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
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 ECO 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 NSCI
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 PDL AGL ODX RGD FDI TRAK SSY
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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 FUL HOTC IDP JOUL CAKE PHTM RGD RBG SCS 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 COS DNL EVG GTLY MCL MUR NSF WBI ODX YGEN PHP PURP RE/ RGD SCLP SPH SCE TRX VAL OXB
eServGlobal* (ESG): Banking boom (CORP) | Real Good Food* (RGD): FY 2017 results (CORP) | Renew (RNWH): Growth, rising margin and net cash (BUY) | Savannah Resources* (SAV): Mahab 4 and Maqail South licencing and Oman scoping study update (CORP)
Companies: RGD RNWH SAV WJA
Research Tree provides access to ongoing research coverage, media content and regulatory news on Real Good Food.
We currently have 59 research reports from 4
A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.
Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA
Continuing its exceptionally strong year, Venture Life has announced it expects to ‘comfortably exceed market expectations' for FY20E. This outperformance stems from all areas of the business, supported by an enlarged order book, €168m multi-year Chinese agreement (+€7m in 2020) and demand for its new branded hand sanitising gel. Venture Life has announced an extension to its Alliance Pharma manufacturing agreement. On top of our March upgrade, we are today, significantly increasing our revenue and EBITDA forecasts for FY20E (+19% and +24%, respectively). We reiterate our Buy recommendation.
Companies: Venture Life Group
Much has been written about the effects of the virus on the world and on the stock market. Here is one analyst’s take on some of the likely impacts on the way we should look at companies. This article was originally produced as a blog, “10 Changes Post Virus”, which was published a few weeks ago.
Companies: AGY ARBB ARIX DNL GDR NSF PCA PIN PHNX PHP RE/ RECI STX SCE SIXH TRX SHED VTA
Whilst Finsbury is experiencing strong demand from the retail channel, the food service channel (c20% of FY19A revenues) has been significantly impacted by the government's decision to close food outlets in order to control the spread of COVID-19. Finsbury is only in the early stages of assessing the impact of the virus on their business, and as such, is unable to provide earnings guidance. We withdraw our forecasts and place our rating Under Review, until visibility improves.
Companies: Finsbury Food Group
Distil delivered a solid trading performance in FY20, despite uncertainties caused by the impact of external events in the form of Brexit initially and COVID-19 more recently. With its disciplined cost approach, Distil saw a 15% increase in operating profit from a 2% rise in revenue. Range extensions have underpinned the continuing success of its leading RedLeg Spiced Rum brand and Distil has continued to lay the groundwork for the further development and future expansion of its brand portfolio.
ABDP Interim Results, ALSP Interim Dividend*, CGNR Financing Update*, COG FDA Clearance*, CNIC World's First, ELA Placing, ITM Grant, LID Launch, LRM Trading Update, , MSG Contract and Agreement*, PLI New Data*, TPG Final Results, TRAK Trading Update, VLG Agreements, VENN Final Results*, VER Fundraise, VIP Results
Companies: ABDP ALSP COG CNIC ELA ITM LID LRM PLI TPG TRAK ORPH VLG VER VIP CGNR CTEA
RESTORE (RST) | FEVERTREE DRINKS (FEVR) | WYG (WYG) | BREEDON (BREE) | HOTEL CHOCOLAT (HOTC) | CONVIVIALITY (CVR) | JAMES HALSTEAD (JHD)
Companies: RST FEVR WYG BREE HOTC CVR JHD
Premier Foods’ H119 results demonstrate the business has become more resilient under the stewardship of outgoing CEO, Gavin Darby. Revenue growth of 1.0% in Q2 despite the hot summer was encouraging, and the UK relaunch of the Mr Kipling brand has clearly gone well. The news that Ambrosia may be sold suggests yet another step in the business transformation, although the price will determine the level of dilution and any change to net debt/EBITDA.
Companies: Premier Foods
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: OPM 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
Finsbury has announced a positive H1/20A, boosted by strong LFL revenue growth (+5.2% YoY) in UK Bakery, and the maintenance of group Adj EBITDA margins (at c8.5%) in the face of challenging market conditions. Finsbury's cash generative business profile (c11% FY20E FCF yield) is enabling the company to steadily deleverage, whilst also supporting a growing dividend (3.6% FY20E yield).
Following the equity fund-raising via a new share placing on 22 April 2020, Science in Sport has announced a new debt financing facility. The equity placing raised gross proceeds of £4.5m, and the group has now secured a new £8m invoice financing facility from HSBC for an initial one-year term. This latest undrawn facility provides further headroom to the company’s liquidity position during the COVID-19-related uncertainty and gives it the financial flexibility to continue with its strategy of pursuing strong sales growth.
Companies: Science In Sport
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.