Most popular equity research this week | 10 - 14 Dec

Photo-Me International (PHTM)

Laundry continues on growth path | finnCap, 10 Dec

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"H1 results show continued strong growth in Laundry and a faster than expected recovery in Japan but slower B2B and third party sales in the UK. These later two points are expected to improve in H2 and guidance for the full year is maintained but there is clearly some risk here. We retain our target price of 183p based on a 5% FY 2019E free cash flow yield..."

Interim Results | Progressive Equity, 10 Dec

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"Photo-Me has announced H1 2019E results. Underlying revenue grew 2.5% and although adjusted PBT fell 7.9%, the Group maintains its strong cash generation with net cash of £32.4m. Laundry continues to perform strongly, ID saw growth through the roll-out of secure upload enabled booths, the first banking booths were launched in France and the Japanese re-structuring is proceeding as expected..."

Seeing Machines (SEE)

Collaboration with L3 for Flight Simulators | Cenkos, 12 Dec

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"Seeing Machines Limited, the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, has announced that it has partnered with L3 Commercial Aviation, a leading provider of airline pilot training solutions, to deliver integrated eye tracking capabilities into their Full Flight Simulator (FFS). The first device with this functionality will be delivered to a major Australian airline in 2019..."

Legal & General Group (LGEN)

Another non-core business to sell | AlphaValue, 13 Dec

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"According to Sky News, L&G has instructed Fenchurch Advisory Partners to sell its general insurance business. This is a small business unit that has no significant impact on the insurer’s operating earnings. The revealed valuation matches our figures. However, this sale may be difficult to achieve, as the general insurance market remains tough..."

Kromek Group (KMK)

A new market segment | Cenkos, 10 Dec

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"DARPA has extended its engagement with Kromek into a new market segment. Kromek's Sigma platform now incorporates biological threat detection and the product has a meaningful competitive advantage. The proof of concept contract could possibly be extended in our opinion. This further raises revenue visibility and underpins our Buy recommendation..."

Driver Group (DRV)

FY18 PBT in line; Positive dividend surprise | N+1 Singer, 11 Dec

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"Driver’s FY18 results were well flagged in the October trading update (EPS upgrades of 9%/12% in FY18/19 at the time). Today’s results are in line with expectations, highlighting a year of significant profit growth. Adj. PBT increased by 54% to £3.8m, driven by higher utilisation rates (80% in FY18 vs. 76% in FY17) and a focus on higher margin work (e.g. growth in services provided by Diales). .."

Mysale Group (MYSL)

Significant disruption during peak Q2 trading period due to GST changes in Oz | Zeus Capital, 11 Dec

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"The changes to the general sales tax (GST) in Australia from 1st July, that removed the exemption for low value e-commerce direct imports with a value below A$1,000, has had a severe impact on MySale’s recent trading (GST is 10%). Although plans were in place and trading during Q1 was in line, several factors have combined during the peak Q2 period that will have a significant impact on forecasts, with a small loss expected in the first half to December..."

Zytronic (ZYT)

FY18 results in line with October guidance | N+1 Singer, 11 Dec

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"Zytronic reported results for FY18 in line with its October guidance, with adjusted PBT down 16%. This was driven by a decline in gross margin, due to operating inefficiencies resulting from lower revenues to its Financial end market, and yield problems as new designs for the Gaming market, requiring new processes, moved into production..."

Reabold Resources (RBD)

Corporate update | Whitman Howard, 11 Dec

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"Whilst California drilling has seen a small delay of c2 weeks, Wick is due to spud imminently, and Reabold has managed to secure significant optionality around Danube funding. We remain with our BUY recommendation and increase our RENAV from 3.5p to 3.8p..."

Strix Group (KETL)

Protecting shareholder value | Equity Development, 13 Dec

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"Strix announced three important updates in relation to its IP and patent protection in an RNS yesterday. This announcement is important both for the quality of the company’s growth and for the valuation placed on the company’s shares. As a result, we view it positively..."

SThree  (STHR)

Strong 4Q and encouraging outlook enables CEO to leave on high | Liberum, 14 Dec

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"Although the announced departure of CEO Gary Elden is s surprise, it comes at a time when momentum in the business is strong and the strategic shift undertaken during his six year tenure is paying off. This is evidenced by the 12% growth in underlying gross profit during 4Q18, driven by strong momentum in both the US and EU businesses..."