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.

01 Jul 20

THE MONTHLY July 2020

A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.

Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA

30 Jun 20

D4T4 Solutions - A transitional period sets up secure growth in FY 2022

The FY 2020 results are in line with our expectations and reflect the impact of the previously announced switch from large perpetual licences to recurring annual term licences during the year. Despite the COVID strictures, with its large global partnerships, D4t4 continues to close numerous lucrative data gathering and data management contracts with major blue-chips around the world. It is successfully converting a high proportion of its new sales to recurring revenue contracts, but this will sacrifice growth and earnings in FY 2020 and FY 2021. Nevertheless, with growing recurring revenue base, an exciting pipeline and a very strong balance sheet, D4t4 is very well positioned for continued long-term growth and security.

Companies: D4T4 Solutions

07 Jul 20

Cenkos: Seeing Machines Ltd -- USA to mandate DMS from 2024

The ‘Moving Forward Act', the strongest automotive safety bill in decades, has now been passed in the House of Representatives. The bill is focused on advancing safety technologies proven to reduce crash and harm and to make sure strong safety standards are in place to save lives. The bill, which now needs to be passed in the Senate, will mandate automatic braking, lane-keeping, blind-spot detection, event data recorders as well as DMS in all cars and trucks sold in the US from 2024. This aligns with the European General Safety Regulation, which passed into law in November 2019. However, in the EU, the European Association of Automobile Manufacturers (ACEA) has requested a 2‐year delay for the introduction of the 2022 Euro-NCAP protocols due to the projected lengthy time that will be needed to recover from the effects of COVID-19. Euro NCAP has agreed, and a delay is now expected to the 2022 and 2024 rating. The new dates will give automakers and Tier 1 suppliers more time to incorporate the necessary changes given the events of recent months with a number of manufacturers announcing 12 month delays to new models.

Companies: Seeing Machines

07 Jul 20

Well positioned with excellent growth prospects

Kape’s recent Capital Markets Day (CMD) was an extremely useful update on the many benefits of integrating complementary acquired businesses (including the collaboration between engineering teams) and the opportunities for upselling that new product development brings. Over the last six months, Kape has proceeded with the integration of PIA, expanding the growth of new users through the application of the Group’s user acquisition knowhow and technology. It has also made further enhancements to its product offering which, inter alia, will improve user engagement and retention. This note looks to bring out the main points from the CMD and highlights the significant progress that has been made this year.

Companies: Kape Technologies

03 Jul 20

Manolete Partners

Accelerating activity in to FY21

Companies: Manolete Partners

30 Jun 20

Full-year results

Full-year results were at a record level and slightly ahead of expectations by £0.2m at the adjusted PBT level, or 2.8% better at the EPS level. Cash generation was also stronger than expected, resulting in net cash of £3.2m. The dividend was maintained – a sign of confidence. Good strategic progress was made, helped by the integration synergies of Pacer and new product development programmes. Our forecast and price target remain under review given COVID-19-related uncertainties.

Companies: Solid State

03 Jul 20

Avon Rubber - Cream rises to the top

The announcement that Avon Rubber is to sell milkrite | InterPuls, its dairy division, to DeLaval Holding for £180m gross proceeds is strategically logical and financially compelling. The fit of dairy and defence has always looked slightly anomalous and the terms of the deal show that the opportunity to augment dairy through value-accretive deals is difficult given the scale of the business and opportunities. Management must now recycle the cash balances that will be created into Avon Protection, where there are a greater number of potential investments.

Companies: Avon Rubber

02 Jul 20

GB Group - Managing cash now to support long-term strategy

GB Group reported strong performance in FY20 and started taking measures to preserve cash in Q420. Trading in Q121 has been mixed and while management is unwilling to provide guidance for FY21, it has confidence that in the longer term it is well positioned to benefit from the acceleration in digital transformation that should drive demand for its identity data intelligence services. We have upgraded our EPS forecasts by 5% in FY21 and 3% in FY22.

Companies: GB Group

02 Jul 20

Strategically important acquisition in Germany

Gamma is acquiring around 80% of HFO Holding AG (HFO), one of the leading SIP Trunk providers in Germany, for an initial consideration of €20.4m in cash with an option to purchase the remaining shares over the next three years. In line with its stated strategy, Gamma can invest and use its commercial strength and expertise to accelerate HFO’s growth and replicate the Group’s success in the UK by developing a market leading position in Germany. Noting net debt of €2.9m when the deal closed, the implied historical EV/EBITDA multiple of about 10x compares with Gamma’s equivalent of 18.7x. We estimate that the deal will be 4% earnings enhancing in the first full year of ownership and our estimate upgrades reflect that. The European markets for cloud telephony in which Gamma is now represented will ultimately overtake the UK in size, providing Gamma with significant future growth potential. We view this acquisition as another significant step in Gamma’s strategic aim to expand into Europe via exposure to another lucrative market opportunity.

Companies: Gamma Communications

02 Jul 20

£55m placing as brick demand bounces back

Brick and concrete products manufacturer Forterra has raised c. £55m gross in an equity placing in order to maintain its strong balance sheet and support the Group's continued investment programme. It was accompanied by, in our view, a reassuring trading statement which we believe is backed by yesterday’s brick industry data and comments from housebuilders, which suggest that demand has been recovering from its lockdown lows, before the PM’s promises to “build, build, build” housing and infrastructure.

Companies: Forterra

06 Jul 20

Macfarlane Group*

Resilient Trading Update

Companies: Macfarlane Group

07 Jul 20

Open Orphan*

Laboratory Services Contracts Signed

Companies: Open Orphan

07 Jul 20

Finally, a change of strategy?

With a new CEO, Amanda Blanc, Aviva’s shareholders could dream of a possible change in the group’s strategy, with a more focused insurance business. The new Chief has an opportunity to take painful decisions in a year where no one will require a high operating performance.

Companies: Aviva Plc

07 Jul 20

Y/E trading update reveals impressive growth

Revenue for FY 2020 is ahead of expectation and we adjust our forecast accordingly. Sales are growing at an impressive rate; >50% pa despite COVID-19 and the virus had no effect on the company’s ability to deliver projects with 23 new customers live in Q4. We note COVID concerns are causing some delay on contract decisions, and sales would have been even stronger but for that. These delays do lead to caution on FY 2021, and we ease back our forecasts on more prudent management guidance. However, with the recent £5m equity placing, PCIP has plenty of cash to continue to invest in rolling out its exciting secure payments proposition. This cloud-based solution can be deployed remotely and assists call centres in moving agents to WFH and still collect payments securely. The outlook remains very bright with continued rapid growth expected.

Companies: PCI Pal

05 Mar 20

Licensing led strategy delivering strong growth – shares remain significantly undervalued

Gaming Realms is a creator and licensor of innovative games for mobile, with operations in the UK, U.S. and Canada. Through its unique IP and brands, Gaming Realms brings together media, entertainment and gaming assets in new game formats.

Companies: Gaming Realms

07 Jul 20

Assura plc - Trading Update

07 Jul 20

SkinBioTherapeutics assessing options for a 'rapid trial' of its food supplement

07 Jul 20

4d pharma's Duncan Peyton outlines crucial next stage for its oncology trial

07 Jul 20

4d pharma's Duncan Peyton outlines crucial next stage for its cancer trial

07 Jul 20

Totally PLC focused on organic growth and sees 'massive potential' to expand into Ireland

07 Jul 20

Dividend inflows plummet in H1

With seven out of the eight portfolio companies having withdrawn their dividend proposals on FY19 earnings, Industrivärden’s dividend inflows took a major hit in H1. Hence, the HoldCo has turned its focus to strengthening its liquidity and financial position. The still narrow discount to NAV puts a cap on further upside potential.

Companies: Industrivarden

07 Jul 20

Paion - ByFavo – poised for autumn US launch

In a breakthrough achievement for Paion, the FDA has approved ByFavo (remimazolam) for US sale for procedural sedation (PS) taking under 30 minutes – mainly 25m colonoscopy and bronchoscopy procedures. A €15m milestone is due from US partner Cosmo. Cosmo has sublicensed ByFavo to Acacia in the US; launch is indicated in autumn 2020. Paion has operational funds and loan facilities until 2022. Our valuation has been updated to reflect US approval and is now €283m vs €270m previously.

Companies: Paion

07 Jul 20

Numis Corporation - An encouraging update

Numis’ update for Q320 was positive, reflecting both the need for equity funding in the market and the strength of the group’s franchise as well as its ability to deal with current operating constraints. Subject to the market background in its final quarter, we now expect Numis to achieve a full-year result in line with or ahead of the high end of our previous scenario range.

Companies: Numis Corporation

07 Jul 20

SP Angel . Morning View

Aura Energy* - (AURA LN) – Term sheet on Mauritanian gold, base and battery metals projects | Pure Gold Mining (PUR LN) – Positive initial results from drilling at Red Lake mine

Companies: Aura Energy Pure Gold Mining

07 Jul 20

Illustrates why they deserve a premium

Signs LOI for 12 firm wells with Equinor at Johan Sverdrup phase 2 We estimate that the clean rate is between USD 290-300k + bonus Equinor comments that they will keep the rig until the commencement ODL was the frontrunner for the contract and dayrate is in-line with exp.

Companies: ODFJELL DRILLING

07 Jul 20

SP Angel Healthcare Conditions

Collagen Solutions (COS.L): Supply agreement with NovaBone

Companies: Collagen Solutions

07 Jul 20

Oil & Gas Daily Flow

Enwell Energy (ENW LN): Production up 2.5% yoy | Zenith Energy (ZEN LN): Further expansion in the Republic of Congo

Companies: Enwell Energy Plc Zenith Energy

07 Jul 20

Market Report: Yo-yoing FTSE 100 heads lower again, Whitbread sees subdued reopening in London

07 Jul 20

WHI Morning Comment: Aura Energy (AURA)

Gold JV to explore Aura's gold licences in Mauritania Aura has announced a JV with Chilean Metals (TSXV:CMX) to advance the exploration of its highly prospective (in our view) gold and base metal licences in Mauritania. Some early geological work (including shallow drilling) highlights the gold enrichment in the area and the potential for nickel-copper-(cobalt) mineralisation as well. Nearology – along strike from Kinross' giant Tasiast deposit (7Moz gold in Proven and Probable Reserve) – only adds to the prospectivity we see. Aura's other project in Mauritania, Tiris uranium project, is at an advanced stage and has many competitive advantages – not least its low-capital intensity (per lb of U3O8), its low operating cost (compared with global peers), its scalability and the fuller area potential. Häggån is Aura's other project - larger-scale proposition in Sweden with a defined resource and under PEA to prioritise the production of vanadium. For now, attention will focus on due diligence and signing the definitive agreement with Chilean before the work on the gold and base metals in Mauritania can begin in earnest, as Aura looks to deliver exploration success into a rising gold price environment.

Companies: Aura Energy