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Joiners: No Joiners Today. Leavers: Tungsten Corp and Sensyne Health have both left AIM. Hibernia REIT has left the Main Market. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group's product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group's best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime's top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Due early July 2022. Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company's Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Agronomics 17.3p £168.7m (ANIC.L) The listed company focused on the field of cellular agriculture, has led the founder's round of Liberation Labs Holdings Inc through an initial investment of US$ 627k for a 47% equity stake. Liberation Labs aims to become the global leader of precision fermentation with purpose-built production facilities for industrial biotechnology. The investment will be made using funds from the company's own resources. Agronomics and CPT Capital LLP, two of the most prominent and active investors in the field of cellular agriculture have come together with Liberation Labs' co-founders Mark Warner, CEO, and Etan Bendheim, CBO, to address the pressing need for modern full-scale precision fermentation facilities. Investment in precision fermentation companies within the cellular agriculture sector has been increasing, with US$1.7bn raised in 2021 alone. In the US, Agronomics' and CPT Capital's portfolio companies, including Perfect Day, The EVERY Company, Motif FoodWorks and Geltor are already generating revenues from their precision fermentation produced proteins, which are on the market in the form of dairy, egg and other proteins such as collagens. As more companies look to commercialise and scale-up, there is a need for large-scale, cost competitive manufacturing capacity. Alien Metals 0.7p £33.3m (UFO.L) The global minerals exploration and development company, has completed the acquisition of 100% of the Vivash Gorge Iron Ore Project in the Pilbara region of Western Australia from ASX-listed Zenith Minerals Ltd (ASX:ZNC) (Zenith), having satisfied all conditions in the Binding Heads of Agreement (See announcement of 30th May 2022). Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: "We are pleased to have completed the acquisition of the Vivash Gorge Iron Ore Project from Zenith Minerals. We thank the team at Zenith for their support in this process and look forward to getting on the ground in the coming quarter. We feel it's a great fit to our iron ore portfolio which adds further potential to the Company's growth in the high grade iron ore sector." Forward Partners 50p £67.3m (FWD.L) The London-based investment firm updated on its full-year expectations for the valuation of its Ventures portfolio. Since its February Update, the Company has experienced downward pressure on the valuations at which it holds its investments and expects valuations to remain under pressure during the course of FY22, driven primarily by changes in the valuation basis where funding rounds have been delayed and by declining share prices of the broader listed peer groups. Whilst acknowledging there is still significant uncertainty the Board now expects to report a mid-to-high twenties percentage point decline in its Ventures portfolio valuation at the half-year, down on the previous market guidance of circa £117m for 31st December 2021. The Company has significant cash reserves (£31m at the FY21 year-end), which together with the Group's existing cost base, are being conservatively managed. Many companies within the portfolio hold strong balance sheets and the Group will continue to carefully deploy existing resources to support growth at its investments. The Group expects to continue to find attractive new investment opportunities in what is becoming a more favourable climate for in-price valuations. Forward's portfolio demonstrated strong performance through 2021, and good momentum in the first half of 2022. The Company reiterates that it remains confident in the longer-term growth prospects of its portfolio, and notes that Venture is an inherently disruptive alternative asset class where performance is weakly correlated with share prices of publicly traded technology companies. Gemfields 17.8p £206.0m (GEM.L) Gemfields announced the results of a ruby auction comprised of seven sequential mini-auctions held in Bangkok during the period 30 May - 17 June 2022. The auction delivered all-time high auction revenues for any Gemfields auction and contained a selection of grades that are typically offered at Montepuez Ruby Mining Limitada's auctions of mixed quality rubies. Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and which permitted customers from multiple jurisdictions to participate in a sealed-bid process. The rough rubies were all extracted from the mining licence held and operated by MRM (which is 75% owned by Gemfields and 25% by Mozambican partner Mwiriti Limitada). The proceeds of this auction will be fully repatriated to MRM in Mozambique, with all royalties due to the Government of the Republic of Mozambique being paid on the full sales prices achieved at the auction. Total auction revenues of USD 95.6m, an all-time high for any Gemfields auction. Average price of USD 246.69 per carat, a new record for any mixed quality ruby auction. Of the 119 lots offered, 112 were sold (94.1%). 63.5% of the carats offered at the auction were sold. The 16 auctions of MRM rubies held since June 2014 have generated USD 827.1m in total revenues. IOG 24.3p £127.1m (IOG.L) The Net Zero UK gas and infrastructure operator focused on high return projects, provides an update on current activities and operational guidance for the remainder of 2022. Andrew Hockey, CEO of IOG, commented: "I am pleased to say that Saturn Banks production continues to be restored as planned, up to 54 mmscf/d gross currently from 30 mmscf/d at the start of June. We are taking the necessary actions both to improve facilities uptime and minimise restart times after any outages. Allowing for planned and unplanned downtime, we expect to produce 45-60 mmscf/d gross on average over 2H22. UK Day-ahead gas pricing remains extremely volatile, trading in a 10p to 224p/therm range this month. Our average realised price to date is 135p/therm and forward prices for this winter are increasingly elevated, closing at over 300p/therm last Friday. We expect 2022 opex to be 10-15p/therm. In parallel, the 24" extension of the Saturn Banks Pipeline System to Southwark has been successfully laid, while drilling of the Southwark East well is at an advanced stage. With Southwark expected onstream in Q4, we aim to exit 2022 with a higher, more diversified production stream. This is part of an exciting growth period ahead, with the Goddard and Kelham appraisal wells following straight after Southwark, plus a Nailsworth final investment decision and seismic re-evaluation results for the Panther/Grafton area both targeted by year end. As the government encourages reinvestment in the North Sea to support energy security, we also have a clear view of value-adding new licence targets, alongside other business development opportunities under active evaluation." OptiBiotix Health 21.3p £18.7m (OPTI.L) The life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, notes the announcement (14 June 2022) by ProBiotix Health plc (AQSE: PBX), that Steen Andersen has been appointed as Chief Executive Officer (CEO), and that Steen will join the company after completing his notice period with his current employer. The Company has a 44% shareholding in ProBiotix Health. This is part of a long-planned strategy by OptiBiotix and its portfolio companies to appoint experienced industry commercial leaders to each part of the business allowing the Group CEO to focus on identifying, developing and acquiring the new technologies or companies that will provide the Group with a pipeline of products and applications to deliver future growth and market value. This structure gives shareholders exposure to multiple opportunities within the emerging microbiome space and affords the potential to deliver additional value through separate public listing of the businesses and dividend return as achieved with the listing of ProBiotix Health earlier in the year. Plant Health Care 10.3p £31.2m (PHC.L) The provider of novel patent-protected biological products to global agriculture markets, updated concerning the volume manufacture of its Harpin α based products. Signed a long-term production and supply agreement with a leading Europe-based fermentation company, securing low-cost production capacity of Harpin α , the active ingredient in its ProAct ® , Employ ® , and H2Copla ® products , to meet projected global demand. Volume production cost targets have been met, ensuring an improved gross margin for the Company and an attractive Return on Investment for customers. Continuing manufacturing of PREtec peptides within the same facility in support of new product regulatory filings and commercialization of PREtec-based products. Plexus Holdings 4p £4.2m (POS.L) The oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, known for its safety, time and cost saving capabilities, has been awarded a Purchase Order for Plug and Abandonment (P&A) equipment and services from Oceaneering International Services Limited, a division of Oceaneering International Inc., a leading subsea engineering and applied technology company. The order includes tieback and subsea well control equipment together with hydraulic controls and services. The rental equipment will be used to support Oceaneering's vessel-based P&A services for a six-operator joint campaign in the Dutch Sector of the North Sea. This order is estimated to generate revenues of circa £500k for Plexus in calendar year 2023, and has the potential to lead to other similar work in the North Sea and internationally both with Oceaneering and other customers. Redx Pharma 64p £213.4m (REDX.L) The clinical-stage biotechnology company focused on discovering and developing novel, small molecule, highly targeted therapeutics for the treatment of cancer and fibrotic disease, today announces that preclinical data from three of the Company's proprietary compounds will be presented at the Extracellular Matrix Pharmacology Congress (ECM), being held in Copenhagen, Denmark, 23rd-25th June 2022. The two presentations cover data originating from Redx collaborations with prestigious international research institutes, the Garvan Institute of Medical Research (the Garvan), Australia and Ghent University, Belgium. The first presentation will highlight preclinical data from Redx's ongoing collaboration with the Garvan demonstrating the efficacy of targeting fibrosis associated with pancreatic cancer in mouse models with Redx's Porcupine inhibitor, RXC004, and a Redx proprietary ROCK2 selective inhibitor. The second presentation will detail results from a research collaboration with scientists at Ghent University assessing the efficacy of RXC008, a GI-targeted ROCK inhibitor, to suppress fibrosis as measured by histopathology and magnetic resonance imaging (MRI). Solid State 1,090p £93.2m (SOLI.L) The specialist value added component supplier and design-in manufacturer of computing, power, and communications products, has been awarded a contract to help deliver a new One Person Operation CCTV system for Transport for London, as part of the Piccadilly Line Upgrade on the London Underground Network. The new digital system will be utilised on the Piccadilly line, which will benefit from 94 new state-of-the-art Tube trains from 2025. It will allow real time IP video images of the platform edge (the "mind the gap" area) to be transmitted to, and displayed, on in-cab screens for driver awareness. Steatite will be providing custom-designed computers for use on the trains and within the wider station-based system. Carrier boards with specialist display outputs are being designed by Steatite's Imaging business, Active Silicon, to be utilised at the heart of the onboard system. The finished systems will be tested to various rail-standards using Steatite's in-house EMC testing chamber and environmental test facility, allowing de-risking of the project prior to carrying out official certification at an independent test house.
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e client of Hybridan LLP Dish of the day Joiners: BSF Enterprise. Following the successful reverse takeover of 3D Bio-Tissues Limited, a tissue engineering business based in Newcastle, UK, the Company announces admission of the enlarged group to the standard segment of the Official List and initiation of trading on the Main Market under the ticker ' BSFA '. The Admission follows a placing which raised £1.75m at a placing price of 7.37 pence per share. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due 30th May 2022. Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa intends to join the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021. Due 18th May 2022. EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). The Company has expertise in designing complex mixed signal ASICs, which combine digital and analogue functions onto a single chip. Mkt Cap TBC. Due late May 2022. Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company's Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due May 2022. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet accesso Technologies 740p £305.4m (ACSO.L) The premier technology solutions provider to leisure, entertainment and cultural markets, will hold its Annual General Meeting at 10.00 am today. The meeting will be held at Unit 5, The Pavilions, Ruscombe Park, Twyford, Berkshire, RG10 9NN. In the meeting, accesso CEO Steve Brown will provide the following commentary on the Group's recent trading: "I'm very pleased with how accesso has started 2022. We've continued our momentum from 2021 and we are executing in line with our plan for the year. Technology like ours is now a must-have for attraction operators across our industry who are working harder than ever to put guest experience at the forefront of their thinking. Our solutions enable them to drive revenue, reduce costs and create memorable customer propositions all at once. This year we're continuing to invest to ensure we capture as much of our opportunity as possible, and with our team working with more motivation than ever, we're excited about the future for our business". Crossword Cybersecurity* 28.5p £21.4m (CCS.L) The cyber security solutions company focused on cyber strategy and risk, announces that further to its recent announcements, the Company will be hosting an update on the Investor Meet Company platform on today at 2.00pm. In the meeting, the CEO will announce that the Company has had a strong start to 2022, building on the momentum made in 2021. The roll out of Rizikon, Crossword's leading product, to membership organisations continues, with the Company aiming to have 1,000 users of Rizikon by the end 2022. In 2022, Crossword commenced its first engagement with a FTSE 100 company, delivering high end cyber consulting services. Additionally, contracts have been entered into with clients in two new overseas jurisdictions in 2022; one a government institution. The acquisition of Threat Status Limited completed in March 2022, was the Company's third acquisition in 12 months. Threat Status Limited is a cyber intelligence company, and its two product Trillion and Arc, bring the Company's SaaS product portfolio to five products. The Company will continue to focus on revenue growth in 2022, and expects to deliver the Company and market expectations of 75% revenue growth. Cross selling products and services, new client acquisition and bringing Identiproof to market, will drive organic growth. Having undertaken three successful acquisitions in the last twelve months, the Company expects to be in position to drive future growth with other acquisitions. Eckoh 43p £125.2m (ECK.L) The global provider of customer engagement security solutions, announced a trading update for the year ended 31 March 2022. The Board confirms that revenue for the year was in line with consensus market expectations. Operating profit grew strongly, some 5% ahead of consensus market expectations. Despite ongoing challenges presented by the pandemic and the now planned completed exit from US and UK Support, which had contributed £2m to the previous year's profit figure. The performance reflects ongoing progress in our US Secure Payments operation, which now accounts for nearly 90% of total US revenues. There was more than 20% organic growth in US ARR. Including Syntec, US ARR ended the period at $12.7m, nearly 60% higher than last year. The UK business returned to growth, and transactional volumes have largely returned to pre-pandemic levels with just a few exceptions. Since period end the largest contract renewal scheduled for this financial year, a contract through Capita for a large public service organisation, was successfully renewed for £2.1m over the term. The recently announced implementation of a new Microsoft Azure cloud platform with a Fortune 100 US retailer is now live, making Eckoh the only provider in the industry to offer alternative cloud providers. This supports the stated strategy to continue investing in broadening the cloud proposition geographically, and with multiple suppliers and product offerings. Syntec's contribution to revenue and profits in the final quarter of the year was consistent with expectations at the time of the transaction, and the integration of the businesses is proceeding on plan. Fintel 208p £214m (FNTL.L) AGM Statement from the fintech and support services business. “The Company is pleased to be able to report strong trading in the year to date, with performance in line with expectations. We have continued to improve our earnings quality by increasing our Sass and Subscription revenues via the conversion of annual managed services agreements to multi-year Distribution as a Service agreements. Our unaudited net cash position has increased to c.£7.8m of net cash as of 30 April 22 (31 Dec 2022 £2.6m). The gross drawn position of the £45m revolving credit facility is currently £4.0m following a £3.0m repayment in March 2022. We look forward to updating shareholders again on our further progress and plans at the time of the half-year results.” Kibo Energy* SUSPENDED (KIBO.L) The renewable energy focused development company has signed a rolling 5-year Framework Agreement with Enerox GmbH (CellCube), to develop and deploy CellCube based Long Duration Energy Storage (LDES) solutions in selected target sectors in Southern Africa. Under the Agreement Kibo has been granted conditional exclusive rights, subject to successful Proof of Concepts, to the marketing, sales, configuration and delivery of CellCube's vanadium redox flow batteries (VRFB) in the development of its LDES solutions in microgrid applications behind the meter. For any utility scale projects the parties will work on a non-exclusive basis. The FA will be rolled out within an operational concept and aim, consisting of an initial stage focused at planning, preparation and the delivery of at least two POC Projects and a continuous production stage, focused on the delivery of a commonly agreed project pipeline which is expected to exceed at least 1 Gigawatt over the course of the 5-year term. Osirium 8.25p £3.8m (OSI.L) The leading vendor of cloud-based cybersecurity and IT automation software, has signed its first customer in the United States of America via one of its channel partners. The new customer, a global investment bank headquartered in New York and listed on the New York Stock Exchange, has selected Osirium's Privileged Access Management (PAM) security product. This contract will see Osirium's services guard against potential threats to the clients IT infrastructure, such as ransomware attacks, through managing internal and third-party access to critical servers, applications and networking equipment. This contract was sold via reseller HIC Global in conjunction with one of the Group's new partners, software distribution firm Prianto, which has a strong cybersecurity presence with mid-market customers in the UK, across Europe and North America. Having recently partnered with Osirium, Prianto has won multiple contracts with the Group for its PAM and Privileged Endpoint Management (PEM) services. Whilst the contract is not expected to have a material impact on the Group's results for the current financial year, the Directors of the Company consider that it is strategically important in demonstrating the potential demand for the Group's products in the significant market in the USA. Solid State 1,060p £90.6m (SOLI.L) The specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces an important design and development contract from an existing customer. The initial commitment reflects a mobilisation fee of £0.5m awarded to Steatite's Power Business Unit for the design and manufacture of prototypes and pre-production packs of a bespoke power system for the client's autonomous application. The Appointment is to design-in an innovative rechargeable battery for the next generation solution with production volumes expected to follow subject to customer acceptance / commissioning. t42 IoT Tracking Solutions 13p £6.9m (TRAC.L) The real-time tracking, security and monitoring solutions provider for the global container and freight market, announced a commercial order for its tracking solutions and services from Olimp Bulgaria Ltd, a world leader and exporter of security seals. Following the completion of an extensive pilot programme that ran for over a year and a half and included working with Bulgaria's national customs authority, t42 has delivered the first order for c.250 Lokies Smart Tracking Lock units to be used by Bulgaria's customs authorities. The pilot programme followed a competitive tender and included a comparison of multiple competitor units each of which was activated and integrated with Bulgarian customs systems and operating procedures. Tertiary Minerals 0.212p £3.3m (TYM.L) The Company has commenced its first drill programme at the Jacks Copper Project in Zambia. Jacks lies within exploration licence 27069-HQ-LEL, held by local partner Mwashia Resources Limited. Tertiary has an exclusive option to earn up to a 90% joint venture interest in the licence. Visual observations of core from the first drill hole 22JKDD01 indicate the presence of copper mineralisation which has been confirmed by portable XRF measurements at site. Chrysocolla and malachite occur as veins and in fractures and as disseminations over several metres around 90 metres downhole depth (corresponding to a depth of approximately 74 metres below surface). This is the first drill hole of a programme designed to accurately locate previously intersected mineralised zones and test their continuity to depths up to 150-180 metres below surface. This phase of drilling will comprise approximately 750 to 1,000 metres of HQ and NQ orientated drill core. The core is being analysed on site using portable XRF and mineralised intervals will be sent to the SGS laboratory in Kalalushi for analysis. Historic work has established an 16 kilometre open-ended soil geochemical anomaly at Jacks with historic drill logs reporting intersections as wide as 23.95 metres grading at 1.26% total copper (TCu), including intervals as high as 3.19% TCu over 2.15 metres. Van Elle Holdings 51.25p £54.7m (VANL.L) The UK's largest ground engineering contractor, today provides a trading update for the year ended 30 April 2022. The Board reports the elevated levels of demand in Van Elle's core markets detailed in the Interim Results in January continued through the second half of the year. Consequently, the Group now expects to report results for the Period ahead of the recently upgraded forecasts, with revenues of approximately £125m. This represents an increase of approximately 48% (a 41% increase after adjusting for the impact of the acquisition of ScrewFast Foundations Limited) compared with the prior year (FY2021: £84.4m), with operating profits slightly ahead of the top end of the range of market expectations. This continued demand is reflective across the Group's divisions. As anticipated, there has been an increase in work delivered within the Rail division, and volumes across Housing, Specialist Piling and General Piling have remained consistent. Supply chain challenges are showing some signs of moderating, with the impact of material price inflation being managed through contract pricing mechanisms. Cash generation in the second half was strong, with cash at the Period end of £7.0m (31 October 2021: £6.3m), and net funds (excl. IFRS 16 lease liabilities) increasing to £5.9m (31 October 2021: £3.5m).
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Solid State’s trading update this morning notes that, following an exceptionally strong finish to FY22, it expects the group to announce a 28% increase in revenues year-on-year to a record c £85m and a 33% jump in adjusted profit before tax to c £7.2m, also a record. Consensus FY22 and FY23 adjusted PBT estimates, which were upgraded in February, have been raised by 11% and 12% respectively.
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What’s cooking in the IPO kitchen? Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketing agencies, Production studios and visual content providers and Technology platforms which facilitate capital raising and/or lending. Mkt Cap and Capital to be raised TBC, expected 29 April. Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC, expected later in April. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Base Resources 18.5p £217.9m (BSE.L) Quarterly operational, development and corporate update from the African mineral sands producer. Kwale Operations maintained production consistency through the quarter, in line with FY22 guidance. Ongoing strong demand supported further price increases for all products in the quarter, delivering a record revenue to cost of sales ratio of 3.3:1 for the quarter. Bumamani DFS on track for completion in the June quarter. Fourth Tanzanian prospecting licence granted, and 15m auger rig acquired. Discussions with the Government of Madagascar on Toliara Project fiscal terms continued. FY22 half-year dividend of AUD 3.0 cents per share paid, totalling US$26.1m. Colefax Group 652.5p £51.8m (CFX.L) Trading update in two major markets the US and the UK has been ahead of expectations reflecting strong demand for home-related spending. In addition the Decorating Division will deliver a good performance this year due to the timing of completion of a major UK project. Fabric Division profitability is highly operationally geared and as a result of higher than expected sales, the Board now expects the Group's profits before tax for the year ended 30 April 2022 to be ahead of market expectations. Like many businesses the Company is experiencing significant inflationary pressures so although demand is currently strong this adds a note of caution to prospects for the year ahead. DP Poland 7.75p £48.1m (DPP.L) The operator of pizza stores and restaurants across Poland, announces a trading update for the first quarter of 2022. Like-for-like System Sales increased by 21.3% in Q1 2022 compared to Q1 2021. Total System Sales increased by 22.6% in Q1 2022 compared to Q1 2021. Q1 2022 System Sales significantly above pre-COVID-19 levels. Higher sales have been affected by high inflationary cost pressures, which have persisted. Polish CPI inflation was reported as 10.9% in March 2022 vs 8.6% in December 2021. Cash at bank of £1.55m as at 31 March 2022 (as at 31 December 2021: £1.80m). Orders volume up by 22% March 2022 compared to March 2021 and up by 17.1% Q1 2022 compared to Q1 2021. Introduction of reduced menu which is expected to improve operational efficiencies and drive cost reductions to help mitigate inflationary pressures. Store opening program restarted, with two new stores expected to be opened in Q2 2022. Store opening program restarted, with two new stores expected to be opened in Q2 2022. Europa Oil & Gas 2.45p £23.4m (EOG.L) The AIM traded UK, Ireland and Morocco focused oil and gas exploration, development, and production company, announces the signature of the Serenity farm-in agreement with i3Energy North Sea Limited (i3E) in respect of UK Seaward Production Licence P.2358, Block 13/23c (Serenity). Europa is acquiring a 25% interest in Serenity by paying 46.25% of the appraisal well cost, equating to a 1.85 to 1 carry. The farm-in is in line with Europa's previously stated strategy to acquire an appraisal asset, adding to its existing producing and high impact exploration assets, and thereby creating a more balanced asset portfolio for its investors. The Serenity appraisal well is scheduled to be drilled and formation tested in late Q3 2022 at a gross cost of £14m. The Carry is capped at a gross well cost of £15m, of which Europa's interest will be £6.94m. Thereafter, each party will fund its interests proportionally. Serenity is strategically located near existing infrastructure in the North Sea, however the appraisal well could provide sufficient recoverable volumes for a standalone development. There are no material conditions for Europa to satisfy to complete the farm-in. Europa will fund an escrow account with its paying interest obligation. Gear4music 265p £55.6m (G4M.L) Gear4music, the largest UK based online retailer of musical instruments and music equipment, today announces a year-end trading update covering the 12 months to 31 March 2022. Strong financial and operational progress compared with FY20 pre-Covid trading. Gross margins remained strong at 27.8% (FY21: 29.5%; FY20: 25.9%). EBITDA now expected to be £11m (FY21: £19.8m; FY20: £7.8m). Revenues and EBITDA slightly lower than FY22 consensus market expectations due to weaker than expected consumer demand during February and March 2022. Strong levels of inventory across all distribution centres to support conversion in FY23. AV.com now fully operational, with accelerated progress expected during FY23. Induction Healthcare 64p £58.9m (INHC.L) Induction, a leading digital health platform driving transformation of healthcare systems worldwide, provides an update on continued strong trading and outlook following the year ended 31 March 2022. Contracted annual recurring revenues, a key metric for the business, has grown significantly to c. £15m (31 March 21: £1.8m). Results for FY22 are in-line with already upgraded market expectations for revenue and adjusted EBITDA (£12m and breakeven, respectively) (31 March 21: £1.5m and £-4.8m). In addition, following the placing to raise £25m in June 2021, net cash as at 31 March 2022 was inline with expectations at c. £8m (31 March 21: £2.4m). Furthermore, following strong renewals of NHS England Induction Attend Anywhere contracts, the Group's cash position has further increased significantly, post period end. Solid State 1,150p £98.4m (SOLI.L) The specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces a trading update for the 12 months ended 31 March 2022. Following a strong finish to the Period, the Company expects to announce record results with revenues for FY22 of approximately £85m (2021: £66.3m) up 28% over the prior year, and adjusted profit before tax for the Period of approximately £7.2m (2021: £5.4m) up 33%; both ahead of recently upgraded consensus expectations. The like for like open orderbook at 31 March 2022 is up 106% over the prior year at a record £85.5m (31 March 2021: £41.5m). These results reflect a strong performance across the Group, with notable contributions in electro-mechanical and imaging systems resulting from the acquisition of Willow Technologies and Active Silicon respectively. Like for like organic revenue growth is in excess of 8%. The Group has enjoyed particularly strong demand in the energy and aerospace & defence sectors, with the latter now representing approximately 15% of the Group's revenue. Solid State continues to deliver on its organic growth strategy through the targeting of structural growth markets and remains focused on complementary acquisition opportunities Seeing Machines 7.94p £329.3m (SEE.L) The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, has collaborated with Magna on a demonstrator that features a fully integrated Driver Monitoring System (DMS) combining camera, electronics, and interior mirror technology. The demonstrator combines Magna's industry leading mirror technology, camera design, integration, and packaging know-how, with Seeing Machines approach to optimised and co-designed optical path, embedded processing, and enhanced AI vision algorithms for DMS. This technology addresses the critical OEM challenge associated with managing vehicle electronics integration and cost, with the need for seamless camera packaging across a diverse line of vehicle models. Seeing Machines' enhanced FOVIO eDME (embedded Driver Monitoring Engine) algorithms and processor optimised and accelerated software, which solves for the optimised processing footprint, low thermal dissipation, and small overall mechanical size and weight needed for a viable all-in-one Mirror based DMS solution. Seeing Machines has further addressed the difficulties associated with a movable mirror/camera combination through innovative vision based dynamic real-time detection and calibration techniques. Strategic Minerals 0.35p £7.1m (SML.L) The profitable producing mineral company, announces that its 100% owned subsidiary Cornwall Resources Limited has signed a 10-year extension to its existing Redmoor exploration licence agreement. Redmoor Exploration Licence extended to 2037. 25-year Mining Lease option confirmed. General Permitted Development Order application in progress. Recent commodity price increases likely to result in further upside to project's internally estimated US$163m NPV (8%) despite general increases in mining costs. Warehouse REIT 171.4p £727.4m (WHR.L) The company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces that it has exchanged contracts to acquire Bradwell Abbey Industrial Estate, for £62m excluding acquisition costs. The purchase price reflects a net initial yield of c.4% based on day one passing / guaranteed income and continues Warehouse REIT's stated aim of acquiring assets in the Oxford-Cambridge Arc. The multi-let industrial estate totals 69 units across c. 335,000 sq ft, ranging from c. 1,000 to 15,000 sq ft in size. It is located just off the A5, providing fast access to the surrounding population of Milton Keynes and the wider motorway network, with the M1 being 6 miles to the East. The estate is currently 96% leased to a range of occupiers including Argos, F&F Stores and Taylor Kerr Engineering Ltd and produces a total annual income (including some rental guarantees) of over £2.6m. The low average rent of c. £7.80 psf offers good reversionary potential, considering that prime rents in the area range from £10 to £14 per psf. Milton Keynes is a highly sought-after industrial location, with vacancy sitting at c.4%. Significant residential growth is putting further pressure on demand and underpinning land values, providing further rental growth potential.
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Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. Following the group's trading update in February, when we raised our 2-year earnings expectations by c.10%, Solid State this morning reports an exceptionally strong end for the year to 31 March 2022 as positive trends in trading continued and well-publicised semi-conductor supply chain challenges were controlled. As a result, FY 2022E group revenue is now anticipated to stand at c.£85m demonstrating growth of c.28% and resulting in adjusted PBT rising by c.33% to c.£7.2m, leading us to raise our FY 2022E EPS forecast by 7.8%. Looking ahead, the order book at £85.5m illustrates growth of 106% in the year and while global supply chain and inflationary challenges will need to continue to be managed, we have raised our FY 2023E EPS expectation by a further 10.8%. Based on these revised estimates, the shares now trade at a c.25% discount to peer group PER multiples, which we believe is unjustified. Ascribing an inline Yr2 PER multiple of 19.0x to Solid State would imply fair value of 1,350p.
The group has announced a positive year-end trading update – continuing its recent trend of positive announcements and earnings upgrades. With a strong end to the year, trading remained robust across both Systems and Components divisions, with a strong contribution from acquisitions, with Energy and Aerospace & Defence sectors also performing well. The order book currently stands at a record £85.5m, a YoY increase of 106%. We have raised our FY22 adj EPS by 8.4% to 71.6p, with our price target rising by 8.0% from 1375p to 1485p. The shares remain attractive and deserve a higher rating given their momentum and recent track record of positive updates.
Company results surprisingly resilient in the face of multi-faceted challenges. The Industrial Technology Sector share prices have been badly affected over recent months, despite underlying company trading statements and recent annual results in March being mostly in line with expectations. The Ukraine invasion is the latest in a line of challenges that managements have had to overcome over the past two years. The greatest challenges for the sector and the wider economy have centred around the well-aired issues of supply chain disruptions, inflationary pressures, and labour shortages and – more recently – the jump in energy prices. Despite these headwinds, most company trading updates have been surprisingly resilient. Cost inflation has been building over the past year but has been mostly passed through to customers. Much depends on having flexible customer relations and responsive operations and supply base.
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Solid State’s trading update this morning notes that the strong performance achieved in both the Systems and the Components divisions during H122 has been maintained so far during H2 despite continued supply chain disruption. Consensus FY22 and FY23 adjusted PBT estimates have both been raised by 10%.
Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. Since the group's interims in December, trading is reported to have continued to be positive against the well-publicised semi-conductor supply chain challenges facing the wider sector, with very strong trading at the recently acquired Active Silicon. As a result, group revenue is now anticipated to be slightly ahead, and PBT well ahead, of market expectations for the year to 31 March 2022, leading us to raise our FY 2022E EPS forecast by 10.3%. Looking ahead, while global supply chain challenges will still need to be successfully managed, the order book as at 31 January stood at a highly encouraging, and record, £74.1m (30 November £70.3m) and we have this morning raised our FY 2023E EPS estimate by a similar 9.8%. Based on these upwardly revised estimates, the shares now trade at a c.14% discount to peer group PER multiples, which we believe is unjustified. Ascribing an inline Yr2 PER multiple of 20.7x to Solid State would imply fair value of 1,325p for the shares.
The group has announced another positive trading update, illustrating continuing positive business momentum, despite the challenges of a difficult trading environment. Activity has remained strong across both businesses, with a positive impact on margins. The order book stands at a record £74.1m, boosted by contract wins, including the recent BAE Systems contract award. After the positive update and with revenue slightly ahead of expectations, we raise our FY22 EPS forecast by 10% and are lifting our TP in line with this, from 1260p to 1375p. Today’s announcement should be well received by the shares, which have drifted recently due to general market weakness. We see decent scope for further expansion of the PE rating over time.
Joiners: No Joiners Today. Leavers: U.K. SPAC Plc (formerly Mountfield Group Plc) has left AIM not having completed an acquisition in the time allocated. The Company advises that the transaction continues to progress towards its completion and believes that the application to the FCA for admission of UK SPAC's enlarged share capital to the Official List (by way of a Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stock Exchange's Main Market for listed securities is progressing satisfactorily. In the intervening period and whilst the Company works to complete the Acquisition and Readmission, the Company is proposing to admit its ordinary shares on JP Jenkins, a matched bargain facility. What’s cooking in the IPO kitchen? GCP Co-Living REIT plc, intends to float on the Main Market. The Company is a newly established, externally managed investment company, which it is intended will carry on business as a Real Estate Investment Trust, subject to meeting the necessary qualifying conditions. The Company will invest, predominantly, in independent Co-Living Asset, both operational and under development, let to a diversified mix of residents, located in urban centres in the UK and Ireland where there is a shortage of high quality, affordable residential accommodation. Due March. Strip Tinning Holdings, an established supplier of specialist connectors to the automotive sector, intends to join AIM. Strip Tinning manufactures specialist flexible electrical connectors related primarily to heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs, increasingly using flexible and lightweight printed circuit technology that also has growing application elsewhere within vehicles. Mkt Cap and Capital to be raised TBC. Due mid Feb. Artemis Resources ltd, an ASX listed mining exploration and development company intends to join AIM. The Company owns projects based in the Pilbara region of Western Australia, the Greater Carlow Gold-Copper-Cobalt Project in the West Pilbara and the Paterson Central exploration project in the East Pilbara. The Company also owns the Radio Hill processing plant that is currently on care and maintenance. This plant is strategically located only 35km from the Greater Carlow Project. Mkt Cap approximately £52m, Capital to be raised £5m. Due 7th Feb. Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector, intends to float on AIM. Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operations to supply labour to the northern section of the HS2 rail project from London to Birmingham. In addition, up to £4.5m will be raised for the existing shareholder from the sale of part of its interest in the Company. Hercules has a sustained track record of revenue growth from £9.7m in FY 2015 to £30.7m in FY 2019 and has experienced a strong rebound following Covid-19 growing to £14.0m in H1 FY 2021. Expected 4 Feb. Anticipated Mkt Cap £29.6m. To be raised £4m primary and £4m secondary. Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022. Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Due Early Feb. Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company's proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Feb. i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission Feb. Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round. Delayed until second half of Q1 2022. Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due early Q1 2022. Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Due early Feb. Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in. Delayed until Mid-Feb. Mkt Cap and Capital to be raised TBC. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet 4Global 91p £24m (4GBL.L) UK-based data, services and software company focused on major sporting events and the promotion and measurement of physical activity, has entered into a partnership agreement with the Fitness Industry Council of Canada. Under the agreement FIC will work with 4GLOBAL to develop 'DataHub Canada' utilising its extensive network of 6,000 facilities with over 6m members across the country. 4GLOBAL will contribute its technical expertise and digital infrastructure and will develop a Social Value Calculator in partnership with Sheffield Hallam University tailored for the Canadian health and leisure markets (see notification on 17 January 2022). The DataHub Canada will be used to generate reports and analysis specified by FIC and provide a market entry platform for 4GLOBAL. These reports will in turn be used to develop a shared communications programme and for FIC to promote the partnership and its associated tools and learnings amongst its extensive Canadian user base as well as its Federal and Provincial lobbying efforts. This partnership will significantly increase the global capacity of the Company's DataHub which is currently in excess of 1.2 bn of data points of how sport is consumed in UK, Europe and other international markets in South America and Middle East. It will also allow the Company to market its existing products to central government, cities and private operators following the same business model that it has successfully implemented in the UK and Europe. Afentra SUSPENDED (AET.L) Afentra confirms that negotiations with Sonangol E.P to purchase interests in Block 3/05 and Block 23 in Angola have continued into the new year. This follows the announcement on 8 October 2021 that the Company had submitted a non-binding Expression of Interest for the two blocks and the subsequent suspension of its shares. If Afentra ultimately proceeds with the Acquisition, it would be classified as a reverse takeover transaction in accordance with Rule 14 of the AIM Rules for Companies. Trading in Afentra shares will remain suspended until either the publication of an AIM admission document, or until confirmation is given that Afentra's participation in the bid process has ceased. Whilst the timeline of the Sonangol sales process has been extended beyond the previously expected timetable, this has not diverted Afentra from the pursuit of other production assets in West Africa. The Company continues to appraise multiple acquisition opportunities that support its growth strategy in terms of acquiring assets across West Africa with solid low-cost production, proven reserves and significant upside. The Company remains disciplined in its screening process to ensure all targets meet the operational, commercial and environmental factors that comprise its focussed acquisition criteria. Applied Graphene Materials 24.5p £15.8m (AGM.L) Stanvac-Superon Group, the India-based manufacturer of industrial repair and maintenance solutions, has introduced a speciality conductive coating incorporating AGM's Genable dispersed graphene materials, for use on industrial power transmission equipment. Following successful development and testing, the new protective, conductive coating incorporating AGM's high-quality A-GNP35 graphene dispersions will reduce contact resistance in coated copper and aluminium electrical cable joints to reduce the power lost over the connection. Using the graphene-based 8079 (A) Power-Plus coating, a 30-50% reduction in contact power loss is achieved, offering significant energy savings over time. The first customer application is well-underway and is expected to reach approval shortly. Stanvac-Superon Group expects the product to be used for power transmission, electrical distribution, and railways, as well as other high energy consumers such as steel mills, smelters, and refineries. Atalaya Mining 425p £594m (ATYM.L) The results of five additional drill holes from its ongoing resource definition drilling programme at Proyecto Masa Valverde. PMV is located in southern Spain approximately 28 km to the south of Atalaya's 15Mtpa mill at Proyecto Riotinto. New drill results include best continuous copper intercept at PMV to date: 125 metres at 1.19% Cu, including high grade intervals of 12m at 2.29% Cu, 19m at 2.56% Cu and 15m at 2.27% Cu. Results are expected to increase the copper grade in the upcoming NI 43-101 resource estimate for PMV, which is planned for release by the end of March 2022. Higher grade material from PMV has the potential to displace ore from the Cerro Colorado pit, allowing the Company to increase its copper production while maintaining current processing rates. Intersected mineralisation is mostly stockwork-type with minor massive sulphides, which is expected to have positive metallurgical implications. Three rigs continue to drill at PMV, as part of the Company's EUR10m exploration programme for 2022. Dillistone Group 23p £4.5m (DSG.L) The AIM quoted supplier of software for recruiters, provides a trading update for the 12 months ended 31 December 2021. In the Interim Results announced in September, the Group noted that the impact of Covid 19 would continue to unwind through the remainder of 2021 and that the business was seeing improved new business sales, improved orders from existing clients, and better operating cash flow. The Board reports the fourth quarter delivered further improvements, with incoming orders in that period at levels not seen for a number of years. Dillistone expects to release final results for FY2021 in line with market expectations before acquisition related items and other one-off adjustments. The strong end to 2021 has been followed by encouraging signs in the first weeks of the new year across a number of Group products, including both our established and next generation applications. As at 31 January 2022, the Group had £1m in cash. Proteome Sciences 4.74p £14m (PRM.L) Proteome Sciences today provides an unaudited trading update for the financial year ended 31 December 2021. The Company has continued to show strong growth in its services business with TMT® revenues holding firm, despite the continued impact of the Covid-19 pandemic on international business. The Company expects to report a c7% increase in Group revenues to c£5.1m (2020: £4.75m) for the full year, with services expected to increase c32% to c£1.9m (2020: £1.44m) and sales and royalties attributable to TMT® and TMTpro™ reagents to be c£3.2m (2020: £3.27m). The Company anticipates an estimated trading profit of between £0.6m and £0.8m (2020: £0.50m) (excluding interest, currency and share based payments effects) which shows a positive development of the operational business. Investment in staff and facilities in line with our renewed strategy will give rise to a marginal increase in operational costs versus the prior year. Overall, the Company expects an estimated result before tax close to break-even (2020: £0.24m profit) and a similar result after tax (2020: £0.29m profit after tax) for the year. Cash reserves at the year-end increased to £2.4m (2020: £2.21m). Solid State 1,190p £101.7m (SOLI.L) The specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces that following a pre-qualification stage and a competitive tender process, BAE Systems has awarded Steatite Ltd, the manufacturing arm of Solid State Plc, a multi-million pound contract to design, develop and qualify computer consoles for maritime platforms. The multi-function use of the console will need to comply with many industry and MOD specific standards. This challenging set of requirements required an approach that offered innovation, value and agility. Tintra 235p £31.4m (TNT.L) Tintra announced the appointment of Dr Vanessa Neumann as an Independent Non-Executive Director for the next stage of the Group's progress. Dr Neumann brings a wealth of relevant experience to Tintra, with particular expertise on matters concerning Latin America, which has been identified as a key area to the future development of the Group's Artificial Intelligence led banking infrastructure business. Dr Neumann is a native Venezuelan, with a varied career as a diplomat, author, and entrepreneur, as well as a globally sought expert on transnational threats, Latin American business, and financial business integrity. Verditek 2.35p £8m (VDTK.L) The international green technology company that develops, manufactures and sells lightweight solar panels, announced the completion of the sale of Industrial Climate Solutions Inc (ICSI) on 1 February 2022, in which the Company held a 10.56% stake, to Baker Hughes Energy Services Canada, Inc. An initial payment of approximately £308k was received by the Company in line with the size of its holding. The initial consideration was received in cash on 2 February 2022 and further contingent proceeds to the Company of up to approximately CAD 3m (c. £1.75m) may arise dependent upon certain milestones being met. The Directors are taking a prudent view on the likelihood of further receipts, subject to the requirements of relevant accounting standards. The Company will therefore recognise fair value of its investment of approximately £0.9m in its statement of financial position at 31 December 2021. This valuation is subject to auditor review. This equity investment was recognised in the Company's audited annual report for the year ended 31 December 2020 at £23,405 and subsequently at £23,091 in the Company's unaudited interim results for the six months ended 30 June 2021. The Company's investment in ICSI was impaired in 2018, on the basis that ICSI was loss making and had net liabilities. The sale will enable the Company to realise value from its investment for use in its core operations. Cash received will be used to provide working capital for Verditek's solar power business. Virgin Wines 155p £86.5m (VINO.L) One of the UK's largest direct-to-consumer online wine retailers, today announces a trading update for the six months ended 31 December 2021. Total revenue of £40.5m, in line with the previous year's performance and up 55% vs H1 2020 (H1 2020: £26.2m). Repeat sales from core channels of £29.6m, up 6.2% on H1 2021 and up 59% vs H1 2020. Customer base: WineBank membership up 11% on H1 2021 and up 41% vs H1 2020; Active 1-12 month customer base up 9.5% on H1 2021 and up 46% vs H1 2020. Average customer rating maintained at 4.5 out of 5, from over 20k reviews. Net cash position of £13.6m.
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Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. Interim results this morning read well, illustrating both a record six-month period, including very strong performances from both Willow Technologies and Active Silicon acquisitions, and an order book as at 30 November standing at a record £70.3m. While global supply chain challenges will continue to need to be successfully managed, the Board remains confident of meeting full year expectations. As such, we leave our two-year earnings forecasts unchanged, seeing scope for these to be raised in due course, while increasing our full year dividend expectation to 19.0p/+11.8%. Our estimate of fair value for the shares stands at 1,220p.
As flagged in its October trading update, during H122 Solid State realised strong year-on-year growth in revenues (19%) and adjusted profit before tax (28%), with both metrics reaching record levels. Management continues to see potential for upside during H2, dependent on careful management of constraints due to supply chain challenges, and is confident that the group will meet the consensus estimate for FY22 adjusted profit before tax. Consensus estimates remain unchanged for now.
Interim results were in line with expectations, boosted by the additions of Active Silicon and Willow, but with underlying organic CER growth of 8%. The order book illustrates the effect of lengthening lead times and ordering patterns, with component supply acting as a constraint. No change to forecasts, although the outlook comments that some upside may exist dependant on very careful supply chain management. We also anticipate further M&A opportunities may also offer a catalyst. We retain our existing 1260p price target.
Solid State’s post-close trading update states that it expects to announce strong year-on-year growth in both revenues (18%) and adjusted profit before tax (27%) for its first half to 30 September 2021. While management sees potential for upside during H2, dependent on successful navigation of supply chain challenges, and is confident that the group will meet the FY22 consensus adjusted profit before tax estimate, the consensus estimates remain unchanged at present.
Joiners Tungsten West (TUN.L) has joined AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon. Hemerdon represents the world's third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3. Capital raised on Admission: £39m. Anticipated Mkt Cap: £106.2m. Future Metals NL (ASX:FME, FME.L) (formerly named Red Emperor Resources NL) had joined AIM. No funds being raised. Future Metals is a platinum group metals exploration and development company that holds a 100% interest in the Panton PGM Project in Western Australia. Mkt cap c£35.8m. Leavers Augean and Tiziana Life Sciences have left AIM What’s cooking in the IPO kitchen? Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL), the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m. Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov. Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure to an attractive and growing real estate sector. Due mid Nov. Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November. Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Subject to shareholder approval, admission will take place during Q4 2021. The Company will change its name to Guardian Global Security plc. ProCook, the UK's leading direct-to-consumer specialist kitchenware brand, is considering applying for admission of the Shares to the Main Market (Premium). ProCook's revenue grew by 37% to £53.4m in FY21 (ending 4 April 2021), with Adjusted EBITDA growing by 246% to £13.3m in the same period. Timing TBA Silverwood Brands, an investing company established to identify investment opportunities including, but not limited to, in the foods, organic food, wellness, lifestyle and leisure sectors, targeting admission on the to join the AQSE Growth (Access). Due November 2021. Offer TBA. Kasei Holdings, a technology specialist investor that focuses on cryptocurrencies and blockchain technologies, due to join the AQSE Growth Market 27 Oct. No funds being raised. Following the previously announced intention to demerge trading on the London Stock Exchange plc's Main Market on 2 November. Cash Hostmore plc from Electra Private Equity PLC, Hostmore announces that, subject to approval by Electra shareholders, it is expected that the Demerger will be completed and the Hostmore shares will be admitted to the Premium Segment of the Financial Conduct Authority and to generated from operations over the 3 complete months following the resumption of indoor dining in England on 17 May 2021 (i.e. June to August 2021) was £12.5m. Hostmore is a growing hospitality business with its current operations focused on the American-themed casual dining brand, Fridays, and the cocktail-led bar and restaurant brand, 63rd+1st. Rubix Group Holdings, the market leading pan-European distributor of industrial maintenance, repair and overhaul products and services is considering an initial public offering Main Market (Premium). In the six months ended 30 June 2021, Rubix generated Revenue from Ongoing Operations of EUR1,312m and Adjusted EBITDA of EUR123m (9.4% Adjusted EBITDA Margin from Ongoing Operations), an increase of 10.6% and 19.3% compared to the six months ended 30 June 2020, respectively. Raising proceeds equivalent to approximately EUR850m, and additionally may also include the sale of existing ordinary shares by current shareholders. Timing TBA Firering Strategic Minerals to join AIM, a holding company for a group of exploration and development companies set up to focus on developing assets towards the ethical production of critical metals. The Company's portfolio of assets is located in Côte d'Ivoire and contains projects that the Directors believe to be prospective for lithium and columbite-tantalite. Due Early Nov. Offer TBA Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive and sustainable level of income returns, with the potential for capital growth, by investing in commercial scale energy storage and renewable energy generation projects, with an initial focus on a diversified portfolio of battery energy storage systems located in Great Britain. The Company has contracted with Tesla Motors Limited in respect of its initial portfolio of battery storage projects, to be acquired on IPO, which will benefit from Tesla's 2-hour duration Megapack systems and Autobidder AI revenue optimisation platform. Due Early Nov. Stelrad Radiator Group, the specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, is considering an IPO on the Main Market (Premium). Potential secondary and primary (c.£25m) offer. Early Nov. Pantheon Infrastructure to join the Main Market (Premium). PINT will target attractive risk-adjusted total returns comprising capital growth and a progressive dividend through making equity and equity-related investments in private infrastructure assets alongside other leading private asset investment managers. Due Mid Nov. Quantum Exponential to join AQSE. The Company intends to identify investment opportunities in the quantum technology sector primarily in the NATO allied countries. The Company has identified over 175 start-ups which potentially meet their investment strategy with a focus on seed funding for start-ups with second stage funding plans in preparation. Offer and timing TBA. Pod Point, one of the United Kingdom's leading providers of Electric Vehicle charging solutions is considering a Main Market (Premium) listing. As at 30 June 2021, Pod Point had installed more than 89,000 home charge points and over 13,000 commercial units, including those located at workplaces and destination locations (such as shops and leisure attractions). Timing and offer TBA. Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segment of the Official List of the FCA and to trading on the Main Market for listed securities and on Moscow Exchange. The Group had a turnover of US$1.8 bln for the year ended 31 March 2021, employs c.6,000 people globally, and operates in more than 50 countries across emerging markets. Primary proceeds from the Offer are expected to be around US$400m. Due Late Oct. Marks Electrical, a fast growing online electrical retailer, announced its intention to proceed with an initial public offering and to seek admission to trading on AIM. Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products. In the year to 31 March 2021 revenue grew to £56m, up 78% against the previous financial year, while EBITDA increased to £7.45m, at a 13.3% EBITDA margin. The Group has made a strong start to its current financial year to 31 March 2022, with revenue growth of 78% in H1 FY2022, versus 47% growth in H1 FY2021. Offer TBA Admission is expected to take place in early Nov 2021. M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters. Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. It pushed back its AIM float on 30th September from end September to late October. The amount to be raised is still yet to be confirmed. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Alumasc Group 222.5p £80.4m (ALU.L) AGM update from the premium sustainable building products, systems and solutions group. "It is pleasing to report that, following the excellent set of full year results published in September, trading during the first quarter of our current financial year has continued at a good pace, much as expected. While the pent-up demand from lockdown, present in the prior year, has been absent, demand for our products has remained at a healthy level, with physical considerations such as transport frequently proving to be the restraining factors. However, despite the strength in demand, current trading in the construction industry, and industry more generally, continues to be far from normal. It is well documented that the prices of many materials, such as building products and metals, and energy have risen sharply, frequently due to shortages in supply following Covid related actions. These cost increases have largely been accepted by customers but discourage certain projects from commencing on the new, higher cost base.” The Board does not expect the macroeconomic challenges to alleviate in the short term but has confidence in the Group's resilience and agility and the strength of its product and service offering. Accordingly, it remains confident of another strong year and trading continues in line with the Board's expectations. Attraqt 36.5p £73.5m (ATQT.L) The provider of online search, merchandising and personalization solutions for ecommerce, provided a trading update covering the three-month period ended 30 September 2021 (Q3 FY21). Following the progress made both financially and strategically in H1 2021 the Company has seen momentum continue into the second half of the financial year. In Q3, the Company secured almost £1m worth of ARR through new contract wins, facilitated by AI Search, with a leading international jewellery firm, a luxury & designer watch shop, and a major FTSE 250 listed retailer. This further demonstrates the increasingly competitive nature of Attraqt's product set and its ability to capitalise on the structural shift of retailers and brands prioritising investment in online channels, customer experience and platform optimisation. The Company's partnership strategy, a major strategic focus, has continued to deliver strong results. Following the native integration with BigCommerce in September, the Company has seen a number of native integrations go live through this channel. This enables any Big Commerce merchant to deploy Attraqt's search and merchandising tools along with recommendations and personalisation to their storefront without any integration effort. The Board expect that the Full Year performance will be in line with expectations. Blackbird 32.75p £111m (BIRD.L) The technology licensor, developer and seller of the market-leading cloud native video editing platform, Blackbird, today launched its core technology licensing solution, 'Powered by Blackbird', to enable advanced cloud native functionality and drive major efficiencies for video companies. The news comes after the Company announced a 5-year technology licensing deal with a global broadcast company last month. Ceres Power 1135p £2,163m (CWR.L) The specialist in fuel cell and electrochemical technology, has appointed Eric Lakin as Chief Financial Officer (CFO). Eric is expected to join the Company and the Board of Directors in January 2022. Eric has a proven track record in industrial, engineering and technology sectors with extensive experience in building and managing global, multi-disciplinary finance teams through periods of significant change. He joins Ceres from Smiths Group plc, the FTSE100 engineering group where he has spent the last 10 years and he was latterly CFO of Smiths Interconnect, a £330m revenue industrial technology division with R&D and manufacturing locations across multiple countries. Driver Group 55p £28.7m (DRV.L) Trading update from the global professional services consultancy to the construction and engineering industries, providing multi-disciplinary consultancy services including expert witness, claims and dispute resolution services. The Board can confirm that it expects to report underlying PBT for the financial year in line with market forecasts and a healthy net cash position at 30 September 2021 of £6.5m. During 2021 Driver Group has continued to manage the impact of Covid-19 on its activities in the markets in which it operates. This was reflected in overall business performance in H2, which was broadly consistent with the first half, with a continued strong performance in the UK and Europe offset by a weaker result in the Middle East and Asia Pacific regions. However, the overall result masks a material improvement in activity levels and in underlying PBT during Q4, as a result of which Driver Group enters the new financial year with renewed positive momentum. Oracle Power 0.46p £m (ORCP.L) Oracle Power announced the appointment of Dr Naveed Akhtar as an adviser on hydrogen technology, following Oracle's recently announced non-exclusive co-operation agreement with PowerChina International Group Ltd, with the aim of jointly developing a green hydrogen production facility in Pakistan. Dr Akhtar is an expert in the hydrogen energy / fuel cells field with more than 20 years' experience . Dr Akhtar is the founder and CEO of Hy-Hybrid Energy Limited, a specialised fuel cell service provider which advises hydrogen application businesses across Europe. Dr Akhtar will join the Company on an advisory basis as Chief of Technology - Hydrogen , a non-Board position, as Oracle progresses its hydrogen strategy in Pakistan with PowerChina. Reabold Resources 0.19p £16.5m (RBD.L) Reabold, the AIM investing company which focuses on investments in upstream oil and gas projects, announced the signing of a conditional equity exchange agreement between Daybreak Oil and Gas Inc., a US OTC traded oil and gas operator with assets in California. The Transaction will result in Reabold becoming a major shareholder of Daybreak via the issuance of new Daybreak shares to Reabold, in exchange for Daybreak acquiring Reabold California LLC, Reabold's subsidiary which holds, inter alia, Reabold's licence interests in California. Sachin Oza, co-CEO of Reabold, commented: "This transaction creates liquidity for Reabold and forms a new, cash flow producing business with the skills and capability to capitalise on growth opportunities from its existing portfolio, and attractive acquisitions presented by the market dynamics in California." "Our Californian portfolio has been a significant deliverer for Reabold, with 5 discoveries over 5 wells since we began our drilling program. With a dedicated management team with significant in-state expertise now at the helm, we look forward to the next phase of its development as a large shareholder." Solid State 1222.5p £104.6m (SOLI.L) The specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces a trading update for the six months to 30 September 2021. Solid State expects to announce revenues for the Period of approximately £39m (2020: £33.1m) and adjusted profit before tax for the Period of approximately £3.25m (2020: £2.55m), reflecting strong underlying trading and the contributions from the Willow and Active Silicon acquisitions made in March 2021, which have exceeded management's expectations. The Board is confident that the Company will meet adjusted profit before tax consensus expectations for the year. There is potential upside in the second half of the year, delivery of which is dependent upon careful management of the constraints imposed by supply chain challenges. Tintra 97.5p £12.4m (TNT.L) Further to the announcement of 1 October 2021, the board of directors of Tintra announced that the Company has entered into heads of terms with Sterling Management Centre Ltd in respect of the sale of certain assets of Prize Provision Services Limited. The Buyer (www.sterlinglotteries.co.uk) is a market leader in the lottery space and an external lottery manager registered with the Gambling Commission with over 30 years' experience in running lotteries, raffles, and other charitable gaming and prize-led fundraising activities on behalf of charities, good causes and organisations within the UK. The total consideration for the sale of the Lottery Administration Business will be in the range of £0.25m to £0.6m contingent on a number of factors, some of which form part of matters still to be determined during final negotiation. As part of the heads of terms, the Company will receive from the Buyer an initial cash consideration. In addition to the Initial Consideration, the Company will receive a percentage of the Lottery Administration Business' sales annually for three years from the date of completion. Water Intelligence 1210p £222m (WATR.L) The multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water provided a trading update for the nine months ended 30 September 2021. The Group continues to perform strongly and by the end of Q3, has surpassed full year 2020 results for revenue, profits and EBITDA. Profit for full year 2021 is now expected to be at the upper end of consensus analyst estimates.
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Solid State is a manufacturer of computing, power and communications products, and value added supplier of electronic components. This morning, the group has released a robust update covering the six-month period to 30 September 2021, with the Willow and Active Silicon acquisitions performing ahead of management expectations. The order book as at the end of September stood at a record level of £61.5m, an increase of 48% since the beginning of the financial year and leading to the Board's confidence of achieving our full year expectations. On the back of the update, we leave our two-year earnings forecasts unchanged, seeing scope for these to be raised in due course, while reducing our year-end net debt expectation. Ascribing a 10% discount to the peer group median PER multiple of 22.8x would imply fair value for the shares of 1,220p.
The group has announced an encouraging half-year update, with a strong increase in revenues profits and order book seen. Unsurprisingly, there have been some supply chain challenges, although these have also resulted in customers placing longer-term orders thus giving the group better visibility as well as necessitating higher levels of stocking. Management indicates it is confident of achieving market FY expectations, with the potential for some upside in H2 dependant on component supply chain availability. While we make no change to forecasts, the buoyant tone will boost sentiment and we raise our price target from 1075p to 1260p. This is a company with good momentum.
Joiners No joiners today. Leavers No leavers today. What’s cooking in the IPO kitchen? Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world's best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bln of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Official List of the FCA and to trading on the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due mid-September VSA Capital has applied for admission to the AQSE Growth Market. VSA Capital is an international investment banking and broking firm, with offices in London and Shanghai, providing corporate finance, advisory and capital markets services to private and public companies Offer tba. Due 9 Sep Responsible Housing REIT to join the Main Market (Premium) in late September raising up to £250m. The Company's investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October. Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September. Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company's main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper. Our daily digest of news from UK listed Small and Mid caps Banquet Buffet Accesso Technology Group 905p £373m (ACSO.L) The premier technology solutions provider to leisure, entertainment and cultural markets, gives the following trading update ahead of its interim results which will be released on 14 September 2021. Through July, August and the Labor Day holiday period, accesso has built on excellent first half performance and continued to capture high demand for its technology solutions. As a result, trading during this period was very strong. The Group's ongoing momentum now leads the Board to revise upwards its expectations for full year 2021 revenues to not less than $117m. This represents full recovery to 2019 trading levels. This rapid growth in revenue alongside a slower return to normal operating expenses will result in Cash EBITDA being significantly ahead of current market expectations for both the half and the full year. The Group is currently deploying additional resources across technology implementation, product development and customer support to calibrate for the new demand. As previously signalled, these investments will have a limited impact on Cash EBITDA in 2021; their full annualised effect will be felt in the 2022 financial year. Cora Gold 18p £44.25m (CORA.L) Cora Gold has signed a new US$25m Mandate and Term Sheet with investment firm, Lionhead Capital Advisors Proprietary Limited to fund the future development of Cora's flagship Sanankoro Gold Project in Southern Mali. This is conditional on, among other matters, the completion of a Definitive Feasibility Study ('DFS') on the Project before the end of June 2022. This new Term Sheet replaces the previous one with Lionhead, which was announced on 18 June 2020 and was for US$21m. Updated Mineral Resources Estimate on target for Q4 2021 and completed DFS targeted for H1 2022. Lionhead prepared to syndicate +30% of the Term Sheet on the same terms with other investors. Diaceutics 115p £96.7m (DXRX.L) The diagnostic commercialisation company, announces the addition of two new Key Opinion Leaders to its Advisory Panel of experts to support and inform the development of its DXRX platform - the world's first diagnostic commercialisation platform for Precision Medicine. The new additions to the panel are Dr. Avi Kulkarni, Senior Vice President, Global Head of Life Sciences Research & Development at Cognizant, and Agathe Blanchon-Ehrsam, VP Long-Range Innovation and Portfolio Development at Danone. Dr. Avi Kulkarni has over 20 years' experience in Personalised Medicine and brings a leadership view that integrates four pillars: strategy, operational performance, entrepreneurship and scientific experience and scholarship. Dr Kulkarni previously held management consultancy roles at IQVIA and Booz & Co, before spending a decade in the biotechnology industry around Stanford University helping to build three biotechnology start-ups: CareDx/XDx (CDNA), Lumen Therapeutics, and Aviir. Agathe Blanchon-Ehrsam, will join the panel as a Strategy Advisor for the DXRX platform. She brings over 20 years of strategic consulting experience. Agathe has helped to build brands and grow organisations with strategic and hands-on experience across a variety of business situations from vision setting, strategy definition and leadership team facilitation, to complex team management, marketing campaign design and KPI optimisation. Gfinity 4.45p £41.4m (GFIN.L) The esports and gaming solutions provider, today announces the acquisition of the trade and assets of SiegeGG Corporation, which operates siege.gg, a leading website for statistics, analysis and news around the Rainbow Six Siege video game. SiegeGG with immediate effect will become part of the fast-growing Gfinity Digital Media group. SiegeGG Corporation, the previous owners of SiegeGG, will be issued with 9m new ordinary Gfinity shares in consideration for the Acquisition. The founders will also be entitled to an annual payment of 30% of revenues generated by SiegeGG, subject to appropriate caps, in the first two years following the Acquisition, payable in annual instalments at the end of each year. Additionally, the founders will be entitled to an annual payment of 20% of the net profits generated by SiegeGG subject to appropriate caps, in the first two years following the Acquisition. The SiegeGG management team will commence full time employment contracts with Gfinity. For the year ended 31 December 2020, SiegeGG reported unaudited revenues of $0.1m and profit before tax of c$40k. It had net assets on 31 December 2020 of $68k. It has already exceeded these revenue and profit figures in 2021 as it continues to grow. Gfinity directors believe that this growth can be significantly accelerated through inclusion in the GDM network. Ixico 80.5p £38.8m (IXI.L) The AI data analytics company delivering insights in neuroscience, announces that it has been awarded a contract by a new biopharmaceutical client to support its Phase I multiple system atrophy clinical trial. Multiple system atrophy (MSA) is a rare condition of the nervous system that causes gradual damage to nerve cells in the brain. Conducted across investigator sites within the Unites States, the clinical trial will enrol patients with the parkinsonian subtype of MSA (MSA-P) to assess the safety, tolerability, and preliminary efficacy of GDNF gene therapy for this rapidly progressing condition. For the study, IXICO will provide advanced neuroimaging solutions involving structural magnetic resonance imaging (MRI), FDG-PET and DaT scans. The study is worth more than $500k over 4 years Jadestone Energy 78.5p £365m (JSE.L) The independent oil and gas production company focused on the Asia Pacific region, provides an update on the planned completion of the acquisition of the 69% operated interest in the Maari asset, shallow water offshore New Zealand. Further to the Company's announcement on 31 August 2021, and following discussions with the seller OMV New Zealand Limited ), both Jadestone and OMV NZ have agreed to extend the long stop date under the Maari sale and purchase agreement to 31 December 2021. Both OMV NZ and the Company continue to work to satisfy the remaining outstanding conditions and to complete the transaction. However, and as previously disclosed, there is ongoing uncertainty in the timing of New Zealand Government approval. As a result, further updates on the Maari acquisition will only be made in the event that the transaction completes, or there is a material change in the status of the transaction. Lansdowne Oil & Gas 0.68p £5.9m (LOGP.L) The independent oil and gas company focussed on offshore Ireland, announces that at the AGM being held later today the following board changes will be announced and will come into effect on 09 September 2021. Viscount Torrington will step down from the Board with Jeffrey Auld taking over as Non-Executive Chairman of the Company. In addition Daniel McKeown has been appointed as an independent Non-Executive Director of the Company. Daniel graduated with a BA Economics & Political Science from the University of Dublin, Trinity College and a Diplôme de Grande Ecole (Commerce), Msc. in Management Science and Diplom-Kaufmann from ESCP Europe, Paris. He has more than 15 years of financial, commercial and operational experience in upstream oil and gas, having worked for Goldman Sachs, Perella Weinberg, SeaCrest Capital, Allied Irish Bank and Azinam Ltd. Solid State 1065p £91.1m (SOLI.L) AGM Statement from the specialist value added component supplier and design-in manufacturer of computing, power, and communications products. "The Board is pleased to report a continuation of the positive start to the year, as announced in July within our 2021 Annual Results. The order book is strong with an encouraging balance across industry sectors and regions, including a rebound in some sectors previously affected by COVID delays. The acquisitions of Willow Technologies and Active Silicon have quickly proven their value, resulting in new business which could not have been secured by either party alone. Solid State remains acquisitive for complementary technologies and international opportunities that would advance the Group's ambition of broadening its product and market exposure. The Group continues to invest in developing its product offering for targeted strategic growth markets and ensuring Group resilience through sector and product diversity. The Board remains alert to the challenges presented by global supply chain and COVID risks. The Group balance sheet strength and the experience of the management team have contributed to a mitigation strategy which has assisted greatly in navigating many of the hazards. The Board remains optimistic about the Group's prospects and will provide a trading update for the first six months of the financial year in October 2021." The Property Franchise Group 313p £100.3m (TPFG.L) The UK's largest property franchisor announced the acquisition of 80% of the issued share capital of The Mortgage Genie Limited (TMG). The initial consideration is £400k with an estimated additional payment of c.£90k once the post completion process has been satisfactorily finalised. TMG is a mortgage broker operating as an Authorised Representative of the PRMIS mortgage network which is owned by LSL Property Services Limited . In the year to 31 July 2020, TMG generated £950k of turnover and £71k of profit before tax and, with the improvement in the market since then, management are confident of exceeding that performance in the financial year ended 31 July 2021. Zephyr Energy 6.15p £75.3m (ZPHR.L) The Rocky Mountain oil and gas company focused on responsible resource development announced the acquisition of two additional non-operated near-term production portfolios in the Williston Basin, and a JV with Purified Resource Partners LLC related to ongoing non-operated business development efforts. The first acquisition purchased 72.5 net acres, resulting in an average 5.6% working interest (WI) in four drilled but uncompleted (DUC) wells operated by Prima Exploration Inc. (Prima) which target production from the Middle Bakken reservoir in Richland County, Montana, U.S. The second acquisition purchased an average 3.1% WI in 11 wells (one currently being drilled and 10 DUC wells) operated by Whiting Petroleum Corporation (Whiting), all of which target the Middle Bakken reservoir in Mountrail County, North Dakota, U.S. Total consideration for the new acquisitions is $968k which has been paid for from the Company's existing cash resources. The JV with Purified is for the identification and execution of additional non-operated acquisitions. Purified's principals have substantial experience in the Williston Basin, a basin in which they previously helped assemble and close over $70m of non-operated asset acquisitions and associated CAPEX for a private equity-backed vehicle. More recently, Purified assisted and/or co-invested in all four Williston acquisitions that Zephyr has closed this year, and their team will have the right to continue to co-invest up to 20% in future transactions.
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Solid State is a manufacturer of computing, power and communications products, and a value added supplier of electronic components. This morning, the group has released an upbeat AGM statement confirming that the positive trends in trading previously reported at the full year results in July have continued in recent weeks. The order book is described as ‘strong' with a good balance across industry sectors and geographies, including a rebound in certain segments that had been impacted by delays relating to COVID-19. Mitigating actions continue to be taken to address well-publicised broader supply chain challenges.
Solid State’s FY21 results were slightly ahead of consensus estimates, which were upgraded in February and again in April. Encouraged by a strengthening order book, management has confirmed its commitment to the goal it set in 2017 of doubling EPS to 60p/share by FY22, so the consensus EPS estimate has been increased by 9%.
Solid State is a manufacturer of computing, power and communications products, and a value added supplier of electronic components. This morning, the group has released full year results to 31 March 2021, providing a 6.4% beat at the EPS level, driven by a combination of a marginally better than expected PBT outturn and a lower tax rate. Since year-end, the order book at the end of May had increased to £51.0m, while supply chain challenges and component shortages have continued. On the back of the results, we have left our FY 2022E underlying assumptions broadly unchanged, while we assume a lower tax rate for the year, which leads to a 9.6% increase in our earnings expectation. Reflecting the uncertain supply chain backdrop and 5.5% higher YOY tax rate, we introduce what should be highly conservative FY 2023E forecasts; these having scope to be raised in due course. Driven by both the uplift in our FY 2022E earnings forecast and the upward re-rating of our peer group valuation multiples, we see fair value for the shares at 1,145p.
Full-year results to 31 March came in slightly ahead of previously upgraded forecasts, a good result during a pandemic year. The acquisitions of Willow and Active Silicon provide technology in key growth areas, with margin and cross selling opportunities. Macro supply chain issues may peg back delivery on a strong order book and recovering demand, with prices being passed through to customers. We increase trading forecasts slightly given uncertainties, with a tax benefit this year resulting in EPS up 8.7% to 60p. We increase our price target by 5% to 1075p. Recovery and possible M&A activity provide scope for upgrades to our conservative forecasts.
The recovery gathers pace. Company trading updates have been increasingly positive in recent months, as many point to an economic recovery that is gathering momentum, resulting in trading being better than expected and order books starting to show sustained improvement. Indeed, the rate of upgrades runs 60% greater than downgrades. A broad range of economic data confirms the recovery has gathered pace over recent months, supporting companies’ and analysts’ optimism. The UK PMI data for May now stands at 65.6 points, its highest for many years, while the Bank of England now predicts the fastest pace of economic growth since World War II. Many companies that have taken costs out during the pandemic should experience an accelerated drop-through.
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Solid State has issued a post-close trading update stating that FY21 performance is expected to be ahead of the consensus forecasts, which were upgraded in February to reflect positive trading up to that point. Broker consensus FY21e EPS has been raised by 8%. Consensus FY22 estimates, which were raised twice in March to reflect two separate acquisitions, have not been changed to reflect yesterday’s announcement.
Solid State is a manufacturer of computing, power and communications products, and value added supplier of electronic components. This morning, the group has released a trading update pointing to the fact that profitability in the year to 31 March 2021 is now expected to be ahead of recently upwardly revised expectations. Principally, this has been driven by both pulled forward demand, partly as a result of increased customer stocking due to certain component shortages, as well as a strong contribution from the group's two recent acquisitions. The year-end net cash position at £3.1m is also ahead of our forecast. Looking ahead, supply chain challenges and component shortages are likely to remain for some months and whilst customer order cycles remain shortened, it is worth noting the double digit increase in the near-term order book from the low point in May. FY 2022E YTD order intake trends are positive. On the back of the update, we have raised our FY 2021E earnings expectations by 8.4% whilst we leave our FY 2022E earnings forecasts unchanged for the time being. Our estimate of fair value for the shares now stands at 1,040p.
The group’s trading update points to a strong end to the year, exceeding recently upgraded forecasts. March saw some orders pulled forward as customers mitigated supply chain challenges evident (freight and logistics issues, semiconductor shortages). We therefore upgrade FY21 adjusted EPS by 7.6%, keeping FY22 unchanged. Our price target also increases, in line with the EPS upgrade from 950p to 1020p, offering good upside to the current FY22 P/E rating of 15.2x. This is an encouraging update, continuing its recent trend of upgrades, albeit with some supply chain challenges evident in the wider sector.
Solid State has acquired Willow Technologies, a manufacturer and value-added distributor of electromechanical products. The initial consideration payable is c £5.5m cash (net), financed from existing resources. Broker consensus FY22 EPS has been raised by 9% to reflect the earnings enhancement in the first full year.
Solid State is a manufacturer of computing, power and communications products, and a value added supplier of electronic components. This morning, and just two days on from its acquisition of Active Silicon, Solid State has announced the acquisition of Willow Technologies, including its US subsidiary American Electronic Components (AEC), a manufacturer and value added distributor of electro-mechanical products used in strategically important markets such as EV. The gross initial consideration paid is reported at £10.0m, which net of cash stands at £5.5m, and implies an initial c.10x net forward PER consideration multiple. On the back of this morning's announcement, we have left our recently upwardly revised FY 2021E earnings expectations unchanged and raised our FY 2022E estimate by 8.0%, again with an assumed cash consideration outflow either side of year end. We believe this latest acquisition is another positive strategic move for Solid State, expanding internationally in growth sectors, as well as bringing with it additional own brand product ranges. We view the FY 2022E PER multiple of 14.6x for Solid State as undemanding, with our estimate of fair value for the shares standing at 925p.
The group has made its second acquisition this week, announcing the acquisition of the Willow Technologies Group for an initial effective consideration of £5.5m. It is a good strategic fit, offering a springboard into the US and enhancing the group’s existing product offering, with good exposure to growth markets. We maintain our FY21 forecasts, with a full contribution in FY22 enhancing EPS by 9.4% to 55.2p. We likewise raise our PT by 9.4% to 950p, pointing to a fair value of 17.2x, attractive compared with the current P/E of 14.4x
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Subject to EGM on 21st March. Rogue Baron plc have announced its application for admission to the AQSE growth market. Rogue Baron owns five subsidiaries, namely: Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC. The Company’s goal is to build each of its brands that makes them a buyout target. Deal size TBC an expected admission date 12th March 2021. Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE. Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers. Total revenues were US$64.3 million, US$81.9 million and US$102.0 million for the years ended 31 December 2018, 2019 and 2020, respectively. The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50 million to support Trustpilot's growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees. Timing TBC. In The Style, the e-commerce womenswear fashion brand with an influencer collaboration model, announces their intention to float on AIM. In The Style is a pure-play e-commerce fashion brand with a l customer base of women predominantly aged between 16 and 35. Founded in 2013, the group has delivered £35.4 million net sales and £3.6 million Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7 million for the nine months to 31 December 2019. Admission is expected to take place on or around 17 March 2021. Deal size TBC. Media reports video game firm, Catalis is mulling a London IPO, just over a year after being bought by a private equity firm. Catalis’s accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m. Deal details and timing TBC. tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5m. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo is expecting to release its IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
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Solid State is a manufacturer of computing, power and communications products, and a value added supplier of electronic components. This morning, and one week on from its recent positive trading update, the group has announced the acquisition of Active Silicon, a specialist designer and manufacturer of circuit board level solutions for high-performance digital image capture, processing and transmission. The gross initial consideration stands at £6.3m; however, net of cash this falls to £2.7m, implying a net historic acquisition PER multiple of 9.0x and forward 10.8x based on our forecasts. On the back of this morning's announcement, we have left our recently upwardly revised FY 2021E earnings expectations unchanged and raised our FY 2022E estimate by 5.9%, with an assumed cash consideration outflow either side of the year end. Whilst this acquisition is relatively small, strategically we view it as a very sensible move, expanding Solid's presence through the addition of complementary technologies in a growth segment where Steatite already has an established presence. Ultimately, we view the FY 2022E PER multiple of 15.1x for Solid State as undemanding, with our estimate of fair value for the shares standing at 885p.
Solid State has acquired Active Silicon, which designs and manufactures imaging and embedded vision systems that support the capture, processing and transmission of image data in high performance and critical environments. The initial consideration payable is £2.7m cash (net), financed from existing resources. Broker consensus FY22 EPS has been raised by 5% to reflect the earnings enhancement in the first full year.
The group has announced the acquisition, of Active Silicon, a digital image processing and transmission business for an effective cost of £2.7m. It is complementary and additive to the group’s position in opto-electronics and embedded computing. The acquisition is EPS enhancing in its first year, with a 4% upgrade to 50.4p. We also raise our PT by 4% from 835p to 868p, offering decent upside to the current share price. This bolt-on acquisition should be taken well as a useful strategic enhancement to Steatite’s technical capabilities.
Solid State’s trading update states that FY21 adjusted profits are likely to be ahead of consensus estimates and FY20, which was itself a record performance. Noting the potential impact of global semiconductor supply chain issues and continued customer uncertainty related to the coronavirus pandemic, management expects FY22 performance to be comparable with this year.
Solid State is a manufacturer of computing, power and communications products, and value added supplier of electronic components. This morning, the group has released a short trading update, pointing to the fact that profitability in the year to 31 March 2021 is now expected to be ahead of market consensus estimates and above the previous financial year, itself a record performance. This has been principally driven by a stronger mix of revenue for higher value-added products, services and solutions. Whilst mindful of both extended delivery times for semiconductor components and shortened customer order schedules having the potential to cause programme delays in FY 2022E, the Board anticipates a similar trading performance to the current financial year. On the back of this morning's announcement, we have raised our FY 2021E earnings expectations 10.0% higher and at the same time reintroduced FY 2022E forecasts. Reflecting the upgrade to estimates, alongside the expansion of multiples now ascribed to peers, we see fair value for the shares at 885p.
Solid State is a manufacturer of computing, power and communications products, and value added supplier of electronic components. This morning, the group has released a short trading update, pointing to the fact that profitability in the year to 31 March 2021 is now expected to be ahead of market consensus estimates and above the previous financial year, itself a record performance. This has been principally driven by a stronger mix of revenue for higher value-added products, services and solutions. Whilst mindful of both extended delivery times for semiconductor components and shortened customer order schedules having the potential to cause programme delays in FY 2022E, the Board anticipates a similar trading performance to the current financial year. On the back of this morning’s announcement, we have raised our FY 2021E earnings expectations 10.0% higher and at the same time reintroduced FY 2022E forecasts. Reflecting the upgrade to estimates, alongside the expansion of multiples now ascribed to peers, we see fair value for the shares at 885p.
The group has announced a positive trading update in advance of its March year-end. The update highlights that despite the various challenges of the past year, profit for the year is ahead of market expectations and has creditably exceeded the record profit performance of FY20. As such, we are upgrading our FY21 EPS by 10.2%. Noting some areas of caution, we introduce FY22 forecasts which conservatively factor in slight growth. We raise our price target from 720p to 835p, with a target FY22 P/E of 17.2x, offering decent upside to the current level of 15.9x, and remaining a discount to many peers.
Looking beyond lockdowns. As we continue through what is hopefully the final phase of the pandemic before vaccines start to take effect, the current lockdown is likely to have a minor effect on the sector. In combination with a last minute, albeit ‘barebones’ Brexit trade deal, there is good reason to start to become more optimistic about prospects for the sector, with two big uncertainties clouding investment decisions now becoming a lot clearer. As many capex decisions are fairly binary, greater confidence should help unlock corporate investment following a year of carefully husbanding cash. This may also result in a bounce in M&A activity. Looking at PMI and industrial production data, we see further upside after the progressive recovery from pandemic low points.
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Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
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Solid State is a manufacturer of computing, power and communications products, and a value added supplier of electronic components. This morning, the group has released interim results to 30 September, very much in line with the trading update at the end of October and our own expectations, these illustrating both a robust trading performance and good cash generation in the period. The group reports that whilst it has seen a shortening of order schedules, encouragingly, the three month rolling average order intake at the end of November was ahead by 8% compared to the end of September. Reflecting these trends, we reintroduce FY 2021E estimates this morning, looking for PBT of £4.4m and EPS of 43.1p, whilst we leave our FY 2022E forecasts under review for the time being. Solid State benefits from an inherently cash generative business model and is well positioned in our view to emerge as one of the winners in its markets when normal service resumes. On a current year PER of 15.1x, the shares trade at a 23% discount to our peer group multiple, which we believe is unjustified. We see fair value for the shares at 738p.
As flagged in its post-close trading update, Solid State’s revenues and adjusted profits for H121 are similar to those for H120, despite the coronavirus pandemic. While the shortening of client order scheduling related to the uncertainty caused by the pandemic has continued into H221, management notes recent positive trends in order intake and reiterates its view that the FY21 performance will be similar to FY20.
The group has continued to deliver positive results through the pandemic, assisted by a strong opening order book and an outperformance vs the underlying market data. The board is indicating that it is confident of achieving pre-pandemic targets, with profit at a similar level to the prior year. The shares remain on a discount to its peers and our 720p price target is based on a P/E target of 16.5x.
Torquing Points: With a significant and growing proportion of the UK population now in either tier two or tier three lockdown for COVID-19, and as we head into the winter months, it appears the current restrictions will have relatively less impact on Industrials compared to those of the spring lockdown. The Industrials have generally seen a progressive, month-by-month improvement in trading, and macro data confirms a recovery trend with the industrial PMI around 53 to 54 indicating positive momentum. It is difficult to know at this point whether this is pent up demand or a sustainable trend, or whether momentum will drift off. Export-orientated industrials will have benefitted from other countries being relatively stronger than the UK domestic market (the UK is the second weakest economy in the G7) albeit with the uncertain potential of a hard Brexit New Year. Construction and RM&I orientated companies have seen a strong summer, while those with oil & gas, or aerospace exposure have fared less well. ESG: We recently published an important report on Environmental, Social and Governance (ESG) investing and the small and mid-cap sector. This should be of interest to companies and investors alike. The Industrial Technology sector scored well in our report, gaining a #1 rating, despite the inherent disadvantage that manufacturing often results in an intensive environmental footprint. We look closer at how the Industrial respondents fared in each category and where progress can be made.
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Solid State’s post-close trading update states that, despite the coronavirus pandemic, it expects to announce revenues and adjusted profits for H121 that are similar to those for H120, which was a record first-half performance for the group. Although management notes some delays in order intake and a shortening of client order scheduling related to the uncertainty caused by the pandemic, it currently anticipates that FY21 performance will be similar to that for FY20.
The group’s H1 trading update is reassuring, with a strong first half, pointing to a continuation of previously indicated trading patterns. Revenue and profit has been resilient, while cash flow has been strong, returning to normalised patterns having repaid PAYE and VAT and also its final dividend in September. H1 trading benefited from a strong order book heading into the lockdown and due to some delays in order intake over recent months has an order book around 7% less than last year. Management is cautiously optimistic, but still considers that the trading outlook remains uncertain, so guidance remains withdrawn. As such, we look to the December interims to resume forecasts, when order visibility will be clearer.
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.
Amino Technologies (AMO): Corp | Destiny Pharma (DEST): Corp | Lok'nStore (LOK): Corp | Savannah Resources (SAV): Corp | Solid State (SOLI): Corp
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MobilityOne Ltd* (MBO.L, 9.5p/£10.1m) | Maestrano plc (MNO.L, 7.0p/£5.6m) | GetBusy plc (GETB.L, 86p/£41.6m) | Solid State plc (SOLI.L, 580p/£49.5m)
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As flagged in the April trading update, Solid State’s FY20 results showed a 19.7% growth in revenues and 34.3% jump in adjusted profit before tax. Demand from the medical and food retail sectors is strong but weakness in the oil & gas and commercial aviation sectors related to the coronavirus pandemic is likely to result in lower year-on-year sales during Q2 and early Q321. While management sees potential for a Q4 recovery, the current range of FY21 profit outcomes is wide, so it is not providing guidance.
Full year results ahead - robust position against uncertain near-term backdrop Solid State is a manufacturer of computing, power and communications products, and value added distributor of electronic components. This morning, the group has released full year results with PBT and EPS slightly better than our upwardly revised forecasts had assumed and reflecting a strong margin performance in the year. As previously flagged, cash generation was particularly strong. The group entered FY 2021E with a strong order book, which is reported to have stood at £37.9m as at 31 May 2020, an increase of some 5.6% from a year earlier. With little in the way of cancellations or deferrals of orders, Q1 2021E revenue has held up well, whilst order intake has been just under 15% lower than the prior year, which suggests a weaker revenue performance in Q2/Q3 but with the tender pipeline implying a potentially stronger Q4. Reflecting the present uncertainty, we leave our forecasts under review for the time being. Fundamentally, and backed by a strong balance sheet, we believe that Solid remains well positioned to come through the current crisis and will emerge as one of the winners when normal service resumes.
Cambridge Cognition (COGC.L): Corp | D4T4 Solutions (D4T4.L): Corp | Filtronic (FTC.L): Corp | Robinson (RBN): Corp | Solid State (SOLI): Corp
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Full-year results were at a record level and slightly ahead of expectations by £0.2m at the adjusted PBT level, or 2.8% better at the EPS level. Cash generation was also stronger than expected, resulting in net cash of £3.2m. The dividend was maintained – a sign of confidence. Good strategic progress was made, helped by the integration synergies of Pacer and new product development programmes. Our forecast and price target remain under review given COVID-19-related uncertainties.
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.
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Amino Technologies (AMO.L): Corp | Solid State (SOLI): Corp | Surface Transforms (SCE): Corp
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The group has announced a positive trading update for the first two months of the year, with trading ahead of expectations, a higher level of net cash and the intention to declare a final dividend of 7.25p at its forthcoming FY 2020 results. This is a positive outcome, despite the effects of COVID-19. The medical and food retail sectors have seen encouraging growth, offsetting weaker aviation and transport sectors. The shares look good value on a P/E of 12.2x and despite a recent bounce they continue to trade below pre-COVID levels. With decent trading momentum, they look well positioned to outperform.
Solid State expects to beat the consensus FY20 adjusted profit before tax estimate, which was upgraded in September, resulting in a further consensus upgrade from £4.2m to £4.5m. All of the group’s four sites in the UK remain operational as it is a critical supplier for customers in the medical, food retail, security, transportation and defence sectors, the balance sheet is strong and management has put cash conservation measures in place to cope with the impact of the COVID-19 pandemic.
Solid State is a manufacturer of computing, power and communications products, and a value added distributor of electronic components. This morning, the group has released an update pointing to a strong performance in the year to 31 March 2020, including a c.10% beat at the PBT level driven by higher margins, with a strong cash performance also, in part reflecting advanced payments. The order book as at 31 March increased by 11% against a year earlier to £39.9m, and whilst more than 85% is presently due for delivery in the current financial year, management is mindful of the potential for some re-scheduling of orders into FY 2022E given the present COVID-19 lock downs. On the back of this morning's update, we have raised our FY 2020E PBT estimate by £0.3m to £4.5m, whilst our year-end net cash estimate increases by £2.3m to £3.0m. Given the present uncertainty, we place our FY 2021E and FY 2022E forecasts under review for the time being, ahead of a further update and prior to the full year results. Fundamentally, and backed by a strong balance sheet, we believe that Solid remains well positioned to come through the current crisis and will emerge as one of the winners when normal service resumes.
Europa Oil & Gas (EOG): Corp | Revolution Bars Group (RBG): Corp | Solid State (SOLI): Corp
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The company has released its year-end trading update, highlighting revenues are in line with expectations, with adjusted PBT 10% ahead of consensus, boosted by a better margin mix. Cash conservation and cost controls are in place to cope with the impact of COVID, but recent cash performance now places them with net cash of £3.0m. The 31 March order book increased 11% to £39.9m, with some order slippage anticipated due to COVID lockdown effects. We remove our forecasts for FY 2021 and price target due to current uncertainties.
Torquing points: It is impossible not to discuss the current pandemic and its effects on the industrial technology sectors. It often appears the share price reactions have been indiscriminate. Without doubt Q2 will experience a very severe contraction in the UK and across Europe and the US. It really is a perfect storm: lockdown will affect order flow and also the flow of raw material inputs and distribution of finished goods. Investors must now look for those who will prevail. The pandemic, first in China and now worldwide, has placed a focus on companies’ supply chains. Companies that have demonstrated a diverse and robust supply chain will inevitably be better placed to be flexible and responsive to changing geographic disruption. In an increasingly risk-averse market, businesses with net cash or fluid working capital positions will be more robust. Companies must now focus on cash generation and effective mitigating actions such as salary furloughs and dividend cuts. Indeed, a growing number of companies have already suspended their dividend payment.
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Amino Technologies (AMO): Corp | Belvoir Group (BLV): Corp | Bioventix (BVXP): Corp | Maintel (MAI): Corp | Morses Club (MCL): Corp | PCI Pal (PCIP): Corp | Solid State (SOLI): Corp | Somero Enterprises (SOM): Corp
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Powering ahead from solid foundations Solid State is a manufacturer of computing, power and communications products, and value added distributor of electronic components. Interim results in December demonstrated the strength of progress being delivered, putting the group well on track to meet our FY 2020E expectations and moving back into a net cash position for the first time since the acquisition of Pacer in 2018. Solid State benefits from a diverse base of business, operating in market niches, and is positioned well to take advantage of higher margin growth opportunities given their technical expertise. The shares performed extremely well in 2019, driven by earnings upgrades and the positive momentum being demonstrated. Set against this, the presently ascribed valuation multiples remain at a discount to its nearest quoted peers. We see fair value for the shares at 738p.
Solid State (SOLI) – Corporate – Powering ahead from solid foundations Market Cap £53.7m Share Price 633p Solid State is a manufacturer of computing, power and communications products, and value added distributor of electronic components. This morning we have published a 24pp note setting out our investment thesis following a strong period for the group. Interim results in December demonstrated the strength of progress being delivered, putting the group well on track to meet our FY 2020E expectations and moving back into a net cash position for the first time since the acquisition of Pacer in 2018. Walker Greenbank (WGB) – Corporate – Full year trading update in line; strategic progress emerging Market Cap £50.4m Share Price 71p 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 a full year trading update, confirming that results for the year to 31 January 2020 will be in line with expectations. Against a challenging wider market backdrop, Morris & Co, Clarke & Clarke, core licensing and digital fabric printing have performed strongly, with the year-end net cash position standing at c.£1.0m (ex IFRS 16). Serinus Energy (SENX) – Corporate – Moftinu 1004 Well Successfully Tested at 6.0 mmcf/d Market Cap £24.5m Share Price 10.3p Serinus has announced that the Moftinu 1004 well produced on test at a maximum stable rate of 6.0 mmcf/d (1,000 boe/d) with no progressive pressure decrease throughout the test, which was undertaken with a 40/64” choke. Jersey Oil & Gas (JOG) – Corporate – Buchan Note Published by WHI Market Cap £21.8m Share Price 103p WHI view: Jersey supported by Rockflow Resources, petroleum consultants, has estimated that the development of the Buchan field has a potential to recover 58.5 mmb, 81.2 mmb and 99.3 mmb of oil under low, mid and high cases respectively. We met recently with Jersey and Rockflow to better understand the Buchan field and its forward looking production potential. We have gained confidence in the company's resource estimates and we have outlined our reasons for that in a note published today.
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Solid State is a manufacturer of computing, power and communications products, and value added distributor of electronic components. Interim results in December demonstrated the strength of progress being delivered, putting the group well on track to meet our FY 2020E expectations and moving back into a net cash position for the first time since the acquisition of Pacer in 2018. Solid State benefits from a diverse base of business, operating in market niches, and is positioned well to take advantage of higher margin growth opportunities given their technical expertise. The shares performed extremely well in 2019, driven by earnings upgrades and the positive momentum being demonstrated. Set against this, the presently ascribed valuation multiples remain at a discount to its nearest quoted peers. We see fair value for the shares at 738p.
Election implications for the Industrial sector: The Conservative Party’s now stable working majority provides clarity, with the withdrawal agreement expected to be rapidly enacted. Status quo in most policy areas, except a stark change from a promised fiscal stimulus through higher spending on public services and investment programmes, which could kick-start activity. We see a recovery in consumer confidence boosting activity in the DIY and housing sectors, and greater infrastructure expenditure will also boost a number of construction-related industrials. While the sector participates in a Boris Bounce, we regard the recent strength of sterling cautiously, affecting international competitiveness and reducing the translation of overseas earnings, although it helps to reduce the price of imported raw materials. The renewed threat of a no deal Brexit has resulted in sterling giving up much of its gains.
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Solid State delivered an 11% pro forma increase in group revenues and a 60% jump in adjusted profit before tax during H120. While some of this increase was attributable to factors such as favourable forex, which management expects will reverse in H220, the group is showing a sustainable benefit from the acquisition of Pacer in November 2018 and a drive to higher margin added-value activities in the Manufacturing division. Management is confident of meeting consensus expectations for the year, which are broadly unchanged since the September upgrade. The shares continue to trade at a substantial discount to peers for prospective P/E.
Gooch & Housego (GHH): Corp Full-year results, trading on track for FY 2020 forecasts | Solid State (SOLI): Corp Interim results – trading on track
Solid State plc Gooch & Housego PLC
This morning’s interims illustrate, as expected following the trading update of 24 October, a very strong H1 2020E performance with a 43% rise in revenue (+11% organic) driving a 61% increase in adjusted PBT. These results represent 49% and 63% of our FY 2020E revenue and PBT expectations respectively. Key standouts were the Manufacturing division (Power in particular, bolstered by good demand for battery packs), which grew revenue by 22%; and a group forward order book +5% LFL at £37.8m. Whilst the latter underpins our full year expectations, caution over wider macro events and movements in FX lead us to maintain our upgraded full year expectations for the time being. Even so, the shares continue to trade at a material discount to our estimate of fair value of 640p, which is based on a current year PER of 15x against its closest quoted peer discoverIE on 17x.
Interim results show a decent level of organic growth and points to trading being on track to achieve full-year expectations. Trading remains at a record level with improved gross margins and operational drop through. Sector diversity has increased. Cash generation has been creditable, allowing for the early pay-down of Pacer-related loans. No change to forecasts. The shares have performed well on the back of several upgrades over the past year, a combination of acquisitions and contract wins, but still trade at a discount to its peer averages and continue to offer good upside with trading momentum remaining positive.
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
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Alumasc (ALU): Corp AGM trading update – on track with restructuring | Braemar (BMS): Corp Change and uncertainty drive value | Shoe Zone (SHOE): Corp Early signs of restored positive trading momentum | Solid State (SOLI): Corp H1 trading update – in line with stronger cash flow
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The group has announced a positive trading update, with trading overall trading in line with recently upgraded FY expectations. Trading continues at a record level with revenue of about £33m, with improved gross margins and operational drop-through resulting in H1 adj PBT of c£2.5m. Cash flow has been strong with the earlier than expected pay-down of Pacer-related debt resulting in a small net cash position at the period end. No change to forecasts. The shares have been good performers on the back of positive trading updates, EPS-enhancing acquisitions and a strong strategy. Momentum should remain positive and the shares still look decent value. We maintain our price target of 610p, which offers good upside to current levels.
Solid State (SOLI LN, £42m) H1 20 trading update (30/09) - on track to deliver (recently upgraded) FY expectations; organic sales growth +7.5% in H1 and adj. PBT of £2.5m; gross margin improvement from FX despite dilution from Pacer acquisition; open order book £36.5m vs. pro-forma £36.2m at Sept 2018.
African Export-Import Bank a supranational financial institution w hose purpose is to facilitate, prom ote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE. DNEG Limited intends to apply for adm ission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities. The Offer will be comprised of new Shares to be issued by the Company (to raise expected gross proceeds of £150m). Admission is expected to take place in November 2019.
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Entertainment AI (EAI) - This was an RTO into Blockchain Worldwide (BLOC), It has also transferred from the standard list to AIM. Focused on providing its global automotive and lifestyle audiences and its strategic partner audiences with real-time access, in a frictionless way, to "in the moment" opportunities from more relevant short form video content to "one-click" e-commerce, £8.6m raised. H1 2019 actuals - GTChannel subsidiary's MCN gross advertising revenue at $8.7 m, up 107%
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In our July update, we noted there was scope for Solid State to upgrade FY20 guidance depending on Pacer’s performance and margin contribution from individual manufacturing contracts. After a strong start to the year, management has announced that FY20 profits will be significantly ahead of expectations, while revenues remain in line with the original consensus. Consensus FY20 and FY21 EPS estimates have been raised by 14% and 9%, respectively. The shares continue to trade at a substantial discount to peers for prospective P/E.
The company has announced a positive trading update for the first four months of the current year, pointing to trading being significantly ahead of expectations. It comments it has seen a strong start to the year, with an improved sales mix, production efficiencies and with a better than expected performance from Pacer. We therefore upgrade our 2020 EPS forecast by 13.6%. We therefore also increase our price target by 12% from 546p to 610p. This is the latest in a number of upgrades over the past year and this announcement should be taken well by the shares.
Belvoir Group (BLV): Corp H1 EPS up +23% emphasises the opportunity | Frenkel Topping (FEN): Corp Numbers look assured, clearing a path for the next stage | Solid State (SOLI): Corp Positive update – trading ahead of expectations
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The momentum reported in July when SOLI issued record FY19 results has continued into FY20 with today’s update noting that profits in the first four months of the year are “significantly” ahead of expectations. There are a number of reasons for this, some of which cannot be expected to continue in H2. Nevertheless, the strength of the update leads to some meaty upgrades to forecasts this morning: ~15% to FY20 and ~10% to FY21. In our view, the shares trade at far too large a discount to closest peer, discoverIE: on the same P/E rating, SOLI would be worth 630p/share.
SEC S.p.A. Adm ission is follow ing a reverse takeover under Rule 14 by SEC S.p.A of Porta Com m unications 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.
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No-deal Brexit now the default: The change in the UK political leadership clearly signals that the likelihood of a no-deal Brexit has moved from 100-1 and now appear to be odds-on. Michael Gove recently confirmed that this should be regarded as the default position that we should all prepare for. Already, the new Prime Minister Boris Johnson has highlighted a number of new policies and spending projects, with a focus on high-profile infrastructure projects. The chequebook is open, with an additional £2.1bn of funding just announced. Deficit control and reduction is no longer the prime objective and Treasury funding will be used to ease the process of Brexit. We hope this may be a good news for those at the sharp end of international trade.
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Crowning a year in which broker consensus was raised three times (twice in response to trading updates and once for an acquisition), Solid State has reported record revenues, profit before tax and dividends for FY19. This is the result of continued strong demand in the Value-Added Distribution (VAD) division, the Pacer acquisition and the anticipated H2 recovery in the Manufacturing division materialising. The consensus FY20 EPS estimate has been raised by 7%. The shares continue to trade at a substantial discount to peers with regards to prospective P/E.
FY results confirm strong trading with EPS ahead of forecasts as flagged at the pre-close update. Trading momentum accelerated through Q4, while Pacer also boosted growth. A strong order book provides a good foundation to start this year, although the outlook statement notes recent order intake has been a little softer, but remains on track to deliver existing Board expectations. We raise our 2020 EPS forecast by 7.6% and lift our price target from 475p to 546p, with outperformance expected, driven by positive momentum helped by Pacer, recent franchise awards and the potential for further earnings-enhancing acquisitions.
HML Holdings (HMLH): Corp Good final results | Independent Oil & Gas (IOG): Corp Corporate update | InnovaDerma (IDP): Corp Positive trading update | Solid State (SOLI): Corp Strong FY results, EPS upgrade
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SOLI has delivered its best ever results for the year ended 31 March 2019. These were in line with expectations (revenue was in fact a small 2% beat) and round off a busy year which saw us upgrade forecasts no fewer than three times (two for purely trading reasons and one for the acquisition of Pacer). A standout was the group gross margin which at 29.1% was some way better than the 27.5% achieved last year. Some of this was mix related, hence we do not expect the current year to be as high. Nonetheless, the strength of the forward order book at £35.9m (+56% y-o-y/ +20% organic) leads us to put through some small upgrades to current year forecasts this morning - 6% at the adjusted EPS level.
Solid State has announced that FY19 profit will be slightly ahead of the £3.5m in consensus estimates, as will revenue at c £56m. This is the result of continued strong demand in the Value Added Distribution division and the anticipated H2 recovery in the Manufacturing division materialising. Consensus FY19 and FY20 estimates are unchanged following the January upgrade, supported by an order book at end March 2019 that was 40% higher than a year previously. While the share price has responded positively to the news, the shares continue to trade at a substantial discount to peers with regards to prospective P/E.
Anglo African Oil & Gas (AAOG): Corp Formal offer of new Tilapia licence | PPHE Hotel Group (PPH): Corp Strong start to the year | SCISYS (SSY): Corp Additional orders cement SCISYS position with the ESA | Solid State (SOLI): Corp Encouraging FY trading update
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Solid State (SOLI) – Corporate – Pre-close update slightly ahead of upwardly revised expectations | Dillistone Group (DSG) – Corporate – FY Results in line with PBT views – 2019 starts well
Solid State plc Dillistone Group Plc
Where are we in the cycle? There has been plenty of debate about what stage of the cycle we are in at present, and indeed the shape and duration of the current prolonged upcycle. We are, clearly in the more mature stages of the cycle and it is true to say that certain economic indicators have weakened. It currently appears that we are not heading into a downturn, or a recession, but rather a flattening-off in the global long up-cycle. The good news is that Chinese stimulus measures appear to be having some positive effects (recent Q1 data show GDP growth of 6.4% while industrial production rebounded 8.5% in March); equally, Sino/US trade disputes appear to be progressing towards being resolved, or at least ameliorated, which holds open the possibility of a relaxation of tariffs (or at least no additional ones). UK data continues to point to meagre growth, but this is being affected by Brexit. Growth remains lacklustre and the recent slight increase in PMI is related to additional Brexit buffer stock-building in March. The risk now is that the EU ‘flextension’ until the Autumn means that there is scope for some short-term destocking – which will cause a gap in some manufacturers’ orders. This lack of clarity and demand volatility causes production inefficiencies and makes business planning and forecasting more difficult, causing some to postpone investment decisions. The decline in business investment remains a serious issue for heavier, late-stage industrial equipment manufacturers and for longer-term UK competitiveness. This is especially the case given the revolution in manufacturing coming from IoT automation, robotics and other innovations such as electric vehicles/battery technology, 3D printing etc. If we fall behind in these areas, it will seriously damage longer-term productivity and international competitiveness
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This is a really encouraging announcement, with stronger underlying demand as well as the start of new shipments and improvements in the gross margin mix. Revenues are ahead of expectations and profits for the year are said to be significantly ahead – as such we upgrade our EPS forecast for 2019 by 26.4% and 2020 by 21.2%. We also raise our price target from 400p to 475p (up 19%). This announcement should be taken well and we see good scope for share price performance.
Solid State has announced that FY19 results will comfortably exceed previous market expectations on the back of continued strong demand in the Value Added Distribution division and the anticipated recovery in the Manufacturing division materialising. Consensus revenue estimates have risen by 3% and 5% for FY19 and FY20 respectively, and PBT estimates by 25% and 21%. While the share price has responded positively to the news, the shares continue to trade at a substantial discount to peers.
SOLI has delivered a forecast-busting trading update this morning noting that adjusted PBT for the year to 31 March 2019 will be significantly ahead of market expectations. This represents the third consecutive upgrade since October. Value Added Distribution has been the standout whilst Manufacturing has recovered some of its H1 shortfall. The integration of recent acquisition Pacer is also said to be progressing well. We are upgrading current year numbers substantially today (adj PBT and EPS +26%) and, given increased momentum, put through solid upgrades to FY20 as well (adj PBT and EPS +21%).
SOLI has delivered a forecast-busting trading update this morning noting that adjusted PBT for the year to 31 March 2019 will be significantly ahead of market expectations. This more than reverses the downgrades put through last April as a result of uncertainty in the Communications business and is the third consecutive upgrade since October. Value Added Distribution has been the standout whilst Manufacturing has recovered some of its H1 shortfall. The integration of recent acquisition Pacer is also said to be progressing well. We are upgrading current year numbers substantially today (adj PBT and EPS +26%) and, given increased momentum, put through solid upgrades to FY20 as well (adj PBT and EPS +21%).
Best of the Best (BOTB): Corp Strong H1 = Yet another positive profit surprise | Solid State (SOLI): Corp Positive trading update – 26% EPS upgrade | STM (STM): Corp Building blocks firmly in place after governance upgrade
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finnCap’s Industrials Brexit Survey. As Brexit is now only around 100 days away, we decided that – despite continuing uncertainties – it would be interesting to conduct a 10-question survey to investigate how management expects the small and mid cap Industrial sector to be affected by Brexit. We focused on what sensitivities they have to potential supply chain delays, raw material import prices, reductions in regulatory red tape and whether they expected changes to their ability to export to the EU, and if there are opportunities to boost trade with the rest of the world. Overall, 82% of companies responded that Brexit would be negative for their company with only 18% expecting no effect. Not a single company thought it would be positive. We hope that the survey responses will not only be of valuable insight to investors but also give company directors a broader consensus of how their competitors, customers and suppliers are all likely to react.
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Half-year results were in line with the upbeat period-end update, which pointed to trading ahead of expectations, when we upgraded our forecasts. Following the recent Pacer acquisition, we also upgraded forecasts. We therefore maintain current forecasts, looking for a stronger H2 from both underlying trading as well as boosted by Pacer’s contribution. Both Manufacturing and Distribution have traded well in H1 and have a good order book and momentum for H2. The shares are starting to recover from deeply oversold levels and still offer upside to our maintained 400p price target.
As flagged in the trading update last month, Solid State’s H119 results show mid-single digit increases in group revenues and EPS. The order book at end H119 was 64% higher than a year previously, underpinning management’s expectations of an improved H219 performance in Manufacturing. Although consensus estimates show the acquisition of Pacer Technologies, announced a week ago, delivering meaningful earnings growth in FY20, the shares continue to trade at a significant discount to peers.
Europa Oil & Gas (EOG): Corp Moving into the drilling phase | Solid State (SOLI): Corp Interim results – a stronger H2 in prospect
Solid State plc Europa Oil & Gas (Holdings) plc
H1 results inline: strong art and underlying resilience | Interim Results put SOLI well on track for FY
Solid State plc FIH Group plc
FIH Group (FIH) – Corporate – H1 results inline: strong art and underlying resilience | Solid State (SOLI) – Corporate – Interims put SOLI well on track for FY
Solid State has announced the acquisition of Pacer Technologies, a value-added distributor of opto-electronic components and displays, for c £3.7m cash. Although the transaction is earnings enhancing, triggering a 4.0% uplift in the FY20 consensus EPS, the share price has not moved materially in response to the news and we believe the shares continue to trade at a significant discount to peers.
The company has announced the acquisition of Pacer, a specialist added-value distributor, for £3.7m. The business is complementary, with a number of positive attributes, including a premium gross margin, a new added-value facility, strong specialist niches with access to new markets including optoelectronics products, medical sector customers, with 40% of sales overseas, and a US facility. Pacer is expected to be 3% EPS enhancing in its first full year. The shares continue to look good value and our 400p price target offers plenty of upside.
Solid State (SOLI): Corp Acquisition of Pacer – entering optoelectronics
SOLI has this morning announced the acquisition of Pacer Technologies, a specialist Optoelectronics and Displays business with operations in Pangbourne and Weymouth. The business will sit in SOLI’s Value Added Distribution division and has a slightly better gross margin than the existing distribution business. The £3.7m cash consideration (plus the assumption of Pacer’s net debt) is being funded through existing and new debt facilities with Lloyds Bank and, as such, is expected to be earnings enhancing in its first full year of ownership even without any assumed synergies or efficiencies.
Solid State’s pre-close trading update notes that group H118 revenues will be c 4% ahead of prior year levels. Moreover, the 64% year-on-year increase in order book at end H119 leads management to believe the group will exceed FY19 market expectations. Consensus EPS estimates have risen by 7.9% and 5.0% for FY19 and FY20 respectively. Despite a favourable response to the news, the shares continue to trade at a significant discount to peers.
SOLI has released a very upbeat H1 trading statement this morning noting that the full year outcome will be ahead of expectations. The Value Added Distribution business in particular is doing very well indeed (helped by the winning of the VPT franchise earlier this year and, to a degree, by favourable FX) whilst the open order book is at a record £29.6m, a 64% y-o-y increase and £6.6m ahead of the last reported figure as at 31 May. This should help to arrest negative sentiment towards the stock (share price -37% YTD) following a blip at the communications business earlier this year. We upgrade our current year PBT and EPS forecasts by 8% (and by 4% for 2020E) meaning that the shares now trade on a current year P/E of 10.4x and yield 4.2%.
Solid State (SOLI) – Corporate – Positive H1 update marks the start of a recovery | Aura Energy (AURA) – Corporate – Vanadium potential in Tiris
Solid State plc Aura Energy Limited
This edition we dedicate to the nascent electric vehicle market and associated supply chain. We have assessed the entire ecosystem in the UK and what technologies are currently available, and would highlight the following three conclusions: 1) The UK has developed a remarkably good ecosystem to enable the development and commercialisation of EV components and technology; 2) The dawn of the fully electric vehicle is going to bring about a radical simplification of the Automotive supply chain; and 3) EV isn’t the only way forward, and we see a clear role for Hydrogen, Biofuels and Synfuels.
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At Solid State’s AGM earlier this month, management noted a positive start to FY19 in both divisions. The Manufacturing division is expected to benefit from contracts totalling £4.3m to supply power units for autonomous robots operating in cold climate conditions. The Distribution division has recently announced a $3.2m long-term supply agreement with the UK’s leading international defence, aerospace and security company for military-grade power supplies. These contracts underpin consensus estimates, which remain unchanged.
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
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As flagged in the April trading update, during FY18 Solid State found it more difficult to win communication contracts in the current ‘America first’ environment. The relative lack of this high-margin work dragged on margins, so adjusted profit before tax fell back slightly, even though both divisions delivered double-digit organic sales growth.
FY results were in line with revised expectations – 2H performance reflected the flagged project delays. Management has confirmed that trading is on track to achieve current year forecasts with an 11% increase in the order book, recent contract wins in robotic power units and a new distribution agreement with a US power supplies company providing some optimism. No changes to forecasts. The shares are trading on undemanding multiples versus peers and we maintain our existing 400p price target, which offers upside as growth and new orders reassert themselves.
UK Oil & Gas (UKOG) – Corporate – Equity Capital Raise | Solid State (SOLI) – Corporate – FY18 results in line
Solid State plc UK Oil & Gas PLC
Today’s FY results are in line with expectations with some decent revenue growth (all organic) of 16% and a broadly flat (-4%) adjusted PBT of £3.0m. The strategy going forward will be on improving the margin (FY18 gm 27.5% vs 30% in FY17) by focusing on higher added value business within Computing and Communications as well as the transfer of the battery business to a specialist facility in Crewkerne (now complete). The current group order book is a record at £23m with £19m of that due for delivery this financial year (40% of our £48m FY19E revenue forecast) which should underpin current forecasts which were revised in April. A maintained dividend of 12p for the full year gives a 3.8% yield at the current share price.
Solid State has announced that it has received contracts with a major UK smart warehouse solutions provider and robotics manufacturer to supply ruggedised power units for autonomous robots operating in cold storage warehouses. The contracts have a combined value of £4.3m. Deliveries will commence in H219 and continue into FY20, with potential for additional recurring revenues from the supply of replacement cells, which are consumable items, in later years. The contracts are supportive of consensus estimates, which are unchanged.
The company has announced an important order worth £4.3m for the supply of power units for autonomous robots. This is significant as it is with a new customer in a potentially high growth area, plus the size is significant, compared with annual revenues of £47m. No change to existing forecasts, but the contract provides a much greater degree of confidence in expectations for FY 2019 and should provide some upside to the shares, which had previously come under pressure after the last trading update.
Anexo -specialist integrated credit hire and legal services group. Offer TBA. Due 19 June. i-nexus—develops and provides strategy execution software to assist global enterprises in effective execution of their strategic plans and initiatives looking to jon AIM. Offer TBC, expected 19 June Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Offer TBA. Tekmar— technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services—Offshore wind farms and Oil & Gas. Revenue of £21.9m and Adjusted EBITDA of £4.9m Offer TBA Knights Group— UK regional legal and professional services businesses. FYApr18 rev £34.9 million and adjusted operating profit was £6.8 million excluding Turner Parkinson (acquiring on IPO). Offer TBA Aquis Exchange—a founder-led, pan-European Multilateral Trading Facility and exchange and regulatory technology developer and service provider is looking to join AIM. Offer TBC, expected 20 June. TransGlobe Energy Corporation—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. Expected 29 June Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June.
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Solid State’s pre-close trading update confirms the group is able to deliver good revenue growth without relying on acquisitions. However, it is proving difficult to win communications contracts in the current ‘America first’ environment. Since such contracts typically command much higher margins than other activities, this has depressed FY18 margins to such an extent that management expects FY18 PBT to remain at FY17 levels. After demoting some significant communications prospects to ‘upside’, management expects PBT to decline in FY19 despite continued revenue growth underpinned by a strong order book.
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 03 May. 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.
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Solid State’s trading update signals that the group has traded in line with market expectations in the year just ended, with better than expected growth in distribution and power. However, the outlook in Communications, its highest margin generating business, has seen order flow more difficult to achieve in America. We reduce our adj. PBT by £0.9m to £2.5m, with a 25% reduction in EPS to 25.1p. Our price target also reduces by a similar amount from 535p to 400p.
Destiny Pharma (DEST): Corp FY results – FDA clarification – on track | Solid State (SOLI): Corp Year-end trading update
Solid State plc Destiny Pharma Plc
Today’s update notes that whilst FY 2018E results will be in line with expectations (revenue in fact a 5% beat), delays in orders from the Group’s Communications business means that the FY 2019E outcome will be below expectations. Solid’s other business are trading well (two of its three other operating businesses – Distribution and Power – are actually ahead of expectations) but the ultra high margin nature of Comms (>60% gm, more than twice the Group average) means that our FY 2019E PBT and EPS forecasts are reduced by 25%.
As flagged in the pre-close trading statement, Solid State’s H118 revenue rose 12% y-o-y to £22.5m, though margins declined because of a change in mix, resulting in a 20% PBT dip to £1.6m. The order book at end October 2017 was £20.1m, ie 38% up on the prior year. This is a clear signal that management is able to deliver organic growth as well as building the group through acquisitions.
Interim results show good momentum in sales, with distribution growth particularly strong and outpacing manufacturing and resulting in a weaker margin mix giving a broadly flat performance versus the prior period. Group order book at the end of October stood at £20.1m, a 38% increase on the previous year, and October orders were at a record level. No change to FY forecasts, with the group on track to achieve forecasts we slightly reduced in October. Our maintained 535p price target is based on an EV/EBITDA of 10.6x and P/E of 15.9x in 2019. The recent set-back was small scale and we remain positive that sentiment should restore itself.
Solid State* (SOLI): Interim results, distribution shows strong growth (CORP) | Europa Oil & Gas* (EOG): Holmwood planning update (CORP) | President Energy* (PPC): Open Offer result (CORP) | Stride Gaming (STR): Back to form (BUY) | Stride Gaming (STR): Back to form (BUY) | Telecom Plus (TEP): Optimism at interims (BUY) | Renew (RNWH): Solid foundation for continued growth (BUY)
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Highlights this quarter: Economics: Generally, the data points to modest growth continuing, with a more positive trend in PMI surveys suggesting decent m manufacturing momentum over the next six months. Currency weakness continues to be a double-edged sword for U K manufacturers, with exporters gaining competitiveness while input prices have risen. There has recently been a divergence of sterling’s performance against the euro and the USD. Those in commodity or competitive product areas may well have seen margin erosion, while many in intermediary goods have already passed on price increases to their customers. With low unemployment, the prospect of tighter labour markets post-Brexit and public sector pay caps starting to come off also signals the potential for some labour inflation, long absent from the UK industrial scene. Topic of the quarter: We believe that powerful macro and sectoral pressures will drive further significant changes to the manufacturing supply chain over the next few years. We investigate some of these pressures, with the move to outsource suppliers to low- cost centres, like China, now seeing a slight reverse flow with some restoring to shorten complex and often inflexible supply chains. We see systems technology facilitating greater supply-chain control and efficiency. Brexit will present challenges to the UK supply chain with price and time to market barriers likely to rise, presenting challenges to the UK’s highly integrated and time-sensitive supply chain. Slick distribution infrastructure and greater information sharing with suppliers are likely to prove winning strategies in optimising logistics and gaining stock efficiencies. Sector valuation: The industrials sector has continued to exhibit strength, with small-cap industrials outperforming by 2 % on last year and larger cap industrials by 17%. Currency and improving economic data have been a positive for the sector. While some other sectors have seen a pick-up in profit warnings over recent months, industrial technology companies have announced generally positive or in-line trading updates that have helped to drive the small-cap Industrials to an EV EBITDA of 8.4x and a P/E of 16.7x with the traditional small-cap discount narrowing.
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Solid State’s H118 pre-close trading statement notes an estimated 12% increase in group revenues to £22.5m during the period, demonstrating that management is driving organic growth to complement its successful acquisition programme. Consensus sales estimates have been raised but as some of the high margin antenna programmes have taken longer to secure than management expected, profit estimates have been reduced.
SCISYS* (SSY): Good heavens (CORP) | Solid State* (SOLI): Half-year update signals shift in business mix (CORP) | Petra Diamonds (PDL): Q1 trading update (BUY) | ANGLE* (AGL): New application for Parsortix harvesting cells from bone marrow (CORP) | Omega Diagnostics* (ODX): Half-year trading update (CORP) | Real Good Food* (RGD): Significant reduction in guidance (CORP) | Firestone Diamonds (FDI): Q1 trading update (U/R) | Trakm8* (TRAK): H1 is on Trak (CORP)
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Recent FY results were in line with expectations. Significant investment in facilities and people has positioned the group to up-scale its activities. Its ambition is to double revenue over the next five years through acquisitions and organic growth. The group should experience a recovery in its manufacturing business and is also well placed to continue consolidating a fragmented market, with acquisitions that extend its technology reach and result in market share growth. The shares remain attractively rated, at a discount to its peers, and offer decent upside to our 535p price target.
Nasstar* (NASA): Trading update (CORP) | Solid State* (SOLI): Initiation of coverage: Intention to double revenues in five years (CORP) | Mortice* (MORT): Further strong growth (CORP) | Petra Diamonds (PDL): Trading and guidance update (BUY) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Connect (CNCT): In line but with a different mix (BUY) | Quixant* (QXT): Strong H1 performance underpins FY forecasts (CORP)
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Solid State continues to make progress towards management’s goal of doubling revenues over the next five years. It delivered pre-exceptional profit growth from continuing businesses of 6% during FY17. The record order book combined with investment during FY17 in both the Manufacturing and Distribution divisions shows management is driving organic growth to complement its successful acquisition programme.
Edison Investment Research is terminating coverage on Solid State (SOLI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
Solid State has recently opened a new development, manufacturing and test facility for Steatite Antennas in Leominster, Herefordshire. The 15,000sq ft facility was purpose built to enable the design, manufacture and testing of complex subsystems. Importantly, it houses a near-field RF test chamber able to fit antennas with dish dimensions up to 3m in diameter. The investment in the facility, totalling almost £1m during FY16 and FY17, epitomises the group strategy of adding value through technical expertise.
Solid State has announced that FY17 trading is likely to be broadly in line with market expectations, with delays in antenna projects in Q4 pushing performance to the lower bound of the range. We adjust our estimates slightly downwards and revise our indicative valuation to 390-516p/share. The mean of the lower and upper bounds of our new range is 453p, indicating that Solid State is fairly priced at current levels.
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
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Solid State has announced that H117 results will be ahead of H116 and put the group on track to achieve market expectations for FY17. We leave our estimates broadly unchanged and note that this news should give investors greater confidence that the group will be able to achieve the modest underlying profit growth in our estimates. This should help move the share price even closer to our indicative valuation of 505p/share.
hallenger Acquisitions* (CHAL.L) | Milestone Group * (MSG.L) | Water Intelligence (WATR.L) | Action Hotels (AHCG.L) | IXICO (IXI.L) | Aggregated Micro (AMPH.L) | REDX Pharma (REDX.L) | Lombard Risk Management (LRM.L) | Quantum Pharma (QP.L) | Solid State (SOLI.L)
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Solid State’s FY16 results were flattered by an undisclosed sum in settlement of the terminated MoJ contract. This obscures the underlying performance of the rest of the business, which looks in a good position, given the record order book at the year-end, to deliver a modest improvement in underlying profit before tax in FY17. Management expects the recent Creasefield acquisition to generate incremental profit from FY18 and is keen to execute one acquisition each year going forward. Investors still seem unable to look beyond the ups and downs of the MoJ contract. Increased confidence that the group is able to deliver the modest underlying profit growth in our estimates should help move the share price towards our indicative SOTP valuation of 505p/share.
Solid State has acquired Creasefield for a maximum consideration of £1.5m. The transaction strengthens Solid State’s existing battery operation. We revise our FY17 revenue estimates, while leaving our profit estimates and indicative valuation of 505p/share unchanged.
Solid State has finalised a settlement agreement with the Ministry of Justice (MoJ) for the terminated contract to supply sub-systems for offender tagging. We treat this payment, the value of which is not disclosed, as an exceptional item. Our adjusted PBT and EPS estimates, which already reflect the absence of continued revenues from the contract, remain unchanged. Management estimates that the settlement will boost FY16 reported PBT to £4.1m.
Solid State has announced that trading results for FY16 at the group’s core businesses should be in line with market expectations. This confirms that it’s diversified platform will deliver another year of results at FY15’s record profit levels, despite general market weakness and the unexpected termination of the Ministry of Justice (MoJ) contract. This strong result excludes compensation for the terminated contract, which we will treat as an exceptional item. The healthy order book at the start of FY17 supports our forecasts showing modest profit growth, so we leave our estimates and indicative valuation of 505p/share unchanged. The dividend (3.7x cover) represents an attractive yield at the current price.
Solid State has unexpectedly announced that the Ministry of Justice (MoJ) has terminated its contract. This has no impact on our FY16 and FY17 estimates, which already took a prudent view with regards to resuming deliveries under the contract. The share price has, in our opinion, overreacted to the news, ignoring the diversified platform that is able to deliver modest profit growth next year despite this negative development.
Solid State’s diversified platform gives a stable base for delivering another year of results at FY15’s record profit levels, despite delays in deliveries under a major contract with the UK Ministry of Justice (MoJ) for offender tagging. While this contract has not gone away, there is still no clarity on when deliveries will resume. We therefore reiterate our FY16 estimates and reinstate FY17 estimates assuming that MoJ deliveries resume post yearend FY17. This prudent approach gives a small year-on-year decline in topline revenues during FY17 (revenues excluding MoJ sales are expected to be in line with FY16e) accompanied with modest profit growth.
The narrative of Solid State’s interims describes how the diversified platform that management has created should be able to deliver another year of results at FY15’s record profit levels, despite delays in deliveries under a major contract with the Ministry of Justice (MoJ) for offender tagging and weakening markets. We leave our estimates unchanged and see fair value at 513p, based on our FY16e estimates.
Solid State has issued a pre-close trading update advising that although the first half performance represented a satisfactory start to the year, second half revenues and profits are likely to be significantly lower than management expectations because of delays in deliveries relating to a major contract that was expected to benefit both H216 and FY17. We revise our FY16 estimates and place our FY17 estimates and valuation under review until there is greater clarity on delivery schedules.
Solid State’s strategy of acquisition, expansion into complementary industry verticals and development of value-added capability delivered an impressive 35% year-on-year increase in adjusted pre-tax profits during FY15. This strategy is expected to deliver a further 64% rise in pre-tax profits during FY16. Our sum-of-the-parts analysis shows fair value at 920p/share (£77m). News of progress delivering on the Ministry of Justice (MoJ) contract is a key trigger to close the valuation gap.
Solid State’s FY15 results demonstrate the success of its growth strategy, with an impressive 35% year-on-year increase in adjusted pre-tax profits. The strategy is based on top-line growth through selective acquisitions, the addition of new product lines and entry into new industry verticals such as green energy and security solutions. This is combined with margin improvement through focus on value-added design and assembly capability and development of own-brand products such as high-output LED modules. The prospective P/E is currently slightly lower than the annualised mean for listed peers (15.1x vs 16.9x). A small premium may be justified given the potential for faster than average profits growth.
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