PetroTal (PTAL LN/TAL CN)C; Target: £0.45: Initiating coverage – PetroTal is a production and reserve growth story in Peru with a market cap of ~£90 mm. Management’s experience of operating in the jungle and their deep in country relationships are key. Project execution has been excellent. The Bretaña field (48 mmbbl 2P reserves) was acquired from Gran Tierra in late 2017 with production of 1 mbbl/d achieved in 3Q18. By YE19 that figure had grown to >13 mbbl/d. While COVID-19 forced a shut down of the export infrastructure and Brent prices collapsed to ~US$20/bbl, PetroTal has managed to negotiate with Petroperu a reduction in transport fees and a rephasing of a contingent payment. With the recent US$18 mm equity raise strengthening the balance sheet and production expected to restart in July, PetroTal is returning to growth. Bretaña could produce 20 mbbl/d. PetroTal’s shares trade at ~ one quarter of our Core NAV of £0.46 per share and at one third of the company’s value based on its 2P reserves only (2P NAV of £0.28 per share). On flat production, the share price implies EV/DACF multiples of 1.0x in 2021 turning negative in 2022. Importantly PetroTal’s only material liabilities consist of (1) an oil linked contingent payment over three years to Petroperu on very flexible terms and (2) trade payables of US$49 mm with attractive payment terms. We forecast ~US$45 mm of capex (incl. servicing the payables) in 2H20. This is covered by (1) US$28 mm in cash from a recent equity raise plus collecting pending invoices from oil sales, (2) >US$10 mm of VAT receivables and (3) ~US$25 mm operating cash flow (US$11-12/bbl net backs) in 2H20 at US$38/bbl. At ~US$45/bbl and 12 mbbl/d in 2021, we forecast PetroTal generates ~US$90 mm cash flow with ~US$35 mm cash capex (incl. servicing the payables). Our target price of £0.45 per share (~our Core NAV) represents 4.5x the current share price. i3 Energy (I3E LN): Corporate update | Parex Resources (PXT CN): Trading update in Colombia | Phoenix Global Resources (PGR LN): FY19 results | Royal Dutch Shell (RDSA/B LN): Dry hole in Brazil | IGas Energy (IGAS LN): Trading update | Serinus Energy (SEN LN): Deferred EBRD debt repayment | Union Jack (UJO LN): Additional interest in UK asset | SDX Energy (SDX LN): Update in Egypt and Morocco| ShaMaran Petroleum (SNM CN): Payment from KRG and debt restructuring | United Oil & Gas (UOG LN): Reserves and production update in Egypt | FAR (FAR AU): Not paying cash call in Senegal | Lekoil (LEK LN): Update in Nigeria | San Leon Energy (SLE LN): FY19 results | Savannah Energy (SAVE LN): Trading update | Victoria Oil & Gas (VOG LN): Trading update in Cameroon
Companies: SEN SDX TAL PGR VOG PXT SAVE RDSA FAR
Serinus Energy (SENX LN) - Moftinu well flows 6.0MMscf/d on test, Romania | IGas Energy (IGAS LN): 2P NPV10 increases by US$20m
Companies: SERINUS ENERGY IGas Energy Plc
Serinus Energy (SENX) – Corporate – Drilling Operations Commenced at Moftinu 1004
Companies: SERINUS ENERGY
This note takes a look at UK oil and gas sector equities from the supermajors down to the small cap E&Ps, the extent to which they outperform a simple bet on oil prices, and whether there are common characteristics that can allow investors to pick winners in the space. We conclude that outperformance is possible and has been achieved by numerous names in the last ten years, with the core hallmarks being asset base augmentation, either by progressing assets and/or via acquisition, and possessing the agency to achieve this. We also include profiles of the oil and gas stocks in our coverage.
Companies: BLVN GENL GEEC GKP HTG HUR IOG JOG LAM PANR PMO RKH SEN
Touchstone Exploration (TXP LN/CN)1 ; BUY, £0.25: 3Q19 results | Baron Oil (BOIL LN) (not covered): Reverse take over with South East Asia business | Premier Oil (PMO LN); BUY, £1.45: Solid 3Q19 update | Serinus Energy (SENX LN)1 ; Speculative Buy, £0.20: 3Q19 results | Condor Petroleum (CPI CN) (not covered): 3Q19 results and entry into Uzbekistan | Africa Oil (AOI CN/SS): BUY, C$2.60; 3Q19 results | Tullow Oil (TLW LN); REDUCE, £1.55: Wait for further visibility on Ghana
Companies: TXP BOIL PMO SEN CPI AOI TLW
Serinus has released its Q3 2019 results. These report Q3 production of 2.1mboe/d (1.7mboe/d from Romania and 0.4mboe/d from Tunisia), making for 1.2mboe/d for the Q1-Q3 period, and representing a significant increase on the 0.7boe/d reported for H1 2019. This has been achieved mainly on the back of the Moftinu gas plant in Romania (brought onstream in April), but also the Chouech Es Saida field in Tunisia being brought back into production over the summer. This, alongside strong realised Romanian gas prices averaging US$7.3/mcf over Q1-Q3, has driven Q3 EBITDA of US$4.1m, for a total of US$5.2m for Q1-Q3; and Q3 FCF of US$1.6m, for a total of US$2.3m for Q1-Q3. Net debt at the end of September was US$28.2m, from US$29.1m at the end of June. Unit OPEX was US$11.8/boe for Q1-Q3, from US$16.5/boe in H1, with the positive impact from higher production partly countered by increased costs in Tunisia bringing Chouech Es Saida back onstream.
Serinus Energy (SENX) – Corporate – Q3 Financial and Operating Results
3Q19 WI production was 1.5 mboe/d (GMP FEe: 1.4 mboe/d), comprising 1.0 mboe/d in Romania (GMP FEe: 1.0 mboe/d) and 0.4 mboe/d in Tunisia (GMP FEe: 0.4 mboe/d). October production was 1.3 mboe/d (GMP FEe 4Q19: 1.4 mboe/d), comprising 0.7 mboe/d in Romania (GMP FEe 4Q19: 0.9 mboe/d) and 0.6 mboe/d in Tunisia (GMP FEe 4Q19: 0.5 mboe/d). In Romania, October production was impacted by routine maintenance of the Moftinu gas plant from October 14 to October 20 and the subsequent ramping up of the Moftinu production on a smaller choke. In Tunisia, the company recommenced production at the Chouech Es Saida field during the quarter and exited October with production from the field of 277 bbl/d. End 3Q19 net debt was c. US$27.1 mm (GMP FEe: c. US$27.8 mm).
Eco (Atlantic) Oil & Gas (ECO): Encouraging Guyana Operational Update | Serica Energy (SQZ): Receipt of OFAC License and Assurance for Rhum | Serinus Energy (SENX): 12-month extension at Satu Mare, Moftinu-1004 to be drilled in January 2020
Companies: EOG SQZ SEN
Serinus has been granted a 12-month extension on the third exploration phase of the Satu Mare Concession in Romania. The company is proceeding with the drilling of the Moftinu - 1004 production well in 1Q20. The third exploration phase was set to expire on 26 October 2019.
CareTech (CTH) – Corporate – Full year trading update in line closing a transformational year | Solid State (SOLI) – Corporate – Strong H1 update; well on course for the FY | Serinus Energy (SENX) – Corporate – Operational Update
Companies: CTH SOLI SEN
Petro Matad (MATD LN) (not covered): Operating update in Mongolia | Equinor (EQNR NO) (not covered): 3Q19 results | Serinus Energy (SENX LN); SPECULATIVE BUY, £0.20: Licence extension in Romania | Serica Energy (SQZ LN) (not covered): North Sea update | Waldorf Production acquiring UK North Sea assets
Companies: MATD SEN SQZ
Serinus has announced that the Romanian regulator has granted a 12- month extension to the current phase of its Satu Mare block, in order to allow the existing work commitment to be met. The commitment is for a minimum 120 sq. km of 3D seismic. Serinus now has a 148 sq. km programme fully permitted, but this was not achieved in time to meet the original 26 October 2019 deadline (the company has to negotiate with numerous local landowners). As such, the licence phase has now been extended until 28 October 2020, and the new seismic programme is expected to go ahead in Q2 2020 in order to take advantage of local weather conditions.
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF
Jadestone Energy (JSE): Southwest Vietnam Field Development Plan | Echo Energy (ECHO) – Acquisition agreement withPhoenix Global Resources | Block Energy (BLOE): Successful Cementing of Casing at Well WR-38Z | PetroTal (PTAL) – PetroTal achieves record production at Bretaña, Peru | Serinus Energy (SENX) - Moftinu gas production has resumed | Lekoil (LEK) - Phase Two Development Project Sanctioned
Companies: JSE ECHO BLOE TAL SEN LEK
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i3 Energy has successfully entered the Western Canadian Sedimentary Basin having secured the acquisition of Gain Energy and Toscana Energy. The company has been transformed into a prolific oil & gas producer – June 2020 production levels were circa 9,500 boe/d. All-in, the assets have been ascribed 2P reserves of 58.5 mm boe. Based largely on the analysis of i3 Energy's competent persons, GLJ and Sproule, we are putting forward a preliminary fair value estimate of 17.7p for the company's Canadian assets.
Companies: i3 Energy Plc
Diversified Gas & Oil (DGO) has announced another strong set of numbers following the release of its H1/20 interim results. Production averaged 95,100boepd, with a June 2020 exit rate net production of 109,000boepd (including 18,700boepd from the EQT and Carbon Energy acquisitions). Despite the commodity price volatility, which saw NYMEX natural gas prices fall to a low of US$1.42/mmbtu in June, DGO recorded Adjusted EBITDA of US$146m during H1/20 (H1/19: US$142m), driven by a US$84m settled hedge gain. Setting DGO apart from the rest of the industry is its dividend policy, with DGO announcing a 7% increase to its June 2020 quarter ended dividend, to 3.75c. We set our price target in line with our Core NAV at 151p per share, a 44% premium to the current share price and reiterate our BUY recommendation.
Companies: Diversified Gas & Oil Plc
Jubilee announces today it has both acquired a new chrome processing facility in South Africa (Windsor 8) from a private group in South Africa and arranged an offtake agreement that fully fills its existing Windsor Chrome circuits for the next three years. Jubilee will operate Windsor 8 and make circuit changes to maximise recoveries – Jubilee commits to spending £0.44m to upgrade the plant but is entitled to this (plus interest) back before sharing earnings form the JV on a 70:30 basis with its JV partner. “Windsor 8” is located ~50km from Windsor towards Rustenburg along the Western Limb of the Bushveld complex in the heart of the Bushveld chrome resources – extending Jubilee's reach for further potential parcels of additional material further west.
Companies: Jubilee Metals Group Plc
Lake Way is one of the most advanced SOP development projects globally and the A$300m financing is a major milestone to pass. The SFA incorporates no refinancing restrictions after 18 months, giving Salt Lake the potential to refinance this relatively expensive debt and flexibility to utilise non-dilutive financing options for early works at its next lake development. A trade-off study is currently underway with a decision on the next lake development expected in the first half of 2021 and the medium-term goal of producing SOP across multiple lakes. As reported in the 2019 BFS, at 245ktpa of SOP, the Project is expected to generate EBITDA of A$111m and average annual post tax free cash flow of A$78m. Payback is estimated to be 3.6 years. With eleven lakes in the Goldfields and the potential to be self financing going forward Salt Lake offers significant growth potential and we maintain our Buy rating.
Companies: Salt Lake Potash Ltd.
Caledonia Mining announces Q2 results from its 64%-owned Blanket mine in Zimbabwe today. On the back of management focus and an increased gold price the results continue to improve quarter-by-quarter. Production is up against this time last year to 27.7koz gold for the half year (24.7koz) and on track for managements forecast of between 53-56koz (WHI est. 55.5koz) for the year. Revenues were up in H1 2020 which led to increased Gross Profit at $22.5m (adj. $15m after a one off FX gain) and an improved level of cash at $11.6m ($7.9m); despite a continued $8m investment in the mine expansion ($8.3m). COVID has had little impact on operations at the mine with Caledonia helping Zimbabwe with a $1.1m contribution. Along with its gold producing peers, Caledonia has seen a significant increase in valuation over the course of the year. The increasing gold price has allowed Caledonia to maintain its Central Shaft construction as well as increase the dividend (twice) within the year. We anticipate that the dividend will increase again as Caledonia winds down its capex spend on the Central Shaft and as the increased gold production flows through to the cash flow line. We see fair value in Caledonia at 1,900p after increasing our gold price forecast in line with recent increases. Caledonia remains a solidly run business with an expanding production profile and a potentially exciting in-country source of new projects.
Companies: Caledonia Mining Corp. Plc
A premier European source of hard rock lithium Savannah is developing the Mina Do Barroso lithium project in Portugal. An advanced-stage project using simple mining and processing techniques to produce a high-grade, low-impurity spodumene lithium concentrate for sale to China (in the first instance). Mina do Barroso will eventually form part of the solution to Europe's lithium raw material supply chain and will, in our opinion, attract high level support. It has a low capital intensity and as such it is appropriately sized for Savannah to develop to cash-generative stage. The project lies in a prospective area and we would not be surprised if additional resources could be found to either extend the mine's life or increase its production. Savannah also has a (growing) stake in the Mutamba mineral sands project in Mozambique which, while not a priority, contains significant long-term value in our opinion. We initiate with a fair value of 10p/sh and see catalysts on further progress at Mina do Barroso and support from Europe to drive interest in the short-term.
Companies: Savannah Resources Plc
For this Monthly, we are delighted that Rooney Nimmo and 24Haymarket have allowed us to reproduce a recent report they jointly published, entitled An analysis of UK exits (2015-2019), which provides a granular analysis by sector of the activity in our dynamic private companies world. We hope you find the insights of interest.
Companies: AVO AGY ARBB ARIX CLIG ICGT NSF PCA PIN PXC PHP RECI SCE TRX SHED VTA
Oil fell in tandem with equities as concerns over renewed tensions between the US and China, and a murky outlook for further relief from Washington cast an economic pall. Futures dropped 1.7% in New York on Friday, the biggest decline in a week. US President Donald Trump's latest attack on Chinese tech companies and new sanctions on Chinese officials further stoked tensions between the countries. Meanwhile, another round of negotiations with Democrats on a virus relief plan ended without any agreement, indicating a long road ahead for a demand recovery. The Bloomberg Dollar Spot Index rose as much as 0.8% on Friday, reducing the appeal for commodities priced in the greenback. Crude is testing the upper bound of its recent trading range after hitting a five-month high this week amid declines in US stockpiles. But the spotty recovery in oil consumption is restraining a potential breakthrough, with crude imports into China shrinking in July. Drillers cut exploration in US oil fields to a 15-year low as billions of barrels from old discoveries became worthless and explorers abandoned growth plans. The 3-2-1 refining margin for combined gasoline and diesel against US WTI -- a rough profit gauge for processing a barrel of crude -- slumped more than 5% to below $10 a barrel as the pandemic keeps Americans at home during what is typically the summer driving season. In physical markets, Poseidon crude, a heavy sour oil, rose 5 cents to 45 cents above Nymex oil futures on Friday, the largest premium in over two months. Earlier this week, the discount on Bakken crude for delivery at Clearbrook, Minnesota, narrowed to 5 cents below Nymex WTI futures, its smallest discount since May. A fresh round of stimulus in the US could boost sentiment over the demand outlook, but lawmakers have yet to reach an agreement. No progress was made at the end of the week and it is not clear whether there will be additional discussions. Treasury Secretary Steven Mnuchin said he will recommend Trump move ahead with executive actions to halt evictions and possibly restore some unemployment aid. Meanwhile, OPEC+ is returning supply to the market this month as it tapers its record output curbs, but habitual quota cheat Iraq has promised to make deeper cuts following a call with Saudi Arabia on Thursday. Oil Minister Ihsan Abdul Jabbar pledged that Iraq will cut output by an extra 400,000 barrels a day in August and September, on top of a previous commitment to slash 850,000 barrels a day in each month.
Companies: FO PRP 88E DGOC EME TRIN UOG
Savannah Resources controls the Mina do Barroso lithium project in northern Portugal, the only large-scale lithium spodumene project in Europe. The main attraction for equity investors is Barroso’s strategic value. Lithium chemicals are in demand by Europe’s fast-growing battery manufacturing sector, and the industry will need to import some raw materials from outside the region. However, the European Commission’s target (for its battery industry) is to “boost primary and secondary production from European sources”. We see this as very supportive of European ‘battery metals’ mining projects such as Barroso. Barroso’s progress, in terms of permitting, technical studies and funding, will help determine SAV’s share performance over the next 12 months. A large part of this progress is funding, and Savannah received a significant boost in May when it signed an agreement with the EU-backed organisation EIT InnoEnergy. EIT InnoEnergy has invested €570m in the sustainable energy sector and represents a proven source of direct and indirect/introduced funding for projects like Barroso.
Hargreaves’ FY20 results are very solid indeed. As previously reported, the only noticeable impact from COVID was in the slippage of Blindwells’ land sales, which were due to conclude during the lockdown period. Site activity has resumed and sales remain on track to conclude in the current year. A final dividend of 4.5p has been declared and the outlook statement is measured but confident. We reintroduce forecasts today, effectively reinstating our pre-COVID expectations. Hargreaves is well positioned to deliver a period of significant, renewed growth with the prospect of a double digit dividend yield from FY22 as HRMS profits are distributed.
Companies: Hargreaves Services Plc
In the midst of another attempted takeover by stealth, Petropavlovsk PLC (LSE: POG) announced their trading results for H1 2020 which leaves them on track to deliver one of their best years ever, operationally and financially, with more to come in 2021. This is down to the perseverance, skillset and hard work of the workforce out in the Amur Region and their CEO Dr Pavel Maslovskiy, who has staked his reputation on the successful build out of the POX plant. Any corporate raider (and shareholder alike) should realise, whether it be Vekselberg or UGC, that without the support of Dr Maslovskiy you won’t win the hearts and minds of the workforce essential for the smooth running of the organisation. Meanwhile, the gold price has run through $1,900/oz; clearly a positive for this leveraged business. Incorporating this and the results into our modelling delivers a new Target Price of 50p and the set of financials shown in the right-hand column.
Companies: Petropavlovsk Plc
GeoPark (GRPK US)C; Target price US$20: Cash tax reduction and high impact drilling– The only item of interest in the 2Q20 financials was the fact that GeoPark did not pay any cash tax in 2Q20 (we were carrying a payment of US$40 mm). This explains why the cash balance at the end of June was so much higher than we expected at the time of the 2Q20 operating update in July). This also reflects important positive changes in Colombia. First, US$20-25 mm cash taxes in 2020 have been deferred to 2021 leaving only US$15-20 mm due in 2H20. In addition, Colombia is accelerating the reimbursement of income tax credits. GeoPark has already collected US$15 mm in July that will offset the remaining 2H20 cash tax. Overall in 2020, the company could potentially obtain a total refund of US$25 mm of income tax (out of which US$15 mm is firm and collected in July) plus US$15-20 mm of VAT. The key wells to focus on in 2H20 will be the 1-2 wells to be drilled at CPO-5 (GeoPark WI: 30%). While these wells are expected to increase production, they will also allow the company to start derisking the exploration upside associated with the block. The first well will be a development/appraisal well in Indico where the oil water contact has not been encountered yet. The second well is an exploration well at Aguila targeting the same play concept. The share price continues to trade at ~45% discount to our Core NAV of ~US$19 per share. Overall there could be 350-700 mmboe gross prospective resources across its Llanos blocks (including CPO-5). Our target price of US$20 per share reflects our ReNAV and attributes only ~US$1 per share to exploration. It represents over 100% upside to the current levels. IN OTHER NEWS ________________________________________ AMERICAS Frontera Energy (FEC CN): 2Q20 results | Gran Tierra (GTE LN/US/CN): 2Q20 results | i3 Energy (I3E LN): Acquisition of Canadian assets and £30 mm funding | Maha Energy (MAHA-A SS): Production update in Brazil | Parex Resources (PXT CN): 2Q20 results ASIA PACIFIC Pharos Energy (PHAR LN): Licence extension in Vietnam and RBL confirmation EUROPE bp (BP LN): 2Q20 results and change of strategy | Hurricane Energy (HUR LN): Technical update in the UK | Neptune Energy: Discovery in Norway | Spirit Energy: Dry hole in Norway MIDDLE EAST AND NORTH AFRICA Genel Energy (GENL LN): 1H20 results SUB-SAHARAN AFRICA Kosmos Energy (KOS US/LN): 2Q20 results | San Leon Energy (SLE LN): Acquires 10% Interest In new Nigerian oil export system | Vaalco Energy (EGY LN/US): 2Q20 results EVENTS TO WATCH NEXT WEEK ________________________________________ 10/08/2020: Diversified Gas & Oil (DGOC LN) – 2Q20 results 11/08/2020: JKX Oil & Gas (JKX LN) – 2Q20 results 13/08/2020: Africa oil (AOI CN/SS) – 2Q20 results
Companies: BP/ FEC GENL GPRK I3E PXT PHAR HUR KOS MAHAA EGY
• PetroTal has shut down the Bretana Field as a preemptive measure due to civil unrest outside the oil field camp. Bretana had restarted production on the 15th of July and was producing 8 mbbl/d as of the 27th of July (restricted rate). • An altercation between the police and protestors resulted in a dozen injuries and three deaths among the protestors. The civil unrest has been conducted by the same group that took over Petroperu’s Pump Station No.5. PetroTal indicated that this group is not from the Bretana area and that it is seeking Government assistance against the COVID-19 crisis. The community’s complaints are not related to PetroTal that is caught in the crossfire between the government and this community. We understand that the protestors also attempted without success to burn the home of the local mayor. The district prosecutor was on location and witnessed the sequence of events, including the breaking of a COVID-19 curfew by the protestors. • PetroTal will keep the field closed until things settle down and the local district prosecutor files its report, which is expected in the next few days. We also note that some of the key Peruvian ministers, including the Energy and Mines minister, made comments that the government will undertake the promised Amazonian investment plan to help the local communities. What if the shutdown last longer? We estimate PetroTal’s cash position at ~US$20 mm at the end of June. PetroTal has produced ~0.2 mmbbl and delivered a total of 0.08 mm bbl to Iquitos and to Petroperu pipeline equating to ~US$1.6 mm of cash inflow (net of transport and barging cost) since the field restarted mid-July. While the field is shutdown, we estimated PetroTal cash costs at ~ US$1 mm per month (including US$0.6 mm on the field). Cash capex (including
Companies: PetroTal Corp.
Solid results from Touchstone, which has spud its latest exploration well on the prolific Ortoire block, Chinook-1. Success would provide another major uplift to the valuation and the growth outlook. Production inevitably took a back seat to this drilling programme, but impressive cost reductions and cash preservation efforts leave Touchstone in a healthy financial position with ~US$15m of available liquidity. Touchstone remains not only an exciting high-impact exploration play but also a strong production and cash flow growth story as it looks to rapidly bring its material low-cost gas/condensate discoveries onshore Trinidad into production.
Companies: Touchstone Exploration, Inc.
Solid State is a manufacturer of computing, power and communications products, and value added distributor of electronic components. This morning, the group has provided a further update on trading in light of the present COVID-19 backdrop, ahead of full year results to 31 March 2020 due to be released on 30 June. Cadence today provides and update on the Amapá iron ore project in Brazil. The Amapá JV (EV Mineração S.A.), in which Cadence can earn an initial 20% of the project, is understood to be on track to begin shipping stockpiled iron ore from late Q2 / early Q3 2020. Finalisation of the negotiation with the secured creditors still needs to be reached, but the Amapá JV partners are engaging constructively. In preparation for shipping, a trucking contractor has been hired to move key equipment to site and a shipping manager and shipping broker have been engaged. This morning's update from CSSG confirms the positive direction of travel highlighted when the company published H1 results in March. With comparators still challenging (because of one-off work in the prior year), and “light” Covid-19 impacts in recent months, the expected £1.6m EBITDA flagged by the company seems a creditable number, still within touching distance of historical performance in both EBITDA and PBTA terms. Net cash, moreover, even after three months of the Covid-19 crisis, is reported to still be higher than the £2.4m which the company reports it had at the start (which in turn represents an increase on the £2.3m as at 31 December 2019). Not surprisingly, having suspended payment of the dividend a couple of months ago, the Board is now proposing to have another look at this question, at least in relation to the half year dividend. PTY's announcement this morning flags a change in the CFO role with the new appointee benefiting from extensive experience in developing digital businesses to their full potential, both in overall and in financial leadership positions. His arrival follows on from highly proactive action led by the previous finance director, delivering a platform for growth once the current uncertain circumstances have abated.
Companies: KDNC CSSG PTY SOLI
