See what's trending this week...
Companies: ACSO, FPM, FOOT, GSK, IDP, PLUS, PHD, XPP
Innovaderma (IDP)
Interims results – confident outlook | finnCap, 15 Feb
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"Interim results to 31 December were in line with the 19 January trading statement, with revenues rising 31% to £4.2m, resulting in a pre-tax loss of £30k and period-end cash of £2.0m. A positive outlook statement, supported by strong post-period end growth data for Skinny Tan and Roots, should provide the comfort that investors are looking for and justify H2 seasonality, which is expected to account for 69% of FY revenues (vs. c.65% in the past two years); driven by product line extensions, increasing retail shelf space and geographic expansion..."
Proactis (PHD)
H1 in line | N+1 Singer, 12 Feb
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"PROACTIS has released a positive H1 trading update. This indicates that trading in the first six months is in line with management expectations on the back of new customers wins and increased cross-selling, strong growth from the Perfect Commerce acquisition (c£13.5m of revenue and c£3.7m of EBITDA), and the realisation of £3.3m of the targeted £5m of cost synergies post acquisition. This is a reassuring statement given that there was some concern over assets (Hubwoo) within Perfect Commerce and the impact that integration of two geographically diverse businesses could have on trading. Dollar strengthening remains a risk to our revenue estimates, but we believe there is sufficient headroom within our cost assumptions to offset this. Based on this evidence, the shares look undervalued versus peers..."
Proactis (PHD)
Doubling and Delivering | Progressive, 12 Feb
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"PROACTIS’ interim trading statement provides the first opportunity to gauge performance since Perfect was consolidated. The overall picture looks healthy: revenue of £26.3m has more than doubled yoy and EBITDA of £8.5m is ahead our expectations (£8.0m). While customer activity is not quantified, it is described as strong, and the target of £5m in annualised synergies by the end of FY18 is confirmed. We believe PROACTIS can deliver £20m in EBITDA in FY18 and leave our forecasts unchanged..."
Footasylum (FOOT)
Capital Markets Event | Whitman Howard, 14 Feb
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"FOOT held a brief CMD yesterday with presentations led by CFO Claire Nesbitt and CFO Danielle Davies. Overall we found the presentation credible and the management knowledgeable. That said the strategy is based significantly on physical expansion from 65 current UK stores to a target of 150 in the UK and EBITDA margins are low (at 7.6% 2/17A v JD Sports 13%) and likely to remain so in the near term as the business invests in infrastructure..."
Plus500 (PLUS)
Strong client growth, volatility returns | Liberum, 14 Feb
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"Following another impressive set of results, we upgrade Sterling EPS by 22%-25%. We account for the benefit to trading from February’s spike in volatility, but continue to reflect a lower underlying ARPU on account of the proposed ESMA leverage limits likely to come into force..."
Accesso Technology Group (ACSO)
Six Flags contract extension | N+1 Singer, 12 Feb
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"Accesso has announced a five-year extension to its agreement with Cedar Fair to provide the accesso Passport ecommerce solution across all of its properties. This is a key relationship for accesso and highlights the continuing importance of accesso’s offering to a major leisure attractions customer. We make no changes to our forecasts or recommendation and will review our target price..."
Faroe Petroleum (FPM)
Upgrade to BUY | Whitman Howard, 12 Feb
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"Faroe Petroleum has announced that it has executed a transaction with Suncor Energy Norge AS (‘Suncor’) for the sale of a 17.5% working interest in the Fenja development located in PL586 in the Norwegian Sea. Faroe will receive cash of c$54.5m in exchange for the 17.5% stake..."
XP Power (XPP)
Tax changes support EPS upside | Edison, 12 Feb
Free Access
"XP expects a lower effective group tax rate resulting from the reduction in US corporate tax rates from 35% to 21%. In addition, it expects to receive a tax refund from the Inland Revenue Authority of Singapore. This should drive upside to our FY18 EPS forecast as well as boosting XP’s cash position..."
GlaxoSmithKline (GSK)
Strong results as another Advair generic bites the dust in the US | AlphaValue, 14 Feb
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"GSK’s Q4 results were ahead of our as well as the street expectations. Forex had a negative impact of 3ppts on sales and 4ppts on adjusted EPS. All segments outperformed sequentially, but vaccines stood out with 9% growth (vs flat Q3). The main drivers included HIV in pharma, flu and meningitis in vaccines and international markets in the consumer health business. Management maintained interest in consumer health assets but ruled out a compromise on the pharma focus..."
