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25 Mar 20

LIBERUM: Sylvania Platinum* - Best placed miner to weather the storm

Sylvania's share price has fallen 53% since its peaked on the 21st Feb, as the global economy hit the brakes. The short term demand outlook for PGMs is miserable, with supply chains breaking down as both luxury goods and car sales sales collapse.

Companies: Sylvania Platinum

23 Mar 20

WHI Equity Research: Spectra Systems (SPSY)

Results ahead; forecast upgrades, special dividend, yielding 7% SPSY has announced a strong set of results, with EBITDA and PBTA some 6% and 4% respectively ahead of our forecasts, following a succession of upgrades and some notable wins during 2019. Reflecting the strong momentum, and with forecasts well supported by firm contracts which exist independently of the current global crisis, the company is (1) trading ahead of expectations in the current year, and (2) with strong cashflow, feels confident to announce a special dividend this morning to be paid in June. With meaningful upgrades to the current year, and new, progressive, forecasts for FY2021E, the current outlook is strong at a time when this is rare for a mid-cap company; while key opportunities developed over the past eighteen months continue to be highly promising. SPSY provides advanced technology solutions for banknote, product authentication, and secure lottery transactions as a highly specialised operator, working in fields which offer valuable respite from Covid 19. Cash of $US14.3m is ahead of our expectations and some 13% ahead YoY. Well-invested and with well-controlled costs (and high gross margins), today's results provide further support for our fair value assessment, which in turn is far ahead of the current share price.

Companies: Spectra Systems

26 Mar 20

Somero Enterprises

Trading below its 5-year PE low, compelling entry point

Companies: Somero Enterprises

25 Mar 20

LIBERUM: GAN* - SaaS resilience as outlook confirmed

GAN has provided an update today on the Italian and US real-money internet sports betting outlook, as well as the momentum they are seeing in their core Simulated Gaming operation. Management have confirmed current guidance, which underscores the high underlying growth and the diversified resilience of their SaaS model. The company is on-track for a NASDAQ listing, hopefully in Q2. No material change to forecasts or our Target Price of 200p

Companies: GAN Plc

25 Mar 20

IQE - Well positioned to withstand near-term uncertainty

Yesterday’s trading update confirms that IQE’s FY19 results will be in line with the revised guidance it provided in November when the full extent of the impact of the US-China trade war became visible. We have cut our FY20 revenue estimate by 6%. In IQE’s case the impact of COVID-19 on global handset demand is likely to be softened by gaining share in both the wireless and photonics markets. However, the full effect of the pandemic on the global economy and IQE’s business remains to be seen.

Companies: IQE

27 Mar 20

Hurricane Energy

Worker evacuated from Lancaster FPSO

Companies: Hurricane Energy

24 Mar 20

CloudCall

COVID-19 profit warning on increased uncertainty

Companies: Cloudcall Group

27 Mar 20

LIBERUM: Premier Miton Group* - Oversold. 34% of market cap is net cash

Premier Miton has been the worst performing asset manager YTD, despite evidence that the benefits of its merger are coming through, and its funds are outperforming. Our mark-to-market suggests that if markets remain at current levels until financial year-end in Sep’20, the shares would only be trading on 7.1x FY21 P/E, an extreme valuation for a company with significant self-help opportunities, and an extremely strong balance sheet. Our analysis also suggests PMI will enjoy increasing net cash balances over two years, reaching c.£37m in FY20 or 34% of the current market cap. As a result, we see the current share price as an extremely attractive entry point. Our updated TP of 152p is driven by a DCF assuming flat AUM for 3 years and implies 125% upside.

Companies: Premier Miton Group

27 Mar 20

Cenkos: 1pm plc -- Supporting UK SMEs through difficult times

1pm has provided a trading update outlining its response to the current Covid-19 outbreak. Operations continue as usual (remotely) and the group continues to write new business, however, it has received multiple requests for repayment deferrals. The group is offering this flexibility where merited to assist credit worthy UK SMEs and has the balance sheet to absorb these lower cash collections. 1pm's own funders remain supportive to the business. Given the uncertainty over the duration of the outbreak and the impact the UK's shutdown is having on 1pm's trading, we withdraw forecasts and put our recommendation under review.

Companies: 1PM

25 Mar 20

Hurricane Energy

Capital Markets Day postponed

Companies: Hurricane Energy

25 Mar 20

The Industrial Revelation

US & German manufacturing PMI hits lowest readings since 2009, UK manufacturing PMI heads below 50, BorgWarner expects material financial impact from customer production halts

Companies: AVON CGS HAYD HEAD HILS JHD RNO SCPA TWD TRI ZTF SOM GHH

24 Mar 20

FY 2019 beats forecasts and sets course for dividends

This was another very good year for MMX, with a comfortable beat of forecasts as management continues to execute its strategy of improving both the ‘quantum and quality’ of its revenue base. The one-off brokered sales (many from .vip in China) are steadily being replaced by rapid growth in new registrations of a much wider range of gTLDs and growing renewal revenue, all automated through the global registrar network – but more in Europe and the US. Group revenue jumped 25% YoY, assisted by strong new sales across the portfolio, the launch of a new brand protection product, and a FY (an extra five months) of the ICM acquisition while the outsourced platform model is keeping the cost base relatively flat so margins and profits are rising. MMX ended the year with $6.6m net cash and will revisit the intended maiden dividend in September, after the pandemic subsides. Given its automated business model and the switch of business and leisure online, this global issue may well be beneficial to MMX. However, with the current level of uncertainty in the global economy, we place forecasts Under Review.

Companies: Minds + Machines Group

26 Mar 20

COVID-19 induced demandpause

3 weeks ago, we thought the coronavirus would be a Chinese/Italian phenomena impacting global supply chains, but not triggering full/partial lockdowns across large swathes of the planet. How things have changed.

Companies: Mpac

27 Mar 20

LIBERUM: Non-Standard Finance - Prudent actions taken should position the business well

We believe that NSF’s response to the current pandemic is in the interests of all its stakeholders. The operational shift towards remote working helps protect its staff whilst enabling its clients to continue to access the services they need. Similarly, its decision to reduce lending and focus on its existing clients and those most in need, is the prudent thing to do. These actions, combined with the high risk-adjusted margins on its existing loan book should enable the group to generate positive cash flow, even allowing for an increase in impairment during the current period of economic uncertainty. This should leave the group in a stronger position to serve its clients and win share when the current government restrictions are lifted. As a result, of this medium-term outlook we reiterate our BUY rating.

Companies: Non-Standard Finance

23 Mar 20

Impact of COVID-19 crisis

What’s new. After an encouraging seasonal increase in Purplebricks’ instructions in January and February 2020, activity in recent days has slowed sharply and we see prospects for a prolonged period of low activity during the COVID-19 crisis. Purplebricks is well capitalised with net cash of £41.6m on 30 October 2019. We expect group cash to be above £31m (i.e. 10p a share) on 30 April 2020 and 2021. In 2019 management began closing Purplebricks’ Australian and US units. In December 2019 the guidance of less than £14m was repeated, implying 2H costs of under £5m. An adjusted October 2019 net cash of £36m.

Companies: Purplebricks Group

27 Mar 20

Secure Trust Bank - Guidance and final 2019 dividend suspended

Secure Trust Bank (STB) is delaying the release of its FY19 results, due on 26 March, as requested by the FCA on account of COVID-19. It was aiming for double-digit earnings growth in 2020 and stated that its first two months of trading was strong and ahead of management expectations. COVID-19 uncertainty has nevertheless prompted STB to cancel its forward guidance and final 2019 dividend payment. We are maintaining our FY19 forecasts as the pre-close statement indicated that results would be in line with expectations. However, we are suspending our 2020â21 forecasts until there is more clarity on the impact of COVID-19. Our DDM fair value of 2,428p per share is equivalent to a P/NAV of 1.8x in 2019. This valuation reflected assumptions that STB would deliver returns considerably above its 10% cost of equity (COE) in the medium and long term.

Companies: Secure Trust Bank

27 Mar 20

Final days for a highly unfriendly legal structure?

The activist fund Amber Capital intends to push for major requests at the next AGM to be held on 5 May 2020. Among them are to renew the entire supervisory board, to reduce the costs of the holding company and simplify the group’s structure, to review the dividend policy and free up cash to develop the two core divisions (Travel Retail and Publishing).

Companies: Lagardere SCA

27 Mar 20

LIBERUM: Podcast: Best idea of the week - CLS and the Real Estate Sector

Best idea of the week - CLS and the Real Estate Sector

Companies: CLS

27 Mar 20

Serabi Gold - Issue of the 2019 Financial Results and Update on Operations

27 Mar 20

Power Metal Resources 'pushing ahead with key projects' and in strong financial position

27 Mar 20

LIBERUM: Clarkson* - Dividend deferred as a precaution, continuing to trade effectively

In light of the current COVID-19 uncertainty, Clarkson has decided to withdraw the AGM resolution for its previously-declared final dividend. A decision on the amount and timing of the dividend will be deferred until later in the year, when the outlook is clearer.

Companies: Clarkson

27 Mar 20

Cenkos: 1pm plc -- Supporting UK SMEs through difficult times

Companies: 1PM

27 Mar 20

VR Education dealing with an 'explosion in demand' for its technology

27 Mar 20

Silence Therapeutics team discuss major multi-target deal with AstraZeneca

27 Mar 20

Capital Access' Hot Off The Wires - The Day Ahead

Today's news & views, plus announcements from AAL, SSE, CCH, NXT, FLTR, MGGT, PHP, RMG, BBY, RDW, DOM,WJG, GATC,

Companies: Primary Health Properties

27 Mar 20

Keywords Studios' Andrew Day says business is robust and 'responding positively' to outbreak

27 Mar 20

GrandVision deal will continue to carry HAL through the storm ahead

Following a satisfactory 2019 in profitability and NAV-progression terms, the ongoing (and undisturbed) sale of GrandVision will be HAL’s anchor to face the global turmoil prompted by the COVID-19 pandemic. Considering GrandVision’s recent statement, that the current crisis has no impact on the execution of the deal with EssilorLuxottica, this has reassured us on this positive catalyst for the holding company. In these volatile times, cash is king, and HAL will have plenty of it.

Companies: HAL Trust

27 Mar 20

Venture Life reports strong order book and sales as demand for its hand sanitiser gel rockets

27 Mar 20

GCAL – Two abstracts presented

Results from two studies published in ISICEM meting abstract book GCAL - superior in predicting severe events in sepsis patients GCAL – Potential as an early biomarker for bacterial infection Medical evidence in progress and we expect sales revenue from Q4/20

Companies: Gentian Diagnostics AS