The Mission Marketing Group (TMMG.L) | Rex Bionics (RXB.L) | Frontier Developments (FDEV.L) | W Resources (WRES.L) | Netscientific (NSCI.L) | President Energy (PPC.L) | CPP Group (CPP.L) | Eagle Eye Solutions Group (EYE.L) | Dorcster (DAR.L) | Avesco (AVS.L)
Companies: TMG RXB FDEV WRES NSCI PPC CPP EYE ESC AVS
The Mission Marketing Group* (TMMG): Moving up the technology curve (CORP) | Parkmead Group (PMG): Preliminary results (BUY) | Avesco* (AVS): Recommended offer (CORP) |Orchard Funding Group* (ORCH): Analyst interview (CORP) |Abzena (ABZA): Analyst interview (BUY)
Companies: TMG PMG AVS ORCH ABZA
Seeing Machines* (SEE): Fleet has 100,000 units under trial (CORP) | Horizonte Minerals* (HZM): Pre-Feasibility Study completed (CORP) | Victoria* (VCP): A solid underlaying story (CORP) | Shanta Gold (SHG): Drilling results from Singida (BUY) | Avesco* (AVS): Just in time! (CORP) | Cello (CLL): Analyst interview (BUY)
Companies: SEE HZM VCP SHG AVS CLL
A welcome year-end trading update sees FY revenue and profit estimates upgraded and our target price raised (again).
Companies: Avesco Group
Avesco* (AVS): Still offering potential (CORP) | Trakm8* (TRAK): Exciting order growth but FX hit anticipated (CORP) | OneView Commerce* (ONEV): Upbeat AGM statement (CORP) | Joules Group (JOUL): Raising price target, maintaining Buy (BUY)
Companies: AVS TRAK JOUL ONEV
Avesco’s trading update outlines continued strong trading over the summer at Creative Technology in the US and at the Rio Olympics and Paralympics. FY16 results (to end September) will be “comfortably” ahead of previous expectations. Positive momentum continues into FY17, when a good schedule of sporting and commercial events, along with currency benefit, will buoy what would normally have been a weaker, odd-numbered year. With a rising dividend and asset backing, the valuation multiple remains very modest, despite the increase in the share price on this news.
A good H116 from Creative Technology, particularly in the US, underpins our maintained profit forecast for the full year. Avesco’s FY14 restructuring is clearly delivering on the promise to smooth results between odd and even years, while the recent sale of Fountain Studios has realised cash to pay down debt and increase targeted investment in equipment. With a progressive dividend, a discount to net assets and a very modest multiple, the group is an attractive and coherent investment proposition.
Group earnings quality continues to improve as a result of restructuring, and involvement in the Rio Olympics will help H2. Post the Fountain Studios property sale, the balance sheet is strong with modest net debt. The shares are trading below NAV with earnings and dividends on an upwards trend.
FY15 results were ahead of forecasts, with particularly strong performance from Creative Technology (CT) in the US and with CT Europe getting a boost from the European Games in Baku. FY16 should benefit from the UEFA European Championships and Rio Olympics. Growth of corporate revenues and the migration of Presteigne to dry hire only are helping to even out swings between odd and even years, with the ‘odd’ FY15 outperforming previous ‘even’ highs. The Fountain Studio sale will further bolster the balance sheet, supporting investment to grow CT and a progressive dividend.
Avesco*: The X factor (CORP) | Ithaca Energy: Operational update and 2016 outlook (BUY) | Ncondezi Energy: Agreement with Shanghai Power signed (BUY)
Companies: AVS IAE NCCL
The sale of the land and buildings at Fountain Studios releases £16m of capital, transforming Avesco’s balance sheet, increasing year-end NAV of 180p by 31p and in the process allowing investors to concentrate on value latent in Creative Technology which last year produced a trading profit of £9.1m. Forecast gearing will drop to below 10% from 50%, and while no cash return or special dividend is forecast, the financial standing and longterm dividend paying prospects of the group are much enhanced. We raise our TP to 250p and expect this to advance with earnings as the benefits of restructuring and growth at Creative Technology feed through.
Avesco is benefiting from group restructuring and growing corporate demand for its services, especially in the US. We have upgraded our 2015 PBT estimate by £1.2m to £5.2m and our 2016 PBT estimate by £1.4m to £6.5m as a consequence. A high tax charge constrains EPS to 16.2p for 2016 but prospects of a normalising rate thereafter, a pattern of earnings upgrades and NAV of 180p, support 200p as a realistic price target.
Castleton Technology*: Initiation of coverage – analyst interview (CORP) | BTG: Reassuringly expensive? (SELL) | LiDCO*: Japanese reimbursement for LiDCOrapidv2 disposables (CORP) | Volex: Encouraging FY results (BUY) | Avesco*: Strong interims; good progress (CORP)
Companies: BTG LID VLX AVS CTP
Research Tree provides access to ongoing research coverage, media content and regulatory news on Avesco Group.
We currently have 13 research reports from 3
Kape’s recent Capital Markets Day (CMD) was an extremely useful update on the many benefits of integrating complementary acquired businesses (including the collaboration between engineering teams) and the opportunities for upselling that new product development brings. Over the last six months, Kape has proceeded with the integration of PIA, expanding the growth of new users through the application of the Group’s user acquisition knowhow and technology. It has also made further enhancements to its product offering which, inter alia, will improve user engagement and retention. This note looks to bring out the main points from the CMD and highlights the significant progress that has been made this year.
Companies: Kape Technologies
U.S. futures and European stocks dropped on Friday as investors mulled a reported conflict among policy makers over a stimulus package for the single-currency region, as well as political upheaval in France.
The Stoxx 600 Index fell after Bloomberg News reported the European Central Bank is facing a potential rift over how much their emergency bond-purchase program should stay weighted toward weaker countries such as Italy. The euro fluctuated following French President Emmanuel Macron's decision to name a new prime minister after asking his government to resign. Rolls-Royce Holdings Plc slumped after the British jet-engine maker said its exploring options to raise funds to strengthen its balance sheet.
The dollar was slightly down, posting its first weekly drop in a month, while American cash equity and bond markets were shut for Independence Day. President Donald Trump will attend an early July 4 celebration at Mount Rushmore with thousands of guests who won't be required to wear masks, while his U.K. counterpart Boris Johnson urged Britons to act responsibly as pubs prepare to re-open and the government lifts quarantine rules on travel for 60 countries.
The friction at the ECB highlights the risk to markets should promised stimulus measures fall short. Investors continue to weigh policy support and upbeat economic data against relentless new outbreaks of the virus. U.S payrolls figures Thursday fuelled optimism of a V-shaped recovery in the world's biggest economy, even as Florida reported that infections and hospitalizations jumped the most yet, and Houston had a surge in intensive-care patients. Emerging-market stocks posted the biggest weekly gain in a month.
Elsewhere, crude oil dipped but remained on track for a weekly gain.
Companies: TGL JSE IAE ADME BP/ DGOC ENOG NTQ NTOG PMO RBD ROSE RDSA UKOG TRIN
What’s new: Since 27 April 2020, when OnTheMarket started offering new “welcome contracts” almost 500 estate agent branches have signed up, with each business owner receiving welcome shares and over 60% either listing exclusively with OnTheMarket or on a “one other portal basis“.
Gfinity plc* (GFIN.L, 3.6p/£26.7m) | Starcom plc* (STAR.L, 0.95p/£3.3m) | Mirada plc* (MIRA.L, 90.0p/£8.0m)
Companies: GFIN STAR MIRA
Gfinity plc* (GFIN.L, 1.625p/£14.0m) | Blackbird plc* (BIRD.L, 16.5p/£55.4m) | Tern plc* (TERN.L, 11.5p/£31.1m) | The Panoply Holdings (TPX.L, 72.5p/£39.9m)
Companies: GFIN BIRD TERN TPX
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
Companies: OPM ALU ANCR BLV CONN CRC STU GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM
Gfinity (LON:GFIN) is a world leader in the fast-growing market for esports. The company designs, develops and delivers full end-to-end esports solutions. This includes bespoke content, tournament and event solutions for commercial partners via the company’s proprietary online platform, live broadc
CAP-XX Ltd* (CPX.L, 3.1p/£10.1m) | Gfinity plc* (GFIN.L, 1.675p/£12.0m) | MTI Wireless Edge Ltd* (MWE.L, 38.5p/£33.8m) | Newmark Security plc* (NWT.L, 1.05p/£4.9m) | Mirada plc* (MIRA.L, 95.0p/£8.5m)
Companies: CPX GFIN MWE NWT MIRA
A potential disposal, reasonable trading through Q2E and a pick-up in activity from a Google led re-ranking of XLMedia's websites could create the scenario for a material re-rating of the stock. While our forecasts and recommendation remain Under Review, we can see strong potential catalysts for share price advancement.
ABDP Interim Results, ALSP Interim Dividend*, CGNR Financing Update*, COG FDA Clearance*, CNIC World's First, ELA Placing, ITM Grant, LID Launch, LRM Trading Update, , MSG Contract and Agreement*, PLI New Data*, TPG Final Results, TRAK Trading Update, VLG Agreements, VENN Final Results*, VER Fundraise, VIP Results
Companies: ABDP ALSP COG CNIC ELA ITM LID LRM PLI TPG TRAK ORPH VLG VER VIP CGNR CTEA
7DIG Trading Update, ALSP* Loan Draw Down, AAU Placing, COG* Contract Win, CHAL New York Wheel, CBUY Contract Win, CGNR* New Gold Zones, DGS Trading Update, MSG* JV, NET Trading Update, OPTI* New Patent, SEE Trading Update, TPG Contract Win
Companies: 7DIG ALSP AAU COG CBUY DGS NET OPTI SEE TPG CGNR CTEA
Informa reported solid H1 18 results – including UBM from 15 June, with +4.3% revenue growth and +1.9% growth in adjusted operating profit. The operating margin was therefore a tick lower than last year’s restated accounts at 30.8% (versus 31.1%). The company is confident of the UBM integration and confirmed its target of 3.5% underlying revenue growth in 2018 and said it is on track to deliver savings targets of £50m in 2019.
Companies: Informa Plc Ord
We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.
Companies: BCA CLIN CLG CBP DNLM EAH STU FCRM FUTR GTLY INS GLE NICL SDL SPR TRI
Dods has completed a major restructuring and is now positioned as a leading provider of Augmented Intelligence. The public policy origins of the Group continue to be enhanced with additional products and features whilst deploying a new and ambitious growth strategy which will serve additional end markets. Dods is well positioned to continue a virtuous circle of improving financial performance & increasing shareholder value.
Companies: Dods Group
With its turnaround phase now complete, and with a new management team in place the Group is well placed to focus on its strategy of achieving growth both organically and through acquisitions. The Group has been structured to accommodate for a significant increase in scale without requiring material increases in core fixed costs. This allows for a potentially rapid improvement in profitability. We maintain our BUY recommendation.