GYG is the world’s leading superyacht service and supply group. It has an unrivalled reputation in an attractive niche, having painted more superyachts than any other company. The equity story was knocked off course by a challenging FY18 as the Group faced a number of external headwinds in its first year post IPO. This prompted a review of GYG’s management structure as well as increased investment in systems to improve visibility and service delivery. Meanwhile, the market opportunity looks to be brighter than ever. The order book is at record levels and management is focused on enhancing margins as revenue builds. We anticipate a period of strong earnings growth, with scope also for a recovery in the rating from current levels in recognition of ongoing strategic progress.
Companies: GYG Plc
Following a number of recent contracts wins GYG’s order book now stands at record levels, which we believe should give investors confidence in current forecasts. We leave our published numbers unchanged at this juncture but believe our assumptions to be well underpinned by increasing trading momentum backed by the record order book, coupled with efficiencies and cost savings evident in the H1 margin trends.
Wheaton precious Metals (TSE:WPM) - Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q 2020
AB Ignitis grupe—leading utility and renewable energy company in the Baltic region. Admission of its Shares to the Main Trading List of Nasdaq Vilnius and admission of its GDRs to the Official List of the FCA. Offer Price Range corresponds to a market capitalisation of approximately EUR1,691.7 - EUR2,105.2 million. Due 7 Oct.
Calnex, an established provider of test and measurement solutions for the global telecommunications sector, will raise a total of £22.5 million (before expenses), comprising £6.0 million for the Company and £16.5 million for existing shareholders . Due 5 October 2020, under the ticker CLX. Based on the Placing Price, the market capitalisation of the Company will be £42.0 million on Admission.
Various Eateries to float on AIM. Admission is expected to take place end of September/early October 2020. The Company intends to raise up to £25 million by way of a placing . Established platform business operating two core brands, Coppa Club & Tavolino, both positioned to benefit from the post-Covid environment. The Directors believe site availability, acquisition opportunities, reduced competition, availability of talent and changes in consumer behaviour provide opportunities to accelerate the Group's growth .
Mode Global Holdings to join LSE (standard). Mode is a UK-based Fintech Group, building a modern financial services business to support an increasingly digitised economy and financial system, combining the best of banking, payments, investment, loyalty and digital assets. Targeting £7.5m raise.
Guild Esports a UK-based owner and developer of esports teams, has announced its intention to seek a listing of its ordinary shares to the Standard Listing segment of the London Stock Exchange this autumn. its founding shareholders include David Beckham, former football player and captain of England, and now co-owner of new MLS team Inter Miami CF.
HOME REIT intends to float to the Main Market raising up to £250m. The Company will seek to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by investing in a diversified portfolio of assets across the UK which will be dedicated to providing accommodation to the homeless. Due Mid October
Sativa Wellness Group—(Canadian Securities Exchange: STIL) renamed from Stillcanna Inc following the conditional acquisition of Sativa Group (AQSE:SATI) to list on the AQUIS Exchange. A fully integrated European seed to consumer CBD group with the pricing, products, and stability to meet the CBD market demand in the medium term. With world-class extraction and formulation experts, an agricultural team that has over 20 years’ experience farming hemp, along with laboratory testing capabilities, the group has established itself globally as a trusted source of high-grade, premium wholesale CBD brands and products.
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List
Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.
Companies: PEG GYG VDTK SMRT ORR BIOM BLOE IXI TRR CPP
A H1 trading update shows 12% decline in revenues for H1 2020 YOY due to COVID, with adjusted EBITDA ahead by €0.1m to €1.6m YOY driven by a 22% increase in margins. We are maintaining our forecasts for now, but believe there is some upside potential as we progress through the year and order book visibility continues to improve from here
GYG has delivered robust 2019A results following three earnings upgrades over the past year, regaining growth momentum and delivering improved margins. Despite some short-term disruption from COVID-19, the order book provides greater visibility than ever before, with the Group operating at c.90% capacity with no cancellations noted to date, underpinning forecasts for FY20. We believe the Group is now a better business than at IPO, capable of driving continued EPS expansion going forwards as it fully utilises its unique and global market leading position.
GYG has released a full year trading update confirming that it has traded comfortably ahead of our forecast expectations to 2019E. This proved to be a transformational year for the Group as it strengthened its order book and forward visibility against a backdrop of improving market conditions in both New Build and Refit. We are upgrading our 2019E EPS forecasts by c6% on the back of this update, and modestly upgrade our forecasts thereafter after a number of material upgrades during the course of last year. We remain confident in the recovery potential of GYG and envisage further earnings progress during the coming year.
GYG has delivered strong H1 results that show a dramatic turnaround vs. last year. The market dynamics remain intact, with GYG also demonstrating greater levels of efficiency as it benefits from the investments made in systems and management while also widening strategic relationships with shipyards. We are maintaining our headline forecasts at this juncture, albeit we believe our forecasts are conservative and GYG remains firmly on track to execute a strong recovery backed by a record order book.
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. GDR offering expected Oct 2019. In the first half of 2019, the Company generated total revenue of KZT226,862m (U.S. $598m), up 34% and net income of KZT77,001m (U.S. $203m), up 54%. 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: XSG TRAK CREO BIDS VDTK BKS LSAI WHR CAB GYG
GYG has released a trading update this morning confirming that they have continued to experience a positive trading environment and expect full year results to be ahead of current market expectations. The stabilisation of the refit market that we saw signs of at the start of the year appears to be continuing, with the group maintaining its market share as the recovery comes through. We also believe the New Build segment continues to see good trends and management confidence in this area is building. We are upgrading our forecasts as a result, and now expect adj. EBITDA in 2019E of €3.6m (vs. €3.3m previously) with adj. PBT of €1.9m (vs. €1.6m previously). In our view, this is another encouraging update and is further evidence that the trading environment in refit is now looking to have normalised. Even on upgraded forecasts, our 2021E expectations remain 13% below the 2017 outturn at the adjusted PBT level highlighting the extent of a geared recovery on offer
GYG has released a trading update this morning confirming that they have seen a positive uplift in trading at the start of the year and expect full year results to be ahead of current market expectations. The core refit business has seen continued improvements in the trading environment in the first four months of the year and further progress in the New Build segment has also contributed positively to the group’s performance. We are upgrading our forecasts as a result, and now expect adj. EBITDA in 2019E of €3.3m (vs. €3.0m previously) with adj. PBT of €1.6m (vs. €1.3m previously). In our view, this is an encouraging update and is further evidence that the trading environment in refit continues to improve as demand begins to normalise. Even on upgraded forecasts, our 2021E expectations remain 21% below the 2017 outturn at the adjusted PBT level highlighting the extent of a geared recovery on offer.
GYG has released 2018 results this morning which are in line with our forecasts, following two downgrades in H2 2018. Clearly 2018 has been a challenging year for the group with setbacks in the Coatings division impacting both the refit and new build segments. We leave our 2019E and 2020E forecasts unchanged following these results and introduce our 2021E forecasts which imply a €1.5m uplift in adj. EBITDA YoY from 2020E levels to €5.7m. On a more positive note, we believe the group is starting to see demand normalise in the Refit business and is gaining increased momentum in New Build, based on what we can see in the order book.
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Bioventix reported a strong set of full-year results, that were 8% above expectations, assisted in part by a c.£0.2m (+3%) FX benefit, which helped offset the obvious drag on performance in Q4 due to the impact of COVID-19 on routine testing in hospitals. A 53p special dividend was proposed, resulting in a full-year dividend of 141p, up 18%. Due to the COVID-19-related disruption to testing, which only exacerbates the poor visibility to customer royalty streams, we are withdrawing forecasts until normality returns. That said, the business remains in very good shape, with evidence that: (i) high sensitivity troponin is gaining momentum; (ii) physical antibody sales growth remains robust (+34%); and (iii) progress in its development pipeline (particularly pollution monitoring programme) is being made. The business is expected to remain cash generative, and with c.£8.1m of cash at 30 June, the company is a strong position to weather this period of disruption before returning to growth.
Companies: Bioventix Plc
Driver Group’s year end update highlights an expected full year PBT outturn of £2.5m (£1.3m/£1.2m H1/H2) after adjusting for costs relating to the departure of Gordon Wilkinson. Whilst this represents a slight decrease on the prior year, given the impact of COVID-19, this is an impressive result. Geographic diversity continues to benefit the Group, with a strong performance in the UK and Europe offsetting a weaker result in the Middle East and APAC regions in FY20. Forecast guidance remains suspended given the uncertain near term outlook, but the Group continues to generate profit and cash. Strategic progress is also being made, with the Group taking opportunities to both hire new staff and further expand its geographic presence, not least opening a new office in New York and forming a strategic partnership in Africa. Management has also delivered a restructuring of the Middle East and APAC regions, in order to drive a more profitable business and provide a platform for younger talent to progress. The balance sheet remains robust, with net cash of £8.2m at the year end.
Companies: Driver Group Plc
Positive update today, reporting that trading in FYJun21 has begun well. As a result – and also thanks to DOTD’s strong revenue visibility – revenue guidance is already being upgraded. Consequently, we lift FY21E sales by 6% to £53.0m, so now expecting +12% y/y growth. To put this into context, growth fell to +9% in 2H20. We find this rapid recovery to more typical growth levels highly encouraging. Guidance for profit and cash is reiterated, meaning we leave both profit and cash forecasts unchanged. Somewhat obviously, this requires us increasing our cost assumptions….and if these don’t fully materialise, provides upside risk. Cash continues to build, now £27.7m as at Q1 – we might expect this to be strategically deployed, to enhance what is impressively consistent organic growth.
Companies: dotDigital Group plc
Franchise Brands has provided a Q3 trading update with a strong rebound in trading across the Group. The B2B division has recovered from the lockdown impacted Q2 and system sales have grown by an average of +8% per month since June. In September, B2B system sales for the month were +9% higher than the same month in the prior year. The B2C brands have recovered at different speeds, driven by new franchisee recruitment. ChipsAway and Ovenclean (89% of B2C income in 2019) are trading at pre-CV19 levels. Franchise Brands remains in a strong position with a solid balance sheet and liquidity position. The Group is confident of meeting market expectations for FY2020.
Companies: Franchise Brands plc
Water Intelligence ("WI") has announced a new national contract with a leading insurance company in the United States. The new win is the third in H2 and confirms the growing recognition among major US insurance companies that WI is a trusted national partner to minimise water-related claims. The Group's two October wins will further accelerate growth from the B2B channel. The latest win is the sixth nationwide contract for American Leak Detection ("ALD") with a top US insurance company, reflecting ALD's position as the only nationwide pinpoint, minimally invasive leak detection specialist. Despite the disruptions posed by CV-19, WI has performed well in 2020E and this new win reinforces the Group's impressive growth trajectory. We maintain our Buy recommendation and believe shares could continue to rerate closer to 600p.
Companies: Water Intelligence plc
This morning's announcement of another insurance client win caps a week of excellent newsflow from WATR. Since the company entered this colossal ($US13bn-plus) sector, strong insurance-derived growth has been achieved in this area, helped by WATR's status as the only national player to provide pinpoint services identifying water leaks while minimizing damage claims. Beyond this morning's announcement, this has been a week to remember for WATR, with a strong Q3 update on Oct. 14th generating c.8% '20 /'21 profit upgrades followed by the news at the start of the week of a successful fundraise delivering just shy of $US5m which can be put to work generating growth for the company and its shareholders. As the fifth such win, this morning's announcement is a reminder of the very good traction the company has achieved with the US insurance majors. Our 550p fair value estimate includes the annuity-style earnings stream from the franchise businesses in a Sum of the Parts structure. We note the company's conclusion that demand is high for its solutions and also the fact that WATR is an “essential service provider” in the Covid context. Beyond this morning's encouraging news, we also note the recent award of the Green Economy Mark from LSE and the company's consistent track record of 30%+ CAGR in recent years.
Yesterday's well-subscribed placing at 8p provides VDTK with £3.5m of extra funding to enable the company to grow by financing working capital during the ramp up of production at its Lainate plant on the back of orders – to date, orders amounting to €2.6m in value to have come through the door since the appointment of new CEO Rob Richards in May 2020. Key orders included contract wins in diverse areas, ranging from the Australian mining sector to oil & gas, agriculture and marine applications; with a focus in the first instance on off-grid applications where the rationale is extremely visible, given the contrast between VDTK's lightweight product and the heavier and relatively fragile conventional product, with VDTK's product offering its clients a meaningful cost-advantage.
Companies: Verditek Plc
Another insurance win, announced by WATR this morning, underlines the national presence of its subsidiary American Leak Detection, which has helped to make it the go-to player for providing pinpoint services at once identifying water leaks and minimizing damage claims across the whole of the United States. The new client is a major insurance company, the second in two weeks, third in H2-20 and the sixth in the three years since the company effectively entered the space as part of management's long-term growth strategy. WATR has been growing fast, generating 30% CAGR in recent years, and the insurance channel has been a notable component of this growth, at over 30% in each of the past five years. These wins, combined with the Company's recent fund-raise, reinforce this trajectory, even from a larger base.
ORPH has signed a contract with the UK Government for the development of a COVID-19 human challenge model. This will involve manufacture of the challenge virus and a first-in-human characterisation study. The contract begins immediately and is likely to be worth c.£10m. The government has also reserved the first three slots to test vaccines using the challenge study at a total cost of £7.5m. We revise our forecasts and increase our SOTP target price to 28p (range 25-31p), reflecting ORPH’s world-leading position in traditional challenge models, and now COVID-19 challenge models, with additional upside from the potential development of new challenge models, the monetisation of valuable challenge model data and the potential sale of its non-core pharmaceutical assets.
Companies: Open Orphan Plc
Avacta (AVCT.L): Adeptrix COVID-19 Diagnostic Test update | Diaceutics (DXRX.L): New contract win
Companies: Avacta Group plc (AVCT:LON)Diaceutics Plc (DXRX:LON)
Open Orphan has announced a contract with the UK Government to develop and perform the UK's first COVID-19 (COVID) human challenge studies. The multi-faceted agreement provides strong endorsement and validation of hVIVO's capabilities, with material revenues driving forecast upgrades and further upside risk to earnings as pipeline conversion continues and industry awareness and penetration of challenge studies accelerates.
Companies: OPORF ORPH CRO VENN
ANGLE plc (AGL.L): Acceptance of FDA submission | Feedback plc (FDBK.L*): Partnership agreement | Open Orphan (ORPH.L): Human Challenge Study Model contract with UK Government
Companies: AGL FDBK ORPH
Elixirr has acquired Coast Digital, a UK-based digital marketing firm, for a maximum consideration of £3.8m. The initial consideration of £3.4m represents a multiple of only 3.9x historic EBITDA compared to Elixirr’s current 11.1x. Coast will extend Elixirr’s existing digital capability and provide significant cross-selling opportunities, exactly in line with the group’s strategy as detailed at the IPO. We have upgraded FY 2020 EPS by 1% and FY 2021 by 7% and our target price from 336p to 356p. We reiterate our view that Elixirr’s entrepreneurial culture and focus on helping clients build businesses, new products and client experiences are key differentiators and very much in tune with client needs.
Companies: Elixirr International Plc
The H1 results were well flagged in the 15th April update. H1 PBT is significantly ahead of last year at £1.3m (H1’19: £0.8m). Driver traded profitably through April to June. Whilst guidance is suspended, with the pipeline maintained, we believe the Group will continue to trade profitably through H2. As flagged in the H1 update, there is no interim dividend, with management seeking to preserve cash. The balance sheet is strong, with net cash of £3.3m at 31st March (improved to c.£5.5m post period end). We believe the medium term outlook is positive, with new CEO Mark Wheeler focused on improving profitability and growing the business. Delays in construction projects as a result of COVID-19 should support near term levels of dispute work, whilst an expected increase in infrastructure spending supports the medium term outlook.
Elixirr was founded 11 years ago to provide clients with an alternative to the traditional, stagnant consulting models that the large consulting firms provide. The entrepreneurial culture and focus on helping clients build businesses, new products and customer experiences are key differentiators, supporting +32% sales CAGR since 2012, +27% since 2017 and EBITDA margins approaching 30%. The ability to react quickly is embedded in the culture and has meant that the sudden need for clients to focus on remote working and digital delivery, due to the COVID-19 pandemic, has supported continued strong trading. Elixirr has raised £20m new money at 217p to accelerate its growth strategy by acquisition, continue its impressive growth into the US and broaden its base of expertise. We initiate with a 312p price target, representing a calendar 2020E EV/EBIT of 16.3x. This is on a par with the small/mid cap market despite our forecast of 19% EBIT CAGR over the next two years, significantly ahead of the market’s current 4%. As the cash raised is invested into enhancing acquisitions, upgrades will follow.