The group has announced a ‘win-win’ agreement with ATMS (a Bridgestone subsidiary), having signed an exclusive worldwide licence agreement for the use of iTrack IP for 10 years, giving TRT regular quarterly royalties. iTrack’s operating business was also transferred to ATMS. Bridgestone provides iTrack with a pre-eminent route to market, which greatly enhances iTrack’s ability to expand substantially coverage in the mining sector far beyond the level TRT could realistically achieve. David Ford and Graham Storey transfer with iTrack to become ATMS management along with the rest of the iTrack team, thus substantially reducing overheads. Nigel Rogers becomes Exec Chair of TRT, which generates royalty income and continues to develop its SAWSense and Translogik products. The trading update points to trading in line, with little COVID effect.
Companies: Transense Technologies Plc
Transense Technologies (TRT): Corp
Tracsis (TRCS): Corp Positive trading update | Transense Technologies (TRT): Corp Interim results: Important commercial signals
Companies: Transense Technologies Plc Tracsis Plc
Interim results highlight that commercial traction continues to gain pace, with a 50% growth in iTrack subscriptions. The exclusive relationship with Bridgestone recently reaffirmed, and the resultant potential customer trials running at a high level, have however produced higher near-term customer support costs. Boardroom changes highlight the increased focus on iTrack operational developments and strategic opportunities. We have adjusted forecasts to reflect a longer sales cycle and higher customer support costs.
Byotrol (BYOT): Corp Interims underpin FY 2020 outlook | PCI Pal (PCIP): Corp US contract win highlights ongoing momentum | Trackwise Designs (TWD): Corp H2 challenges remain, but IHT is a huge opportunity | Transense Technologies (TRT): Corp AGM trading update
Companies: BYOT TRT PCIP TWD
Armadale Capital (ACP): Corp Mahenge Liandu project update | Circassia (CIR): Corp Initiation report: interims clarify misperceptions | eve Sleep (EVE): Corp Inline H1; KPIs show good progress, with much still to do | Hardide (HDD): Corp Encouraging year-end trading update | Independent Oil & Gas (IOG): Corp Herculean interims | Pelatro (PTRO): Corp Focus on recurring revenue intensifies H2 weighting | Savannah Resources (SAV): Corp Interim results | Surface Transforms (SCE): Corp Breaking into a new OEM | Transense Technologies (TRT): Corp Full-year results start to show strong commercial traction
Companies: ACP HDD IOG SAV SCE TRT PTRO EVE CIR
Full-year results were slightly ahead of expectations, with a strong improvement in numbers, albeit from a small base, but crucially boosted by a pivotal acceleration in commercial traction. iTrack II has following an initial order from Bridgestone signed a significant Joint Collaboration Agreement. In the same year the SAW sensor has taken a major step forward with the GE engine being selected by the US Army for the future replacement of engines on its fleets of Apache and Black Hawk helicopters. No change to forecasts.
The company has announced a Joint Collaboration Agreement with Bridgestone. Bridgestone is one of the world’s largest tyre manufacturers and the largest supplier of tyres to the mining OTR market and follows extensive product testing of the iTrack II system. This is a highly significant agreement and a milestone in the company’s commercialisation as Bridgestone will act as sales agent for TRT in the mining large-haul market. We see this as a huge boost to Transense, both in terms of a technical endorsement but also once sales start to accrue. We make no change to our forecasts as yet until we understand the rate of sales build up. This provides much greater confidence in the commercial success of the company. Investors should recognise just how momentous this agreement is. We reiterate our upside potential, with a 140p price target.
Independent Oil & Gas (IOG): Corp Capital structure update | Iofina (IOF): Corp IofinaEX goes global | Savannah Resources (SAV): Corp Successful glass and ceramics test programme | Transense Technologies (TRT): Corp Major contract with Bridgestone
Companies: IOG IOF SAV TRT
Bluejay Mining* (JAY LN) – Dr. Bo Møller Stensgaard appointed as Executive Director | Caledonia Mining (CMCL LN) – Guidance adjustment and positive news on Zimbabwe’s fiscal discipline | Horizonte Minerals (HZM LN) – Initial resource estimate for Serra do Tapa | Savannah Resources* (SAV LN) –Tests demonstrate potential glass and ceramic feedstock from Mina do Barroso | Transense Technologies (TRT LN) - Joint Collaboration Agreement with Bridgestone
Companies: JAY CMCL HZM SAV TRT
The group’s post year-end trading update is extremely encouraging, showing strong commercial traction, with 2H sales growth greater than expected resulting in revenue being about £0.2m, (or 10.8%) better than our forecast and resulting in EBITDA and post-tax earnings better than expected. It’s very pleasing to see good momentum in subscriptions revenues, which provides a strong ongoing and predictable base to future revenues. We continue to see strong upside to the shares – the market cap at just £7.3m offers potentially an order of magnitude on the upside with further commercial traction and new OEM orders anticipated.
Amino Technologies (AMO): Corp 24i Media collaboration | Gateley (GLTY): Corp Delivering additional value | Transense Technologies (TRT): Corp Better than expected year-end update
Companies: AMO TRT GTLY
Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.
Companies: BXP MCM KAPE TRT NWF AMS KRS FJET PYC
Three substantial contracts in recent weeks shows accelerating commercial momentum and positioning the company on the brink of profitability with rising subscription-based revenues. The company has raised £2.555m via a placing, with greater balance sheet strength providing new customers greater confidence and allowing for additional working capital for growth. The current market cap is no where close to representing the company’s current prospects, even after the recent positive reaction to the announcements
Anglo Asian Mining (AAZ LN) BUY – 96p (from 108p) – Earnings update | Glencore (GLEN LN) – Glencore claim record EBITDA on strong copper mine performance | Landore Resources (LND LN) – BAM Gold Preliminary Economic Assessment | Pan African Resources (PAF LN) – Earnings climb as operations refocus on profitable ounces | Transense Technologies plc (TRT LN) – 2nd mining contract announced this week for mining heavy truck tracking & tyre pressure monitoring
Companies: AAZ GLEN LND PAF TRT
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Today’s announcement confirms the strong trading momentum seen in Q1 has continued YTD. Group sales are +45% YOY with revenue growth across all geographies and brands, and profitability improving YOY.
Companies: boohoo group Plc
Boohoo has released the now complete Independent Review into its UK supply chain in full this morning. Whilst a number of areas for improvement have been identified, there is no suggestion failings were deliberate or intentional and the chances required involve a relatively easily achieved realignment its of governance systems. We believe the Group remains well-positioned to lead the fashion e-commerce market in the future and can successfully implement an agenda for change in UK garment manufacturing.
We initiate on Portmeirion and argue that it is in a better position than the current market valuation suggests. It has delivered a resilient first half and, following a strategy reset under the new CEO, it has much more enhanced capabilities with an improving model and profit outlook. Furthermore, Portmeirion is well funded with no balance sheet concerns. The shares trade on low spot multiples of 10x FY21 P/E with and 5x EV/EBITDA with a 9% FCF yield. A SOTP analysis based on peer/corporate deal metrics shows fair value towards 650p. Patient deep value investors should take a much closer look.
Companies: Portmeirion Group Plc
SCE has announced interim results for the six-month period ending June 2020. Considering these results cover a period when much of the world was experiencing a great deal of upheaval due to COVID, in our view they show impressive progress. The big news, or course, has been the recent game-changing contract win from OEM 8 on 14/9/2020. Having significantly upgraded our forecasts and target price then, we make no further changes today.
Companies: Surface Transforms Plc
Full-year results were in line with the 10 July trading update at the revenue line and reflected the impact of COVID lockdowns to brick-and-mortar channel sales as well as the pressure on margins to remain competitive as new entrants entered the online market. Revenues rose 3% to £13.3m, with a pre-tax loss of £0.4m, adjusted LPS of 2.0p and year-end cash of £1.24m. With FY 2021 to benefit from a full year contribution from Nuthing and new line extensions to be launched across the skincare portfolio, the outlook post-COVID remains positive. We’ll leave our forecasts and target price under review until we have greater visibility over any recovery in retail channel sales and online promotional costs, but there is scope for optimism, evidenced by the 3% growth in the business, which compares with a strong H1 FY 2020 (+33%).
Companies: InnovaDerma Plc
News has been positive in the past few months. The Group announced a ground-breaking £27.5m contract award with a new OEM customer in mid-September. Trading has been more resilient than we expected at the start of the COVID-19 crisis, demonstrated by solid H1 earnings today. The Balance Sheet is in better shape helped by a recent £2.2m fund raising. Contract awards have been more focused on EVs, demonstrating the performance, weight and environmental benefits of carbon ceramic discs for these vehicles. A challenge for the Group in this next phase is to maintain momentum with contract wins. A second issue is to manage capacity, costs and cash through the ramp-up. Surface Transforms is shifting from R&D to volume production and with better visibility on medium-term revenues, margins and capex we have lifted our valuation to 57p from 45p
Today’s year end trading update from The Character Group (Character) highlights the Company’s resilience and innovation in a challenging international environment with the Group working closely with customers and distributors to maintain trading at satisfactory levels. Indications remain that the second half to August 2020 will produce a profit at least equivalent to H1’s adjusted £2.5m before tax. The Group also has the benefit of a strong balance sheet with significant cash balances and no debt except the usual working capital facilities, much of which remains unused. We are pleased to be able to reintroduce forecasts that were suspended in March due to the uncertainty surrounding the COVID pandemic.
Companies: The Character Group Plc
QXT has performed much better than feared in the face of unprecedented H1 challenges. COVID-19 closed both casinos and gaming machine factories around the world, halving its Gaming Division revenue. However, Densitron sales and earnings held up well, and swiftly implemented strict financial discipline saw group H1 adj. LBT minimised to just $1.2m, with cash outflow under $2.0m leaving net cash of $14.2m. Following Q3 trading and cash collection, QXT enters Q4 with a very comfortable $17.4m of net cash and conservatively targeting sufficient H2 profit to bring it back to breakeven across the year at the adj. PBT level. We reintroduce FY 2020 forecasts, expecting FY revenue down 35% YoY at $60m but avoiding a material loss and significant cash outflow. Some older products were discontinued in the pandemic, incurring an exceptional R&D impairment, but business operations, quality reputation and customer relationships have all been carefully preserved and the outlook is bright. Adversity brings opportunity and Quixant has a range of strategies to help customers regain momentum as the global casino industry recovers, while Densitron is in the process of adding medical equipment to broadcast as a specific target market. Clearly these are early days in the recovery - we are withholding FY 2021 forecasts for now - however the group has fared much better than in the pessimistic scenarios feared in March and is in a very strong position to benefit from recovery in its global end markets.
Companies: Quixant Plc
Although CV19 rounded off a disappointing year, BAR was just profitable in FY20 and ended the period with £21m cash. After a challenging transition post the disposal of manufacturing, a new and experienced leadership team is now in place which has laid out clear future growth plans. Through a combination of organic growth, brand focus, productivity gains and selective acquisitions, BAR aims to grow sales to £50m over the medium term. The business model is inherently high margin and cash generative and, if these characteristics are borne out, future value could increase several fold compared to today’s £20m.
Companies: Brand Architekts Group Plc
Scotland’s only quoted housebuilder’s home completions and cashflow have recovered sharply from the country’s prolonged lockdown, with delayed sales fuelling what the Group predicts will be a strong first half to the current financial year. Today’s FY 2020 results, to May, show the impact of the lockdown in the final two months, which normally account for almost a third of sales, but confirm that delayed sales are expected to add to strong underlying demand in H1 2021, with debt having fallen by over £25m in four months and a 2p final dividend proposed. Our reinstated forecasts assume PBT surpassing the previous record by FY2022E and debt continuing to fall.
Companies: Springfield Properties Plc
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has a particularly strong track record in delivering for shareholders over many decades and FY 2020A results again demonstrated another highly creditable performance against the current challenging backdrop. The group's strong focus on product design and innovation, in combination with highly rated customer service, has resulted in an enviable reputation for excellence in its expanding geographical markets. These factors have led to a multi-decade annual increase in the dividend for shareholders, underpinned by strong cash generation, which has again been achieved in what has been a particularly difficult period for the vast majority of businesses globally. With such a robust platform in place, we see more of the same being delivered in the years ahead and see fair value for the shares at 550p.
Companies: James Halstead Plc
Today’s statement reveals incredibly robust Q1 trading across the Group’s brands and regions, with a positive outlook and guidance reinstated for the remainder of the financial year and beyond. In addition, the Group has announced the acquisitions of Oasis & Warehouse, bringing two well-recognised and complementary brands onto its platform. We believe the unprecedented disruption resulting from the COVID-19 pandemic has accelerated the channel shift to online where we see BOO as the clear winner, with an established and leading model positioned to consolidate the market.
The most significant of several 2020 contract wins was announced on 14 September, from a new global customer, OEM 8. New order momentum is rising significantly. SCE’s position as one of only two global manufacturers of a new automotive component – carbon ceramic brake discs – is bringing a series of major opportunities. As a consequence of OEM 8, our 2022 sales estimates double. To be winning such orders shows that these exacting clients embrace SCE’s product, its robust supply chain and manufacturing. SCE also provides a £0.4m upgrade on recent sales revenue.
The interims reflect COVID challenges, which reduced order intake, and the acquisition of SCL. A milestone three-year agreement with a UK-based EV OEM was recently awarded, potentially worth up to £38m, which substantially underwrites further growth prospects. In the short term however, we reduce our FY20 forecasts, although with the EV contract kicking in next year, we see good growth coming through.
Companies: Trackwise Designs Plc
Boohoo Group has announced an upgrade to FY20 guidance on the back of continued strong trading momentum over its second quarter ended 31 August 2019. Strong revenue growth across the Group’s key brands (boohoo, boohooMAN, PrettyLittleThing and Nasty Gal) confirms the Group’s multibrand strategy is bearing fruit, with fears around potential cannibalisation firmly allayed. Top-line outperformance is driving operating leverage at Group level, enabling it to maintain full year EBITDA margin guidance at 10% despite the ongoing investment being made in the three brands acquired in the first half. Today’s announcement represents an impressive tenth consecutive upgrade in management guidance over the last three years, as the Group continues to outperform the market and consolidate its position as a leading multi-brand fashion ecommerce platform.