Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Widecells. We currently have 13 research reports from 3 professional analysts.
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. 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: CSH CGNR WDC TEG LWRF SAE NTOG EMR FBT NSCI
PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quoting before the end of 2018. 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 early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due 28 Sep. EBITDA Profitable. Offer TBA 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: WDC FISH NWF KOOV POS APPS CLIN MWG MTPH GOR
Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa Immotion Group - aims to become the market leader in "out of home" Immersive Entertainment Experiences. Offer TBA. Due 12 July
Companies: WDC PARK HDD XPD GTLY ASO BKY ANCR KIBO
WideCells Group is a Main Market listed healthcare services company focused on growing in the burgeoning market for stem cell services. Over the past few years, management have built up an integrated stem cell services provider, focused on providing products which make stem cell treatments accessible and affordable.
Vannin Capital—Press reports that litigation funder Vannin Capital is working on plans to float on the London Stock Exchange later in 2018 with an expected valuation of well over £500m | Avast, global cybersecurity provider with 435m users worldwide. In 2017, the Group's Adjusted Billings was $811 million, Adjusted Revenue was $780 million, Adjusted Cash EBITDA was $451 million. Seeking to raise $200m. Due in May | Fundamentum Supported Housing REIT. Raising £150m. Focussed on UK Social Housing assets. Due 2 May | Vivo Energy—retailer and marketer of Shell-branded fuels and lubricants in Africa, Due in May. 100% secondary sell-down of existing Shares by Selling Shareholders, No new Money. Pricing TBA | Gore Street Energy Storage Fund—Seeking to raise £100m for the purposes of investment in a diversified portfolio of utility scale energy storage projects. Due 03 May | Odyssean Investment Trust—Raising £100m at £1. Due 1 May. The Company will primarily invest in smaller company equities quoted on markets operated by the London Stock Exchange | Finablr - press reports in ‘Arabian Business’ that Money transfer firms UAE Exchange, Travelex and others under UAE billionaire Bavaguthu Raghuram Shetty’s newly formed holding company Finablr are preparing for a London IPO
Companies: MORT GSH CORA ATQT WDC GRP MXO MIRI IMTK
Kore Potash— advanced stage mineral exploration and development company whose primary asset is its interest in the Sintoukola Project, a potash project located in the Republic of Congo. ) Measured, Indicated and Inferred Mineral Resource of 5,953Mt at an average grade of 22.0% KCl. Offer TBA. Due end March. Perfomatrix PLC, a global end to end Performance Marketing technology and services company headquartered in the UK, is looking to join AIM in early April 2018, offer TBC Crusader Resources, an ASX-listed public company incorporated in Australia, which is primarily focused on the exploration and development of gold assets in Brazil. Offer TBC, expected late March. SimplyBiz, a Financial Services Firm, looking to join AIM raising £30m via placing and £34.6m via a sale of existing ordinary shares at 170p giving a market cap of £130m. Expected 4 April 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. Due26 March
Companies: NSCI CNIC APC PEG SHED ACRL TCM WDC MPH STAF
GRC International Group— holding company for a group of companies providing a range of products and services to address the IT governance, risk management and compliance requirements of organisations. Offer TBC, expected 5 March 2018 | 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. | 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 raising £70m at 190p with market cap of £185m, expected 21 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
Companies: WDC PYC SIM FIPP EOG DCTA NFC DNL MED
CIP Merchant Capital—Closed ended investment Company. Sector focus oil & gas, healthcare, pharma, and real estate. Raising £55m. Due late Dec | Eqtec—Company with access to a proprietary advanced gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity. Raising £1.6m. Mkt Cap £8.7m. Due late Dec. | Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT. | 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. Expected valuation £200m to £250m.
Companies: WDC LEG MRL CITY TRT DCTA WHR ARIX MOGP URA
WideCells Group PLC ( LON:WDC) was originally set-up in 2012 in Portugal, as a provider of stem cell storage services for the Portuguese and Spanish markets. In 2016 the company was listed on the London Stock Exchange, raising £1.7mln - net of fees, largely used to establish a new research and storage facility in Manchester, UK and to support the ongoing international expansion
Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20 million in the year ended 31 August 2015 to £33 million in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA. AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 6 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world . Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. 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. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosandar is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November .
Companies: WDC LOGP MPM NSCI GDR IOG TRX IMM DCI CDGP
Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. . £76.8 million rev in the year ended 31 March 2017. Totally to address Care Quality Commission concerns. Due 24 Oct. | Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. | Springfield Properties—Scottish housebuilder. “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” Expected Mid October. Offer TBA. | 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. Expected valuation £200m to £250m. | Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 | OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late october | SolGold—Publication of prospectus regarding transfer from AIM. Due 6 Oct | ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets in Europe, Latin America and Africa. In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA. Raising c.$400m. Expected November. | TI Fluid Systems—Maybe second time lucky? Pulled last October. global manufacturer of automotive fluid storage, carrying and delivery systems seeking to raise €425m to reduce financial leverage (to approximately 2.0x net debt to Adjusted EBITDA by the end of FY 2017). Possible partial sale by Bain. Revenue for FY 2016 was €3.3 billion and Adjusted EBIT was €362.1 million | M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov. | Bakkavor Group - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA. | Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower. reported to be seeking dual London and Moscow listing raising $1.5bn | TMF Group , which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m | People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance.
Companies: DKE WDC FLO XLM NKTN APQ GEO POLR AEG BSE
Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Offer TBA. Expected mid July. | NEXUS Infrastructure—Offer TBA. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m | Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July | GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m. Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July | FFI Holdings— Specialist in the provision of completion contracts to the entertainment industry for films, television, mini-series and streaming product. Raising £59m at 150p. Expected 30 June | QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | Ethernity Networks—Schedule 1 from Israeli based specialist in data processing technology used in high end carrier ethernet applications across the telecom, mobile, security and data centre markets. Expected 29 June. Raising £15m at 140p. Mkt Cap £45.5m | Jangada Mines—Sch 1 advanced stage PGM exploration project containing what the Directors understand to be the largest PGM resource, and only pre-development PGM project, in South America. Raising £2.25m. Mkt Cap £9.9m. Expected 29 June | Phoenix Global Mining— US Brown field copper play. Expected late June. Offer TBA | I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 | Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July | DP Eurasia—Intention to float from the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia . £20m primary raise plus a partial vendor sale | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.
Companies: WDC HYR IBPO IGR CRPR FEN ULS PRSM KOD
Touchstone Exploration— Oil exploration and production company active in the Republic of Trinidad and Tobago. Interests of approximately 90,000 gross acres. Production c. 1,300 boepd. Raising £1.45m. Expected mkt cap £7.5m. Due 26 June. I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. Verditek— Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in Early June Tiso Blackstar Group—Schedule 1 update. Media, entertainment and marketing solutions group/ £160m mkt cap. Admission only. Expected late June. DP Eurasia—Intention to float from the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia. £20m primary raise plus a partial vendor sale. Film Finances—Sky News reports that ‘movie financing company with credits including the Hollywood hits La La Land and Nocturnal Animals is plotting a blockbuster premiere on the London stock market that will value it at several hundred million pounds.’ Expected ‘during the summer’. AIB—Intention to float from AIB, Ireland's leading retail and commercial bank . The Minister for Finance intends to sell approximately 25% of the Ordinary Shares of AIB. Prospectus and announcement of the price range due in mid-June 2017. Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. Flying Brands (FBDU.L)—Prospectus approved by FCA. RTO of Stone Checker Software, supplier of technology solutions in the field of kidney stone analysis and prevention. Has raised £550k at 3p. Subject to GM on 15 Jun. Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe
Companies: MXCT PREM GUS PYC VP/ FREE CPS AMO MERC WDC
Research Tree provides access to ongoing research coverage, media content and regulatory news on Widecells. We currently have 13 research reports from 3 professional analysts.
|15Nov18 13:03||RNS||GM Results|
|14Nov18 18:07||RNS||Holding(s) in Company|
|06Nov18 14:18||RNS||Issue and Allotment of Ordinary Shares|
|31Oct18 07:00||RNS||3rd Conversion of Bond|
|30Oct18 18:10||RNS||Replacement - Notice of General Meeting|
|30Oct18 16:25||RNS||Notice of AGM|
|30Oct18 14:05||RNS||Second Price Monitoring Extn|
Interim results to 31 October provide a solid foundation for FY 2019, with revenues rising 23% (12% attributed to acquisitions) and adjusted pre-tax profit up 32% to £1.5m, benefiting from the leverage afforded by higher-margin Atik and Sentek growth. The results were characterised by strong free cashflow, rising 117% to £1.15m (+£0.6m) more than funding the EPS-accretive (7%) Fistreem acquisition during the period. With management having indicated that it hopes to acquire at least one other company before the financial year-end, the potential for upgrades is likely. We reiterate our target price of 44p, which implies a CY 2019 EV/EBITDA of 10x, adjusted P/E of 17.9x and FCF yield of 5.4%, mindful also of the prospect of further acquisitions and stronger than currently forecast trading.
Companies: Scientific Digital Imaging
DARPA has extended its engagement with Kromek into a new market segment. Kromek's Sigma platform now incorporates biological threat detection and the product has a meaningful competitive advantage. The proof of concept contract could possibly be extended in our opinion. This further raises revenue visibility and underpins our Buy recommendation.
Companies: Kromek Group
Market volatility persists with an agreement between the US & China to defer further tariff increases lifting major indices. However, the uncertainty surrounding the Brexit process continues to dominate in the UK. The impact on our universe is clear from the table below with AIM notably weaker. The reporting season runs on, though it should lighten, ahead of the festive season next week just as the progress of the Brexit deal reaches a crescendo. In Share News & Views we comment on AorTech*, Begbies, Bonhill*, FireAngel*, Golden Ocean, IG Design, Location Sciences*, Menzies, Nucleus & Synectics*.
Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN W7L
genedrive plc (GDR) is a commercial-stage company focused on point-of-care molecular diagnostics. Its Genedrive® molecular diagnostic testing platform is at the forefront of this technology, offering a rapid, low-cost, simple-to-use device with high sensitivity and specificity in the diagnosis of infectious diseases. Rapid analysis of patient samples greatly aids clinical and public health decision-making, with field testing particularly important in emerging markets. The 2018 fiscal year saw solid operational progress to generate first commercial sales. CE marking of the assay for hepatitis C virus (HCV) detection was awarded, and three commercial partnerships were agreed.
The June IPO of Knights Group Holdings, a Top-100 regional law firm, marked the fifth entrant to the burgeoning UK-listed legal sector. Following recent expansion of our coverage across all five listed legal firms, complemented by coverage of three broader support services peers with exposure to the sector, we revisit and build upon our views on this rapidly evolving sector.
Companies: ARS GTLY GENL KEYS KGH MNO RBGP TWD 7DIG ABBY AMS AMER ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPM FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KGH LAM MACF MNO MKLW NAH OXIG PCA PARK CAKE PDG RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF
Avacta announced a significant therapeutic development partnership and licence agreement with LG Chem Life Sciences. With a potential total deal value of $180m plus royalties, the multi-target collaboration is to develop and commercialise Affimer® therapeutics in inflammatory disorders and oncology. Avacta may receive an additional $130m in option fees and milestone payments should LG elect to exercise their options for additional targets. Not only is this a significant endorsement of the therapeutic potential of Affimers, but it provides additional near-term cash to help progress its lead oncology programme, which is targeted to enter the clinic in 2020. With a rich pipeline of interest in the reagent portfolio and ongoing discussions with other pharma companies, we expect further licensing activity. We estimate the risk-adjusted NPV of this deal, based only on the potential milestones to be worth 12-17p. We retain a target price of 120p.
Companies: Avacta Group
SDI is acquiring Fistreem International, a manufacturer and supplier of water purification systems (stills, deionisers) and vacuum ovens for use in the life science and industrial sectors. Considered a bolt-on acquisition, it is complementary to other SDI businesses such as ATC and Sentek, with opportunities for cross-selling as well as organic growth. SDI is paying £756k for the business, representing prospective proforma FY 2019 EV/Sales and EV/EBIT of 1.2x and 4.4x, respectively. The acquisition is being funded from cash with net debt and cash at year end of c.£0.6m and £2.0m, respectively. We expect the acquisition to be 2% accretive to adjusted EPS in FY 2019 (neutral to statutory EPS, given c.£55k of acquisition costs) and c. 7% in FY 2020. We raise our target price by 5% to 44p to reflect the earnings accretion. Based on our 2020 forecasts, this would place SDI on CY 2019 EV/Sales of 2.3x, EV/EBITDA of 10.1x and adjusted P/E of 16.4x with a FCF yield of 5.0%, rising to 5.8% in FY 2020.
Companies: Scientific Digital Imaging
Building on its positive adjusted H118 EBITDA and its partnerships, Vectura has announced three recent additional developments. Partner Mundipharma received a positive EU opinion for flutiform (46% of H118 revenues) for the treatment of asthma in children, expanding its market from adults and adolescents. The agreement with Hikma to develop generic versions of GSK’s Ellipta brings upfront and milestone payments and ensures Vectura’s participation in the global respiratory disease market irrespective of whether generic or branded products predominate in each market. The failure of VR475 in severe uncontrolled asthma reflects more the difficulty for a non-biologic product to treat these patients.
Companies: Vectura Group
Ask anyone living in Salisbury and they can tell you first-hand what is like when a deadly nerve agent like Novichok is released. Fortunately on this occasion, there was no widespread contamination - which according to experts at Porton Down (UK’s top chemical/biological warfare facility), could have killed thousands of people. So what can be done?
Companies: Kromek Group
Verona Pharma’s RPL554 is a differentiated respiratory programme with broad potential utility, supported by strong clinical data including synergistic effects with standard therapy. Our revised, conservative valuation scenario for Verona Pharma (which forms the basis of our 267p target price) is based solely on US direct sales of RPL554 as a nebulised maintenance treatment of COPD. We stress that this represents a conservative base case valuation to which potential label expansions and additional indications, geographies and modalities (e.g. potential handheld devices) are likely to be added over time. We reiterate Buy.
Companies: Verona Pharma
Today’s H1’s highlight clinical development on track: dosing is due to start shortly in the large, pivotal Phase IIb trial of ReNeuron’s CTX therapy vs. placebo in Stroke (data expected early 2020); and a first read-out from the Phase I/II trial of the lead hPRC programme in Retinitis Pigmentosa (RP) remains expected in mid-2019. In our view, the re-positioning of ExPr0 represents a rational allocation of resource. We remain positive, and look forward to the outcome of on-going commercial discussions.
Companies: Reneuron Group
The slower conversion of its pipeline in High Usage Programme haemodynamic monitors in the US and the decision to transition its largest UK customers to HUP has prompted today’s trading update. Under IFRS15, revenues and profits for FY 2019 will not be met and accordingly we have reduced revenues and adjusted pre-tax profit by c.£0.9m and c.£0.8m, respectively. Strategically, we consider the decision to build a UK HUP user base to be the correct long-term one as it improves long-term revenue visibility and the quality of earnings. From a US perspective, the level of interest in HUP remains strong, with no evidence of pipeline withdrawals, but it is taking longer than expected. We expect year-end cash to be c.£1.5m. We reduce our target price to 11p as a consequence, which would imply the stock trading on a CY 2019 E/Sales multiple of 3.2x.
Companies: Lidco Group
Solid performance across key revenue segments resulted in a strong Q4 17 performance for S&N. With China back to double-digit growth and the Gulf weakness now behind, the road ahead looks promising. Focus on cost control coupled with a strong top-line growth should translate into higher profit margins. In addition, the US tax reforms should help earnings march higher (4-5% drop in tax rate). We reset our estimates slightly higher and issue an Add recommendation on the stock.
Companies: Smith & Nephew
Bioventix reported a strong set of interim results, with EPS rising 40% boosted by the unexpected inclusion of £0.8m of back-dated royalties from one of its customers. Underlying revenue growth was still robust, rising 13% (c.18% at constant exchange rates (CER)), driven by both Vitamin D antibody sales/royalties and other antibodies which offset a c.£0.4m reduction in revenues from one customer following the termination of the licence. This, in turn, led to a 39% increase in pre-tax profits and a 40% increase in adjusted EPS. An interim dividend of 25p was declared (+25%) with net cash at period end of £5.6m (excludes £0.8m of back-dated royalties). We have increased FY 2018 EPS by 15% to take account of the back-dated royalty and 2019 by 2%, which reflects the underlying performance. Consequently, we raise our target price to 2650p, at which level the stock trades on a 26.5x FY 2019 P/E and an EV/EBITDA of 20.1x.
Following the new and positive analysis of Feraccru's Phase 3 data in CKD-IDA announced in March, the company met with FDA to discuss filing. The company has now received final minutes of that meeting and has decided to proceed to filing Feraccru for approval in the US.
Companies: Shield Therapeutics