Gama Aviation (GMAA) – Corporate – Sale of US Air Associate
Market Cap £31.5m Share Price 49.5p
Gama Aviation is an international business aviation services provider. After market close last night, the group announced the sale of its US Air associate to its largest customer, Wheels Up, for a total consideration of $33m.
Norman Broadbent (NBB) – Corporate – Northern office expansion signals confidence
Market Cap £4.0m Share Price 7.5p
NBB has announced the opening of a Northern office in Cheshire which we expect will be a fully-fledged operation operating across NBB's portfolio and providing the company's whole range of services from a low cost-base in a growing and meaningful economic cluster. We note that the office is being opened on the back of client demand.
Companies: Gama Aviation Plc (GMAA:LON)Norman Broadbent plc (NBB:LON)
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. VAALCO Energy, Inc. (NYSE: EGY), an independent energy com pany focused on developm ent and production assets in West Africa, today announces its formal intention to seek a Standard Listing on the Main Market of London Stock Exchange ("LSE"), to complement its existing Listing on the New York Stock Exchange. Kaspi.kz, the largest Paym ents, Marketplace and Fintech Ecosystem in Kazakhstan w ith a leading m arket share in each of its key products and services, announces today the expected publication of a registration document that has been submitted for approval to the FCA and its potential intention, subject to market conditions, to undertake an initial public offering. 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.
Companies: SRES ARE UFO ORM EVE ULS ONC GMAA
Gama Aviation is an international business aviation services provider. The last 12- months has been nothing short of ‘annus horribilis’ for Gama, with the shares falling by nearly 60%. Against this backdrop, its largest shareholder, Hutchison Capital, has increased its shareholding to 29.8%, along with introducing new members to the Board, both of which we view as positive given their historic track record of creating shareholder value. Importantly, yesterday’s update confirmed the group was trading in line with previous guidance provided at the time of the full year results in April. With the strategy remaining unchanged, the key question now is the extent to which investor confidence can be rebuilt following events of the last year. Although this will inevitably take time, we believe that notwithstanding the challenges, there remains a solid business from which to build in this highly fragmented market. Whilst we see limited near-term share price catalysts, if the new Board is successful in delivery, we believe the present valuation multiples ascribed have scope to expand as results are delivered and confidence returns.
Companies: Gama Aviation Plc
Gama Aviation (GMAA) – Corporate – Trading update – Downward revision to year-end guidance | UK Oil & Gas (UKOG) – Corporate – Update on Strategy and Drilling Plans | LPA Group (LPA) – Corporate - Strong FY18 results; FY19 slower
Companies: Gama Aviation Plc (GMAA:LON)UK Oil & Gas PLC (UKOG:LON)
Gama Aviation (GMAA) – Corporate – Trading update – downgrade to earnings expectations | Frontera Resources (FRR) – Corporate – MOU Signed with Baker Hughes | i3 Energy (I3E) – Corporate – Operational Update and New Corporate Presentation | WEY Education (WEY) – Corporate – Solid FY18 results, showing strong growth; forecasts reduced
Companies: GMAA I3E WEY
Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings (AIM-EKF). Total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov.
Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA
Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October.
Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct
Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Companies: N4P HZM DCI MERC GRP W7L INCE GMAA ANG EVR
Interims – forecasts unchanged, strategic plan on track | Interim results – Strong H1, upgrades and encouraging outlook | Encouraging H1 results; momentous opportunities
Companies: GMAA SPSY PEN
Gama Aviation (GMAA) – Corporate - Interims – forecasts unchanged, strategic plan on track | Spectra Systems (SPSY) – Corporate – Interim Results | Pennant International (PEN) – Corporate – Encouraging H1 results; major opportunities |
Gama Aviation is a global business aviation services provider. This morning the Group has released a H1 update, pointing to continued progress in the first six months of the year. The US Air and Ground segments have been the pick of the divisions, offsetting a weaker performance in Europe and leading to a flat H1, whilst the strategic plan remains on track and a number of acquisition opportunities are reported to be in advanced stages of discussions. With management’s expectations for the full year remaining unchanged, backed by a stronger H2 outlook, we make no changes to our forecasts this morning. We believe that the strategic initiatives underway will support further growth opportunities for the Group in what remains a hugely fragmented market. Our estimate of fair value remains unchanged at 360p.
UK Oil & Gas Investments (UKOG) – Corporate – Initial Portland Sandstone Production Rate | Gama Aviation (GMAA) – Corporate - H1 update; FY expectations unchanged, strategic plan on track | Frontera Resources (FRR) – Corporate – T-39 initial production rate of 529 b/d | Jarvis Securities (JIM) – Corporate – Increased costs held back H1-18 outcome but positive prospects for future growth | Scholium (SCHO) – Corporate – FY2018 results |
Companies: UKOG GMAA JIM SCHO
Stratmin Global Resources RTO of Signature Gold a specialist Australian gold exploration company focused on the exploration and development of large-scale Intrusion Related Gold System. Offer TBA. Due 6 June. Will leave AIM under rule 41.
Companies: YGEN EQLS CMB FLTA GMAA ALSP ECSC ALNOV ANR SYME
Gama Aviation is a global business aviation services provider. This morning the Group has released an update ahead of its AGM later today, pointing to a satisfactory, albeit flat performance in the first four months of the year. On the back of the update, we take a slightly more cautious view on the year-end outturn in Europe and Middle East Ground, whilst we have also reviewed our assumed contribution this year from Associates, which leads us to reduce our EPS expectation by c.8%, whilst our FY 2019E EPS expectation moves c.3% lower. The strategic initiatives underway will support further growth opportunities in what remains a hugely fragmented market. Based on our revised FY 2018E estimates, a PER of 11.8x falls to 7.8x in FY 2019E once the benefits from the actions associated with the fundraise come through, which we see as undemanding assuming successful execution of the strategy. A FY 2019E PER multiple of 12.1x, in line with our peer group, would imply fair value for the shares of 360p.
Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia. Raising £5m at 4p. Mkt cap £10.3m. Due 11 June. | Codemasters Group— video game developer and publisher, specialising in high quality racing games. Offer primary raise of £15m, secondary of £170m at 200p. Market cap of £280m. Due 1 June.| Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. | Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May
Companies: SAR UKOG NBI AAU ORR GMAA BRD
Gama Aviation is a global business aviation services provider. This morning the Group has released full year results broadly in line with our expectations. In what was a busy year for Gama, good strategic and operational progress has been made across each of the divisions. Trading for the current financial year to date is reported to be in line with expectations, whilst we reduce our FY 2018E EPS expectation by 3.3% to better reflect the likely contribution from the two US base maintenance facilities due to open this year, our FY 2019E forecasts remain unchanged. Gama operates in a hugely fragmented market and the £48m fundraise last month should support further growth opportunities looking forward. The shares trade on a FY 2018E PER of 12.1x falling to 8.5x in FY 2019E once the full year effect is seen, which we see as undemanding should management successfully execute on the strategy. A FY 2019E PER multiple of 12.5x, in line with our peer group rating, would imply fair value for the shares of 370p.
City law firm Rosenblatt reported in the press to be considering a London listing. The commercial firm had a reported revenue of £16m in 2017
VR Education Holdings—a virtual reality software and technology company. Raising £6m at 10p, mkt cap £19.3. Due 12 March
SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money.
Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd
Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected Mid March
Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due Early March
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
Companies: OPTI SSTY CMS DGOC CPT FIH AGM TERN GMAA
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HeiQ is a materials innovation technology company, marketing products that increase the functionality of technical, medical and consumer textiles. The company's core products are at the leading edge of innovating the c$25bn textile chemicals market, while the recently launched antimicrobial technology, HeiQ Viroblock, enables the forward integration into the c$10bn antimicrobial textile market and OTC textile medical devices. The company is grounded on three strategic success factors, materials innovation, mass manufacturing and ingredient brand marketing, which will support the company's ambition to grow its revenues from $30m to $300m in the medium term. HeiQ has listed on London's Main Market via a reverse takeover, raising £20m in new equity. We initiate coverage with a BUY.
Companies: HeiQ PLC
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced encouraging full year results, marginally ahead of our increased forecasts and a significant turnaround from the losses reported in previous years. Cash balances at the year-end were also substantially higher than forecast at £1.8m. The new management team has delivered on its promises in what has been a challenging year and we continue to remain very positive on the prospects for the Group. We have introduced forecasts for FY2021 but at this stage, with so much uncertainty we have set our expectations prudently. Nevertheless, the year has started strongly and our projections, supported by a high level of recurring revenue and margin improvement, still anticipates a more than doubling of EBITDA and could be raised as REACT progresses through the year.
Companies: REACT Group Plc
Entain reported strong Q4/FY 20 sales with 7%/1% cc growth respectively (ahead of estimates). The performance was driven by the strong broad-based momentum in online (Q4 20: +41%, FY 20: +28%), which more than offset the decline in retail. The US stood out with 131% growth, pushing FY 20 revenue expectations higher to $175-180m. We will be upgrading our estimates to factor in the stronger than expected performance. In other developments, Jette Nygaard-Andersen was appointed CEO with immediate effect.
Companies: Entain PLC
Escape Hunt (ESC) has conditionally agreed to acquire its French master franchise partner, BGP Escape (BGP). Together with UK sites currently in build, ESC expects BGP to add enough scale for the group to reach positive EBITDA when conditions normalise and new sites have matured. The acquisition is attractively priced at only 1x EBITDA before earnout payments.
Companies: Escape Hunt Plc
Taking into account the adverse impact of the pandemic, the Air Europa acquisition price has been halved to €500m with payment deferred until the sixth anniversary of the acquisition’s completion, which is now scheduled for H2 21.
Companies: International Consolidated Airlines Group SA
Following the transformational acquisition of rival Dominium we are formally initiating on DP Poland. The combination has broadened and strengthened the business model, creating a top 3 market player with a proven new CEO at the helm. Significantly, the enlarged entity will be profitable and self-funding, something the market has been long waiting for. The deal creates a platform to accelerate growth and to become the dominant pizza player in Poland. We identify three main drivers – cost synergies, organic growth and a resumption of the rollout strategy. DP Poland has proven that the Domino’s formula works as well in Poland as it does elsewhere in the world; its mature stores are substantially profitable. The share price will be driven by confidence in delivery of EBITDA growth and cost synergies.
Companies: DP Poland PLC
We were bullish about the ongoing effects of strategic/operational initiatives at G4M, seeing forecast upside risk. It has not disappointed. Q3 sales and margin outperformance drive a 30% upgrade, and a shift into net cash. Extensive planning and systems/delivery changes have helped it after Brexit too, with trading stronger than expected so far in Jan. Valuation looks undemanding given upgrade momentum and the discount to lower margin peers.
Companies: Gear4music (Holdings) PLC
M&B’s poor trading performance in Q1 FY20/21 was not a surprise. Lfl revenue in the current quarter is also likely to remain deep in the red. Management is exploring an equity issuance to remain afloat / meet the fixed cost and debt service obligations. After all, the cash coffers are fast depleting and the choice on the table is limited.
Companies: Mitchells & Butlers plc
Air Partner has reported a record H1 performance, with PBT increasing by 250% to £10.5m. This was driven by COVID-19 related work, in particular repatriation flights and transportation of PPE, which offset more challenging trading conditions elsewhere. Air Partner’s diversity has insulated it from the significant COVID-19 impact felt elsewhere in the sector. As expected, COVID related work has slowed down in H2, though there have been some early signs of improvement in Private Jets (number of JetCards sold +50% YoY) and Safety & Security (multiple contract wins in Redline). Given continued subdued demand, gross profit has reduced YoY in Q3 to date, though this was offset by cost initiatives. We reintroduce forecasts for FY21, assuming PBT of £10.5m, which implies break even in H2. The balance sheet remains strong, with net cash of £18m and the Board has proposed an interim dividend of 0.80p.
Companies: Air Partner plc
Today's news & views, plus announcements from FERG, AHT, KAZ, LMP GLO, ERM, MCS, STU, SEIT, SOLG, INCE, AEXG, BEG
Companies: AEX GLO SEIT SOLG STU INCE
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5 million by way of private placement of new Common Shares (the "Fundraising") to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company's Common Shares will continue to be listed and trade on the TSX-V in Canada. 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. 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. Moonpig, the digital greeting card company, is planning an IPO with a potential valuation of £1bln, according to multiple media reports. Further details expected to be announced over the next two weeks.
Companies: ZPHR PANR PRSM SENS CYAN G4M ITX CRCL FEN ZIN
Dixons’ trading performance in the 10 weeks ended 9 January 2021 was a mixed bag. The strong lfl growth in the first six weeks is in contrast to the subsequent period. Management has expressed it is comfortable with the consensus of the current financial year and reaffirmed its mid-term guidance. Overall, the business remains in good shape despite the adverse impact of frequent lockdowns and the dilutive impact of the growth in e-com. We maintain a positive stance on the stock recommendation.
Companies: Dixons Carphone PLC
Sportech (SPO) supplies betting systems to over 400 clients in 38 countries, including the world’s most widely deployed Tote solution. It has an exclusive licence to operate betting in Connecticut (CT) and is well placed to benefit from eventual legalisation of sports betting in the state. It also has a fast-growing charitable raffle business. The business has been interrupted by COVID-19, but has proved resilient, especially through online channels. There are opportunities to improve margins by transitioning from a mechanical model to a digital one. We would expect these benefits to come through over the next few years.
Companies: Sportech PLC
The Group continues to gain momentum as it delivers its ambitious growth strategy. Testament to strategic acquisitions and strong organic growth, Group revenue increased 14% YoY to £4.0m whilst EBITDA margin expansion (+430bps) drove a c30% YoY increase to £1.4m. Additionally, the strategic decision to incorporate TCAT as a new subsidiary should expediate its commercialisation and expansion. We believe One Media offers value to investors whilst it trades at a discount relative to its peer group, our fair value per share analysis and DCF valuation. Buy
Companies: One Media iP Group PLC
IAG may have reached an agreement to acquire Air Europa at a lower price (edited as per IAG’s request). The deal should be approved by the Spanish government.