Most popular equity research this week | 2 - 6 Apr

VP (VP.)

Positive conclusion to FY18, shares undervalued post CMA clearance | N+1 Singer, 6 Apr

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"Vp has issued a positive year end trading update highlighting further progress over the winter period. Full year results are expected to be in line with expectations. Divisionally, the UK business has experienced consistent demand from its key infrastructure, construction and housebuilding markets. Following the CMA clearance on 7th March, the integration of Brandon Hire has started well..."

Europa Oil & Gas (EOG)

And Ireland comes for free… | finnCap, 4 Apr

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"Europa shares have been buffeted by frustrations with the UK planning process, as its Wressle development and Holmwood exploration well have both been held up by delays to application approvals. However, this has masked real progress offshore Ireland, where new and reprocessed seismic is expected to lead to increased prospectivity and reduced risk across its large exploration portfolio. The culmination of this work will crystalize a relaunch in Q2 2018 of the farm-out process across three licences in the South Porcupine basin, an industry hot spot where at least two wells are planned next year..."

Future (FUTR)

Acquisition of Newbay | N+1 Singer, 4 Apr

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"Future has announced the acquisition of Newbay Media LLV, which owns a range of events and information titles, for initial consideration of $13.8m ($12.25m cash and $1.55m in shares) with potential for up to another $5.6m depending on performance. Using the 2017 EBITDA result of $4.2m implies a very attractive multiple of just 3.3x. Even allowing for some much needed catch-up investment we expect the multiple to be similar post reorganisation..."

Treatt (TET)

Reassuring confidence | Edison, 5 Apr

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"Following the exceptional results Treatt posted in FY17, momentum has continued in the business and revenues were up c 10% in H1. The core categories of citrus, tea and sugar reduction continue to drive the business, demonstrating that the company is well placed to capitalise on current trends in the food and beverage space: management’s outlook for FY18 remains unchanged. H1 should also benefit from positive FX effects, and US tax reform should lead to a significantly lower tax rate in future. We leave our forecasts unchanged at this stage, but see upside to our EPS forecasts from the lower tax rate, which remains unquantified at present..."

Topps Tiles (TPT)

Tough market, prudently lowering forecasts | Liberum, 4 Apr

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"Topps' H1 pre-close shows that market conditions toughened during Q2, with the bad weather and Easter timing also impacting trading. We reset our forecasts, prudently lowering PBT by c.8% across FY18E-20E..."

Statpro Group (TKR)

Product releases key to accelerating growth | N+1 Singer, 5 Apr

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"Full year results last month highlighted healthy organic growth (+13%) in StatPro Revolution ARR and a reassuring contribution from Delta. While the level of revenue cancellations/reductions (notably Alpha) was disappointing, key product releases, sales investment and stabilisation of Alpha’s revenue base should help deliver improved organic growth in 2018..."

Scisys (SSY)

Space division shines | Edison, 5 Apr

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"SCISYS posted strong FY17 results, with revenues rising by 25%, including c 9% organic growth and c 5% at constant currencies. The Space division stood out, generating 18% growth in both revenue and contribution. Operating profit (excluding associates) rose by 41% to £4.5m, partly benefiting from hedging arrangements, and the operating margin expanded by 90bp to 7.9%. The outlook is encouraging with the order book 41% ahead at a record £91.3m. We have cautiously maintained our profit forecasts, mainly due to the uncertainties relating to Brexit on the Space division, while our FY19 EPS eases on higher tax rate assumptions. .."

The Monthly

by Hardman & Co, 4 Apr

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1pm | Abzena | Advanced Oncotherapy | Allergy Therapeutics | Alliance Pharma | Arbuthnot | Avacta | Bionomics | Burford Capital | Chamberlin | City Of London Investment | Collagen Solutions | Diurnal | Evgen Pharma | Gateley | Genedrive | Inland Homes | Koovs | Morses Club | Murgitroyd | Non-Standard Finance | Obtala | Oxford Biomedica | Premaitha Health | Primary Health Properties | R.E.A | Redx Pharma | Scancell | Surface Transforms | 600 Group | Tissue Regenix | Titon | ValiRx

"This month’s feature article is the first publication of the 2017 global pharmaceutical industry statistics from which the global and US rankings of the top 15 drug companies are derived. Comparisons are made with historical data to show how different company strategies have evolved. In addition, an analysis of the evolution of biopharmaceuical drugs has been made, together with a key sub-set, namely drugs derived from antibody technology, which now represent 12% of the entire market. Two more drugs joined the $100bn club in 2017..."