish' about prospects as revenues rise 20%

09 Oct 18

Arena Events Group plc Investor Overview

16 Jul 20

Omega Diagnostics to expand manufacturing capacity as it scales up coronavirus test development

05 Aug 20

FastForward Innovations CEO says granting of licence for Leap Gaming is huge news

06 Feb 20

Morning Report: Touchstone Exploration confirms potential of its Cacadura-1 well

18 Nov 19

CentralNic's acquisition of Team Internet to be 'significantly earnings enhancing'

23 Jan 20

Executive interview - Sureserve

16 Jan 20

Greatland Gold - Outlook for 2020

07 Jan 20

Volex PLC Investor Presentatiion

14 Apr 16

Executive Interview - Martin Aircraft Company

21 Mar 18

Bitesize briefing – Vermillion Energy

23 Nov 16

Armadale Capital - Full assay results confirm exceptional high-grade graphite deposit

02 Dec 19