Research Tree | Equity Research for Investors

Level the playing field with real-time Equity Research

Research Tree offers both private and institutional investors access to the latest UK investment research from over 35 Brokers and Research Providers, offering comprehensive coverage of small and mid-cap stocks.

The Equity Research Platform

Equity research, broker reports, target prices, and valuations on UK-listed companies in real-time.

Our platform learns which sectors, industries, and markets you're intersted in to help you discover new stocks.

27 May 20

Response to share price movement

We note this morning’s announcement from Boohoo Group strongly refuting several allegations made in a short-selling note published yesterday afternoon. In our opinion arguments made in the short selling note are flawed and do not disclose any new or unexpected information about the Group. The unprecedented market backdrop resulting from the COVID-19 crisis has only acted to highlight the strengths of Boohoo’s agile, pure play, e-commerce model and we see current share price weakness as offering an attractive entry point.

Companies: Boohoo.Com

28 May 20

AGM statement

Strix has released an AGM statement indicating that trading in the early part of the year has been solid, the new financing facilities have been put in place, product development is on track with 14 new products released during the year and the factory move remains on schedule and to budget. The current trading period is an important one and the scheduled trading update 23rd July should provide more colour on the underlying performance as well as the early indications from the new products already released and the outlook for those that are scheduled to be released in H2. The resilience of the Strix business has been reaffirmed during the current situation with financial guidance having been maintained and the final dividend committed to, a 10% increase yoy.

Companies: Strix Group

27 May 20

LIBERUM: Ramsdens Holdings* - Well positioned to weather the storm

Ramsdens has reported a strong set of trading results in the last twelve months to March 2020. COVID lockdown has led to store closures, which will lead to weaker trading over the following months. However, Ramsdens has a very solid balance sheet, is diversified and is well positioned to re-open stores and continue its growth. We use an 8x multiple on last 12 months to March 2020 earnings as a reflection of a normalised earnings base which reduces our target price to 162p from 180p. At this target price Ramsdens would trade on a CY20 P/B of 1.5x. This target price offers 15% upside and we re-iterate BUY.

Companies: Ramsdens

27 May 20

Cenkos: Kromek Group Plc -- Material biopathogen order

Kromek has received a material order from DARPA to further develop a biopathogen detector totalling $5.2m. This is an incremental market opportunity for the company and the majority of the contracted value is likely to be recognised in the company’s new fiscal period to April 2021.

Companies: Kromek Group

01 Jun 20

LIBERUM: AFH Financial Group* - Performing well despite COVID-19

AFH interim results have shown resilience in a tough period. Revenues grew by 5% yoy and Adj. EPS is up 8% yoy. We reduce our FY20 EPS forecast by 8% to reflect the wider market falls and slower new business due to the lockdown. This reduction in earnings is significantly less than peers, highlighting the defensive nature of the business and the prudent temporary cost measures being introduced in FY20. The improved FCF of the business should lead to a re-rating, particularly as AFH now trades on 9.3x CY20 P/E, a significant discount to peers. Our reduced target price of 524p implies 81% upside. Re-iterate BUY.

Companies: AFH Financial Group

01 Jun 20

Dart Group*

Sale of Fowler Welch

Companies: Dart Group

27 May 20

Revolutionary new pathogen detector

Many of the world’s best and most important products (eg Space exploration, nuclear medicine/power & the internet) were originally invented by the military. It’s happened again – but this time to combat airborne pathogens like Ebola, SARS/MERS and all manner of other biological nasties doing the rounds. You see on 10th December 2018, Kromek was awarded a $2.0m contract by DARPA (research arm of US Dept. of Defense) to develop a vehicle-mounted bio-threat detector. The idea being that this should be able to rapidly identify (within 1 hour) any dangerous germ that might have been released into the environment, say by terrorist groups, organised criminals &/or rogue states.

Companies: Kromek Group

01 Jun 20

LIBERUM: Codemasters* - New licence increases game release cycle

Codemasters has announced that it has signed a licence agreement for the exclusive rights to develop and publish the FIA World Rally Championship videogames and Esports tournaments. The initial 5 year annual series will be out from 2023, with the agreement ensuring a step-up in the release cycle of Codemasters’ off-road games to three games over two years rather than the current one per year. The major success of F1 highlights the potential of combining another global racing license with the company’s gaming expertise. This news, following the F1 contract extension with Liberty Media, the deal with NetEase in mobile, and the acquisition of SMS, adds to the visible growth profile of the business and increasingly underlines Codemasters’ position as the leading car racing platform in the gaming sector.

Companies: Codemasters

02 Jun 20

Priming for strong growth

Final results for the year to March are in line with the April trading update, which had been well ahead of expectations in profit and cashflow: with some customer orders postponed beyond year end, revenue of £10.4m had been 6% behind expectations while adjusted PBT (£0.8m) and free cashflow (£1.0m) were respectively 499% and 227% ahead. Strong cost control still permitted £2.8m (FY19: £2.9m) of R&D, leading to the continuing development of the global large enterprise products, but also of MyID Professional, simplifying the solution and expanding the addressable market. With cost control clearly in hand, and even confidence in cost expansion after two years of restraint, the group is driving opportunities for high-margin revenue growth and the future continues to brighten. Target 80p reiterated, with the chance for TP review with greater COVID-19 clarity at interims in December.

Companies: Intercede Group

28 May 20

Cenkos: Filta Group Holdings Plc -- FY19A results

Despite some initial integration issues with WatBio (since resolved), Filta generated strong organic growth (+16% YoY) and delivered results in line with expectations. Given ongoing uncertainty around the pace at which self-isolation measures will be eased, we maintain our Hold rating, and will look to reinstate forecasts once visibility improves.

Companies: Filta Group

01 Jun 20

CloudCall

AGM statement as expected; Resume with a Buy

Companies: Cloudcall Group

28 May 20

LIBERUM: PayPoint* - FY results ahead and estimates increased

FY results ahead due to a waiver of the management bonuses and final dividend is proposed. Current trading is impacted by COVID but there are clear signs of improvement.

Companies: Paypoint

28 May 20

Cenkos: TClarke Plc -- Strength through adversity

TClarke's trading update is refreshingly positive in all key aspects of investors' current COVID fears and hopes. The decision to fully pay the 2019 final dividend sustains income attractiveness (4% yield on the final alone), the avoidance of trading losses in the teeth of the industry lockdown period (after a profitable Q1/20) demonstrates resilience whilst maintenance of net cash balances through April and May illustrate a robustness of cash flows despite reduced activity levels. It has also maintained the order book and has moved quickly to re-structure the cost base ensuring that margin recovery is not entirely dependant upon market improvement. Prudently and we believe reasonably, we are removing all forward forecasts until visibility on revenue recovery and productivity rates into H2/20 become clearer. However, TClarke's operational strengths, financial robustness and cash coverage of dividend in the most testing of circumstances gives us renewed confidence to uphold a Buy recommendation.

Companies: TClarke

29 May 20

WHI First Light: Judges Scientific (JDG)

Judges Scientific, the group focused on acquiring and developing companies in the scientific instrument sector, has announced the acquisition of UK based ‘Health Scientific Ltd', a world leading maker, and global exporter, of calorimetry instruments. The initial cash consideration equates to £5.3m, with a further £2.0m cash earnout if profits hit £1.22m in 2020. The business generated £4.4m of revenue and an adjusted EBIT of £0.88m (20% EBIT margin) to April 2019, and is expected to have an even stronger year to April 2020, suggesting a ‘6x EBIT takeout multiple' if the earnout target is hit.

Companies: Judges Scientific

01 Jun 20

Codemasters

New franchise win: World Rally Championship

Companies: Codemasters

02 Jun 20

Touchstone Exploration Inc: Proactive One2One Virtual Event

02 Jun 20

Britvic - H120 results

FY20 started well, with value share gains in GB, Ireland and Brazil. As expected, lockdown has affected out-of-home and on-the-go consumption in particular. Conversely, sales of at-home consumption packs have increased significantly, thus leading to an adverse mix effect. GB and Ireland have been the most affected markets for Britvic, as they have a greater exposure to the out-of-home channel. The company is maintaining its guidance of a likely monthly impact from the COVID-19 pandemic of £12–18m adjusted EBIT, although its scenarios seem very conservative.

Companies: Britvic

02 Jun 20

Redx Pharma PLC's Lisa Anson updates on lead asset RXC004 and increased investment by Redmile

02 Jun 20

Power Metal's Paul Johnson says each of their five projects has the potential for a major discovery

02 Jun 20

Power Metal's Paul Johnson on what investors should look for in resource juniors

02 Jun 20

Inspired Energy PLC has remained profitable and cash generative during lockdown

02 Jun 20

Resilient to covid-19

The logistics sector, in which Aberdeen Standard European Logistics Income (ASLI) invests, would appear to be one of the few property sectors that could see occupier demand increase in the long term as a result of the coronavirus pandemic. With some form of a lockdown enforced in most European countries, there has been a spike in ecommerce orders. A whole new group of people have been introduced to online retailing, which is expected to speed up penetration rates across Europe and reinforce long-term systemic changes in the logistics sector.

Companies: Aberdeen Standard European Logistics

02 Jun 20

Marshall Motor Holdings - Trading update

02 Jun 20

Oil & Gas Daily Flow

Great Eastern Energy Corporation* (GEEC LN): FY20 results, resistance to volatility | Ascent Resources* (AST LN): Administrative Court rules that EIA is required ahead of well stimulation

Companies: Great Eastern Energy Corporation Ascent Resources

02 Jun 20

SP Angel . Morning View

Amur Minerals* (AMC LN) – EGM notice | Highland Gold (HGM LN) – Kayen exploration license sold for $15m and 2% royalty | Keras Resources* (KRS LN) - Global manganese ore output falls 22% in April | Mkango Resources* (MKA LN) – COVID-19 medical equipment donated to main Malawi hospital | Rambler Metals* (RMM LN) – US$1m bridging loan

Companies: AMC HGM KRS MKA RMM

02 Jun 20

Morning Report: FTSE 100 rises despite steepest drop in house prices for 11 years

02 Jun 20

SP Angel Healthcare Conditions-02-06-2020

Novacyt (NCYT.L): COVID-19 update

Companies: Novacyt

02 Jun 20

Cenkos: United Oil & Gas Plc -- Significant Progress

2019 was a significant year for United Oil & Gas, dominated by the acquisition of Rockhopper Egypt and its 22% working interest in the Abu Sennan concession. The acquisition has transformed United into a full-cycle E&P with c1,760boepd of production. With low operating costs (cUS$6.5/bbl) and drilling costs, Abu Sennan remains cash flow positive with oil prices below US$20/bbl. Additional downside protection comes from the Company's pre-payment facility with BP, effectively hedging 6,600bbls per month at US$60/bbl until September 2022 and its long-term fixed gas contracts, insulating 20% of United's production from the current price volatility. We update our model, accounting for slightly higher operating costs, setting our price target at 6.5p a 242% premium to the current share price and reiterate our BUY recommendation.

Companies: United Oil & Gas

02 Jun 20

Leclanché - Formation of JVs with Eneris for gigafactory

Leclanché has accepted a binding conditional offer from Eneris Group, a Polish company dedicated to environmental protection, to create two JVs: one manufacturing battery cells, the other assembling battery modules. The transaction gives the group the finance it needs for capacity expansion and to fully fund its business plan until mid-2021 without dilution to shareholders as it works through an order book of over CHF90m (excluding the St Kitts project). Our estimates remain under review until there is greater visibility regarding the St Kitts project, which management intends to build under a ‘build-own-operate’ (BOO) model.

Companies: Leclanche

02 Jun 20

Thor seeking to expand US critical metals exposure

Thor Mining yesterday announced an exclusive non-binding option to acquire 100% of the shares in American Vanadium Pty Ltd, a private Australian company, with interests in uranium and vanadium focussed projects in Colorado and Utah in the United States of America. Thor has considerable operational experience in the USA and will utilise the in country team to immediately commence field work. Thor also has considerable experience of Uranium within its management team.

Companies: Thor Mining