Looking Ahead At The Next Week
Companies: BVIC, HSP, REDX, SNWS, STEM, SCE, TYM, TPT
Company news, such as Interim results, Final results, AGM statements, Trading Updates, Capital Markets Days and Live Events, are all recognised by active investors as being spurs that generate interest and dealing activity.
This column highlights some company news that will be announced in the week ahead.
Check out any of the companies mentioned by using the Research-Tree Companies Research link.
A quick assimilation of what various brokers have to say about a particular company, can justify the requirement to delve even deeper into how it operates, its markets and its potential.
Monday 25th January
Interims: Yamana Gold (AUY),
Finals: SThree (STEM),
Trading Updates: Equals Groups (EQLS), Plant Health Care (PHC),
AGM/GMs: Cineworld (CINE),
Live Event: Surface Transforms (SCE)
Research Tree Comment:
On the Q4 Trading Update in mid-December analyst Iain Daly at Radnor Capital Partners stated that the H2 for SThree (STEM), the global staffing business focused into the science, technology, engineering and mathematics sectors, showed good resilience. On his estimate of the year to end November 2020 of £306.2m of net fees, a drop of 12%, he is looking for adjusted pre-tax profits to have more than halved from £59.2m to £28.1m, worth 13.3p in earnings against 32.3p. However, he states that the shares at 293p continue to offer the best value in the peer group.
Sanjay Vidyarthi at Liberum Capital rates the shares as a Buy, with similar profit estimates for last year, but looking for just 12.6p per share in earnings. ‘The business is well positioned for FY21E and we expect the market to start to refocus on longer term ambitions as we move out of crisis management mode.’ He concludes that group remains the broker’s top pick amongst the recruiters.
On this day Hardman & Co will be holding a Live Presentation for Surface Transforms (SCE), which should be interesting after the groups recent successful £18m Placing.
Tuesday 26th January
Interims: PZ Cussons (PZC), Quiz (QUIZ),
Finals: None declared
Trading Updates: Howarth Group (HWG), UDG Healthcare (UDG),
AGM/GMs: UDG Healthcare (UDG),
Research Tree Comment:
The Trading Update for the year to end December last is due from the Howarth Group (HWG) on this day. The regenerator of land and property for development and investment, according to Chris Spearing at Liberum Capital, is well placed to outperform UK property peers. For the 2020 year he is going for £26.2m (£24.4m) of sales and pre-tax profits of £2.1m (£1.1m). For the current year his estimate is £27.1m in sales and £2.6m profits. He notes that the group has a strong balance sheet and he rates the shares as a Buy at 92.8p, with a Target Price of 130p.
Wednesday 27th January
Interims: Hargreaves Services (HSP),
Finals: Redx Pharma (REDX),
Trading Updates: None declared
AGM/GMs: Cairn Homes (CRN), Critical Metals (CRTM), Renew Hldgs (RNWH), Smiths News (SNWS),
Research Tree Comment:
Impressed by the sale of its coal inventory, with its bank debt eliminated, analyst James Tetley at N+1 Singer considers that the shares of Hargreaves Services (HSP) are trading on a modest valuation. He reckons that it does not reflect the group’s growth and income potential. For the current year to end May he is looking for the industrial and property sector services group to report £191m of sales (£222.2m) and adjusted pre-tax profits of £7.0m (£4.9m). The group’s interims to end November are due out on this day.
Analysts Lala Gregorek and Franc Gregori at Trinity Delta Research earlier this month updated their valuation of Redx Pharma (REDX) to £317.5m, some 116p per share. They are looking for the molecule therapeutics for oncology and fibrotic disease company to report £12.7m of sales in the year to end September last, with adjusted losses to fall by two-thirds from -£7.5m to just -£2.6m.
In an update on the company’s research agreement with Jazz Pharma brokers SP Angel stated that the deal highlighted the continued interest in Redx’s research and development capabilities as it continues to progress its in-house oncology and fibrosis programmes.
This day will also see Smiths News (SNWS) holding their AGM, the first since the group changed its name from Connect Group in early November last.
Thursday 28th January
Interims: ITM Power (ITM), Joules Grp (JOUL), Wizz Air Hldgs (WIZZ),
Finals: Oxford BioDynamics (OBD),
Trading Updates: Tritax Big Box REIT (BBOX),
AGM/GMs: Britvic (BVIC), Enwell Energy (ENW), Europa Oil & Gas (EOG), Greencoat Renewables (GRP), Kerry Grp (KYGA), Origin Enterprises (OGN), Tertiary Minerals (TYM),
Cap Mkts Day: M&C Saatchi (SAA),
Research Tree Comment:
After having terminated its fluorspar project in Norway brokers SP Angel conclude that Tertiary Minerals (TYM) will be focussed on its precious and polymetallic exploration projects in Nevada in the USA. At the AGM on this day perhaps Executive Chairman Patrick Cheetham may give shareholders a further update on the minerals group’s current state and prospects.
Also, on this day Britvic (BVIC) will be holding its AGM for the year to end September 2020. The group, one of the leading branded soft drinks businesses in Europe, could well outline its confidence in its future growth prospects. Analysts Sara Welford and Russell Pointon at Edison Investment Research conclude that the group trades at a 50% discount to the UK beverages sector, reflecting its geared balance sheet and the fact that some of its brands are part-owned by third parties. However, they do state that the short term Covid-19 uncertainty remains the biggest risk for the sector.
Friday 29th January
Interims: Rank Group (RNK)
Finals: Aukett Swanke Grp (AUK),
Trading Updates: Avon Rubber (AVON),
AGM/GMs: Asiamet Resources (ARS), Aura Energy (AURA), Avon Rubber (AVON), Caledonian Trust (CNN), Dalata Hotel (DAL), Hollywood Bowl (BOWL), Live Company Grp (LVCG), Nostra Terra Oil & Gas (NTOG), Scotgold Resources (SGZ), Topps Tiles (TPT), Treatt (TET)
Research Tree Comment:
Liberum Capital analyst Adam Tomlinson rates the shares of Topps Tiles (TPT) as a Buy and has set a Target Price of 95p on its shares. He noted that the Q1 Trading Update earlier this month showed a very strong momentum for the group. The company holds its AGM on this day.
