See what's trending this week...
Companies: CYAN, GTLY, GVC, HVN, HSV, NBB, PCF, SHOE, SBIZ, STAF, WJA, WJG
Trading update – first 20 weeks | Whitman Howard, 25 May
"GVC is showing healthy double digit growth in the online business where Net Gaming Revenue (NGR) in Sports Brands was +18%cc (margin +120bps to 10.4%, and Games Brands was +18%cc. UK Retail NGR, impacted by adverse weather was -5%, however Eurobet is growing strongly where NGR was +28%cc. Total group NGR was +7%. Furthermore, management confirmed 30% upgrade to synergies to £130m from LCL deal by 2021..."
Another strong set of results! | AlphaValue, 25 May
"GVC reported a strong set of results, marked by the outstanding performance of the GVC legacy brands, driven by both sports and gaming, although partly offset by the expected lower performance in Ladbrokes’ UK Retail business (consolidated since 28 March 2018). The group increased its synergies guidance by 30%, to £130m..."
FY 2018 revenue on track with new regions opened | finnCap, 21 May
"2017 results are largely as expected after January’s trading update. Affected by a delayed delivery, revenue fell 36% YoY to £1.2m contributing to a cash loss of £10.7m. R&D spend increased during 2017 with development of a new standards based product which is now complete. Cash at the YE was £5.4m after an £11.3m equity injection in the year and we calculate current cash of under £3m but with a further £1.4m due from R&D tax credits..."
Another step change in the US | Liberum, 22 May
"FY FD EPS of 33.1p in line, but DPS increased 25%, ahead of expectations. We continue to expect FY FD EPS of 36.2p and 40.1p for FY 2019 and FY 2020, but shift the mix from the UK to the US..."
Beneficiary of changing regulation | Zeus Capital, 24 May
"SimplyBiz is a leading provider of compliance and business support services to over 3,400 UK directly authorised financial intermediary firms (Members). Regulation is a growth industry. SimplyBiz is perfectly positioned to support its members..."
Onwards and upwards | Equity Development, 22 May
"“Success breeds success” is a crucial, yet under-appreciated, concept when it comes to investing. You see, great companies devote substantial amounts of time/resource nurturing and maintaining high-performance cultures. Management obviously plays an enormous part – walking the talk, motivating employees, recruiting the right people and challenging the status quo..."
Good progress; much more to come | finnCap, 24 May
"Against a turbulent retail sector backdrop, SHOE has delivered very encouraging H1FY18 results, demonstrating that management continues to make strong strategic, financial and operational progress. This reinforces the equity story, the key underappreciated elements of which we revisit here. TP increased to 210p..."
Strong H1 2018 helps underpin targets | Stockdale, 23 May
"PCF Group (PCF) has delivered a strong set of interim results. Operating income increased 32% to £6.7m (2017: £5.1m) and PBT increased 20% to £2.1m (£1.7m) on a portfolio of receivables that grew 40% to £179m (£128m). Since launching its bank in July 2017, retail deposits had reached £108m at end March 2018. As expected, ROE fell to 8.7% (2017: 10.5%) reflecting the larger capital base and investment in the business. Our forecasts remain unchanged but we have upgraded our target price to 60p (0.6x forecast £215m receivables). Buy rating..."
Trading update & GCL acquisition | Arden Partners, 21 May
"Gateley have confirmed strong progress for FY18 with revenue growth of at least 8% and EBITDA growth over 7%. The group have also strengthened the property activities acquiring GCL creating one of the largest residential development teams in the UK legal market. The acquisition will drive meaningful cost and revenue synergies and we estimate will enhance earnings by 4% in FY19. Gateley shares offer investors access to an established business model set to directly benefit from the changing structure of the UK legal market; an opportunity-rich landscape for ambitious mid-tier firms..."
Banking on HomeSend | Edison, 22 May
"eServGlobal enters FY18 with a reduced cost base and a fully funded balance sheet; we are forecasting the core business to be close to EBITDA break-even in FY18. With access to Mastercard’s sales force and financial institution customer base, HomeSend has signed up a number of banks to use its cross-border payment platform. As these banks shift volumes onto the platform, this should drive strong growth in volumes and move the joint venture towards profitability..."
HCM Update | Allenby Capital, 21 May
"Harvey Nash Group plc (HVN.L, 103p/£75.8m) Acquisition | Norman Broadbent plc (NBB.L, 11p/£5.8m) Final results to 31 December 2017 | Staffline Group plc (STAF.L, 970p/£270m) AGM Statement..."