Edison Investment Research is terminating coverage on Medigene, PetroMatad, Brady and Stride Gaming. Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
Previously published reports can still be accessed via our website.
Companies: Stride Gaming
Rank Group has made a recommended £115.3m cash offer for Stride Gaming, which equates to an EV of £93.4m. Using the run-rate H119 EBITDA, the deal is valued at c 7.5x EV/EBITDA. The offer of 151p per share is a 29% premium to the previous day’s closing price. Irrevocable commitments have been received by 61.3% of Stride’s shareholders and completion is anticipated in Q319.
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: LOOK PGD TLY KRM BAGR HUW TOT ACSO STR BOOM
For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Stride Gaming. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriate) in accordan
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.
Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April.
SDX Energy plc—a North Africa focused oil and gas company, announces its int
Companies: CPC TPFG CFX I3E APPS SOS PMI STR ALS CAB
Stride’s AGM confirmed that trading for the current financial year has been broadly in line, despite well documented regulatory headwinds. To counterbalance rising gaming taxes and other sector pressures, the group is implementing numerous cost-cutting initiatives, which will be key to hitting our FY19 EBITDA estimate. Looking ahead, we expect growth to resume in FY20 (once many regulatory burdens have been lapped) and we believe Stride will take market share within a disrupted industry. Cash co
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb
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: PXC ORR PGH OTMP FDEV STR ITM BLU MSMN BMV
Stride’s FY18 results statement was dominated by the impact of recent regulatory news, as well as by the decision to significantly increase cash payouts. Our FY19 estimates now reflect a £7.1m fine for procedural failings (vs £4m previously), as well an additional five months of higher remote gaming duty (RGD), which equates to a one-off hit of £2.5m. None of this affects FY20 and, given Stride’s competitive positioning, we believe it should achieve market share gains and we raise our FY20 EBITD
The UK government has raised remote gaming duty (RGD) from 15% to 21%. This was better than recent rumours of 25%, but 1% higher than market expectations of 20%. With implementation from October 2019 (rather than April), we raise our FY19e EBITDA by 5%. However, assuming no mitigation, we lower our FY20e EBITDA by £3m to £14.5m. While regulatory pressures are likely to remain a feature of the UK gaming sector, Stride is the number three online bingo-led operator and should benefit from its stron
Stride’s FY18 trading update confirms the widely reported headwinds facing the UK bingo-led market, with a c 3% decline in real money gaming (RMG) in H218. More positively, FY18 RMG EBITDA appears to be in line (or slightly better) than our recently reduced estimate. Importantly, Stride’s high-margin proprietary platform is a key differentiator and the company remains well placed to gain market share. The balance sheet is strong and we expect strong cash flow through synergies and strategic grow
Legalisation of online sports betting in the US will provide opportunities for AIM online gaming companies. The Supreme Court of the United States has decided to overturn the Federal prohibition of sports betting. The state of New Jersey argued that congress had exceeded its authority and the judges agreed. The US sports betting market, both onsite and online, could be worth $6bn by 2023, but individual states will have to enact legislation to enable online sports betting to commence in their te
Companies: RUA TYR SML STR MWE RNWH
The entire UK gaming sector has been stung by recent regulatory changes and, like other operators, Stride’s strategy is to diversify its UK-centric model into international markets. In the UK, the company is gaining market share, with H118 adjusted revenues increasing 14% to £44.9m, driven by 25% growth in the proprietary platform. However, we have lowered our total FY18 and FY19 EBITDA forecasts by 16.6% and 28.7% to reflect increased costs associated with regulatory compliance and internationa
Stride’s AGM trading update confirmed the continued momentum in its core real money gaming (RMG) vertical. The Aspers Casino partnership has had an encouraging start and Stride is well positioned to keep gaining market share. Its key differentiating factor is the high-performing proprietary platform and we expect underlying margin expansion as customers migrate from acquired businesses. We believe that visibility into the social gaming vertical (5% of revenues) remains limited and we have lowere
Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
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. Offer raising £30m at 165p with mkt cap of £100m . Due 9 Feb.
Companies: SPSY IDE JAY B90 COM STR RHL ERGO SYME
Research Tree provides access to ongoing research coverage, media content and regulatory news on Stride Gaming.
We currently have 37 research reports from 5
Companies: Vertu Motors PLC
Consumer demand for Escape Hunt’s experiential leisure sites has rebounded strongly since reopening. At the same time, the company continues to gain scale with acquisitions outperforming and site rollouts on track to exceed targets. Such solid trading and operational progress improve the company’s long-term profit outlook.
Companies: Escape Hunt Plc
Vertu has released an unscheduled trading update, delivering another earnings upgrade to 2022E, this time in excess of 30%. This is driven by the strength of the used car market, although we believe Vertu is outperforming particularly in terms of securing supply. We believe the shares remain significantly undervalued, and that it remains well placed in the sector.
Lookers has announced a fourth upgrade to 2021 forecasts following an unscheduled H1 trading update yesterday. As a result, we are lifting our current year forecast for underlying PBT by 19% from £51.2m to £60.8m. In what is expected to be an exceptionally strong period for Lookers, we expect the Group to deliver EPS of 12.5p in 2021E, close to what our previous blue-sky EPS was of 13.2p back in February. However, we assume this level of performance is not sustained going into 2022E and 2023E as
Companies: Lookers plc
Due to the very stringent restrictions applied in its core markets, IAG’s Q2 ended up similar to its Q1: in line operating results following a weaker-than-expected top line. The capacity outlook still seems depressed which is discouraging the market.
Companies: International Consolidated Airlines Group SA
Photo-Me has detailed that the Group’s trading performance was better than expected in May, June and July. This was driven by a stronger than anticipated recovery in photobooth activity, mainly in continental Europe. Guidance for FY 2021 has been raised to sales of c.£210m (previously c.£200m) and adj. PBT of £25-30m (previously £21-24m). We have consequently upgraded our FY 2021E EPS by 22% but leave our FY 2022E forecasts onwards unchanged for now. In effect, we assume the recovery is taking p
Companies: Photo-Me International plc
Pendragon released a trading update last week that increased its guidance for FY21 underlying PBT to £55-60m, up from £45-50m in the June pre-close update. The Group attributes this to the continued momentum in the used car market throughout July as we have seen across the sector and is also backed up looking at the latest data from CAP HPI. As a result of this update, we have increased our FY21 underlying PBT forecast by 18.6% to £55.6m. We have not upgraded our forecasts in the outer years ref
Companies: Pendragon PLC
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
Companies: AEMC BVC BAG BRSD BWNG CBOX CEG CTG CLG CML CRPR DNK EML ESC FAR FA/ GPH INSE MTW MOTR MMAG NRR NESF NMCN NSF OTMP OBD SAVE SCS STVG SNX SYS TMG TGL VLS VOG WYN
Netflix reported a mixed result as it managed to surpass its rather modest guidance of 1 million net subscriber additions by adding 1.54 million subscribers. The company’s revenues surpassed Wall Street expectations but there were concerns associated with the company losing nearly 430,0000 subscribers in its core North American market. Competitive pressures and the limited Originals content being rolled out in the first half of the year was responsible for this loss of subscribers. However, the
Companies: NETFLIX (NFLX:NYSE)Netflix, Inc. (NFLX:NAS)
There were no surprises in M&B’s Q3 trading results. The lfl sales improved gradually since the lockdown restrictions were eased in the UK. The publican also fared slightly ahead of close competitors. The focus now shifts to the profitability details which management will share with the full-year numbers. Our thesis factors in the probability that the pandemic will not worsen in the coming quarters. Positive recommendation maintained on the stock’s valuation.
Companies: Mitchells & Butlers plc
Companies: Safestay Plc
E-commerce giant, Amazon witnessed a recent dip after Jeff Bezos selling off close to $5 billion worth of the company’s stock. His exit from the CEO role could be a cause of concern for some but we continue to remain optimistic on the stock. The company continued its string of impressive results in the first quarter of 2021, with both top and bottom line surpassing the analyst estimates. The strength of Amazon Web Services (AWS) coupled with consumers turning to e-commerce during the pandemic re
Companies: Amazon.com, Inc. (AMZN:NAS)AMAZON COM (AMZN:NYSE)
Inchcape has delivered a strong set of H1 results, which are 13% ahead of our forecasts at the adjusted PBT level. The Group is seeing strong growth across the group and the operational disciplines put in place are also driving clear margin improvements. New contracts have been awarded, cash generation is very strong and a new £100m share buyback programme has been launched. We will be upgrading our forecasts by at least 10% post the analyst meeting, and we believe Inchcape continues to be well
Companies: Inchcape plc
Following a challenging 2019, the COVID-19 pandemic extended the task of restoring stakeholder confidence in Lookers, one of the UK’s leading automotive retailers. With the legacy issues now largely dealt with, Lookers can address the challenges and opportunities presented by COVID-19 and the evolution of the UK car market as the adoption of electric vehicles (EVs) accelerates. The strong balance sheet supports continued investment in technology and brands and, with a leading market position, Lo