See what's trending this week...
Companies: AFHP, BKS, CHH, FFHHF, IGR, MYSL, 3BE, WJA, WJG
IG Design Group (IGR)
Combining Design & Innovation | Cenkos, 28 Aug
Paid Access
"IG Design has announced the conditional acquisition of Impact Innovations Inc, in the USA funded by the first tranche of a two part £50.0m placing. A successful acquisition of Impact is expected to make IG Design the largest consumer Gift Packaging business in the world, doubling IG Design's US revenue. IG Design intends to buy 100% of Impact on a debt-free/cash-free basis for £56.5m, on a EV/EBITDA of 4.9x..."
IG Design Group (IGR)
Acquiring Impact | Progressive, 28 Aug
Free Access
"IG Design (“Design Group”) have announced that they will acquire Impact Innovations Inc in the US. This is a strategically transformative deal which will create considerable operational and procurement cost savings as well as offering the potential for cross-selling existing IG product to Impact’s customer base and vice-versa. It also gives the combined business a presence and scale in the US which would justify further investment, both organic and as a consolidator of a fragmented regional market..."
Beeks Financial Cloud (BKS)
Final results comment | Cenkos, 29 Aug
Paid Access
"Beeks Financial Cloud announced final results for the year to June 2018 showing strong increases in revenue and profitability. Beeks enjoys high levels of subscription based revenues, with annualised committed monthly recurring revenue up 47% to £6.9m. We forecast 2019E revenue growth of ..."
Mysale Group (MYSL)
Shares off 40% since solid July pre-close trading update creates opportunity | Zeus Capital, 28 Aug
Paid Access
"Since issuing a reassuring pre-close trading update in July, MySale’s shares have declined 40% resulting in a year-to-date drop of 62%, which looks completely unwarranted in our view given the company’s confident outlook. In the trading update, underlying EBITDA for FY18 (June) is expected to be at least A$11.8m, ahead of our prior forecast of A$11.5m..."
eServGlobal (ESG)
Signs of recovery for core PayMobile business | finnCap, 31 Aug
Paid Access
"As revealed in the early-August update, the H1 performance suggests the core PayMobile mobile money business has turned a corner, with hopes of achieving H2 cash profit and perhaps a cash breakeven for the FY. Management continues to focus on reducing the cost base and a sales strategy targeting a return to growth; this is reflected in an adj. LBITDA of A$1.4m, compared with A$6.0m adjusted loss in H1 LY (to April 2017)..."
Watkin Jones (WJG)
Two new sites boost forward visibility | Equity Development, 29 Aug
Free Access
"The UK’s 67m population is growing at a healthy 1% pa clip, albeit there was a slight dip in the birth rate at the turn of the Millennium (see below). Leading this year to a 3% fall in the number of 18 year olds, and a 1.9% decline in British students accepting places at University (UCAS). Offset partially by a 3%-4% increase in overseas applications, leaving the total 2018/19 freshers’ intake very marginally lower (-1.1%) at c. 530k..."
FFI Holdings (FFI)
FY a little ahead but estimates reduced | Liberum, 31 Aug
Paid Access
"FY EBIT a little ahead and underlying FD EPS increased 69% to 8.1c vs our estimate of 6.4c. Net cash in line with expectations. FY 2019 and 2020 FD EPS estimates reduced 22% and 19%..."
Churchill China (CHH)
Continuing to dish out premium growth | N+1 Singer, 30 Aug
Paid Access
"Churchill has reported an excellent set of interims, delivering 22% PBT growth vs a stiff 31% comp. Key tenets of this growth were geographical diversity and continued sales momentum of value-added products. Looking forward, the business is trading well, investing appropriately, strengthening the international platform and, in our view, European growth should continue to prosper under either Brexit scenario..."
AFH Financial Group (AFHP)
HTH, bought for 6x, is 19% accretive. TP up 28% to 507p | Liberum, 28 Aug
Paid Access
"AFH has announced its eleventh and largest acquisition of FY18, paying c. 6x earnings for HTH Ltd. This is a large acquisition, adding some 10% to 2017 revenues and 19% to profits, while the 6x multiple paid is in line with recent deals..."
Trinity Exploration & Production (TRIN)
Hits the ground running | Whitman Howard, 30 Aug
Paid Access
"Trinity has announced this morning that is has spudded the first new well, of a six infill well programme onshore Trinidad, proving that following its recent fundraising, Trinity is able and willing to move quickly to start unlocking value. We reiterate our BUY recommendation..."
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