Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.
Companies: IDEA WCH QUIZ TRMR SYM CLP CDM DTG CERP BLTG
SEC S.p.A. Re-introduction to AIM following a reverse takeover under Rule 14 by SEC S.p.A of Porta Communications plc, another AIM quoted company. No funds being raised. Due 4 September. Mkt cap c £9.9m. The merger will create a business with global fee income of around €80m and a host of PR agencies, including Newgate, Publicasity and Newington.
Companies: CCS PEG KWG QUIZ MPM STRL GMR BOOM SCLP MOS
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.
Companies: MATD SML BLOE AGL KOOV IKA QUIZ STKR SEN SOU
Quiz’s warning came as a shock, particularly so soon after a positive AGM update. Our post mortem reveals the revenue shortfall is almost entirely due to the erratic demand dynamics of its 3rd party online web partners. Each key partner appears to have experienced unrelated drops in growth beyond the unseasonal transition from summer to autumn. Rather than being Quiz led, whose own performance online and in-store has remained strong, these were factors outside its control. Downgrades of c35% now strip out all growth from these partners but we would not be surprised to see growth reappear if/when partners address the issues. Buy on this set-back.
Companies: QUIZ Plc
Quiz (QUIZ LN) Set-back creates buying opportunity
Eckoh (ECK LN) Largest ever US Secure Payments contract win | iomart Group (IOM LN) Steady as she goes | Quiz (QUIZ LN) Assessment of key partner and sector newsflow (H1 pre-close 11 Oct)
Companies: ECK IOM QUIZ
Anpario (ANP LN) Solid H1 results | Be Heard (BHRD LN) Board changes | Future (FUTR LN) Completion of Purch acquisition | Horizon Discovery Group (HZD LN) Downgrade to Hold pending further details of investment plans | Quiz (QUIZ LN) Positive 5 mth performance with continued growth across all channels | Xaar (XAR LN) Disappointing results; positive strategic progress
Companies: ANP BHRD FUTR HZD QUIZ XAR
Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due late Sep. EBITDA Profitable. Offer TBA
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m. Offer TBA. Due Mid September
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Companies: CORO RAD QUIZ IMMO AVG PHP KNOS HYNS IDEA BST
Quiz is a fast growing multi-channel clothing brand with exciting expansion potential. It has a differentiated offer focused on glamorous occasion wear & dressy casual wear where it has broad age appeal. It trades from a highly flexible and expanding portfolio of stores (avg. lease <2½ years) and concessions, is growing rapidly online, and with overseas franchise partners. Through its low risk test & repeat buying model, Quiz has become a highly flexible fast-fashion brand, backing trends season after season. This summer should have suited its strengths well. With brand awareness growing, it is now entering a virtuous cycle, as scale economies get reinvested back into growth. We forecast a 3-year EPS CAGR of 24% and initiate with a 250p target price, a 68% TSR after recent weakness. Next update is on 5th September. Buy.
Quiz (QUIZ LN) Dressed for success | Raven Property Group Limited (RAV LN) Underlying progress offset by currency weakness
Companies: QUIZ Plc Raven Property Group Ltd.
In a sector where traditional offers are struggling, the market awards high valuations to operators that have demonstrated the creation and development of new markets. QUIZ, with its expanding presence in the 16-35 year-old fast fashion market, and only nine months after IPO, is still in the process of realising that promise. The latest indications suggest that it is succeeding, and argue for a re-rating.
Avast, global cybersecurity provider with 435m users worldwide. In 2017, the Group's Adjusted Billings was $811 million, Adjusted Revenue was $780 million, Adjusted Cash EBITDA was $451 million. Seeking to raise $200m. Due in May.
Fundamentum Supported Housing REIT. Raising £150m. Focussed on UK Social Housing assets. Due 2 May
Vivo Energy—retailer and marketer of Shell-branded fuels and lubricants in Africa, Due in May. 100% secondary sell-down of existing Shares by Selling Shareholders, No new Money. Pricing TBA
Gore Street Energy Storage Fund—Seeking to raise £100m for the purposes of investment in a diversified portfolio of utility scale energy storage projects. Due 12 April.
Odyssean Investment Trust—Raising £100m at £1. Due 1 May. The Company will primarily invest in smaller company equities quoted on markets operated by the London Stock Exchange.
Companies: KRS SML POLR DMTR SCPA MSYS QUIZ TRAF DEST NKTN
The three retailers all reported on their Christmas trading today, with all three telling different tales of success.
Cradle Arc—holding company of a group of companies focused on the exploration and development of precious and base metals projects in Africa. Offer raising £2.4m with market cap of £20.13m. Expected late Jan 2018
Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Companies: SGM QUIZ FRR NKTN VERS AMO WATR EMAN 9537
Research Tree provides access to ongoing research coverage, media content and regulatory news on QUIZ Plc.
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RA has announced the award of a significant US$60m Integrated Facilities Management (IFM) contract with a large engineering and construction firm in the oil and gas sector in Southern Africa. The contract will run for two years. This maintains the contract award momentum of 2019 and the strong level of operating activity during H2/19 which continued into early 2020 (FY19A order book ended the year at US$141m). The current order book is now US$188m. Despite inevitable Covid-19 interruption, RA has demonstrated its ability to continue to expand its business substantially with this current US$188m order book now representing 2.7x FY19A revenue.
Companies: RA International Group Plc
Solid State's update on the four months to March 31st shows that the company, a manufacturer of computing, power and communications products, and value added distributor of electronic components, continues to surprise on the upside. With group revenues relatively stable and the quantum of the order intake YoY reduction on the back of the pandemic shrinking during the recent period, we view this in an encouraging light, particularly against the backdrop of “solid” cash generation as evidenced by cash remaining stable at the year end net cash level of £3.2m. The order book, which is reported to have stood at £39.9m at the year end, was only marginally below this four months on, at the July 31st level of £38.3m, a creditable achievement given that post-Covid some shorter timescales have been seen in UK domestic orders. As previously, our forecasts remain under review for the present. However, with a strong balance sheet and meaningful unutilised bank facilities, we continue to view the group as well-placed to win out as the Covid crisis recedes and indeed to be well-positioned to grow by consolidation as well as by resuming organic growth.
Companies: Solid State Plc
Walker Greenbank’s FY20 results date has been reset to 30 June (and complies with updated FCA policy guidance). Its latest update provides no new financial information though orders continue to be received despite lockdown conditions. Operational steps already taken appear to be appropriate, retaining sufficient infrastructure to service prevailing sales demand levels while additional actions aimed at preserving business liquidity are referenced, consistent with those seen elsewhere in the quoted sector. Taken together, the company appears to have quickly adjusted its business model to meet current market challenges in FY21.
Companies: Walker Greenbank Plc
Games Workshop’s (GAW) FY20 results show that demand post lockdown, during which the company initially suspended all trading, has surprised on the upside, leading to a greater profit outturn than recently anticipated by management. Management is aiming to grow revenue in FY21e, while maintaining the operating margin given a focus on leveraging Online (19% of group revenue) as the economic environment will likely lead to lower growth for Trade (52% of group) and a decline in Retail (29% of group) revenue. Our new forecasts for FY21e are for revenue to increase by 2.1% and PBT to decline by 5% due to lower royalty income.
Companies: Games Workshop Group Plc
Walker Greenbank is a higher-end interior furnishings business with well-established global brand names and manufacturing facilities in the UK. The Group has this morning released an H1 update, which less than two weeks on from the AGM statement, again illustrates the continued improvement in trading across the group.
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
Red Dwarf, the very British sci-fi comedy franchise, ran for 11 seasons – most recently in 2017; and The Promised Land is a feature-length TV movie – out this year. Yes, the programme is an acquired taste. Strangely, too, many episodes are impacted by a virus or three (physiological, not main-frame).
Companies: WJG BKG CSP CRST MCS INL BDEV RDW GLE SPR TW/ PSN VTY GLV CRN ABBY BWY
Portmeirion has acquired the remaining 50% of the Canadian associate company Portmeirion Canada Inc from Royal Selangor Inc. The total cash consideration is CA$1.0m (£0.6m) vs a 30 June unaudited net assets of CA$2.3m. As part of the acquisition, key license distribution agreements in the Canadian marketplace are expected to continue. This strategic move is in keeping with the various initiatives recently outlined as part of the equity raise to drive growth. Historically, the Canadian business generated c.£2m of sales and modest profit but we see significant upside under full ownership, particularly through further penetration of online channels and leveraging Portmeirion’s USA infrastructure. N+1 Singer currently has no formal forecasts and will initiate coverage in due course. The shares trade on a historic FY19 P/E of 6.5x and 5.4x EV/EBITDA with a >10% FCF yield. The balance-sheet is effectively ungeared. The share price at the current depressed level presents an attractive entry point for investors looking for deep value asset backed plays with a clear strategy to drive top-line and shareholder value.
Companies: Portmeirion Group Plc
FY19 revenues were well ahead of expectations at US$69.1m, with the year-end contracted order book at US$141m. Activity levels were high at the end of FY19, continuing into 2020, with Q1/20 revenues of US$17.9m and an order book of US$138.8m at the end of March 2020. On 3 April 2020, RA announced another US$15.6m task order within its IAP framework agreement, due to run until April 2023. With its rapid deployment capability, RA has demonstrably coped well with contract delays previously and we anticipate a swift return to normalised levels of operating activity once COVID-19 related restrictions are gradually lifted. We have temporarily withdrawn forecasts but remain buyers given RA's specialist operating capabilities, strong balance sheet and clients in UN agencies, western governments and global corporations undertaking critical humanitarian and infrastructure projects.
Argo Blockchain plc is a global data centre business that provides a purpose-built and flexible platform for the mining of leading cryptocurrencies in the enterprise-scale and institutional sectors worldwide from operational centres in Quebec, Canada. Following a change of strategy earlier this year the company is now focused on mining cryptocurrency for its own book and providing an enterprise level Mining as a Service (MaaS) product.
Companies: Argo Blockchain Plc
Disappointing H1 driven by NGP. Reducing investments in this category was the company’s choice, but we believe it is a bad mid-term strategy. The dividend cut has finally shown increasing weaknesses vs. peers during the crisis.
Companies: Imperial Brands Plc
A strong finish to FY20
Companies: Frontier Developments Plc
Strong trading YTD; outlook cautiously optimistic
Companies: Team17 Group PLC
Updating forecasts following 2019 results
Companies: Trackwise Designs Plc
As expected, the group’s business in the first quarter has been heavily impacted by the pandemic-led store closures, especially in EMEIA and the Americas.
Although the sales recovery in Mainland China was encouraging, the worldwide shrinking tourist flows and the reduction in foot traffic in reopened stores have led the group to provide a very cautious outlook for Q2 20/21.
The group’s greater dependence on travel retail and lower exposure to leather goods are making the group less resilient compared to its peers.
Companies: Burberry Group Plc