Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August
Companies: NBI AIEA TWD PXS INSE APPS GOAL AUTG CTNA HUM
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 CPP GOAL SLN DEST CHRT BMV UKOG GTC GHT
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. Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.
Companies: ADV NAR KETL GOAL BBSN THR SEE ADES ORR LID
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. Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. 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. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
Companies: RTC EDR CASP PTR GOAL DEST RGM LEK MOGP ELCO
Burford Capital (BUR LN) 5% placing suggests bigger opportunities | Clinigen Group (CLIN LN) Two acquisitions create European platform | Goals Soccer Centres (GOAL LN) Powerleague woes | St Ives (SIV LN) Name change reflects strategy evolution
Companies: BUR CLIN GOAL KCT
Advanced Medical Solutions (AMS LN) Interims mixed | Dunelm Group (DNLM LN) Positive strategic update and multi-channel progress report | Findel (FDL LN) Positive take-aways from Xmas press show | Goals Soccer Centres (GOAL LN) Overcoming H1 setbacks to start H2 strongly | Medica Group (MGP LN) Buying opportunity in structural growth market leader | ReNeuron Group (RENE LN) AGM update highlights development progress & licensing discussions | Ten Entertainment Group (TEG LN) Resilient H1 with positive current trading news
Companies: AMS DNLM STU GOAL MGP RENE TEG
Be Heard (BHRD LN) H1 shows strong revenue growth, but profit shortfall | dotdigital Group (DOTD LN) Another year of strong growth & cash generation | EKF Diagnostics (EKF LN) Manufacturing agreement with Oragenics Inc | Goals Soccer Centres (GOAL LN) Profit warning | LiDCO Group (LID LN) UK distribution deal with Maicuff Technology | Nichols (NICL LN) Solid interims with a 3% PBT beat | Speedy Hire (SDY LN) In line Q1 update, with ROCE continuing to move forwards |
Companies: BHRD DOTD EKF GOAL LID NICL SDY
Fulcrum Utility Services Limited (FCRM LN) Sector leading returns and earnings growth | Goals Soccer Centres (GOAL LN) Satisfactory AGM but weather impact higher than earlier guidance | Gresham Technologies (GHT LN) Positive AGM statement confirms Clareti momentum | Hill & Smith Holdings (HILS LN) Positive strategic US acquisition | Polypipe Group (PLP LN) Strategy update highlights growth opportunities | Rathbone Brothers (RAT LN) Q1 FuM -3.3%, flows remain modest in investment management
Companies: FCRM GOAL GHT HILS PLP RAT
See what's trending this week...
Companies: BNOAVONCMHCHHRE/SCEMPACNICLARBBSIXHTONAPHMURAGYGOALCKTRTNCLIGMARSINLGDRCVSGTRXSCLPBAGCOSABDPOPMAVODNLOXBKOOVYGENABZANSFREDXEVGVALGTLYPHPAVCTMCLACRLGYMBURPLUSBOODPZMMX
With a busy reporting season behind us we use this note to take stock. Stepping back we pull out the key themes which emerged across the sub-sectors we actively follow in the consumer space. On balance there was more cause for optimism. This is supportive of our top-down view that there is scope for a better H2 for consumer related stocks as cost headwinds ease and pressure on disposable income moderates. We also take a close look at 7 stocks we actively research and which reported over March and April. For each we use charts to depict the key takeaways from an investment case perspective.
Companies: DOM BAG NICL CHH GOAL RTN GYM MARS CVSG
We have completed another refresh of our value style screen, first established as of 12 May 2015. As usual the screen selected the 25 stocks exhibiting the most extreme value characteristics from our universe, and we have chosen 10 stocks to focus on. Since the last refresh, two days before the last general election, which resulted in a hung parliament, the screen has performed a little better than the small-cap index with our focus stocks outperforming by about 500bps. The weighting to UK consumer stocks noted last time detracted from performance, which came as little surprise given our cautious stance, much discussed in our other strategy work this year. One might have expected more consumer exposure in the refreshed screen given this year’s severe underperformance, but it appears forecasts have been similarly downgraded, keeping much of the sector outside our value criteria
Companies: AUG EHG GOAL MMH RTHM SDY TEF VANL
Brady (BRY LN) Full year results in line with downgraded expectations | Brooks Macdonald Group (BRK LN) Underlying progress, but alongside an increase in legacy provision | Burford Capital (BUR LN) Argentina case sold for $107m cash, $94m profit | Futura Medical (FUM LN) Supportive PK data for MED2002 | Goals Soccer Centres (GOAL LN) Positive underlying momentum temporarily derailed by snow hit | Gresham Technologies (GHT LN) Clareti-growth driving strong performance | PROACTIS Holdings (PHD LN) Result of Hubwoo tender offer and new customer win announcement | PureTech (PRTC LN) Proposed placing to raise $100m to advance pipeline | Renold (RNO LN) Lag in passing on higher input prices | Restore (RST LN) Organic and acquisitive growth story continues | Surgical Innovations Group (SUN LN) Prelims as expected, outlook positive | Zotefoams (ZTF LN) A year of significant strategic progress
Companies: BRY BRK BUR FUM GOAL GHT PHD PRTC RNO RST SUN ZTF
Management related newsflow from Goals this morning. The vacant CEO role has been filled with appointment of Andrew Anson who joins from 23rd April. This news removes an area of uncertainty and should be welcomed. He has a good track record with various consumer facing businesses, most notably at Kitbag (ex Findel business) where from 2011 he led a successful recovery in profits and eventual sale to Fanatics Inc. With most of the strategic heavy lifting done at Goals, he has the platform to execute a return to profitable growth and an improving ROCE profile of the business. Separately, the architect of the turnaround strategy announced c.18 months ago, Nick Basing, is handing over the role of Chairman to focus on being Chairman of the Group’s JV in the USA with City Football Group. Nick in our view has done an excellent job in laying the foundations for the Group to reverse a long period of underperformance. We are pleased he is staying on the Board as a Non-Executive Director whilst simultaneously working to extract value out of the US JV. The PLC Chairman role is being passed onto Michael Bolingbroke (SID) until a new Non-Exec Chairman is appointed. Whilst there are green-shoots of a turnaround emerging at Goals we want to have more confidence in the direction of forecast before turning more positive. We have a Hold recommendation but see today’s CEO appointment as a positive development.
Companies: Goals Soccer Centres
TruFin—holding company of an operating group comprising three growth-focused FinTech and banking businesses operating in three niche lending markets: supply chain finance, invoice finance and dynamic discounting. Offer TBC, expected late Feb | Polarean - The medical drug-device combination companies operating in the high resolution medical imaging market. Offer TBC. Due 22 Feb | 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: ESCH ENET SCLP THR GOAL SEE LMS EPWN CKT DSG
Today’s update highlights that whilst 2017 was a year of significant strategic progress, the turnaround is taking longer than expected. Investors should take plenty of encouragement from the LFL metrics from the invested estate, but there remain a significant tail in the business which is underperforming. Management has a clear plan to address this part of the business in FY18 but for FY17 the financial performance has not lived up to expectations, with LFL sales of -0.5% vs our +2%. Accordingly we lower our FY17 PBT forecast by 13% and FY18/FY19 by 13%/7% respectively. There is an expectation that the turnaround will show better momentum in 2018. Turnaround stories rarely go in a linear line and Goals is proving this, but fundamentally we feel it now has the correct strategy to rebuild shareholder value. Failure to do so will once again raise balance sheet concerns given FY17 finished with only 3% covenant headroom and for FY18 we are projecting 20% headroom. For now until forecast confidence returns we stay at Hold with a revised price-target of 70p (from 90p).
Research Tree provides access to ongoing research coverage, media content and regulatory news on Goals Soccer Centres. We currently have 59 research reports from 4 professional analysts.
The leading network airlines group reported a heavy Q2 net loss and its H2 forecast has been revised downward. Nevertheless, IAG maintains its recovery expectations despite a more pessimistic market outlook. The group will call for a €2.75bn fund raising to cope with the health crisis.
Companies: International Consolidated Airlines Group SA
William Hill reported strong H1 20 numbers, with revenue and profits ahead of estimates. Revenue was down 32%, a significant improvement vs the 57% drop seen in the weeks immediately following the lockdowns. The adjusted EBIT came in at £11.8m, thanks to better-than-expected savings from cost control. The net debt/EBITDA ratio is down to 2.1x (vs 2.4x at FY19 end). Following the H1 performance, we will be raising our profit estimates to account for the impact of the recent cost controls.
Companies: William Hill Plc
The global online gaming market generated c £40bn of gross gaming revenues (GGR) in 2018 and newly regulating markets (the US) are expected to contribute to 7% CAGR to 2023 (according to H2 Gambling Capital (H2GC)). However, while regulated markets have provided significant opportunities for operators to date, government intervention remains a constant threat and legislation is tightening. Some mature markets (notably the UK) have been raising taxes and implementing regulatory burdens, which increases the cost of business. In our view, success will depend on a combination of scale, diversification, proprietary technology and a strong balance sheet. Many of the 12 operators in this report should benefit from these dynamics and sector valuations remain attractive, at 12.6x P/E, 8.2x EV/EBITDA and 6.0% dividend yield for FY19.
Companies: 888 ACX BETSB ORPH GVC GYS OPAP PTEC RNK WMH
New management has put in place a strategy which the February interim results revealed was returning the group to growth with very encouraging LFL statistics and attractive returns on refurbished outlets. In March, however, in response to COVID-19 and following UK Government guidelines, all venues had to be closed. Management initiatives have materially reduced the cash burn while the group is unable to trade, and the group’s lender has been very supportive in significantly increasing the borrowing facility. Management is now proposing an equity issue, the rationale for which is to strengthen the leverage ratio to create a more appropriate capital structure moving forward, to allow an immediate return to the estate refurbishment programme and to be able to potentially take advantage of strategic opportunities as they arise as the sector emerges from the COVID-19 crisis.
Companies: Revolution Bars Group Plc
Gear4music’s FY2020 results reflect the positive momentum of the company’s announcements so far this calendar year. The data re-confirm brisk sales growth but in our view improved profits and profitability is the salient story. Moreover, with an online distribution focus, a well sourced product range and clear evidence that its logistics are being run more efficiently, the company’s ability to deliver positive newsflow looks increasingly sustainable. FY2021 started on an exceptionally strong note.
Companies: Gear4music (Holdings) Plc
Whilst Arena delivered FY20E results in line with our expectations, this has inevitably been overshadowed by the challenges posed by COVID-19 to the industry. Arena acted swiftly to cut costs and preserve cash, such that it currently has a c£23.5m cash balance. This is enough to see the company through into 2021, even if the global event market remains heavily disrupted for the rest of the year.
Companies: Arena Events Group Plc
Following interim results reported last week, with H1 profitability and cash generation ahead of our previously published scenario analysis, we reinstate forecasts for FY20E and beyond today. Inchcape has delivered a resilient performance despite widespread market disruption. Its balance sheet strength creates the potential for further accretive M&A as well as returns to shareholders in the form of buybacks and possible return to the dividend list.
Companies: Inchcape Plc
bet-at-home reported headline figures for H120 ahead of consensus expectations. The results are encouraging given revenue growth in Q220 was better than might have been expected with the regulatory changes (Poland and Switzerland) and the impact of COVID-19 on sports betting. Management has reiterated its guidance for FY20, and the strong financial position makes the prospective dividend yield of 7.0% look attractive.
Companies: bet-at-home.com AG
The trade-off in the risk/reward for gold and gold mining equities is improving, as central banks push the current iteration of the post-World War II Bretton Woods financial order towards its limits.
Companies: AVO AJB AGY ARBB BUR CLIG DNL DPP FLTA GTLY GDR MCL MUR NSF PCA PIN SRE PHP RE/ RECI RMDL STX SCE TON SHED VTA W7L
Disney+ hits 22m mobile users, SoftBank backed firm downsizes IPO, German mobile carrier selects Huawei
Companies: ENET 7DIG MVR ZOO ZOO AMO BOOM MIRA MWE
JDW’s Q2 performance was slightly ahead of our estimates. The publican benefited as Britons continued to go out to eat and drink over Christmas and the New Year. Management’s disclosure of a further increase in FY19/20 net debt is a concern (although it is attributable to higher than expected capital expenditure). No significant changes to our financial estimates.
Companies: JD Wetherspoon Plc
Despite the challenging market environment, Arena has delivered interim results that were broadly in line with our expectations (Adj EBITDA of £16.6m vs £17.0m forecasted). Cost saving initiatives are being implemented, which should support margins going forwards, whilst the company is expected to benefit from some significant contracts due for delivery in FY21E.
IAG’s expectation of a faster-than-peers recovery in the activity might be affected by the UK government’s mandatary quarantine measures for all air passengers arriving in the country. Despite the industry-leading profitability and comfortable amount of cash in hand, the market environment remains challenging for the group.
Cenkos Securities plc has terminated coverage of Angling Direct Plc. Our previous recommendation (BUY) and forecasts can no longer be relied upon. For further information please contact Cenkos.
Companies: Angling Direct Plc
AFC Energy is a global leader in the fuel cell sector. It has a proven fuel cell technology which it is commercialising through its H-Power™ product, an off-grid electric vehicle charging system which is run on hydrogen and produces no emissions. The company's core fuel cell technology is a liquid alkaline fuel cell called HydroX-Cell(L)™. The company is also developing a solid alkaline fuel cell called HydroX-Cell(S)™ , the critical component of which is a is a solid electrolyte which upon validation will be marketed under the AlkaMem™ trademark. We expect the AlkaMem™ product to have multiple electro-chemical applications outside of fuel cells. The purpose of this note is to compare AFC Energy's products, markets and business strategy against its listed peers Ceres Power and ITM Power. The note also assesses the state and outlook of the hydrogen market in addition to the proton exchange membrane market, which is relevant for AFC Energy's AlkaMem™ product. As a reminder, we believe AFC Energy has a fair value of 27p/sh.
Companies: AFC AFC AFC
