See what's trending this week...
Companies: FOOT, FDEV, HUR, IQE, NEXN, RBGP, 73S, SEE, SXX, SOM
Seeing Machines (SEE)
Fleet business update | Cenkos, 5 Sep
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"Yesterday, Seeing Machines announced that following an initial review of the delays and cost over runs in its Gen2 fleet product, that it expected the production delays will have an ongoing adverse effect on growth of its connected base in FY19. Furthermore, the Board has concluded that the cost reductions previously anticipated to be delivered by the updated Guardian product are unlikely to be achieved in the short to medium-term..."
Taptica International (TAP)
Improving margins lead to another upgrade | finnCap, 4 Sep
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"International expansion, notably in the Far East, together with the excellent Tremor acquisition, continues to drive revenue growth while margins are being improved by operating efficiencies. Furthermore, the $30m funding in H1 reduced debt and positioned Taptica for further earnings-enhancing M&A and discussions are already underway with targets. A winding-down of the legacy display business leads us to ease our revenue expectations slightly but the impressive growth and margins delivered suggest yet another earnings upgrade for this year, underpinning the upside in our target price..."
Somero Enterprises (SOM)
Interim results in line, with dividend doubled | finnCap, 5 Sep
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"Half-year results were in line with guidance with few surprises. Market conditions remain favourable – with solid growth seen in the US and substantial growth in Europe. The interim dividend saw a one-off doubling, as the dividend was rebalanced with greater weighting to the interim pay-out. We are comfortable with our existing forecasts and maintain our price target at 465p. We continue to see positive market momentum and strong cash generation, with the development of new products offering a significant opportunity to deliver share price upside over the medium term..."
IQE (IQE)
Multiple VCSEL programmes entering production | Edison, 4 Sep
Free Access
"During H118 IQE experienced double-digit sales growth on a constant currency basis in each of its three primary markets, although this was partly offset by a currency headwind. The investment in multiple VCSEL qualifications and the Newport foundry depressed margins, but underpins management’s expectations of a sustained photonics ramp-up in H218 and FY19. Acknowledging the currency headwind and one-off H118 photonics costs, we revise our estimates downwards..."
Frontier Developments (FDEV)
Stacking franchises | Liberum, 5 Sep
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"Frontier Developments has reported FY'18 revenues of £34.2m, in line with our forecasts, and adj. EBITDA of £9.4m 9% above. Frontier has announced franchise IV is expected to be released in FY'20 with 2 more franchises in early development..."
Hurricane Energy (HUR)
First thoughts: Spirit Energy farm-in | Edison, 3 Sep
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"Spirit Energy has farmed-in to 50% of Hurricane’s Lincoln and Warwick licences covering the Greater Warwick Area (GWA). The farm-in is intended to accelerate the de-risking and monetisation of GWA, adding a new leg to the Hurricane business model that will run in parallel with the development of the Greater Lancaster Area (GLA). Under the transaction, Hurricane will retain a 50% working interest in GWA licences in return for a net carry of $137.2m..."
Safestyle UK (SFE)
Settlement reached with SafeGlaze | Liberum, 3 Sep
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"Safestyle has announced today the settlement of claims against SafeGlaze, a very aggressive new entrant to the window industry. Under the settlement, SafeGlaze will be rebranded and its behaviour towards Safestyle representatives restrained..."
Footasylum (FOOT)
A further downward revision | Liberum, 3 Sep
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"Downgrading for the second time this year is highly disappointing. Delays to new store openings and upsizes mean these are unlikely to contribute much ahead of Christmas..."
Sirius Minerals (SXX)
Capex increased, project de-risking | Liberum, 6 Sep
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"Sirius has announced it will require a further $400m-$600m in Stage 2 financing, mainly relating increased costs from the Mineral Transport System tunnel. The NPV impact of the cost increase is <10%, however depending on the ultimate financing solution our NPV per share will reduce from £1.08 to between £0.75 and £1.00..."
Rosenblatt Group (RBGP)
Raising the bar | Cenkos, 3 Sep
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"Rosenblatt is a City firm of solicitors with a reputation for handling complex cases across litigation, corporate law and real estate. It has transformed over the last 18 months, instilling a greater commercial focus and breaking free from the norms of the traditional law firm. We see current momentum continuing, forecasting adj EBITDA of £8.2m by FY20E. At IPO, the group raised a total of £43m (gross) at 95p p/s..."
