See what's trending this week...
Companies: APC, B90, BMS, CKT, CRST, DEB, DMTR, ECSC, EUSP, FDM, FA/, FOOT, GETB, IDP, CRPR, KAPE, LSAI, RUA, SNX, TCN, W7L, XPF
A high growth story pushed out one year; doing all the right things | Liberum, 19 Jun
"Footasylum is investing for growth in areas where there is a more predictable rate of return. The focus on more store upsizes is sensible as this aligns its strategy with the brands it retails but should also ensure a more predictable payback on capital spend..."
Post results update | Whitman Howard, 19 Jun
"We reassess our forecasts below, no significant changes to the P&L and the company produced a strong start to FY18e where revenue in the 1Q18 was +60% YoY to €4.8m, maiden dividend of 0.25p proposed. AGM in July should provide detail on timing of dividend..."
Innovaderma | finnCap, 19 Jun
"The trading update for the year ending June indicates revenues and pre-tax profit of c.£11m and £0.65m, respectively. This is lower than previously indicated (c.£1m), which is mainly due to supply chain issues and launch-related costs in H2. The decision by Boots to range Roots in 359 of its 2,500 stores in the UK and expansion into almost all Superdrug stores, however, is a strong endorsement of the company’s ability to create well-recognised beauty brands and gives us increased confidence in the growth dynamics for this perennial brand. We reintroduce new forecasts and a target price of 220p..."
Unveiling Kape | Edison, 19 Jun
"Kape has made solid progress in refining its product set and is now fully focused on the consumer cyber security segment. By leveraging its marketing platform to scale new products while also transitioning to a subscription model, we expect to see strong revenue growth and margin expansion translating to our forecast 16% three year CAGR in EPS. With $69.5m net cash, acquisitions should enhance this further. We believe the shares should be on a growth rating yet despite the recent performance, the 21.8x FY18 P/E is below peers. We see upside towards 157p..."
Initiation - Long term attractions undervalued | Liberum, 21 Jun
"The shares’ de-rating, after some margin erosion in 2018, has been overdone. We expect profit growth to resume as margins stabilise and geographic expansion drives output growth..."
Aortech | APC Technology | Braemar Shipping | James Cropper | Deepmatter | ECSC | Escape Hunt | EU Supply | FDM Group | GetBusy | Location Sciences | Synectics | Sprue Aegis | Tricorn | Warpaint
Volatility returns | Stockdale, 19 Jun
"When we last published the FTSE 100 was reaching an all-time high of 7877. We have subsequently seen increased volatility and some of the previous progress made by markets surrendered. The escalation of the potential trade war between the US and China and the imposition of more tariffs has unnerved markets. At home, we have continued to see M&A activity. While company results have largely been as anticipated, the outlook in some sectors looks less promising. In Share News & Views, we comment on Aortech*, ECSC*, Location Sciences*, Norcros, NWF, Tricorn* and Warpaint London*..."
AGM upgrade driven by Bulgin | N+1 Singer, 20 Jun
"Elektron Technology’s AGM update has revealed a strong start to the year, with performance ahead of expectations. This has been driven by Bulgin, which is trading strongly across all territories. Management now expects Bulgin to report H1 19 sales of at least £13.5m (up c.8%) and anticipates modest sales growth for the business for FY19, despite a tough H2 comparative..."
Allenby Capital, 22 Jun
"April and May were another couple of strong months for AIM with total funds raised (new and further issues) of £561m and £564m respectively. To put this in context, since the beginning of January 2016, the monthly average is £502m. Through the end of May 2018 the total amount raised of £2.65bn is +40% on the same period in 2017 albeit 2017 had a big end to the year..."
Another downgrade | Whitman Howard, 20 Jun
"Further UK market weakness has resulted in another profit downgrade and Debenhams (DEB) moving more overtly into a defensive mode. Our 8/18 PBT forecast (pre-exceptionals) has been reduced by 29% to £34m. The company expects to be able to grow profit from its guided 8/18 level of £35-40m. But there is clearly above average uncertainty attaching to its forecasting because of its record in these matters and macro..."
Painting a bright future | Hardman & Co, 13 Jun
"Warpaint is a UK-based, colour cosmetics specialist that sells creative, designfocused and high-quality cosmetics at affordable prices. Warpaint’sflagship brand, W7, has established a loyal customer base, and brand awareness is growing rapidly. The company believes that, with Retra Holdings (Retra) now being well integrated into the group, it is well placed for the next phase of development – namely new product development and increasing market share, both domestically and internationally, particularly in its two key markets, the USA and China. Warpaint has never made a loss and has a very healthy profit margin; it is also net debt-free..."