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25 Jan 21

boohoo Group plc (BOO LN) - Transformational acquisition

The acquisition and planned relaunch of Debenhams online business is a transformational deal for the Group, establishing an ecommerce marketplace of immediate scale and high brand awareness. The deal expands boohoo’s target addressable market and opens the Group up to new product categories including beauty, sport and homeware. It is a significant step forwards in realising the Group’s ambition to operate the UK’s largest ecommerce marketplace, combining boohoo’s online capability and multi-brand platform with Debenhams leading brand recognition and extensive established network of third-party brand partnerships.

Companies: boohoo group Plc

21 Jan 21

Somero Enterprises - Strong Q4, robust cash performance

The group’s year-end update points to stronger than expected Q4 trading, boosted by robust sales in North America that translated efficiently to upside on profitability expectations. Cash performance has once again been stellar, resulting in net cash of $35m, considerably higher than forecast, partly profit drop-through and partly from tight working capital management. We are therefore upgrading our FY 2020 EPS by 25% to 33.2ȼ. The strong cash position also results in a boost to the total dividend, giving a dividend yield of 6.7%. We raise our price target from 285p to 435p, based on a target P/E of 17.0x offering upside to the current P/E of 13.8x.

Companies: Somero Enterprises, Inc.

19 Jan 21

EBITDA ahead on strong financial performance

Kape has issued a trading update for what was a very productive year for the Group and in which it exhibited a strong trading performance. Revenue for FY 2020E is expected to be at the top end of the expected range while Adjusted EBITDA is ahead of guidance. We increase our estimates by 1% and 8% respectively to be in line with the anticipated outturn for the year. It now has around 2.5m paying subscribers across its core markets of North America and Europe. Kape also completed the integration of Private Internet Access (PIA) ahead of schedule and launched new products, including its privacy suite. Kape expects to increase R&D spending further in FY 2021E to build on the successful additions to its product range and customer experience. With good momentum going into FY 2021E, the Group continues to demonstrate its ability to drive customer numbers and retention through the execution of a clear strategy for meeting the growing demand from consumers for digital privacy and security solutions.

Companies: Kape Technologies Plc

14 Jan 21

boohoo Group plc (BOO LN) - Strong peak trading

Boohoo has delivered strong results over the peak trading period for the four months ended 31 December 2020. Group revenue is +40% YOY, with robust growth seen across all brands and regions. The Agenda for Change programme is progressing at pace, demonstrating the Group’s commitment to setting a new standard for ethical supply chains in the fashion industry.

Companies: boohoo group Plc

21 Jan 21

A full house

An H1 trading update to December confirms a strong start to FY21, with sales growth accelerating to 22% y/y – a material rebound from a Covid impacted 2H20 (+9% y/y) and +15% achieved prior to this. KPI‘s are strong across the piece, for instance every Geo grew >20%, Connector revenue grew +20% (Shopify: +115%) and ‘enhanced functionality‘ revs grew +20% also. It‘s genuinely hard to find fault with this performance. To us, this evidences how DOTD is executing on its strategy (around products, partners and Geo‘s) while also benefitting from strong thematic tailwinds benefitting its sector and end-markets. We leave recently upgraded FY21 forecasts unchanged, though note the strong H1 sales performance now requires an undemanding +14% y/y growth to hit N+1 estimates, so see upgrade/ outperformance potential. As well as DOTD‘s clear organic growth opportunities, we also highlight how cash continues to accumulate (now £27.6m) and could be deployed in a number of vectors.

Companies: dotDigital Group plc

18 Jan 21

Trading update confirms resilient FY2020

Today’s update confirms a strong recovery in H2 FY2020E as expected and a full year adjusted PBT at least in line with FY2019, despite a material impact from Covid and the depressed oil price resulting in a decline in Augean’s North Sea Services business. The FY2020E outturn demonstrates the resilience of the Group and the strong attractions of its growing EfW activities that now account for c.70% of Group profit. Augean is very well positioned in the EfW residue market and with c.40% of the UK’s hazardous landfill capacity. We forecast Group earnings growth of 15% and 21% for FY2021E and FY2022E, and expect further strong cash generation. EV/EBITDAs for FY2021E and FY2022E are 5.7x and 4.5x respectively, substantially below sector constituents and transaction multiples.

Companies: Augean PLC

20 Jan 21

Surface Transforms - SCE raises funds for future expansion

SCE is raising £20m through a placing and open offer as the future commercial pipeline now justifies building the next manufacturing cell (“Cell 2”). Cell 2 will essentially double production capacity and transform the potential of the business. When operating at full capacity, we estimate that SCE would be capable of £35m revenues, £15m EBIT and £12.5m Earnings. This would equate to EV/EBIT of 7.1x and P/E of 9.5x based on the enlarged capital base. Recent trading updates have highlighted that trading is strong and in line with expectations, while longer term ASP expectations have increased significantly.

Companies: Surface Transforms plc

21 Jan 21

Sumo Group (SUMO LN) - Strong, broad-based growth

Sumo is trading strongly, with several drivers that could lead the company to outperform 2021 earnings expectations, in our view. Even based on conservative earnings expectations, we believe shares offer attractive value to growth.

Companies: Sumo Group Plc

20 Jan 21

Capital Access' Hot Off The Wires - The Day Ahead

Today's news & views, plus announcements from BRBY, BHB, DPLM, IWG,GFTU, CMCX, JDW, GFRD, BGO

Companies: Bango plc (BGO:LON)Galliford Try Holdings PLC (GFRD:LON)

21 Jan 21

IQE - FY20 revenues ahead of November guidance

IQE has announced it expects FY20 revenues to be c £178m. This is ahead of our estimates, which we revised upwards in November, reflecting outperformance in both the wireless and photonics segments. We have updated our FY20 forecasts. Given IQE’s leveraged business model, this results in a 64% uplift in EPS. Noting the uncertainty about the effect of a pandemic-related recession on the rate of smartphone sales growth, we leave our FY21 estimates unchanged for the time being.

Companies: IQE plc

25 Jan 21

Cenkos: Inspiration Healthcare Group Plc -- Revenue and profit upgrade

Inspiration Healthcare has announced it expects revenues and profits for the year ending January 2021 to be ahead of market expectations. Revenues are expected to be at least £36.5m and adjusted EBITDA at least £4.9m. We have moved our FY21E forecasts into line with these expectations, which are c3% and c11% ahead of our previous forecasts for sales and adjusted EBITDA, respectively. We note the key driver of the upgrade was performance at S.L.E., which Inspiration Healthcare acquired in July 2020. We reiterate our Buy recommendation on Inspiration Healthcare.

Companies: Inspiration Healthcare Group PLC

12 Jan 21

THE MONTHLY January 2021

Although 2020 will probably go down in history as one of the most challenging years experienced during our lifetime, it will also likely be chronicled as one of the best years for the recognition and appreciation of science. As we entered 2020, the COVID-19 pandemic was in its infancy. However, it rapidly evolved through the exponential rise in infections and mortality globally. Much has been achieved during the past 12 months in the fight against COVID-19, but, as we enter 2021, there are considerable concerns about the emergence of a mutant version of the virus and the second wave that we are now facing.

Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN PHP RECI STX SCE TRX SHED VTA YEW

19 Jan 21

Leaner, lighter strategy as investment revives

Residential for rent developer and manager Watkin Jones today posted FY 2020 results, in which profits, cash and dividend beat our estimates by c. 4 - 5%. We have maintained our FY 2021E forecasts and introduced estimates for FY 2022E. Our growth assumptions are supported by further evidence in the statement of a revival in forward funding by institutional investors for both the Group’s build-to-rent and student accommodation developments. A new strategy is aimed to trial the private residential sales division more to affordable housing, in line with WJ’s low-risk, capital-light model.

Companies: Watkin Jones Plc

20 Jan 21

City of London Investment Group (CLIG LN) - FuM doubles to US$ 11 billion

What’s new: Ahead of the publication of the Group’s interims results for the six months to 31 December 2020, CLIG has released a detailed trading update which reveals:  Group consolidated FuM of US$11.0 billion (£8.0 billion), which is twice the FuM of US$5.5 billion (£4.4 billion) at the Group’s year end on 30 June 2020;  The merger with Karpus Management Inc ("KMI") added c US$3.6 billion from 1 October 2020;  Investment performance across CLIG’s investment strategies was “strong”, following “significant discount narrowing” and “good NAV performance”;  Rebalancing of client portfolios resulted in US$ 290 million of net outflows.

Companies: City of London Investment Group PLC

20 Jan 21

2021 markets; fertile hunting grounds

Ahead of the FY Trading Update at the end of January, we revisit RBG’s investment case, and respond to investor concerns over Convex’s M&A pipeline and the short term cash requirements of Litigation Financing. Outperformance of the UK legal industry vs UK GDP over 2020 validates RBL’s continued performance. M&A market data shows an encouraging recovery in deal completions which looks set to continue into 2021, and we anticipate Convex to be well placed to convert its pipeline of >20 deals (c.£18m) into revenues, underpinning forecasts. LionFish is now well seeded, and the Group’s early cash realisations of cases ensure cashflows for the business are broadly neutral. Whilst case outcomes are binary, the de-risked option value here is a compelling addition to the investment case. We see intrinsic value as c.100p; highlighting the breakout potential in these shares.

Companies: RBG Holdings Plc

25 Jan 21

Newron Pharmaceuticals - Evenamide Phase II completes recruitment

Newron has completed the recruitment of 138 patients into the Phase II study of its novel schizophrenia drug, Evenamide. As expected, the read out is due in March 2021. Newron notes that Evenamide Phase III trials could start in H221 and it is progressing possible partnering and co-development deals. Newron had €39m cash at end-June 2020, with enough cash to fund development well into 2022. Our indicative value remains CHF121m.

Companies: Newron Pharmaceuticals S.p.A.

25 Jan 21

Sareum Holdings - Starting to tick the right boxes

The bulk of Sareum’s value rests on the late preclinical autoimmune therapy SDC-1801, with planned filing to start clinical development in H121 followed by possible exploratory clinical studies, if funding allows, from H221. This could open the way to a substantive partnering deal from Q222. Partnering could be helped if the related BMS therapeutic deucravacitinib gains FDA approval and blockbuster sales in psoriasis. Sareum could offer a partner a promising route to an autoimmune therapy with potentially broad indications.

Companies: Sareum Holdings plc

25 Jan 21

Double discount on quality-focused portfolio

AVI Global Trust (AGT) offers a genuinely different investment approach to those of competing trusts in the AIC’s global sector. It also has a good track record of beating its performance benchmark, the MSCI All Countries World ex the United States Index, with dividends reinvested and translated back into pounds. Some well-timed trades and a willingness to look through the current COVID-19 disruption affecting some businesses have helped drive strong performance from AGT over the past few months. The trust’s shares are on an attractive discount, 10.3% at close of business on 22 January 2021, and it is itself invested in a portfolio of high-quality family holding companies, closed-end funds and cash/asset-rich Japanese securities, which collectively trade at a weighted average discount of 30.1% (as at 18 January 2021) to the value of their underlying assets. The manager sees numerous catalysts to unlock value from AGT’s portfolio over 2021.

Companies: Avi Global Trust

25 Jan 21

Double discount on quality-focused portfolio

AVI Global Trust (AGT) offers a genuinely different investment approach to those of competing trusts. It also has a good track record of beating its performance benchmark. Some well-timed trades and a willingness to look through the current COVID-19 disruption affecting some businesses have helped drive strong performance from AGT over the past few months. The trust’s shares are on an attractive discount and it is itself invested in a portfolio of high-quality family holding companies, closed-end funds and cash/asset-rich Japanese securities, which collectively trade at a weighted average discount of 30.1% (as at 18 January 2021) to the value of their underlying assets. The manager sees numerous catalysts to unlock value from AGT’s portfolio over 2021.

Companies: Avi Global Trust

25 Jan 21

Small Cap Feast

NQ Minerals, the base and precious metals producer from its 100% owned flagship Hellyer Mine and the 100% owner of the Beaconsfield Gold Mine, both in northern Tasmania, Australia, has submitted a draft prospectus to the UK Financial Conduct Authority for approval. The Company is considering applying for admission of its ordinary shares to the Official List of the FCA by way of a Standard Listing and to trading on the Main Market of the London Stock Exchange . Details TBA Foresight Group , the award-winning infrastructure and private equity investment manager to IPO on the Main Market (Premium). The Offer will primarily comprise a sale of shares by existing shareholders (c.80% of the Offer) with a smaller offering of new shares (c.20% of the Offer) to be issued by the Company. Details TBA. Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company's Common Shares will continue to be listed and trade on the TSX-V in Canada. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments announced it intends to launch an IPO of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.

Companies: KIBO ULS SRE ANGS ZPHR ANX MMX ECK GMR ARO

25 Jan 21

Allenby Capital TMT Update - 25.01.21 - BOOM.L, ECSC.L, NWT.L

Audioboom Group plc* (BOOM.L, 285p/£44.7m) FY Update: Record performance on multiple fronts (19.01.21) | ECSC Group plc* (ECSC.L, 77.5p/£7.8m) FY Update: Good COVID-19 recovery (21.01.21) | Newmark Security plc* (NWT.L, 1.2p/£5.6m) Interims: Improvement heading into H2 (25.01.21)

Companies: BOOM ECSC NWT

25 Jan 21

Trackwise Designs - Year-end slowdown in sales

Trackwise has announced that it expects FY20 revenues to be c £6.1m, which is lower than our estimate, reflecting disruptions to supply chains caused by tighter coronavirus restrictions and uncertainty about the Brexit deal. However, careful cost control means that management expects adjusted operating losses to be c £0.2m, in line with our estimates. We have updated our FY20 forecasts but leave our FY21 estimates, which are underpinned by an order worth up to £38m over three years from a UK electric vehicle (EV) OEM, unchanged.

Companies: Trackwise Designs Plc

25 Jan 21

FY 20 sales: Galenica motors along

Galenica reported strong FY20 sales (+5.4% to CHF3.48bn), trumping estimates. Growth was driven by Services (+7.8%) and Products & Brands (+9.4%), which made up for the expected softness in Retail (+2.7%). The group expects FY20 EBIT to be at the prior year’s level, and will propose a dividend of at least CHF1.8/share, as previously announced. Given the marginal top-line beat, and in line profit forecast, we do not expect any significant changes to our forecasts or target price.

Companies: Galenica AG

25 Jan 21

SP Angel . Morning View

Altus Strategies* (ALS LN) – BUY, target 132p – Gold exploration licenses awarded in Egypt | BlueRock Diamonds (BRD LN) – BlueRock sells 14.8ct diamond for US$167,000 | Condor Gold* (CNR LN) – Ground investigation programme at La India | Kefi Gold and Copper* (KEFI LN) – Q4 update: Tulu Kapi project funding completion targeted in H1/21 with drilling at Hawiah on course to grow and upgrade the resource | Orosur Mining* (OMI LN) – Anza Project drilling update | Panthera Resources (PAT LN) – Progress report on west African exploration | Pensana Rare Earths (PRE LN) – Pensana submits planning application for proposed REE separation facility in Yorkshire | Shanta Gold (SHG LN) – FY20 production and costs on target with FY21 focus on NLGM exploration and growth projects’ development works

Companies: ALS BRD CNR KEFI OMI PAT PRE SHG

25 Jan 21

Shifting foot again

Equities rotating back to Covid-19 winners More contagious SARS-Cov-2 mutations increase time uncertainty Ongoing slowing in early 2021 European service sector taking another berating

25 Jan 21

The Small Cap Veteran – 26 Jan 2021

The DHSC Budget and the three Small Cap outsource providers

Companies: KOOTLYMGP

25 Jan 21

Oil & Gas Daily Flow

Savannah Energy (SAVE LN): FY 2020 performance beats guidance Bowleven (BLVN LN): Formal approval to apply for a new EEA, Cameroon Zephyr Energy (ZPHR LN): State 16-2 core to be analysed, potential for further sidetrack Angus Energy (ANGS LN): Further progress ahead of re-starting Saltfleetby

Companies: SAVE BLVN ZPHR ANGS

25 Jan 21

SP Angel Morning View: Tin and other battery metals prices gain on rising EV battery demand

Altus Strategies* (ALS LN) – BUY, target 132p – Gold exploration licenses awarded in Egypt BlueRock Diamonds (BRD LN) – BlueRock sells 14.8ct diamond for US$167,000 Condor Gold* (CNR LN) – Ground investigation programme at La India Kefi Gold and Copper* (KEFI LN) – Q4 update: Tulu Kapi project funding completion targeted in H1/21 with drilling at Hawiah on course to grow and upgrade the resource Orosur Mining* (OMI LN) – Anza Project drilling update Panthera Resources (PAT LN) – Progress report on west African exploration Pensana Rare Earths (PRE LN) – Pensana submits planning application for proposed REE separation facility in Yorkshire Shanta Gold (SHG LN) – FY20 production and costs on target with FY21 focus on NLGM exploration and growth projects' development works

Companies: OMI ALS BRD CNR KEFI PAT PRE SHG