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26 Nov 20

Boohoo Group Plc (BOO LN) - Actions not words

Boohoo has announced meaningful progress in its Agenda for Change Programme, to deliver long lasting change to its supply chain and business practices. Sir Brian Leveson PC has been appointed to provide independent oversight of the programme, with KPMG engaged to provide additional resource, expertise and independence, working alongside the Group’s internal responsible sourcing and compliance team, as well as with external supply chain audit specialists Bureau Veritas and Verisio. We believe the calibre of the appointments reflects the Group’s unwavering commitment to implementing in full, and with complete transparency, all recommendations of the Independent Review.

Companies: boohoo group Plc

25 Nov 20

D4T4 Solutions - Switch to recurring revenue builds a platform for growth

The H1 results are as announced in the October update; COVID delayed several new contracts until earlier this month, leaving H1 revenue at £5.1m. However, management remained comfortable with a FY sales forecast of £21.7m on the basis of a strong pipeline and the substantial tranche of annually renewed revenue billed each H2. Reassuringly, the new contracts have now been signed for both the Celebrus Customer Data Management (CDM) solution and the Celebrus Customer Data Platform (CDP), and they cover a range of verticals from financial services to automotive manufacture and ecommerce provision. With significant net cash, D4t4 is in a strong position for long-term sustainable growth on the back of rapidly growing global demand for CDP/CDM. It remains confident on prospects in new geographies (N America and APAC) and new use markets (fraud, risk analysis and healthcare) plus a high level of recurring revenue. Our forecasts and target price remain unchanged save for a tweak to cashflow and raised dividend expectation. We reiterate our 310p target price.

Companies: D4t4 Solutions plc

26 Nov 20

Litigation Capital Management:Initiation of Coverage

Litigation Capital Management (LCM) is an alternative asset manager specialising in disputes financing, with its main operations in Australia and the UK. The company provides funding for litigation in exchange for a share of any settlement and has built a strong track record of supporting winning c

Companies: Litigation Capital Management Ltd

23 Nov 20

Rude Health - finnCap Life Sciences quarterly sector note

Oxford University and AstraZeneca announced the first interim analysis from the Phase III study of its COVID-19 vaccine candidate, which was found to be 70% effective in preventing COVID-19. This follows similar announcements from Moderna, and Pfizer/BioNTech in the previous two weeks, and the caveats we mentioned at the time remain the same. While all of these results have been highly encouraging, we reiterate that they do not diminish the urgent need for COVID-19 treatments and testing, which will be required for years to come. We consider Synairgen, Avacta, genedrive, Omega Diagnostics and Open Orphan to offer good buying opportunities.

Companies: AVCT ODX SNG GDR ORPH

27 Nov 20

Digital driven outperformance

Reach’s trading update highlights revenue growth tracking comfortably ahead of market expectations going into December. Digital sales, underpinned by strengthening customer engagement, has accelerated substantially to +16.2% y/y in the 5-months to 22 November (H1’20: -1.0%), and is strongly ahead of N1S H2 forecasts (+2.7% y/y). Print sales were in-line, with increased cross-promotion across Reach’s portfolio leading to stabilisation in HY y/y trends (H2 to date: -19.7%; H1: -20.1%). Management also report a ‘significant’ reduction in costs in-line with the Group’s transformation strategy, which combined with a higher Digital weighting, has pushed up AOP margins ‘materially’ on a sequential basis. As a function of this strong update, we upgrade FY’20E sales, AOP and adj FCF forecasts by 1%, 7% and 8% respectively. FY’21E FCF yield of 22% (pre-pension contributions) is materially ahead of global peers (4%-7%); a yield of 10% generates an intrinsic value of 310p/share.

Companies: Reach plc

20 Nov 20

Cenkos: Venture Life Group Plc -- Maintaining the momentum

Venture Life has developed significant momentum through 2020, reflected in the strong share performance over the year. Building on this momentum, the company has announced it is conditionally raising £34m via an equity raise to help it secure additional M&A opportunities. At this time, Venture Life has identified three opportunities, which we estimate could deliver significant earnings accretion if all are completed. We have updated our forecasts to reflect the raise but at this time have left our underlying assumptions unchanged. We expect Venture Life to maintain the momentum it has developed, supported by the proposed raise and M&A opportunities; we re-iterate our Buy recommendation.

Companies: Venture Life Group Plc

24 Nov 20

Intercede - Interims: gaining momentum

Interims, in line with the October trading update and unchanged forecasts, follow a second (November) purchase order from the new US Department of State contract, highlighting momentum. The 5Cs that form management’s measure of strategic development have all generated positives: colleagues, with employee NPS rising, and no furloughs or paycuts; new & renewing customers, high-profile names and sectors; a broadening channel including generating new clients; code increasing with the addition of FIDO and increased reach through MyID Enterprise/ MyID Professional; and cash of £8.1m with £4.8m debt all in the form of in-the-money December 2021 convertibles. Strong 1H performance and cashflow derisks full-year expectations. Target raised to 125p (100p).

Companies: Intercede Group plc

24 Nov 20

Appreciate Group - Initiation Note

Appreciate is the UK's leading voucher, gift card, and e-code provider, working with brands from Iceland to Halfords to Boots. It sells its pre-paid products to corporates as well as directly to consumers. It also runs the UK's largest Christmas Savings scheme, having helped some 2.7m families put money aside for Christmas expenses over the years. In Appreciate, we see a business that's undergone significant change and modernisation since 2018. Under its highly competent and dynamic management team it has transformed from a Christmas savings business that physically produced hampers, to a pure play financial services business with material growth prospects in the longer term.

Companies: Appreciate Group plc

25 Nov 20

IQE - Outperformance in both wireless and photonics

IQE has announced that the strong performance in H120, which resulted in record first-half revenue, has continued into the second half. It has updated FY20 revenue guidance from at least £165m to over £170m, with adjusted EBIT guidance remaining at the mid-single-digit million level. We have updated our FY20 and FY21 forecasts accordingly, giving adjusted PBT upgrades of 34% and 10% for FY20 and FY21 respectively.

Companies: IQE plc

23 Sep 20

Confirmation of stellar H1

LoopUp has announced a very strong H1 period, in line with the previous trading update and reflecting a number of months of exceptional performance. This is allowing the business to invest in the major identified new opportunity, to provide telephony within Microsoft Teams, where the early signs are extremely positive. We look forward to further detail on the Teams pipeline and sales levels over time.

Companies: LoopUp Group PLC

24 Nov 20

Robust H1, US SecPay driving growth

Eckoh’s fast growing US SecPay business and robust UK business model have minimised the impact of lockdowns with u/l H1 revs down just 3% yoy and profits flat. ECK reintroduces FY21 guidance, expecting H2 revenues comparable to H1 and FY21 AOP comparable to FY20. US SecPay is now a meaningful >30% group revs, growing 80% in H1 and with larger customers now re-engaging. We expect growth to continue in FY21 and beyond; the opportunity is multiples of current sales (FY21E $13m- +60% yoy). We similarly expect the cash cow UK business to continue to recover and return to c. 5% secular organic growth over time. It is especially continued success with US SecPay that is likely to lead to group FCF exceeding that of £5-6m achieved in FY20/19 over time and a FCF yield well above 5%. That’s attractive.

Companies: Eckoh plc

27 Nov 20

Highly impressive H1 update

Gateley’s H1 update is highly impressive, confirming a year on year improvement in activity levels in September and October and a strong sense of optimism at the beginning of H2. The Platforms continue to drive new business, whilst operating margins have benefited from cost actions taken in response to the pandemic (H1 PBT will show growth year on year). In light of the confident tenor of the statement, we reintroduce headline forecasts this morning, assuming stable revenue this year - which would be a considerable achievement - with profits returning to pre-pandemic levels by FY23.

Companies: Gateley (Holdings) Plc

19 Nov 20

Somero Enterprises - Positive update – trading ahead of expectations

The group has released a positive trading update, signalling a strong H2 and performance ahead of expectations. The new guidance points to a 6.7% upgrade to revenues and a 10.5% upgrade to EBITDA. Cash generation has been notably strong, at about $26m, which will drive an increase in supplemental dividends with a dividend yield of 7.1%. We raise our TP from 255p to 285p, based on a target P/E of 14x, giving decent upside to the current 11.6x.

Companies: Somero Enterprises, Inc.

24 Nov 20

Contracts Win with Barrick Showcases Capital Ltd Growth Potential

Less than a fortnight after a major new contract announcement in West Africa, Capital has announced the expansion of its operations at Barrick Gold’s Bulyanhulu Gold Mine in Tanzania. The contracts include a five-year laboratory services contract for MSALABS, together with a two-year underground grade control drilling contract. Capital commenced operations at Bulyanhulu in February 2020, undertaking a deep hole delineation drilling program. The successful execution of this resulted in an expansion of services, with two underground rigs added to operations from May. The new contract will expand the underground fleet to four, utilising two rigs from the existing fleet and including the acquisition of a further two rigs.

Companies: Capital Limited

25 Nov 20

Cenkos: Calnex Solutions plc -- Interim results and forecast upgrade

Calnex Solutions has announced very strong maiden interim results, with H1/21 revenue up 37% to £7.7m and adjusted PBT up 90% to £2.3m. Calnex has firmly established a trusted reputation worldwide, launching multiple first to market telecoms and network testing solutions. The exponential growth of data creation and secular migration of industries to cloud computing along with the long-term transition of the telecoms industry to 5G is driving demand for high value test instrumentation. Given the strength of H1/21 reported today we have upgraded our revenue forecasts for FY21E and FY22E by 10.6% and 12.2% to £15.4m and £16.4m and increased forecast EPS up 24.1%. and 14.3% respectively. Calnex is accelerating its growth investment plans, ahead of our previous expectations, expanding both R&D and sales capacity to capture increased market share within a substantial and growing global market.

Companies: Calnex Solutions Plc

27 Nov 20

Q3 in line with expectations

Q3/20 EBITDA of SEK 1,652m vs ARCe of 1,726m (-4%) Recovery toward the end of the period; five new drilling contracts Liquidity position remains solid at SEK 21.0bn No material surprises; credit neutral report

27 Nov 20

Transglobe Energy (LON:TGL) Presenting at the Proactive One2One Virtual Forum

27 Nov 20

SimplyBiz (LON:SBIZ) Presenting at the Proactive One2One Virtual Forum

27 Nov 20

HeliumOne - (LON:AOGL) Presenting at the Proactive One2One Virtual Forum

27 Nov 20

Webinar : The new energy ecosystem – generation, storage and efficiency

27 Nov 20

Norman Broadbent secures new loan facility

27 Nov 20

IXICO signs contract to provide neuroimaging services for clinical trial for Huntington’s disease

27 Nov 20

Financing secured for Dogger Bank

Positive development as SSE/Equinor closed the funding for the first two phases of the gigantic offshore wind farm at competitive terms. The group of lenders consists of 29 banks and three export facilities. The press release mentions competitive terms and investor relations communicated an interest margin for the project financing of 200-250bp + LIBOR.

Companies: Equinor ASA

27 Nov 20

RhoVac - Fast Track designation granted by FDA

Following the submission of an application in September, the US FDA has now granted Fast Track designation to RhoVac’s lead drug RV001. Although we had expected this, it indicates a third-party validation for RhoVac and its ongoing clinical programme. Importantly, this designation should make RV001 more appealing to potential partners, given it eases some of the regulatory processes ahead. Other developments include the news that RhoVac’s Phase I/II data have been published in a peer-reviewed article, which gave some additional details. The COVID-19 pandemic continues to cause delays, but the BRaVac study timelines still fit within the existing budget. Our valuation is SEK64.2/share (vs SEK61.8/share).

Companies: RhoVac AB

27 Nov 20

SP Angel . Morning View

Altus Strategies* (ALS LN) – BUY, 132p – MD&A highlights progress at Diba among other accomplishments in Q3/20 | Arkle Resources* (ARK LN) – New gold bearing vein identified in trench at the Mine River project | Edenville Energy* (EDL LN) – Update at Rukwa Coal Project | Mkango Resources* (MKA LN) – Progress of Songwe Hill feasibility work reported in Q3 results | Rainbow Rare Earths* (RBW LN) – Rainbow raises £2.56m at 6p/s

Companies: ALS ARK EDL MKA RBW

27 Nov 20

Oil & Gas Daily Flow

Bahamas Petroleum PLC (BPC LN): Enhanced safety measures lead to uplift in drilling costs

Companies: Bahamas Petroleum Company Plc

27 Nov 20

Richard Jeans talks tech stocks

27 Nov 20

FRIDAY MARKET UPDATE

27 Nov 20

Ten Point Plan

Prime Minister Boris Johnson’s ten-point plan for a green industrial revolution is clearly helpful for companies across the clean technology sector. We believe that support for more renewables and for more electric vehicles is largely factored in although charging support is helpful. However, we think there are three key additional details that further impact the industry.

27 Nov 20

Capital Access' Hot Off The Wires - The Day Ahead

Today's news & views, plus announcements from Capita, JD Wetherspoon, HarbourVest Global Private Equity, Walker Crips Group, Randall & Quilter*, Michelmersh Brick, LoopUp, Schroders British Opportunities Trust and Baillie Gifford UK Growth Trust.

Companies: Randall & Quilter Investment Holdings Ltd.