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.
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: LSAI HSP VOG FEVR IQE BRSD CNN CASP GMS GPH
Network International Holdings—Pleading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%. Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
Companies: SOLG SNX PGH PTRO VNET DPP BOKU FEVR STM
The stock continues to go from strength-to-strength, continuing its incredible rally since IPO into 2018.
Companies: Fevertree Drinks PLC
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Fever Tree (FEVR LN, HOLD, T/P 2100p) released an unscheduled trading statement today which states that the company is on track materially to beat earnings expectations in 2017. Clearly, momentum remains strong and the company reiterates its estimate that it currently accounts for around 97% of the growth in the mixer category which is the fastest growing UK soft drinks category at an annual rate of around 20%. The UK represents 48% of the company’s revenue.
Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent.
City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due Nov.
Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to $6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer TBA.
Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA.
AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 8 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world. Expected 8 November 2017
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
Companies: AVAP NASA WAND TYMN LION FEVR IDEA ALNOV GGP
These shares have grown on average 196% this year: Wey Ed, IQE, Jersey O&G, Purplebricks, Taptica, HCM, Plus500 and FEVR
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Fever Tree’s (FEVR LN, HOLD, T/P 2100p) interim results on Tuesday 25th July 2017 again beat expectations. Revenue grew 77% to £71.9m (H1 2016: £40.6m) and diluted EPS rose 106% to 16.7p (H1 2016: 8.1p). In this Quick Sharpener we update our forecasts – refer to exhibit 1 and increase our price target at 2100p
Fever Tree (FEVR LN, HOLD, T/P 1700p) interim results reported brisk 77% revenue growth to £71.9m (H1 2016: £40.6m). Adjusted EBITDA at the half year stage rose 102% to £25.2m (H1 2016: £12.4m) and diluted EPS increased by 106% to 16.7p (H1 2016: 8.1p). The UK drove revenue growth, benefiting from distribution gains made in H2 2016 and the strong performance of the off-trade which now accounts for 50% of UK’s revenue split. These strong set of results mean Fever Tree would only need to achieve £55.8m of revenue in H2 in order to meet full year consensus of £126.7m compared with £61.6m in H2 2016.
Next week includes a busy reporting schedule for the UK FMCG sector with 7 names in our coverage universe due to release either a trading statement or results. So far, we infer that Q2 2017 included sustained slowing in emerging markets for the larger operators and continued sluggishness in mature markets, notably Western Europe. However, for the small and mid-cap soft drinks companies, which include Britvic (BVIC LN, BUY, T/P 800p) the UK weather was clearly helpful. This should have had a positive impact also on domestic Food to Go.
Companies: RB/ CWK FEVR BATS BVIC DGE GNC
Firms not exposed to overseas earnings boosts likely to see negative impact of higher input costs
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Fever Tree (FEVR LN, HOLD, T/P 1700p) announced in its AGM statement that this year’s financial performance should be comfortably ahead of current market expectations. We adjust our numbers accordingly to raise our 2017 revenue number from £118m to £128m and fully diluted EPS from 25.2p to 28.0p. We raise our price target from 1250p to 1700p, which is roughly where the shares currently trade.
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Good set of FY20 results, with the momentum continued to be driven by the Americas, PetCare and Nestle Health Science. The FY21 and mid-term outlook is satisfying, roughly in line with the current consensus expectations.
Companies: Nestle S.A.
The group is acquiring Union Distillers Ltd for an initial £8m plus a revenue-based two-year earn out, in a deal that will deliver additional quality brands, a large new customer base and substantial additional production and warehouse capacity.
Companies: British Honey Company Limited
Berentzen-Gruppe is undergoing a transformation in order to become more agile and dynamic after years of stagnation, and the results are starting to come through. The focus has shifted to driving profitability through portfolio simplification and encouraging consumers to trade up: product and segment mix are now being carefully managed to help improve gross margin. The balance sheet remains very conservative, with a small net debt figure at end H119. Management guidance for the financial year has been reiterated, and H2 product launches may provide further upside.
Companies: Berentzen-Gruppe AG
Finsbury's AGM statement confirms that trading has remained resilient in FY21E, with the group expecting to deliver improved revenue and profitability this year. As such, with visibility improving, we are reinstating forecasts (FY21E Adj EBITDA of £26.0m). We also update our rating to Buy (from Under Review), which is driven by the group's low valuation (c7.7x FY21E P/E), planned reinstatement of the dividend (3.8% yield), and the increasing levels of FCF available to shareholders (11% FCF yield) now that the group has reached the end of a period of heavy investment.
Companies: Finsbury Food Group plc
Cake Box’s interim results reconfirmed the company’s resilience in the face of extremely adverse circumstances for UK High Street retailers. Cake Box reported only single digit declines in sales revenue and profits in the period as the business benefited from its flexibility, financial strength, and an ongoing customer commitment to celebration. In our view, celebration’s resilience as a category, product innovation, increased outlets, and a commitment to “steady, sensible and sustainable” growth, augur well for further revenue expansion. Yet the group’s valuation remains attractive.
Companies: Cake Box Holdings Plc
Cenkos Securities plc has terminated coverage of Finsbury Food Group Plc. Our previous recommendation (BUY) and forecasts can no longer be relied upon.
Please contact Cenkos for further information.
Reverse Takeover by London Stock Exchange Group (LSEG.L) following the acquisition of Refinitiv in an all share transaction for a total enterprise value of approximately US$27 billion.
Companies: ADME ROCK ZPHR DKL VARE SMRT PTRO MHC BOO
The British Honey Company has announced the acquisition of Union Distillers Limited, creating the opportunity to transform its offering with the addition of a well-known brand, increased scale and market presence. The combination provides the basis for BHC to establish its position in the UK as both producer and distributor.
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
Companies: TIME ALU ANCR BLV CONN CRC STU GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM
Q1/20 harvesting volume of 18,362 tonnes (16,800)
Biological challenges in Finnmark – EBIT/kg of a modest NOK 4.56 (12.54)
Trading update implies EBIT of NOK 252m (Arctic: 283m, Cons: 372m)
Could imply further upside risk to Q2/20 cost assumptions
Companies: Grieg Seafood ASA
Operational EBIT of DKK 248m (Arctic: 344m, Cons.: 303m)
FY/20 volume guiding 3% above expectations
CapEx guiding reiterated, dividend proposition remains postponed
We expect to lower our estimates
Companies: Bakkafrost P/F
Bakkafrost reported Q1/20 results below expectations, and we have lowered our estimates in response to higher cost assumptions. High freight costs for airborne salmon will also weigh on costs in the next few months, and we see uncertainty related to both realized premiums and the salmon sales price trend as volumes are set to seasonally increase soon. We continue to see more value support elsewhere and stick to our Hold rating.
Q1/20 EBIT of NOK 240m – in line with trading update guidance
FY/20 volume guidance reiterated at 100’t (unchanged)
No dividends (expected), potential postponement of NOK 2-300m CapEx
Estimates to be lowered by ~ 10-15% (costs)
Grieg Seafood reported an underlying Q1/20 EBIT of NOK 240m – in line with its profit warning. The company reiterated its FY/20 volume guiding of 100’t, and our volume assumptions are unchanged. We have however raised our cost assumptions, and our FY/20 and FY/21 estimates are lowered by 11% and 2% respectively. We still see downside risk to our price assumptions near-term, and we stick to our Hold rating and NOK 110 target price.
Grieg Seafood will report its Q2 figures on 18 August and we now expect an adj. EBIT of NOK 95m (112) versus consensus at NOK 55m. Our full-year estimates are virtually unchanged in this preview as we have not made any changes to our price assumptions. Grieg Seafood still trades below its peers but we stick to our Hold rating as we believe a discount is appropriate short to medium-term.