See what's trending this week...
Companies: AVG, ENT, FNTL, FDEV, LGEN, RFX, RBD, SO4, XPP
Ramsdens (RFX)
Accretive acquisition of 18 stores | Liberum, 4 Mar
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"As long anticipated, Ramsdens has done a beautiful win-win deal with The Money Shop which will add 9% to March 2021 earnings, for starters. The acquired stores will gain a jewellery offering and all that is best in the Ramsdens offering of pawnbroking and FX, while existing staff will join Ramsdens..."
Simplybiz (SBIZ)
Delivering on investment case | Zeus Capital, 5 Mar
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"Revenues grew 15.0% to £50.7m including £3.7m contribution from the Landmark acquisition; excluding this acquisition and Zest which is being replatformed, the underlying revenue growth was 10.3%..."
XP Power (XPP)
Driving share gains with expanded product range | Edison, 5 Mar
Free Access
"In FY18 XP reported strong organic growth and operating margins, generating EPS growth of 18%. After a series of acquisitions, it has a full portfolio of power solutions to meet all voltage and power requirements, and management is now focused on increasing its market share at key accounts. In our view, the stock is trading at close to trough multiples with a dividend yield above 4%..."
Frontier Developments (FDEV)
Major IP game licence announced | Liberum, 6 Mar
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"Frontier has announced it has signed a major global IP licence for a game which we expect to be released in FY22. This drives a 10% upgrade to our EPS in that year and reinforces the company's long-term multi-franchise strategy..."
Avingtrans (AVG)
New order for Peter Brotherhood – EPS upgrade | finnCap, 4 Mar
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"Hot on the heels of last week’s encouraging results, the group has announced that Peter Brotherhood has secured a new order for steam turbines as part of an overall contract value in excess £10m. This is a high-profile order in a specialist oil & gas market niche. We maintain this year’s forecasts, but upgrade 2020 EPS by 7.2% to 14.2p..."
Salt Lake Potash (SO4)
Construction at Lake Way Starts | Cenkos, 6 Mar
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"Construction has commenced on the initial train of evaporation ponds at Lake Way after receiving the final permit from the Department of Water and Environmental Regulation. The Lake Way Ponds will be the first Commercial Scale on-lake Sulphate of Potash (SOP) evaporation ponds in Australia. Once construction of these ponds is complete (planned for Q2/19) Salt Lake Potash will be able to dewater the Williamson open pit and, given the super-saturated nature of the in-pit brine, precipitation of salts is expected to commence almost immediately..."
Reabold Resources (RBD)
A bird (almost) in the hand | Whitman Howard, 8 Mar
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"Reabold has announced this morning that the sidetrack into the Colter (North) prospect has established that, due to the fault being steeper than expected, Colter is smaller than pre drill expectations. The flip side of this is that Colter South is now thought to be larger aerially than before (and we had included no value for it)..."
Legal & General Group (LGEN)
Better earnings, in part thanks to life expectancy changes | AlphaValue, 6 Mar
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"L&G reported FY18 operating profit from divisions of £2,231m, 1% above estimates. All business lines posted an improvement in profitability, mainly L&G Retirement which recorded a 21.8% increase in its operating earnings to £1,115m. AuM crossed the threshold of £1tn. Net profit reached £1,827m, -3% yoy, as the prior year recorded a one-off US tax benefit of £246m, and perfectly in line with estimates..."
Avingtrans (AVG)
FY20 PBT forecast increased by 6% on new contract momentum | N+1 Singer, 4 Mar
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"Avingtrans has announced another material contract, for original equipment for the oil & gas market, for its Peter Brotherhood subsidiary. Peter Brotherhood will supply steam turbines for a new floating production vessel for an offshore & marine customer. The contract is worth in excess of £10m, with delivery expected primarily during Avingtrans’ FY20..."
GVC (GVC)
Robust FY18, strong start to FY19 | AlphaValue, 5 Mar
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"GVC reported robust FY18 results. Pro forma EBITDA came in at £755m, in line with the upper end of the £750-755m range guided in January. More importantly, current trading was strong, with NGR growth of 11% (01/01-24/02) vs +9% in FY18. Current trading was, again, online-led with online NGR growth of 22% vs +9% for EU Retail and -2% in UK Retail. FY19 EBITDA is said to be in line with market expectations. The group guided for 10% DPS growth..."
