Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. £28m raised. Half primary, half shareholder sell down expected 29 May 2019. Mkt cap £72.6m. Issue price 151p.
Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019.
SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m
Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.
Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Companies: VTC EPWN APC MAB1 IMO RENX DODS BOKU AMYT
The trading update for the 6 months to 30 June 2018, released ahead of Mortgage Advice Bureau’s interims, due on Tuesday 25 September, reveals: Revenue rose 16% 1H on 1H to £57m (1H17: £49.6m) driven primarily by a 13% increase in the average number of Advisers to 1,103 over the period (six months ended 30 June 2017: 974); The number of advisers on 30 June 2018 was 1,138: growth of 60 advisers (i.e. 6%) which is similar to last year (1H17: 58 or 6%); as in 2017 new business recruitment will be weighted to the second half of the year; Strong balance sheet with £22m of cash (June 17: £19.0m) of which £12m was (June 17: £10.9m) unrestricted cash.
Companies: Mortgage Advice Bureau (Holdings) plc
We observe four attractive characteristics, which ensure MAB delivers predictable revenue, profit and dividend growth: Currently, the main driver of growth in MAB’s revenues, profits and dividends is the number of advisers employed or self-employed by its Appointed Representative firms (ARs); High cash conversion: operational cashflow is over 100% of post-tax profit; MAB is capital light: it is able to pay out 90% of reported earnings; MAB’s management team has a material equity interest.
Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine ("South Crofty"), 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.
Maestrano Group, a software company with operations in Australia (main country of operation), the UK, US and the UAE, is looking to join AIM. Offer TBC, expected late May.
Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May
Team17 Group -video games label and creative partner for independent developers. Since 2014, delivered a revenue CAGR of 69% (31 December 2015 to 31 December 2017), with revenues of £29.6m and Adjusted EBITDA of £12.9m. Offer TBA
Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase). Raising c.£10m at 15p. Due 18 May. Mkt cap £32.6m
Companies: THA BOTB MAB1 SOS FLX WEB BEM PRSM BOIL ARS
MAB’s results for the year to December 2017, which have beaten our expectations, confirm that it is growing in a relatively flat market. In 2017 MAB delivered: 14% yoy rise in average adviser numbers to 1,008 (31 Dec 17: 1,008); 17% rise in revenue to £108.8m (Zeus forecast £109m); 3% increase in average revenue per adviser (i.e. productivity is rising); 16% growth in adj PBT to £14.5m (Zeus forecast £14.1m); 14% rise in fully diluted adj EPS to 23.2p (Zeus forecast: 22.9p) 17% rise in DPS to 21.4p (Zeus forecast: 21.0p) 21% rise in cash to £22.6m (including over £13.2m of unrestricted balances which is up 22%) The number of Appointed Representatives (ARs) which use MAB continues to grow. MAB has a strong pipeline of new ARs and management remains confident about delivering on its growth plans, both organically and from new ARs.
This morning’s pre-close trading update confirms that MAB has achieved good growth in 2017 and that 2018 has started well. Specifically: 14% yoy rise in average adviser numbers to 1,008 (31 Dec 17: 1,078); 17% rise in revenue to £109m (1H17: £50m; 2H17E: £59m); 3% increase in average revenue per adviser (i.e. productivity) Group PBT for the year 2017 is “in line with the Board’s expectations” Cash over £22m (including over £13m of unrestricted balances) The number of Appointed Representatives (ARs) which use MAB continues to grow. Peter Brodnicki, CEO comments “[MAB has] a strong pipeline of new ARs and we remain confident about delivering our growth plans, both organically and from new ARs.”. Full year results are due on Tuesday 20 March 2018.
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We have refreshed our quality style screen for the first time since its inception in February this year. As before, the screen selects the 25 stocks exhibiting the highest quality characteristics according to our criteria from our universe of approx. 500 stocks and we have chosen 10 stocks to focus on. Since inception the screen has significantly outperformed the main small-cap index and marginally outperformed the microcap index. There was notable volatility around the UK general election, which is interesting as quality would usually be seen as a defensive style in large-caps. As expected, turnover of constituents is modest with only 9 leavers and joiners despite the extended time-scale since inception. We will refresh again in five to six months’ time.
Companies: WIL GHT AVON CHH ZYT DOTD MAB1 GTLY FCRM VANL
MAB’s interim results to 20 June 2017 reveal profitable growth: 14% yoy rise in average adviser numbers to 974 (1H16: 851); 15% yoy rise in revenue to £49.6m (1H16: £43.1m; 2H16: £49.7m); 20% yoy growth in gross profit to £12.0m (1H16: £9.9m; 2H16: £12.2m); Gross profit margin rose to 24.1% (1H16: 23.1%); 19% yoy growth in PBT to £6.3m (1H16: £5.3m); 23% rise in 1H17 EPS to 10.6p (1H16: 8.6p); 22% rise in interim DPS to 9.5p (1H16: 7.8p)
Transense Technologies* (TRT): Full-year results – at a turning point in commercial traction (CORP) | Altitude Group* (ALT): Interims on track, opportunity grows (CORP) | Universe Group* (UNG): All to play for (CORP) | Minds + Machines* (MMX): Fruits of labour (CORP) | Taptica* (TAP): 47% YoY H1 earnings growth with cash to match (CORP) | Netcall* (NET): Consistency and opportunity (CORP) | Castleton Technology* (CTP): Delivery of milestone contracts (CORP) | Sopheon* (SPE): Industry recognition (CORP) | 7digital* (7DIG): Interims (CORP) | Mortgage Advice Bureau (MBA1): Building IP (HOLD)
Companies: ALT UNG MMX TRMR SPE MAB1
See what was trending this week...
Ahead of the publication of its interim results on Tuesday 26 September, Mortgage Advice Bureau (MAB) has released a pre-close update, which reveals: Revenue increased 15% YoY to £49m (1H16: £43.1m); Average adviser numbers rose 14% to 974, Total number of advisers rose 58% since 30 June 2016 and 6% since last year end to 1,008 on 30 June 2017 with “new business recruitment 2H weighted”; Revenue per adviser rose modestly compared to 1H16 which benefited from the 1H16 spike in Buy-to-Let applications; At 30 June 2017, the Group had a £19m cash position including £11m unrestricted cash balances.
Strix Group PLC—Sch1 from the Company involved with the design, manufacture and supply of kettle safety controls and other and devices involving water heating and temperature control, steam management and water filtration. Offer TBC admission date 8 August 2017 | Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. | GetBusy PLC—Sch1 from the holding Company of its subsidiary undertakings, which operates as a document management software business, headquartered in Cambridge, UK and operating across the UK, USA, Australia and New Zealand. Capital to be raised via a rights issues of £3m at 28.3p with anticipated market cap of £13.7m, Admission 4 August. | Quiz—Sch 1 from the omni-channel and international own brand in the women's value fast fashion sector. Offer raising £102.7m at 161p, expected market cap £200m. Expected 28 July. Last year Quiz posted sales of £87.4m while pre-tax profits grew by 17pc to £5.7m | Altus Strategies—African focused natural resource Company. Offer TBC. Expected early August | Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main, 8am 28 July 2017. No capital to be raised. Mkt Cap c. £57.8m.
Companies: ORPH EUSP TMO BXPHAR SAE MYT GOAL MAB1 RTHM AMYT
Victoria* (VCP): FY17 results beat expectations (CORP) | Proteome Sciences* (PRM): Interims – organisational changes to benefit (CORP) | Acal (ACL): Strong organic progress (BUY) | Revolution Bars (RBG): FY17 earnings guided up (BUY) | Mortgage Advice Bureau (MAB1): In-line trading with a Buy to Let spike (HOLD) | Gem Diamonds (GEMD): H1 trading update (BUY) | GB Group (GBG): AGM statement reveals trading in line (BUY)
Companies: DSCV RBG MAB1
Since its IPO in November 2014, Mortgage Advice Bureau (MAB) has delivered on its strategy for growth and built its market share from 3.0% in 2014 to 4.1% in 2016.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Mortgage Advice Bureau (Holdings) plc.
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Although 2020 will probably go down in history as one of the most challenging years experienced during our lifetime, it will also likely be chronicled as one of the best years for the recognition and appreciation of science. As we entered 2020, the COVID-19 pandemic was in its infancy. However, it rapidly evolved through the exponential rise in infections and mortality globally. Much has been achieved during the past 12 months in the fight against COVID-19, but, as we enter 2021, there are considerable concerns about the emergence of a mutant version of the virus and the second wave that we are now facing.
Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN PHP RECI STX SCE TRX SHED VTA YEW
Today's news & views, plus announcements from KGF, JMAT, LAND, GFTU, VTY, PTEC, BME, YEW, APP, BLV
Companies: LAND APP YEW
AuM grew by +43% (+16% organic) to £29.4bn in Q3. Investment performance was strong (+£2.5bn) as COVID vaccine news propelled markets. Net inflows were maintained qoq (£792m). Sustainable was the stand out performer (+24%). AuM has broken through £30bn post-period end. Better than expected AuM drives +3% FY21e EPS and +5% in outer years. Continued distribution efforts in Sustainable, Global Equity and Multi-Asset funds stands to catalyse earnings. Alongside flow momentum, 12x FY22e PER is not reflecting this upside.
Companies: Liontrust Asset Management PLC
Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. 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.
Companies: IUG CBP KAT APP RST DIS NICL BOKU CNIC HE1
Urban Logistics REIT (“REIT”) has acquired another high quality “last mile” asset in the Wirral for £16.3m (5.0% NIY). The 169k sqft site is let to a subsidiary of Culina. It is leased through to 2032 and has clear rental progression, with an uplift on commencement of a reversionary lease in 2022 and a rent review in 2027. 99% rents for the Jan-Mar quarter have already been collected – highlighting the resilience in the tenant base/income. We do not change forecasts, already assuming full deployment by year end. We estimate that c.£75m capital capacity remains. We note a 6%+ dividend yield in FY22e – a 12m period of full capital deployment – and note that the discount ignores embedded NAV growth potential.
Companies: Urban Logistics REIT plc
Hipgnosis Songs Fund, is independently valued by Massarsky, who in December chose to reduce the discount rate on the revenues generated by the portfolio from 9% to 8.5%, due to strong evidence of growth in streaming numbers and the stable nature of the revenue stream. This produced a NAV of 125.35p as at the 30 September interim period end. It is worth noting the recent publication of significant changes in the discount rate as announced by Professor Aswath Damodaran of the Stern Business School in New York for the Entertainment Industry to 4.82% from 7.83% in January 2020. Combined with recent evidence that music streaming revenues in 2020 are now larger than the entire music market in 2016, we believe this is an encouraging backdrop for potential further reductions in the discount rate being applied by Massarsky going forward
Companies: Hipgnosis Songs Fund C Shares
Henderson Opportunities Trust (HOT) has performed strongly since experiencing sharp NAV and share price declines in the Q120 market sell-off, powering to the top of the AIC UK All Companies sector over the past 12 months with an NAV total return of c 40% in the second half of 2020. Managers James Henderson and Laura Foll say performance has benefited from holding a number of ‘next-generation leaders’ in the UK. The portfolio is esoteric in its make-up and seeks to avoid being overly exposed to trends in the global and domestic economy. The managers continue to see good value opportunities across the UK market, particularly on AIM, and say their intention to maintain gearing at a ‘decent’ level (c 10–15%) is indicative of feeling the portfolio and market offer good value.
Companies: Henderson Opportunities Trust
CVC Credit Partners European Opportunities (CCPEOL) has achieved a total NAV return of 1.9% (target 8% annual return) in the last 12 months. Its index outperformance was helped by sector rotation early in the COVID-19 crisis and by staying positive on the market. The manager sees the greatest opportunity in the upper CCC and lower B segments and in structured finance. CCPEOL remains optimistic in the credit opportunities segment, despite the market recovery. It expects 2021 will bring more leveraged loan issuance from broader industrial segments, thus providing greater investment prospects. Portfolio resilience led CCPEOL to raise its annual dividend from 4p/4c per share to 4.5p/4.5c in September 2020.
Companies: CVC Credit Partners Europn Opprtnity
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5 million by way of private placement of new Common Shares (the "Fundraising") to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company's Common Shares will continue to be listed and trade on the TSX-V in Canada. Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. 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. Moonpig, the digital greeting card company, is planning an IPO with a potential valuation of £1bln, according to multiple media reports. Further details expected to be announced over the next two weeks.
Companies: ZPHR PANR PRSM SENS CYAN G4M ITX CRCL FEN ZIN
I once sat through a three-hour performance of Samuel Beckett’s Waiting for Godot at the Theatre Royal which, despite the best efforts of Ian McKellen and Patrick Stewart – both of whom I like very much – to this day remains one of the dreariest experiences of my life. It is on that note that we welcome 2021, with all the promise it holds, and return to our ‘top picks’ for 2020, a year which is probably best summarised (for those of us lucky enough to have been not directly impacted by the virus) by the Lord Chamberlain’s censor in his review of the first performance of Godot in 1955 – in which he described having to ‘endure hours [and hours] of angry boredom’. As always, these ‘picks’ do not represent advice, and should in no way be relied upon as such; they have been chosen on a lighthearted basis with no thought given to their suitability for your personal circumstances.
Companies: TFG IPU IEM HOT OCI BRWM JRS RICA BHMG BRLA JMI GPM MINI SMT
Interim results demonstrate YoY growth and a resilient outcome that has exceeded management's expectations from the start of the Covid-19 pandemic. This is testament to the degree of recurring revenue generated across the business. FY21 trading looks to be more challenging, as notably lower new insurance sales post-lockdown will translate into lower premium income. A number of organic opportunities are being worked on to fill the shortfall. Rising UK redundancies and their impact on policyholder retentions creates great uncertainty, hence our forecasts remain withdrawn and recommendation remains Under Review.
Companies: Personal Group Holdings Plc
Redde Northgate has come through the COVID crisis in very good shape so far. We expect minimal impact on the former Northgate business from “lockdown 2.0”, a strong recovery in profits and a re-rating as normality returns and Redde reverts to mean. We could see further useful earnings upside from acquisitions such as Nationwide and revenue synergies not yet included. The Group is transforming itself into a mobility business which is higher returning, more diversified and has sustainable compounding growth prospects.
Companies: Redde Northgate PLC
RLE’s recent updates address two concerns expressed by investors: security of rent and the reliability of appraised asset values. Rent collection is arguably the key measure of portfolio performance for a REIT, particularly in a period of uncertainty and on that basis the first update is reassuring. It confirmed 89.92% collection of rent due for the September quarter (Oct-Dec), including monthly and deferred agreements, broadly in line with the two prior quarters at the same stage. That provides evidence of tenants’ ability to deliver, the durability of RLE’s rental income (and dividend cover) and demonstrates management’s ability to influence events in the short term. The second announcement relates to the sale of properties for £9.725m, all at prices at or above book value. These disposals, some of which will complete in FY21 will reduce net debt and put the group in a strong position to capitalise upon opportunities to acquire assets, which meet its criteria, at attractive prices in a distressed market.
Companies: Real Estate Investors plc
Today's news & views, plus announcements from AZN, LLOY, WEIR, TATE, GFTU, INCE, DELT, SOLG, HYVE
Companies: LLOY SOLG INCE
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. 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. 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.
Companies: PMI RMM SUN BOIL ITM TRMR MLVN 88E IME ANP