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: MATD WTE RMS DATA RENX IPX SOLI GTC DEST
SDX Energy (SDX LN)C; Target price £0.45 per share: Growing the prize, accelerating drilling - Sales in Morocco are now almost back to pre COVID 19 levels (90%). This is important for cash flow. SDX has now mapped additional prospects on the South Disouq license, resulting in gross prospective resources increasing by 139 bcf to 233 bcf. Drilling in Egypt is being accelerated to start in 2Q21 with two initial wells targeting 165 bcf, including the new Hanut prospect with 139 bcf gross prospective resources and a 33% Chance of Success. The volumes targeted by the first part of the programme are 5x larger than what we were previously anticipating (34 bcf). At the end of September, SDX held US$9.2 mm in cash with the majority of the 2020 capex programme having already been incurred. With no debt and expected FY21 cashflow of ~US$30 mm (largely unaffected by oil price movements), this leaves the company with ample liquidity to fund the upcoming drilling programme. Overall, we estimate the prospects the company will target with the drill bit over the next twelve months at £0.38 per share, which represents 2.4x the current share price. The main items are the LMS-2 well test in Morocco (£0.14 per share) and the Hanut well in Egypt (£0.16 per share). This does not include the potential for additional look-alike prospects to LMS-2 to be drilled in 2021. While the company continues to deliver positive updates and the materiality of the upcoming drilling is growing, the shares continue to trade at EV/DACF multiples of only 1.3x in 2020 and 0.5x in 2021. IN OTHER NEWS ________________________________________ AMERICAS Diversified Gas & Oil (DGOC LN): Partnership agreement with Oaktree Capital – Diversified and Oaktree are partnering to jointly pursue US PDP acquisitions with individual transaction valuations over US$250 mm. Oaktree and Diversified will fund equal portions of any acquisitions, however Oaktree will provide Diversified a 5.0% upfront promote of its funded working interest (2.5% incremental) at the time of an acquisition. In addition, upon achieving a 10.0% unlevered IRR on its investment, Oaktree will convey to Diversified 15.0% of its working interest (7.125% incremental). Maha Energy (MAHA-A SS): Production update in Brazil – Sales production for the month of September totalled ~ 3,255 boe/d, During the month of September the dual GTE-4 oil producing well was shut down for 14 days, due to workover operations. Fishing operations to date have been unsuccessful and a more rigorous workover operation is now scheduled during the fourth quarter to restore production from the AG zone. Production from the GTE-4 well (Sergi zone) resumed on the 28th of September. Tartaruga had issues during the month with unreliable power from the local grid – back up generation has been is installed and production is stabilizing. Parex Resources (PXT CN): Buy back and operation update in Colombia – Parex plans to buy back up to a further 10% of its share capital by YE20. 3Q20 production was 44.2 mboe/d and 4Q20 production is expected to be 44-48 mboe/d with US$40-50 mm capex. The company plans to drill the Cayena horizontal exploration well on the Fortuna block and one appraisal well at the Boranda Block. At Block LLA-94, the Grulla well will be re-entered. The company held US$350 mm in cash at the end of September. Phoenix Global Resources (PGR LN): 1H20 results – 1H20 production in Argentina was 4,369 boe/d. At 30 June 2020 the group had cash of US$1.4 mm and total borrowing US$317.7 mm. Proposed changes in Trinidad’s fiscal regime - The government of Trinidad is proposing to lift the threshold for the imposition of the very punitive Supplemental Petroleum Tax (SPT) from US$50/bbl to U$75/bbl. EUROPE Getech (GTC LN): 1H20 results – 1H20 revenue totalled £2.1 mm. The orderbook was £2.9 mm at the end of June. The company held £2.8 in cash at the end of June. Getech is currently negotiating with two potential Energy Transition acquisition targets. Key sectors of focus are mining, geothermal energy and the hydrogen economy. Hurricane Energy (HUR LN): Update in the UK – 3Q20 production averaged 13,600 bbl/d with current production of 14,500 bbl/d. Independent Oil & Gas (IOG LN): No offer to buy Deltic Energy (DELT LN) – Independent will not make an offer to acquire Deltic with two approaches rejected by Deltic. Lundin Energy (LUNE SS): Acquisition of exploration licences in Norway – Lundin is acquiring from Idemitsu interests in a portfolio of licences in the Barents Sea, including a 10% WI in the Wisting oil discovery and a further 15% WI in the Alta oil discovery with an overall 70 mmboe net contingent resources. The proceeds consist of US$125 mm in cash. OMV (OMV AG): 3Q20 update – 3Q20 production was 444 mboe/d. Premier Oil (PMO LN): Merger with Chrysaor – Premier Oil is merging with Chrysaor. The Transaction is expected to result in Premier’s stakeholders owning up to 23% (including 5.45% by Premier’s shareholders) of the combined group. A cash payment of US$1.23 bn will be made to financial creditors of Premier. The transaction provides ~US$0.61 on the dollar cash recovery for existing creditors plus US$0.14 in shares for an overall recovery of 75%. The combined entity had >250 mboe/d at the end of June and 2P reserves of 717 mmboe as YE19. The acquisition of the BP assets by Premier will not go ahead. Repsol (REP SM): 3Q update – 3Q20 production was 615 mboe/d. UK Oil & Gas (UKOG LN): Raising £2.2 mm of new equity – UK Oil & Gas has raised £2.2 mm of new equity priced at 0.16 p per share to fund its share of initial drilling and seismic costs in Turkey. FORMER SOVIET UNION JKX Oil & Gas (JKX LN): Operating update in Russia and Ukraine – 3Q20 WI production was 10,245 boe/d including 4,727 boe/d in Ukraine and 5,519 boe/d. The company held US$18.8 mm net cash at the end of September. SUB-SAHARAN AFRICA Tullow Oil (TLW LN): RBL Redetermination – Tullow’s RBL credit facility has been redetermined with US$1.8 bn of debt capacity. As a result, the Group retains ~US$500 mm liquidity headroom of undrawn facilities. The next redetermination will commence at the end of November and is expected to be completed in January 2020.
Companies: UKOG TLW SDX REP PXT PMO PGR OMV MAHAA LUNE JKX HUR GTC DGOC
Panoro Energy (PEN NO)C; Target price NOK23.00: Showcasing Gabon – The important news is the very large resources estimate increase at Greater Hibiscus. The Hibiscus South and Mupale prospects are now mapped by the operator as part of the Hibiscus structure with overall recoverable volume of 155 mmbbl. This compares with current gross 2P reserves at Hibiscus of only 45 mmbbl. Net to Panoro’s 7.5% WI, this could add ~8 mmbbl, representing about 100% of the company YE19 WI 2P reserves in Gabon. One or two appraisal wells are expected to be required to confirm the new mapping of Greater Hibiscus with the wells likely to be drilled early next year. BW Energy indicated that the production capacity of the Ruche phase-1 development could be increased by ~50% to 60 mbbl/d at a nominal cost with simple debottlenecking work, should the increased resources be confirmed. We are increasing our target price from NOK20 to NOK23 per share in line with our new ReNAV that captures the risked value of the resources addition. Our new target price represents ~100% upside. Panoro was already one of the few names that offers material near term exploration upside. The likely addition of appraisal drilling on the Greater Hibiscus area enhances this profile with a total unrisked value for near term drilling of NOK29 per share. IN OTHER NEWS ________________________________________ AMERICAS Arrow Exploration (AXL CN): Divesting assets in Colombia - Arrow is selling LLA-23 to COG Energy for a gross cash consideration of US$11.75 mm plus a contingent consideration of US$0.25 mm. Arrow will also transfer to COG its work obligations under various letters of credit in place to guarantee work commitments on LLA-23 for a total of ~US$7.3 mm. Maha Energy (MAHA-A SS): 2Q20 results – 2Q20 production in Brazil was 3,602 boe/d. Maha held US$15.7 mm in cash at the end of June. EUROPE Getech (GTC LN): 1H20 update Independent Oil & Gas (IOG LN): 1H20 results and project update in the UK – First gas at the core project in the Southern North Sea continues to be expected in 3Q21. The company had £104.1 mm in cash at the end of June including restricted cash of £72.6 mm. A further £36.7 mm of uncalled development carry was available at the end of June from CalEnergy Resources. £60 mm funds from the senior bond remain in escrow. Ithaca Energy: 1H20 results – 1H20 production in the UK was 73 mboe/d. Forecast FY20 production is anticipated to be at the top end of the 63-68 mboe/d guidance range. Net debt at the end of June was US$1.3 bn. Large gas discovery in Turkey – The Tuna-1 well encountered 11.3 tcf in the Turkish Black Sea. Neptune Energy: 1H20 results – 2Q20 production was 149.6 mboe/d. FY production guidance is unchanged at 145-160 mboe/d. Net debt at the end of June was US$1.6 bn. The company also reiterates most of its financial guidance. FY20 expected exploration spend increased marginally to US$135 mm, reflecting positive drilling results and a further appraisal study at Isabella. FORMER SOVIET UNION Petroneft (PTR LN): Operational update in Russia – Licence 61 production in July was 1,589 bbl/d. MIDDLE EAST AND NORTH AFRICA Pharos Energy (PHAR LN): 1H20 results – 1H20 WI production of 12,093 boe/d had already been reported. FY20 cash capex is expected to stand at ~US$37 mm of which US$31.9 mm was spent in 1H20. Net debt at the end of June was US$36.1 mm. FY20 production guidance of 5.5 mboe/d for Vietnam and 5.0-6.0 mboe/d for Egypt is reiterated. Tethys Oil (TETY SS): Production update in Oman – WI production from Blocks 3&4 onshore Oman amounted to 10,260 bbl/d. Oil production in Oman continues to be subject to production limitations under the OPEC+ agreement. SUB-SAHARAN AFRICA Africa Energy (AEC SS/AEF CN): Consolidation of Block 11B/12B interest and Impact Oil & Gas to become major shareholder in Africa Energy – Africa Energy is consolidating the interests of Impact Africa and Arostyle in Block 11B/12B offshore South Africa. Impact will subscribe for 509 mm shares in Africa Energy, resulting in Impact holding over 39% of Africa Energy’s enlarged share capital. Africa Energy will have also an option to acquire Arostyle’s indirect interests in the block which would result Arostyle being issued 64.5 mm shares in Africa Energy. The Luiperd-1X well is expected to be drilled this quarter. BW Energy (BWE NO): 1H results and operational update in Gabon - Recent results of reprocessed seismic suggest an increase in the Greater Hibiscus (Gabon) oil-in-place volumes by potentially ~3.0x. Hibiscus South and Mupale are now mapped as part of the Hibiscus structure with overall recoverable volume of 155 mmbbl. This compares with current 2P reserves at Hibiscus of 45 mmbbl. Gross production from Dussafu averaged 15,991 bbl/d during 2Q20 with current production of 18 mbbl/d on four wells and FY20 production guidance of 15-16 mbbl/d. The connection and completion of the last two Tortue wells have been deferred to early 2021 with first oil expected in 2Q21. FAR Limited (FAR AU): Update in Senegal – Cash calls for the SNE development for June, July and August are currently unpaid and total US$28.2 mm. As at 31 July 2020 FAR has cash of US$63.4 mm. Lekoil (LEK LN): FY20 results – FY2o gross production at Otakikpo in Nigeria was 5,035 bbl/d. At the end of July, Lekoil held US$0.6 mm in cash. EVENTS TO WATCH NEXT WEEK ________________________________________ 03/09/2020: EnQuest (ENQ LN) – 2Q20 results 03/09/2020: Gulf Keystone Petroleum (GKP LN) – 2Q20 results
Companies: PHAR FAR GTC MAHAA PEN PTR TPL
PetroTal (PTAL LN/TAL CN)C: Update in Peru - Based on discussions with Petroperu, PetroTal expects that in July 2020, the oil sales pipeline will re-open allowing for Bretana oil field operations to recommence. As a result of the recent recovery in oil prices, the Company estimates that the contingent liability has decreased from US$42 mm to approximately US$35 mm as of May 28, 2020. The Company is in discussions to facilitate an arrangement whereby the contingent liability, when crystallized, will be settled over a three-year period from future cash flow. Gran Tierra Energy (GTE LN/CN/US): Corporate update | Maha Energy (MAHA-A SS): Production update in Brazil | President Energy (PPC LN): Placing and conversion of debt into equity | Trinity Exploration and Production (TRIN LN): Finance update | Great Eastern Energy Corporation: FY results for the year ending 31/03/2020 | Getech Group (GTC LN): FY19 results | Premier Oil (PMO LN): More attractive terms for the acquisition price for BP assets in the North Sea reduced and agreement with creditors | UK Oil & Gas (UKOG LN): Equity placing | United Oil & Gas (UOG LN): Well results in Egypt | Canadian Overseas (COPL LN): Agreement with Essar E&P in Nigeria
Companies: GTC PMO SLG
Panoro Energy (PEN NO)C: Initiating coverage | 88 Energy (88E LN/AU): Acquisition in Alaska | BP (BP LN): Transaction in Alaska with Hilcorp renegotiated | Columbus Energy Resources (CERP LN): Oil discovery in Trinidad | Premier Oil (PMO LN) and Rockhopper Exploration (RKH LN): Sea Lion farm out (Falklands) exclusivity period extended | BP (BP LN): 1Q20 results | Equinor (EQNR NO): Dry hole in Norway | Getech (GTC LN): Business update | Hurricane Energy (HUR LN): Business update in the UK North Sea |IGas Energy (IGAS LN): Shutting some production in the UK | Lundin Energy (LUP SS): 1Q20 results | OKEA (OKEA NO): 1Q20 update in Norway | OMV (OMV AG): 1Q results | Premier Oil (PMO LN): Court approves schemes of arrangement | Royal Dutch Shell (RDSA/B LN): 1Q20 results and dividend reduction | RockRose Energy (RRE LN): Operational update in the UK | UK Oil & Gas (UKOG LN): £1.275 mm equity raise | Caspian Sunrise (CASP LN): Operating update in Kazakhstan | Exillon Energy (EXI LN): February and March production in Russia | Nostrum Oil & Gas (NOG LN): 1Q20 update in Kazakhstan | PetroNeft (PTR LN): Operations update | Genel Energy (GENL LN): Update in Kurdistan – While negotiations are ongoing the KRG will not exercise the notice of an intention to terminate the Bina Bawi PSC | ShaMaran Petroleum (SNM CN): Business update in Kurdistan | Tethys Oil (TETY SS): Production reduction in Oman | Total (FP FP): Dry hole in Lebanon | Aminex (AEX LN) and Solo Oil (SOLO LN): Licence extension in Tanzania | Far Limited (FAR AU): Update in Senegal | Lekoil (LEK LN): Final payment with Nigerian partner rescheduled | Orca Exploration (ORC.A/B CN): FY19 results | Savannah Energy (SAVE LN): Financial and operating update in Nigeria | San Leon Energy (SLE LN): Special dividend | Seplat Petroleum (SEPL LN): 1Q20 results
Companies: 88E AEX PEN BP/ CASP CERP EQNR FAR FP HUR GENL GTC IGAS LEK LUNE NOG OKEA OMV ORC/B PMO PTR RKH RDSA RRE SAVE SLE SEPL SNM TETY SCIR UKOG
Companies: CGNR JIM GTC ITM THR ENET INL LVCG
Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected 18 Oct 2019. African Export-Import Bank a supranational financial institution w hose purpose is to facilitate, prom ote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE.
Companies: DEST BOKU GTC RRL AUG ARK ARBB LGRS GOOD ASC
Alvopetro (ALV CN) (not covered): Development financing in Brazil | GeoPark (GPRK US) 1 : BUY, US$26.00: New oil discovery in Llanos 34 Block opens-up 20-40 mmbbl gross potential | Getech (GTC LN) (not covered): 1H19 results | RockRose Energy (RRE LN) (not covered): 1H19 results | Serica Energy (SQZ LN) (not covered): 1H19 results | Total (FP FP) (not covered): Dividend growth acceleration | Vaalco Energy (EGY US)1 ; BUY, US$3.00: Reserves and resources update
Companies: ALV GPRK GTC RRE SQZ EGY
AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019
Companies: DNL SYM ANCR SLN MOSB ALM GTC WKP
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: GTC TCM MTFB BST CDM HSP INL DOTD C21 GGP
Echo Energy (ECHO LN) (not covered): Operational update in Argentina | Transaction in Colombia offshore | Touchstone Exploration (TXP LN/CN)1 ; BUY, £0.25: 4Q18 results | Jadestone Energy (JSE LN/CN)1 ; £0.50, HOLD: Stag drilling suspended due to weather | Getech (GTC LN) (not covered): FY18 update | TransAtlantic Petroleum (TNP CN/TAT US) (not covered): 4Q18 results | UK Oil & Gas (UKOG LN) (not covered): Equity Placing | Nostrum Oil & Gas (NOG LN)1,6; Speculative Buy, £2.20: First Reserves at Chinarevskoye North |
Companies: ECHO TXP JSE GTC UKOG NOG
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: INSE GOAL SLN DEST CHRT BMV UKOG GTC GHT
PetroTal Corp. (PTAL LN)1; BUY, £0.40: Moving to AIM: Transformational year ahead | Ophir Energy (OPHR LN); HOLD, £0.55: Transferring coverage: Possible cash offer for company | Faroe Petroleum (FPM LN); HOLD, £1.75: DNO extends duration of cash offer | Getech Group (GTC LN) (not covered): Large sale | Rockhopper Exploration (RKH LN) (not covered): Operational update
Companies: TAL OPHR FPM GTC RKH
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 late January 2019.
Companies: PYC RBD SRES AFX GTC AVAP WAND SSY TRCS INX
Cabot Energy (CAB LN)1 ; Speculative Buy, £0.10: 1H18 results | Jadestone Energy (JSE LC/CN): BUY, £0.80; Montara acquisition completion | Equinor (EQNR NO) (not covered): Looking to acquire stake in Rosebank in the UK? | Serica Energy (SQZ LN) (not covered): 1H18 results | Cadogan Petroleum (CAD LN) (not covered): Operational update in the Ukraine | Caspian Sunrise (CASP LN) (not covered): 1H18 results | Volga Gas (VGAS LN) (not covered): 1H18 results | Aminex (AEX LN) (not covered): 1H18 results | Savannah Petroleum (SAVP LN) (not covered): 1H18 update in Niger and Nigeria | LEKOIL (LEK LN) (not covered): 1H18 results | Getech (GTC LN) (not covered): 1H18 results
Companies: GTC LEK SAVE AEX VGAS CASP CAD SQZ JSE
Research Tree provides access to ongoing research coverage, media content and regulatory news on GETECH Group plc. We currently have 40 research reports from 4 professional analysts.
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
Capital Limited has released its Q4 and FY2020 trading statement this morning. Overall it shows 2020 was a strong year for the company with revenue growing 18% and most other operating metrics growing positively with it – see Fig 1. We have adjusted our forecasts accordingly and also to take into account the mining services contract for the Sukari Mine which the company won late last year. The latter is a game changer for Capital and its investment case in our view; turbo charging revenue growth, enhancing margins and diversifying cashflow all of which should lead to materially higher valuation multiples. We raise our PT to 127p.
Companies: Capital Limited
2020 ended with two positive moves for carbon capture and storage (CCS) which should benefit Velocys clients. In the US, the signing of the COVID 19 stimulus bill extends and adds support for CCS in the US where the Bayou project is working with CO2 offtaker Occidental to deliver a negative emissions project. The UK government has also published guidance on CCS funding making this option an additional opportunity for the Altalto project. Velocys remains one of the very few opportunities for investors to play negative emission technology. We see both these moves improving the operating environment for the company’s clients and their projects, stimulating demand for the Velocys technology.
Companies: Velocys plc
Today’s update confirms a strong recovery in H2 FY2020E as expected and a full year adjusted PBT at least in line with FY2019, despite a material impact from Covid and the depressed oil price resulting in a decline in Augean’s North Sea Services business. The FY2020E outturn demonstrates the resilience of the Group and the strong attractions of its growing EfW activities that now account for c.70% of Group profit. Augean is very well positioned in the EfW residue market and with c.40% of the UK’s hazardous landfill capacity. We forecast Group earnings growth of 15% and 21% for FY2021E and FY2022E, and expect further strong cash generation. EV/EBITDAs for FY2021E and FY2022E are 5.7x and 4.5x respectively, substantially below sector constituents and transaction multiples.
Companies: Augean PLC
Avingtrans has announced that it has continued to perform well in H1 FY2021 and is trading in line with market expectations. Our cautiously framed forecasts anticipate adjusted EPS growth of 17% in FY2021E and 10% in FY2022E, including the benefit of cost reduction measures. The Group confirmed high levels of order cover for FY2021E at 85% at the end of September and orders taken since then will have provided further comfort. The shares have given ground YTD and now trade on a forward EV/sales multiple of 0.9x and prospective PERs of 13.8x and 12.7x for FY2021E and FY2022E respectively which are well below sector metrics. Management is also making great progress within the medical division where the potential for its small scale MRI is substantial.
Companies: Avingtrans plc
Augean has proven to be resilient throughout the pandemic. In particular, the growth in processing incinerator ash residues from energy from waste (EfW) facilities continues unabated and additional new contract wins should drive improved returns in FY21. Management expects FY20 adjusted PBT to be slightly ahead of last year and we have marginally reduced our FY20 adjusted PBT and EPS estimates by 1%. Our FY21 estimates are maintained. Cash flow has been stronger than we expected, underpinning the indication that dividends should resume in FY21.
Initiating with a Buy rating. We initiate our coverage of Proton Motor Power Systems (“Proton Motor”) with a BUY rating and a target price of 201p. Our valuation equates to a market capitalisation of £1.47bn, compared to a current share price of 65.5p and a market cap of £479m.
Companies: Proton Motor Power Systems Plc
A £10m fundraising expedites the Protos project and opens the way for the £10.2m Peel warrant exercise in the current year. The funding will also give the company additional resources to pursue international opportunities. Adjusting for the raise and some timing differences, our UK only base valuation rises from 5.0p to the raise price of 5.5p and we see existing international opportunities taking this to 7.5p (from 6.9p) and including opportunities in Europe this could rise to 12.1p (from 11.2p).
Companies: Powerhouse Energy Group 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
Today’s positive trading update provides further encouragement for investors. The shares have been appreciating steadily on the back of last month’s fund raise and acquisition, followed by a major contract win and the £2.5m sale of the remaining RTLS stake, which had previously been largely written off. Both FY20 revenue and adj. LBITDA are better than forecast and YE net cash is particularly healthy. The integration of OSPi is underway, with all staff already transferred. We adjust FY20 forecasts and reiterate future forecasts. Future cash expectations are lifted by the higher YE balance as well as the sale of the remaining RTLS holding.
Companies: IQGeo Group PLC
Velocys has announced a change in the partnership developing the Altalto sustainable aviation fuel project with Shell moving on and Velocys now splitting the project 50/50 with British Airways. Despite being no longer formally involved, Shell remains supportive of the project in broad terms. British Airways continues to view the project as vital to its net zero target.
XPD is a well-established pan-European freight management and logistics operator. We have selected the Group as one of our Top Picks for 20211. The Group is based in the UK and focused primarily on providing integrated supply chain solutions for customers operating in the UK and Central & Eastern Europe (“CEE”). Trading has been resilient through the Covid crisis, and the benefits of acquisition integration and recent cost reductions are now coming through. Management has guided to an 18% y-o-y improvement in profit for 2020e. The balance sheet is strong with £4.3m of net cash reported at H1.
Companies: Xpediator Plc
Seeing Machines has announced that it has licensed its Occula® Neural Processing Unit to OmniVision Technologies Inc. This advances the relationship from the MOU announced in September 2020 and builds on a relationship that is over five years old, with the two organisations having worked on multiple automotive programmes with a number of Tier 1 customers.
Companies: Seeing Machines Limited
Like many awful dreams, the Covid19 nightmare hasn’t quite finished, recently mutating into an ultracontagious super-bug. The risk being global transmission and infection rates spiral out of control, swamping healthcare systems again. However this time there is an answer. Hunker down for a few months, and inoculate as many vulnerable people as possible to reduce fatalities/hospitalisations. Plus, the Oxford/AstraZeneca vaccine is relatively simple to distribute (re 2°C to 8°C). Making rapid nationwide rollouts feasible, alongside ultimately bringing the curtain down on this dreadful virus.
Companies: Mpac Group PLC
AFC Energy (AFC) – Corporate – Strategic Partnership with Ricardo
Companies: AFC Energy plc
