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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.

04 Jan 21

Cenkos: HeiQ Plc - Pioneering materials for life

HeiQ is a materials innovation technology company, marketing products that increase the functionality of technical, medical and consumer textiles. The company's core products are at the leading edge of innovating the c$25bn textile chemicals market, while the recently launched antimicrobial technology, HeiQ Viroblock, enables the forward integration into the c$10bn antimicrobial textile market and OTC textile medical devices. The company is grounded on three strategic success factors, materials innovation, mass manufacturing and ingredient brand marketing, which will support the company's ambition to grow its revenues from $30m to $300m in the medium term. HeiQ has listed on London's Main Market via a reverse takeover, raising £20m in new equity. We initiate coverage with a BUY.

Companies: HeiQ 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

26 Jan 21

Cenkos: HeiQ Plc -- Trading update upgrade

HeiQ has provided a trading update for the year to December 2020, expecting sales to be above market expectations and operating profit to be ‘in line with market expectations' after record levels of investment in the business in the second half to support future growth. We have upgraded our FY20E revenue forecasts following this announcement, raising our sales by c14% to $49.1m while maintaining our operating profit (pre-exceptionals) at $12.2m. At this time, we have left our FY21E P&L forecasts unchanged, maintaining our conservative approach to forecasting. We reiterate our Buy recommendation with today's announcement supporting this view.

Companies: HeiQ 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

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

27 Jan 21

Cenkos: Seeing Machines Ltd -- Snapdragon wins underpin market share expectations

Last night, Qualcomm delivered a keynote speech at its Automotive Redefined event where it iterated its partnership with Seeing Machines for DMS on its ‘Snapdragon Ride' platform. In the same keynote speech Qualcomm noted that it has won 20 different OEMs (through many different tier 1 suppliers and partners, including Seeing Machines) which are going into production in 2021 with its Gen 3 Snapdragon Ride platform. We do not see this as meaning that these OEMs will automatically adopt Seeing Machines DMS in 2021 for these platforms (other PR materials imply the optimised DMS solution is not yet ready), but the implication from the Qualcomm slide (on the page 2) is that a number will. We also believe it is unlikely that these OEMs will chose an alternative DMS solution for these vehicles when they want or require it. With regulatory compliance needed for NCAP and EC by 2024, it is our view that most of these OEMs will eventually source Seeing Machines DMS for at least their EU sales using the scalable Gen 3 Snapdragon Ride platform. In a separate press release Seeing Machines and Qualcomm have also announced a deepening collaboration with Seeing Machines further optimising its technology stack for the Snapdragon Automotive Cockpit Platform architecture as the two companies market the combined framework to automotive Tier-1s and OEMs. In addition, Seeing Machines's previously announced Embedded Development Kit (EDK) for Qualcomm's Snapdragon Automotive Cockpit Development is now available to select Tier 1 and OEM customers. We increase our target price to 12.9p from 8.6p based on increased confidence in our long-term automotive market share expectations.

Companies: Seeing Machines Limited

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

26 Jan 21

Cenkos: TP Group Plc -- FY20 Trading Update

TP Group experienced a material improvement in trading in H2/20, with the period accounting for nearly two thirds of the group's £3.8m FY20 Adj EBITDA, mainly due to the timing of some larger contracts. The order book remains robust at c£69m (up c20% YoY); however, the pandemic continues to create uncertainty around the timing of contract deliveries, and consequently, our forecasts remain withdrawn and our rating Under Review. Notwithstanding, we believe the significant operational changes made over the past year help to accelerate the business' software and consulting services, and leave the group well positioned for future growth.

Companies: TP Group Plc

26 Jan 21

Ergomed - PrimeVigilance excels; CRO strengthened in US

Ergomed’s H220 trading update highlights a successful end to 2020 despite the COVID-19 pandemic causing restrictions for much of the year. Total revenues were £86.4m (up 26.5%). Like-for-like revenues in the PrimeVigilance segment grew 30% (or 56% including the acquisition in January 2020). Unsurprisingly, the CRO segment was flat. However, in H220 revenues were up 11.2% over H120 and up 15.2% y-o-y. Ergomed’s key markets are the US and Europe, where vaccine deployment should be relatively efficient, so we expect the CRO segment to rebound throughout 2021. The recent MedSource acquisition will also significantly add to the 2021 top line. Because of the well-balanced pharma services offering (pharmacovigilance and CRO), Ergomed has proved to be a resilient business with further growth prospects intact, in our view. Net positive revisions to our estimates and an expansion of peer multiples have led to an upgrade of our valuation to £501m or 1,113p/share (from 845p/share previously).

Companies: Ergomed 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

27 Jan 21

Strix Group plc (KETL LN) - Seamless performance in FY20 and strong growth in FY21

Today’s FY20 trading update indicates that the business did not miss a step in FY20. Underlying profitability was very marginally ahead yoy and net debt has peaked and, with the factory move completing later this year this, will fall increasingly quickly. Looking forward, FY21 will see significant growth, underpinned by the LAICA contribution, but importantly underlying organic growth is expected to be c.10%. Trading has started well in the new financial year providing confidence in forecasts at this early juncture. Strong organic and acquisitive growth drives an 10% increase in profitability and the dividend for FY21. With the platform to deliver significant growth in revenue and earnings over the next five years, 15.5x current year earnings is appealing. Particularly for a business with such defensive cash flows. This is evidenced by a prospective dividend yield of 3.6%. We increase FY20 profit forecasts marginally to reflect guidance in today’s statement and lower net debt.

Companies: Strix Group PLC

22 Jan 21

Trackwise Designs - Year-end trading update

The group’s year-end trading update highlights that the group is on track with its growth and expansion strategy. At the end of the year, a couple of COVID and Brexit-related delays to customer ordering were seen, which have reduced revenue by £0.7m. Nevertheless, operating profits are in line with expectations due to continued cost control. Our forecasts have therefore been adjusted accordingly. The investment case remains sound and this doesn’t alter our view of the company’s prospects, where we forecast a robust scale up over the next few years, focused on significant growth opportunities in the EVs, Medical and Aerospace markets.

Companies: Trackwise Designs Plc

22 Jan 21

Treatt - Another Treat(t)

Treatt has once again delivered an exceptional performance in the first four months of FY21, with strong momentum across multiple categories contributing to growth. Operating margins have benefited from the improved product mix as Treatt continues to move up the value chain and partners with its customers to develop new products. Despite only being four months into the new financial year, the board is cautiously optimistic about continued growth and exceeding current market expectations. We raise our sales forecasts by 7–10% over the next three years and our operating profit and earnings forecasts by 20–32%. Our fair value also moves up to 870p.

Companies: Treatt plc

28 Jan 21

Back to cigarettes

IMB unveiled a five-year transformation plan that would see it increase investments in its top five cigarette markets, bolster its sales force, and take a more “disciplined” investment approach with its fledgling vaping venture. Overall, the announcements have improved the group’s credibility, but the lack of upcoming catalysts slightly disappoint. Not to mention, the disappointment also around the lack of an immediate share buy-back. The re-rating vs. tobacco peers in not for now.

Companies: Imperial Brands PLC

28 Jan 21

Disappointing FY20 figures, encouraging outlook

Swatch has published disappointing figures for FY20. Despite the good summer, the second wave of lockdowns and ongoing global travel disruptions have weighed on the group’s business again. Therefore, the improvements in the second half were not enough to compensate for the loss of the first half. However, the group has confirmed that the strong market dynamics came at the very end of 2020, and it expects that revenue will return to the level of 2019 in 2021.

Companies: Swatch Group Ltd. Bearer

28 Jan 21

Templeton Emerging Markets Investment Trust - Successfully navigating choppy waters

Templeton Emerging Markets Investment Trust (TEMIT) has the benefit of two highly experienced managers, Singapore-based Chetan Sehgal and Andrew Ness, who is based in Edinburgh. They can draw on the significant resources of a team of more than 80 investment professionals working in 14 countries around the globe. The managers successfully navigated choppy waters during 2020, a period characterised by bouts of significant stock market volatility due to the global pandemic. TEMIT’s NAV has outperformed the MSCI Emerging Markets Index over the last one, three five and 10 years. Sehgal and Ness are constructive on the outlook for emerging market equities based on improving company fundamentals and relatively attractive valuations.

Companies: Templeton Emerging Markets Inv Trust

28 Jan 21

Encouraging commercial performance ahead of merger

The group posted a strong set of results, driven by the resilience of the net interest margin and the ongoing improvement in fee income generation, confirming that CaixaBank has acquired a bank that has already done a very good job in terms of commercial repositioning.

Companies: Bankia (BKIA:BME)Bankia, S.A. (BKIA:MCE)

28 Jan 21

SP Angel Oil & Gas Daily Flow: 28/01/21

Market update and UJO, VOG commentary

Companies: Union Jack Oil Plc (UJO:LON)Victoria Oil & Gas PLC (VOG:LON)

28 Jan 21

IQE – executive interview

28 Jan 21

WHI Flash Light: Phoenix Copper (PXC) - Navarre Creek exploration confirms gold mineralisation

Phoenix Copper today announces the results from its gold exploration at Navarre Creek in Idaho, in a licence only 5km NW of its Empire property. Anomalous gold was found in hydrothermally altered volcanic tuffs. All samples (barring one) assaying a ‘high' gold grade (>0.1g/t gold) were found associated with jasperoid-hosted quartz stockwork and micro-veining which provides an excellent starting point for further exploration and drill target selection. Phoenix geologists note the similarities they see between the geology at this location and the multi-million ounce gold deposits around Carlin in Nevada. Obviously considerable work is required to confirm that hypothesis, but the obvious size of the potential prize makes this area of interest for follow-up work.

Companies: Phoenix Copper Ltd. (United Kingdom)

28 Jan 21

Keywords Studios - 12% organic revenue growth despite COVID-19

Management has confirmed that FY20 revenues and adjusted PBT will be marginally ahead of guidance, with revenues of €373m (guidance c €367m) and adjusted PBT of €55m (guidance c €52m). This outperformance has been driven by a strong close to the year, together with an additional revenue contribution from December’s M&A. Given the headwinds from COVID-19 in FY20, underlying organic revenue growth of 12% (H120: 8.0%, FY19: 15.5%) is a hugely resilient performance. The group is set well for FY21 and, with a growing next-gen console base in FY22/23, the medium-term outlook appears bright. With net cash of c €100m, Keywords remains well placed to execute further M&A deals in FY21.

Companies: Keywords Studios plc

28 Jan 21

The US strongly helped (and will continue to do so)

The H1 results came in ahead of consensus, helped by Greater China and an exceptional US performance. No FY21 guidance for now, but H2 should show positive growth thanks to strong comparables. We reaffirm our strong confidence on the stock.

Companies: Diageo plc

28 Jan 21

Oil & Gas Daily Flow

Union Jack Oil* (UJO LN): Comprehensive review of the West Newton project underlines transformational upside potential Victoria Oil & Gas Plc (VOG LN): Gas sales ramp up at Logbaba, Cameroon

Companies: Union Jack Oil Plc (UJO:LON)Victoria Oil & Gas PLC (VOG:LON)

28 Jan 21

SP Angel Healthcare Conditions- 28-01-2021

Companies: Beximco Pharmaceuticals Limited

28 Jan 21

SP Angel Morning View: Metals pull back following equities lower on vaccine delays and GameStop

Adriatic Metals* (ADT1) – Exploitation permit granted for Veovaca Anglo American (AAL LN) – Q4 continues production recovery Anglo Asian Mining* (AAZ LN) - STRONG BUY – New presentation focuses on exciting growth opportunities Vast Resources* (VAST LN) – Interims highlight the commissioning of the BPPM Arkle Resources* (ARK LN) – Stonepark drilling results Eurasia Mining* (EUA LN) – Veles International buys 27.4m shares off Alexi Churakov Greatland Gold (GGP LN) – Further drilling results from Havieron SolGold* (SOLG LN) – Confirms 2020 exploration expenditure of over US$50m

Companies: ADT AAL AAZ ARK EUA GGP SOLG VAST

28 Jan 21

Upset Q1 update and forecast

Tightening health measures depressed Elior’s Q1 performance and these are likely to intensify during the second quarter. The more than 15% decline in the share price reflects the market’s worry about the catering sector’s short-term future.

Companies: Elior Group SA

28 Jan 21

Once again a 5.5% increase in the dividend

Globally, no surprise with the Q4 performance which was a little bit better than in previous quarters. The good news is that the Board will propose a solid dividend of €1.95 per share for 2020 up by 5.4% yoy. This is a little bit better than what we were expecting (€1.9). All in all, its valuation (the best in European telcos) is now correct and offers only little potential.

Companies: Elisa Oyj Class A

28 Jan 21

DATAGROUP - FY21 set to breathe recovery

After a difficult FY20, DATAGROUP’s earnings are set to recover significantly in FY21, mostly driven by a recovery of earnings in its Financial IT services (FIS) unit, which took a hit in FY20. We believe the M&A-driven business model is intact and an EBIT margin of 9% should be within reach in the medium term. Trading at 27.5x FY21e P/E on consensus estimates, DATAGROUP is valued at a 12% premium to peers.

Companies: DATAGROUP SE

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%

21 Dec 20

Powerhouse Energy Group plan to become 'significant player in UK energy market as well as overseas'

13 Jan 21

Bango reveal 'solid results' with record revenue growth of 70%

21 Mar 18

Bitesize briefing – Vermillion Energy

07 Jan 20

Volex PLC Investor Presentatiion

18 Dec 20

Touchstone Exploration signs 'biggest deal ever' worth up to $2.2bln

18 Nov 19

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

21 Oct 19

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

07 Feb 20

Morning Report: Novacyt reports 'unprecedented interest' in its coronavirus diagnostic

23 Jan 20

Executive interview - Sureserve

30 May 18

Executive interview - Banca Sistema

26 Nov 20

Bushveld Minerals' is back to full production, reporting a 31% increase in activity for Q3

11 Jan 21

EQTEC's latest deal with Greek construction firm works as 'template model' and is 'repeatable'

19 Jan 21