Companies: FEN RGD LPA
Avacta (AVCT): Corp | D4T4 Solutions (D4T4): Corp | Real Good Food (RGD): Corp | SRT Marine Systems (SRT): Corp
Companies: AVCT D4T4 RGD SRT
Real Good Food (RGD): Corp Strategic progress and operational improvement
Companies: Real Good Food plc
The interim results provide further evidence of strategic progress and operational improvement as management focus on two-core divisions, Cake Decoration and Food Ingredients, and implement a series of strategic and cost-saving initiatives. We believe that the group is now well-placed to return to profitability at the operating profit level in H2.
Brickability - The br icks supplier , w hich a lso ha s a hea ting a nd plumbing business a s w ell a s a roofing division, expects to join the junior market at the end of this month with a market cap of circa £150m
Companies: ESL HDT STL CLP LEK EOG SRSP CLCO RGD
The spotlight on food technology has perhaps grown more as a result of changing consumer trends, and environmental necessity than from investor appetite for something new. According to Robbins Research, livestock account for 18% of greenhouse gas (GHG) emissions, which is higher than the portion of GHG emissions created by transportation. Livestock also produce 35% of the world’s methane, which has more than 20 times the Global Warming Potential of carbon dioxide, and generate 65% of the world’s nitrous oxide, which has 23 times the GWP of carbon dioxide. The irrigation of feed crops also accounts for nearly 8% of the world’s human water use. Hence the need for plant-based alternatives to traditional protein sources, which are produced far more sustainably than traditional meats.
Companies: PURE SIS PXS RGD TEK ANIC EDEN PHC
Companies: CLL CNS LWRF RGD PDG EQLS ATM PRD
PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised. Due 21 Dec. Mkt cap c.£80m
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected mid December.
Companies: AMS 88E RGD PPC CMH I3E EDL WRES TENG
Kore Potash— advanced stage mineral exploration and development company whose primary asset is its interest in the Sintoukola Project, a potash project located in the Republic of Congo. ) Measured, Indicated and Inferred Mineral Resource of 5,953Mt at an average grade of 22.0% KCl. Offer raising $13.14m with market cap of £56.4m. Due 29 March.
Perfomatrix PLC, a global end to end Performance Marketing technology and services company headquartered in the UK, is looking to join AIM in early April 2018, offer TBC
Crusader Resources, an ASX-listed public company incorporated in Australia, which is primarily focused on the exploration and development of gold assets in Brazil. Offer TBC, expected late March.
SimplyBiz, a Financial Services Firm, looking to join AIM raising £30m via placing and £34.6m via a sale of existing ordinary shares at 170p giving a market cap of £130m. Expected 4 April
Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer raising £3m at 15p with market cap of £11.01m. Due 29 March
Companies: MOGP OPM STX BHRD WHR RGD ITM MSMN
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)
Companies: SOLI AGL ODX RGD
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Independent pubs and restaurants across the UK are being replaced by chains. Has the market become saturated?
We examine wet-led and food-led capacity across the regions and conclude that excess capacity remains in the food-led segment (although Central, Welsh and Yorkshire regions lag the national average). Despite recent profit warnings, an increasing divergence in reported performance between pubs and restaurants, and a recent reduction in eating out frequency and spend, existing food-led operators remain too focused, in our view, on trimming estate tails and slowing rollout rather than substantial capacity reduction – and combined with smaller PE-backed concepts scaling up and landlord pragmatism, net new capacity continues to enter the market. Given the severe cost and competitive pressures, as well as downside macro risks, we foresee more pain across the sector – in the near term expect aggressive menu price discounting to continue, leading subsequently to margin pressure and forecasting risk for listed operators and financing risk for smaller, highly leveraged private operators. While rightsizing will happen (it did with pubs), the process may be protracted. We run the finnCap Slide Rule over the casual dining space, with our preferred pick (BUY, 19p PT) scoring highest on QVGM metrics. While not immune to sector woes, lacks an estate tail, should be a beneficiary of trading down, and has a number of self-help levers, as well as a management team that has seen the movie (many times) before.
Companies: BOTB IDP PHTM RGD RBG SHOE
Downing Strategic Micro-Cap Investment Trust (DSM), which had its IPO on 9 May 2017, focuses on driving long-term returns from an overlooked area of the market, investing in companies below £150m market capitalisation at the time of investment. The manager (Downing LLP ‘Downing’) takes strategic stakes in companies that it concludes have reached a transformational stage and yet are undervalued. It does so after executing a private equity style due diligence process. Downing is prepared to be constructively active and engaged in its involvement. In our view this differentiates its mandate from the vast majority of other small and micro-cap managers.
Companies: RGD RHL BMS GMAA ADT
In the October edition of the Hardman Monthly newsletter, Chief Executive, Keith Hiscock analyses the much misunderstood – but highly important – issue of stock liquidity. In particular, he focuses on the lower echelons of the Main Market and of AIM.
Companies: OPM ABZA AVO AGY APH ARBB AVCT BUR CMH CLIG DNL EVG GTLY MCL MUR NSF WBI ODX YGEN PHP PURP RE/ RGD SCLP SPH SCE TRX OXB
Research Tree provides access to ongoing research coverage, media content and regulatory news on Real Good Food plc.
We currently have 60 research reports from 4
Nichol’s YE update is in line with guidance given in November at the time of the 9-month update. This is reassuring and a positive outcome given tier restrictions created additional challenges during the critical month of December. Overall, sales are reported to be down 19.3% to £118.7m vs our £119.4m, with OoH the principal drag. This should not overshadow another excellent year for UK Vimto packaged and further international progress. Pleasingly the company generated £6.4m of cash in the period resulting in net-cash of £47.3m (119p per share). Going into 2021, we are encouraged by management being on the front-foot re NPD/marketing and Middle-East Ramadan orders being in line. And whilst lockdown 3.0 is clearly unhelpful, Q1 is traditionally the quietest quarter. Overall, notwithstanding near-term CV19 uncertainty we expect the core Vimto business to further outperform and international sales to move ahead. For OoH the year is one of transition as management look to reset future direction given the mid-long term implications on end markets from CV19. Fundamentally, Nichols is a winner with significant growth runway, excellent cash generation credentials and a strong balance sheet which affords it optionality.
Companies: Nichols 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
In its key trading quarter, Distil has delivered a strong year-on-year revenue increase of 22%, despite 2020’s relatively muted Christmas and New Year festivities. This brings the cumulative year-to-date (YTD) revenue growth for the first nine months to 70%. Distil has also announced the launch of TRØVE, an innovative Botanical Vodka brand, catering to the emerging consumer trend for lower alcohol by volume (ABV) drinks but without flavour compromise. This expands and complements Distil’s brand portfolio, further underpinning future growth prospects.
Companies: Distil 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.
Companies: Finsbury Food Group plc
Dekel Agri-Vision has announced that following significant advances made in 2020 preparing for the Round Table for the Sustainable Palm Oil (‘RSPO') certification process, it has now engaged Proforest to undertake the final RSPO pre-audit of the Company's 100%-owned, vertically integrated palm oil project at Ayenouan, Cote d'Ivoire.
Companies: Dekel Agri-Vision Plc
Carr’s trading update for the first 19 weeks of FY21 notes that trading in Agriculture was ahead of management expectations because of strong sales of supplements. This was offset by a weaker than expected performance in the Engineering division caused by continued low crude oil prices. We note that net debt (excluding leases) was 24% lower year-on-year at the end of November, reflecting close inventory control and lower commodity prices. We leave our estimates broadly unchanged and reiterate our indicative valuation of 170p/share.
Companies: Carr's Group PLC
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.
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
MPE has provided a crop and production update for the year ended 31 December 2020. Own FFB crop, +9% y-o-y, is in line with expectations. CPO-equivalent production, +17% y-o-y, is 3% ahead of our expectations. We are upgrading FY2020E PBT by +11% and FY2021E PBT by +6% due to the strong CPO price.
Companies: M.P. Evans Group PLC
Dekel Agri-Vision has announced palm oil production figures for Q4, 2020 and the year ended 31 December 2020. The Company ended FY2020 with strong momentum following a good performance in CPO production in Q4, 2020 and with CPO prices in international markets above US$1,000/MT, as the company enters its high season period in H1, 2021.
Nichols continues to justify its premium rating, posting a strong set of interims with LFL sales growth of 12% and EPS of 7%. The core Vimto brand has continued to comfortably outperform the UK soft drinks market and International momentum remains impressive. Today’s interims are also accompanied by a small bolt-on deal of a distributor which triggers FY18 and FY19 EPS upgrades of 3%/4% respectively. The shares trade on a premium FY18 P/E of 25x which we feel is deserved given the internationally diversified nature of income and excellent track record of positive forecast momentum. Given favourable ongoing growth prospects and optionality afforded by a growing net-cash position, we feel Nichols should be a core mid-cap holding. We stay positive and argue for ST fair value towards 2100p – 27.5x FY18 EPS.
We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.
Companies: BCA CLIN CLG CBP DNLM EAH STU FCRM FUTR GTLY INS GLE NICL SPR TRI
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
Premier Foods’ FY20 results demonstrate the substantial progress the company has made over the past few years. The UK business has now grown for 11 consecutive quarters and Q121 is set to be very strong. In the UK the brands grew ahead of their categories and the innovation rate has hit a new high. A new landmark pensions agreement was signed in April, which could potentially significantly reduce the future funding requirements for Premier Foods. The recent triennial actuarial valuation delivers further credence to the pensions deal.
Companies: Premier Foods plc
Distil has reported an impressive H1 performance against a backdrop of volatility and other challenges resulting from the Covid pandemic. The company has delivered a profit before tax of £154K compared with last year’s breakeven position, driven by a sales increase of 128% to £1.9m. The period saw new product launches within the leading RedLeg brand, with more new lines to follow. Distil has increased headcount in both marketing and New Product Development (NPD) to support its future growth. Despite the success achieved in H1, considerable short-term uncertainty remains around the impact of the emerging second wave of Covid and consequent restrictions. The company therefore feels it is prudent not to provide guidance at this stage on the outturn for the full FY21 financial year.