Companies: FEN RGD LPA
The company has announced the award of two new contracts for the UK rail market with a combined value of £1.9m. The awards provide a further boost to the order book that has seen a significant increase over recent months, which helps underpin revenue expectations over the next couple of years. No change to forecasts. Trading on a P/E of 12.6x for FY21 and 10.9x for FY22, and with improving order book visibility and the expectation of increased market activity and a step up in profitability, the shares continue to offer good value.
Companies: LPA Group Plc
Bango (BGO): Corp Microsoft deal will harness current Xbox demand | Ideagen (IDEA): Corp Comfortable interim trading update | LPA Group (LPA): Corp Year-end trading update | Redcentric (RCN): Corp That which does not kill you makes you stronger
Companies: IDEA RCN LPA
The group confirms FY20 trading is broadly in line with management expectations, with each month across H2 being profitable. Overall COVID effects have not been as great as first envisaged, and cost reductions and cash conservation actions achieved. Some rail sector work flow has been delayed, but is now moving ahead, boosting future growth. Aviation is weak and is expected to remain so. The order book has seen strong momentum in October. While ongoing COVID effects are uncertain, we reinstate forecasts and a 125p price target indicating c40% upside.
Following hot on the heels of last week’s significant project award for Siemens and London Underground, the group has announced a further significant project award for Alstom’s high-profile next generation of TGV trains for SNCF. While the value of the project has not been announced, it reinforces our optimism and view that momentum in the train market is improving and also further strengthens the group’s medium-term order book. We see the award as noteworthy also because it is in the group’s innovative electronics technology, validating the group’s product investment in this area.
Bango (BGO): Corp Bango scales up Far East operations | discoverIE (DSCV): Corp Resilient H1, improving outlook, dividends returning | LPA Group (LPA): Corp Prestigious Siemens project award | Touchstone Exploration (TXP): Corp Chinook announced as another significant gas discovery
Companies: DSCV LPA TXP
The company has announced a prestigious contract award, to supply interior lighting and door lighting to Siemens, for the London Underground Piccadilly Line. The award for an initial 94 train sets, with a further option for 216 sets across other London Underground lines. This is an important contract for LPA and helps cement an existing strong relationship with the leading European train manufacturer. The group has announced a number of contract awards through 2020, pointing to accelerating market momentum in this area, and today’s announcement further reinforces the medium-term order book. While forecasts remain under review, we expect a year-end trading update shortly.
Altitude Group (ALT): Corp | Avingtrans (AVG): Corp | LPA Group (LPA): Corp | Open Orphan (ORPH): Corp | PCI Pal (PCIP): Corp | Photo-Me (PHTM): Corp
Companies: ALT AVG PHTM PCIP LPA ORPH
Companies: LTG KRPZ KEFI ANIC NCCL LPA WHR BZT TILS MSMN
LPA Group (LPA): Corp Interim results: encouraging signs in difficult markets
Half-year results show some improvement in trading against a continuing difficult market backdrop. It reports a strong order book, with some significant orders gained over recent months in long-term projects. While management considers it likely that the second half will see further improvement, the phasing of customer projects, especially round its September year end, coupled with ongoing COVID related uncertainties makes guidance problematic currently, and as such our forecasts remain under review.
Bioventix (BVXP): Corp | K3 Business Technology (KBT): Corp | LPA Group (LPA): Corp | Robinson (RBN): Corp
Companies: BVXP KBT RBN LPA
Altitude Group (ALT): Corp Proposed disposal of ADP | Europa Oil & Gas (EOG): Corp Wressle economics highly robust | LPA Group (LPA): Corp COVID-19 update and Board appointments | Morses Club (MCL): Corp Substantial immediate upside opportunity in share price | Quixant (QXT): Corp Coronavirus delays audit sign-off for a week | Revolution Bars Group (RBG): Corp COVID-19 trading update | Synairgen (SNG): Corp COVID-19 Phase II trial to start imminently
Companies: ALT EOG QXT RBG SNG LPA
The company has announced it has so far seen little undue impact from coronavirus, but it comments it is prudent to expect some impact on its transport and aerospace customer base. The AGM statement also highlights several new appointments to the Board that help rejuvenate the senior management team. The announcement also signals actions to mitigate the impact of coronavirus, including the suspension of the 2019 final dividend to conserve cash. We therefore reduce revenues by 10%, which results in a £0.5m reduction in PBT and EPS of 4.7p, down 40%. Our price target reduces from 156p to 125p, with longer-term value driven by the recovery in its order book, while the shares are already significantly lower due to current market weakness.
Avacta (AVCT): Corp TMAC – proof of concept for novel Affimer conjugate | LPA Group (LPA): Corp Full-year results: a year of recovery ahead | Sopheon (SPE): Corp Positive trading update
Companies: AVCT SPE LPA
Research Tree provides access to ongoing research coverage, media content and regulatory news on LPA Group Plc.
We currently have 39 research reports from 3
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