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  • 20 Dec 19
Good trading momentum but FX/margin drags forecasts

Management is pleased with the overall trading performance since the last update, which has been in line with expectations. However, FX volatility has had an impact on full year profit guidance through translation and margin. Full year PBT guidance is now £5.1-5.5m as a result, equating to an 8-15% downgrade versus our prior £6m forecast. We have prudently downgraded to the bottom of that range and rippled that through to FY20. However, strategic plans to broaden distribution, both in the UK and oversees, continue to advance and operational changes in the US, although delayed, are now back on track. Outer year forecast changes therefore appear on the conservative side.

Companies: Warpaint London
  • 20 Dec 19
Good trading momentum but FX/margin drags forecasts

Management is pleased with the overall trading performance since the last update, which has been in line with expectations. However, FX volatility has had an impact on full year profit guidance through translation and margin. Full year PBT guidance is now £5.1-5.5m as a result, equating to an 8-15% downgrade versus our prior £6m forecast. We have prudently downgraded to the bottom of that range and rippled that through to FY20. However, strategic plans to broaden distribution, both in the UK and oversees, continue to advance and operational changes in the US, although delayed, are now back on track. Outer year forecast changes therefore appear on the conservative side.

Companies: Warpaint London
  • 20 Dec 19
Small Cap Feast

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February

Companies: EYE OBD BOOM MTW AXM BKS IMMO W7L

  • 20 Dec 19
Small Cap Feast

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February

Companies: EYE OBD BOOM MTW AXM BKS IMMO W7L

  • 04 Nov 19
THE MONTHLY November 2019

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 ESRE PHP RE/ RECI RMDL STX SCE TON SHED VTA W7L

  • 04 Nov 19
THE MONTHLY November 2019

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 ESRE PHP RE/ RECI RMDL STX SCE TON SHED VTA W7L

  • 03 Oct 19
THE MONTHLY October 2019

Since their privatisation in 1989, the 10 water companies have faced a periodic review every five years; it is undertaken by Ofwat, and prescribes customer prices, along with the investment requirements. As part of the ongoing review, PR19, Ofwat will publish its Final Determination numbers on 11 December 2019; they will apply as from April 2020, although water companies do have the option to seek a reference to the CMA.

Companies: AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF PCA PIN PHP RE/ RECI RMDL STX SCE SIXH TON SHED VTA W7L

  • 03 Oct 19
THE MONTHLY October 2019

Since their privatisation in 1989, the 10 water companies have faced a periodic review every five years; it is undertaken by Ofwat, and prescribes customer prices, along with the investment requirements. As part of the ongoing review, PR19, Ofwat will publish its Final Determination numbers on 11 December 2019; they will apply as from April 2020, although water companies do have the option to seek a reference to the CMA.

Companies: AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF PCA PIN PHP RE/ RECI RMDL STX SCE SIXH TON SHED VTA W7L

  • 23 Sep 19
Cosmetics brands could make-up for lost growth

Warpaint’s exposure to UK headwinds was amplified by an over-reliance on small high street retailers. This and the demise of other customers is the main reason for downgrades over the last year. Management has drawn on its experience though and responded with a clear strategy to restore growth. Wider brand distribution to bigger retailers, especially in the UK, will be a key driver. We factor little in from the initiatives at this stage, but the TSR is still 55% at our 76p fair value estimate. This could rise to 160p in 2 years on good execution.

Companies: Warpaint London
  • 23 Sep 19
Cosmetics brands could make-up for lost growth

Warpaint’s exposure to UK headwinds was amplified by an over-reliance on small high street retailers. This and the demise of other customers is the main reason for downgrades over the last year. Management has drawn on its experience though and responded with a clear strategy to restore growth. Wider brand distribution to bigger retailers, especially in the UK, will be a key driver. We factor little in from the initiatives at this stage, but the TSR is still 55% at our 76p fair value estimate. This could rise to 160p in 2 years on good execution.

Companies: Warpaint London
  • 20 Sep 19
Warpaint London

Warpaint London's strategy is to provide customers with access to an extensive range of high-quality and affordable cosmetics. Its focus has been to develop its flagship brand, W7, while capitalising on the growth potential of e-commerce and international expansion. The UK retail environment remains challenging; while Warpaint continues to grow well in the more successful retailers, growth is being hampered by a significant tail of customers ceasing to trade. As ever, results are heavily skewed towards H2: the order book is currently looking solid, but the UK consumer outlook is subdued, and the next few weeks are likely to shape the financial performance for the whole year.

Companies: Warpaint London
  • 20 Sep 19
Warpaint London

Warpaint London's strategy is to provide customers with access to an extensive range of high-quality and affordable cosmetics. Its focus has been to develop its flagship brand, W7, while capitalising on the growth potential of e-commerce and international expansion. The UK retail environment remains challenging; while Warpaint continues to grow well in the more successful retailers, growth is being hampered by a significant tail of customers ceasing to trade. As ever, results are heavily skewed towards H2: the order book is currently looking solid, but the UK consumer outlook is subdued, and the next few weeks are likely to shape the financial performance for the whole year.

Companies: Warpaint London
  • 03 Sep 19
THE MONTHLY September 2019

The challenges associated with value creation drive all investors. Any investment professional is eager to make their mark by picking organisations that are able to deliver superior returns. Increasingly investors look into how organisations are governed and how effective the top decision-making bodies of organisations really are. In this white paper, we shed light on research findings and reveal the seven hallmarks of effective boards. The seven hallmarks are proven to create more effective boards and are set to be the next lever in the value creation process. Better Boards has created advanced board evaluation tools designed to motivate and inspire and above all, contribute to superior value creation.

Companies: AVO AJB AGY CLIG DNL DPP FLTA GTLY GDR KOOV MUR NSF OXB PCA PHP RE/ RMDL STX SCE TRX TON SHED VTA W7L

  • 03 Sep 19
THE MONTHLY September 2019

The challenges associated with value creation drive all investors. Any investment professional is eager to make their mark by picking organisations that are able to deliver superior returns. Increasingly investors look into how organisations are governed and how effective the top decision-making bodies of organisations really are. In this white paper, we shed light on research findings and reveal the seven hallmarks of effective boards. The seven hallmarks are proven to create more effective boards and are set to be the next lever in the value creation process. Better Boards has created advanced board evaluation tools designed to motivate and inspire and above all, contribute to superior value creation.

Companies: AVO AJB AGY CLIG DNL DPP FLTA GTLY GDR KOOV MUR NSF OXB PCA PHP RE/ RMDL STX SCE TRX TON SHED VTA W7L

  • 01 Aug 19
THE MONTHLY August 2019

The introduction of IFRS 2 in 2004 generated considerable debate about the best approach for handling ‘share-based payments’ (SBP). While it is clearly a cost to shareholders, which should be included in the statutory reporting lines through the P&L account, the question arose as to whetherit should be part of our underlying EBIT calculation.

Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SCE TRX TON SHED VAL VTA W7L

  • 01 Aug 19
THE MONTHLY August 2019

The introduction of IFRS 2 in 2004 generated considerable debate about the best approach for handling ‘share-based payments’ (SBP). While it is clearly a cost to shareholders, which should be included in the statutory reporting lines through the P&L account, the question arose as to whetherit should be part of our underlying EBIT calculation.

Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SCE TRX TON SHED VAL VTA W7L

  • 02 Jul 19
THE MONTHLY July 2019

When advisers first start looking at business relief (BR) products, there is much to take in: the rules governing such products; the investment strategies being used; and what the investment risk is. It is easy to lose sight of the fact that, for non-AIM products, the investment is being made directly into a company or partnership, rather than a fund. It is, therefore, essential that governance is part of the diligence process.

Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY KOOV LWRF MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SIXH TRX TON SHED VAL VTA W7L

  • 02 Jul 19
THE MONTHLY July 2019

When advisers first start looking at business relief (BR) products, there is much to take in: the rules governing such products; the investment strategies being used; and what the investment risk is. It is easy to lose sight of the fact that, for non-AIM products, the investment is being made directly into a company or partnership, rather than a fund. It is, therefore, essential that governance is part of the diligence process.

Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY KOOV LWRF MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SIXH TRX TON SHED VAL VTA W7L

  • 04 Jun 19
THE MONTHLY June 2019


Companies: AZN AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR HAYD KOOV MCL MUR PCA PHP RE/ REDX STX SIXH TON SHED VAL VTA W7L

  • 04 Jun 19
THE MONTHLY June 2019


Companies: AZN AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR HAYD KOOV MCL MUR PCA PHP RE/ REDX STX SIXH TON SHED VAL VTA W7L

  • 03 May 19
The Monthly May 2019

How small- and mid-cap quoted companies make a substantial contribution to markets, employment and tax revenues.

Companies: OPM AVO AJB ARBB CMH CLIG DPP FLTA GTLY GDR HAYD KOOV LWRF MCL MUR OXB PCA PHP RE/ STX SIXH TRX TON VTA W7L

  • 03 May 19
The Monthly May 2019

How small- and mid-cap quoted companies make a substantial contribution to markets, employment and tax revenues.

Companies: OPM AVO AJB ARBB CMH CLIG DPP FLTA GTLY GDR HAYD KOOV LWRF MCL MUR OXB PCA PHP RE/ STX SIXH TRX TON VTA W7L

  • 24 Apr 19
FY’18 sales: remains profitable despite weak UK market

Warpaint, the UK-based colour cosmetics specialist, announced its full-year results for 2018. Revenue increased by 49.2% to £48.5m (FY’17: £32.5m); however, on a like-for-like basis, revenue was down 3.2% if we assume a full-year contribution from Retra in 2017. A weak UK retail market affected sales. Internationally, though, revenue increased by 8% on a like-for-like basis; growth was particularly strong in the US and Europe. Gross margin was down by 3.3% to 35.5% for FY’18 (FY’17: 38.8%) due to product mix sold across the group during the year. Cash generation remains healthy with free cashflow of ca.£3.9m in FY’18. Warpaint announced a full-year dividend of 4.4p, up 10% on FY’17.

Companies: Warpaint London
  • 24 Apr 19
FY’18 sales: remains profitable despite weak UK market

Warpaint, the UK-based colour cosmetics specialist, announced its full-year results for 2018. Revenue increased by 49.2% to £48.5m (FY’17: £32.5m); however, on a like-for-like basis, revenue was down 3.2% if we assume a full-year contribution from Retra in 2017. A weak UK retail market affected sales. Internationally, though, revenue increased by 8% on a like-for-like basis; growth was particularly strong in the US and Europe. Gross margin was down by 3.3% to 35.5% for FY’18 (FY’17: 38.8%) due to product mix sold across the group during the year. Cash generation remains healthy with free cashflow of ca.£3.9m in FY’18. Warpaint announced a full-year dividend of 4.4p, up 10% on FY’17.

Companies: Warpaint London
  • 03 Apr 19
The Monthly April 2019

Although the focus of Hardman & Co is predominantly on companies in the smallto mid-sized market capitalisation range, when writing research reports, it is important to position them relative to the industry in which they operate. Apart from Japanese companies, all the major global pharmaceutical companies have reported full-year results for 2018 over the past few weeks; therefore, we have taken the opportunity to update our industry database and generate the first cut of global rankings for 2018. For an industry that requires a long investment cycle – it still takes, on average, 10 years from discovery to launch of a new drug – decisions made many years ago have important consequences on current financial results. Therefore, looking back at operational performance over 20 years reveals how different company strategies have panned out.

Companies: OPM AVO AJB AGY ARBB CMH CLIG CSH DNL GTLY HAYD KOOV LWRF MCL MUR NSF OXB PCA PHP RE/ REDX STX SCE SIXH TON VAL VTA W7L

  • 03 Apr 19
The Monthly April 2019

Although the focus of Hardman & Co is predominantly on companies in the smallto mid-sized market capitalisation range, when writing research reports, it is important to position them relative to the industry in which they operate. Apart from Japanese companies, all the major global pharmaceutical companies have reported full-year results for 2018 over the past few weeks; therefore, we have taken the opportunity to update our industry database and generate the first cut of global rankings for 2018. For an industry that requires a long investment cycle – it still takes, on average, 10 years from discovery to launch of a new drug – decisions made many years ago have important consequences on current financial results. Therefore, looking back at operational performance over 20 years reveals how different company strategies have panned out.

Companies: OPM AVO AJB AGY ARBB CMH CLIG CSH DNL GTLY HAYD KOOV LWRF MCL MUR NSF OXB PCA PHP RE/ REDX STX SCE SIXH TON VAL VTA W7L

  • 27 Mar 19
Rally seen in the first quarter stalls

Parliamentary and Brexit developments continue to hold centre stage, although the precise path forward remains as unclear as ever. The uncertainty over Brexit, worries over a possible slowdown in the US and the outlook for global economic growth generally have all contributed to the recent falls in markets. While the rally seen since the start of the year has petered out, most indices have still made progress. In Share News & Views we comment on Bloomsbury Publishing, Bonhill Group*, Braemar Shipping Services*, Burford, Clarkson, LightwaveRF*, Marshall Motor Holdings and Synectics*.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LWRF LSAI NKTN PCF SNX TCN VRE W7L

  • 27 Mar 19
Rally seen in the first quarter stalls

Parliamentary and Brexit developments continue to hold centre stage, although the precise path forward remains as unclear as ever. The uncertainty over Brexit, worries over a possible slowdown in the US and the outlook for global economic growth generally have all contributed to the recent falls in markets. While the rally seen since the start of the year has petered out, most indices have still made progress. In Share News & Views we comment on Bloomsbury Publishing, Bonhill Group*, Braemar Shipping Services*, Burford, Clarkson, LightwaveRF*, Marshall Motor Holdings and Synectics*.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LWRF LSAI NKTN PCF SNX TCN VRE W7L

  • 10 Mar 19
THE MONTHLY March 2019

In the investment world, before MiFID II, essentially every institution talked to every broker, and the whole, professional market could see every research note and the forecasts in detail. This was the ‘Age of Consensus’. Everyone had the same information (well, everyone except retail investors), and this transparency helped share price formation and liquidity

Companies: OPM AVO AJB AGY ARBB AVCT CMH CSH DNL GTLY GDR KOOV MCL OXB RE/ REDX STX SCE SIXH TRX TON VAL VTA W7L

  • 10 Mar 19
THE MONTHLY March 2019

In the investment world, before MiFID II, essentially every institution talked to every broker, and the whole, professional market could see every research note and the forecasts in detail. This was the ‘Age of Consensus’. Everyone had the same information (well, everyone except retail investors), and this transparency helped share price formation and liquidity

Companies: OPM AVO AJB AGY ARBB AVCT CMH CSH DNL GTLY GDR KOOV MCL OXB RE/ REDX STX SCE SIXH TRX TON VAL VTA W7L

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Warpaint London. We currently have 93 research reports from 7 professional analysts.

Open
N/A
Range Today
N/A
52 Week
50.0/112p
Daily Volume
N/A
# Shares
76.7m
Daily Liquidity
(0.03%)
Pension Liability
£0m
Enterprise Value
£47.6m
Market Cap
£59.9m
Latest PE (hist)
7.00
Div Yield
6.90

Latest News/RNS

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Date Source Announcement
20Dec19 07:00 RNS Trading Update
16Oct19 16:28 RNS Director Dealings
24Sep19 07:08 RNS Holding(s) in Company
20Sep19 14:25 RNS Holding(s) in Company
18Sep19 07:00 RNS Interim Results for the six months to 30 June 2019
19Aug19 07:00 RNS Appointment of Joint Broker
06Aug19 07:00 RNS Trading Update and Notice of Results
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  • 15 Jan 20
Games Workshop Group - ‘Record sales and profit’ again

Games Workshop’s (GAW) interim results are ahead of expectations. The highest rates of revenue growth were achieved in the channels with the highest operating margins, ie Trade (40% margin) and Online (64% margin). This has produced a strong improvement in free cash flow generation and ROCE has improved from 96% to 111%. We upgrade our forecasts for FY20 and FY21 by a further 3% following the 9% upgrade in November. Our DCF-based valuation increases by 11% to 5,748p.

Companies: Games Workshop Group
  • 15 Jan 20
LIBERUM: Frontier Developments* - Successful PZ launch underpins F/Cs

Frontier has provided a trading update for H1 FY20 which shows revenues up nearly 30% sequentially and confirms the very successful launch of fourth franchise Planet Zoo. Further, Management highlight that all four of Frontier’s game franchises performed well, as expected, over the Christmas period which supports FY forecasts. The next 12 months will see a major paid-for release for Elite Dangerous, the console launch of Planet Coaster as well as a well-planned and increasingly optimised PDLC schedule for JWE and PZ. We retain our Target Price of £18 and our view that Frontier is a core holding in a UK SMID fund.

Companies: Frontier Developments
  • 14 Jan 20
Consistently high achiever

It’s sometimes easy for investors to get caught up in the latest ‘buzz doing the rounds’, and lose sight of the big picture. Namely finding quality stocks that can out-perform across the economic cycle. Cue Watkin Jones, a developer/manager of large scale, multi occupancy accommodation, who - since IPO’ing at 100p in March 2016 - has delivered a total return of 163% (28.6% IRR):- split 142p capital appreciation and 21p dividends.

Companies: Watkin Jones
  • 10 Jan 20
THE MONTHLY January 2020

The Office for National Statistics (ONS) is due to publish its most up-to-date survey on share ownership in mid-January, which identifies the beneficial owners and decision- makers of the stock market. Hardman & Co has worked together with the share analysis service, Argus Vickers, to jointly produce its own survey, which anticipates the conclusions of the ONS survey but goes into much greater detail. Our work does not use a sample of 200 quoted companies as the ONS historically has, but rather includes everyUK quoted company. The ONS samples share registers every two years; our study uses six-monthly data points. Our survey also extends to shareholders on NEX; the ONS does not.

Companies: AVO AGY ARBB BUR CMH CLIG DNL FLTA GDR MCL NSF PCA PIN PHP RECI RMDL SCE SIXH SHED VTA

  • 15 Jan 20
Frontier Development

January 2020 Trading Update

Companies: Frontier Developments
  • 08 Jan 20
UK Housebuilding Sector: 2020 vision: Sharpness and clarity for industry prospects

For fighter pilots, it is a minimum requirement. But having 20/20 ‘visual acuity’ (correct term) does not necessarily mean you have perfect vision (as convention assumes); instead, it indicates sharpness and clarity of vision at a distance. It is measured by a Snellen Chart, which displays letters of progressively smaller size and whereby 20/20 means that the test subject sees the same line of letters at 20 feet that a person with normal vision sees at 20 feet (or 6 metres; but 6/6 simply didn’t catch on).

Companies: ABBY BDEV BWY BKG BVS CRN CSP CRST GLE GLV INL MCS PSN RDW SPR TW/ WJG

  • 15 Jan 20
WHI First Light: Immotion (IMMO) - Q1 2020 installation agreements confirm on track to reach EBITDA breakeven

Immotion is a leading UK-based ‘out of home' Virtual Reality (VR) experience provider. This morning, and following the update on 20 December 2019, the Group has provided further detail on its installation programme for Q1 2020. This confirms a ramp up in installs, with the group having visibility in reaching 395 headsets at high quality sites, including a doubling of higher revenue Aquarium headsets and a six seater mini-theatre solution at the London Eye.

Companies: Immotion Group
  • 16 Jan 20
Headlam

FY19 marginally ahead; modest improvement expected in 2020

Companies: Headlam Group
  • 10 Jan 20
Team17

Early 2020 Trading Update

Companies: Team17
  • 21 Oct 19
Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP ESRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF

  • 05 Nov 19
Execution strength fuels growth

Excellent execution underpinned a strong recovery year for UPGS in FY2019, which augurs well for future growth. Headline results confirm the company’s 9 th September trading statement. Detailed sales data reflect the company’s ability to enhance core domestic growth with strong progress in both international and online. In our view, growth should remain positive in FY2020.

Companies: Up Global Sourcing
  • 08 Nov 19
Games Workshop Group - Strong five-month trading update

Games Workshop (GAW) has published a trading statement for the first five months of FY20, highlighting an acceleration in revenue growth to c 12% (versus our previous forecast for the year of c 4%), strong margin growth and encouraging signs with respect to its ability to leverage its intellectual property through royalty income. Our PBT estimates increase by c 9% for FY20 and FY21, and our DCF-based valuation increases by 10% to 5,176p.

Companies: Games Workshop Group
  • 03 Sep 19
UK Video Gaming Initiations – Level Up

We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector (henceforth UK gaming). Our stock-picking bias is towards companies with strong growth, profitability and cash conversion, consistent with our Arden Technology Thematic Framework. Considering company-level fundamentals we believe exposure to varying growth themes will produce dispersion, creating opportunities to identify relative winners. On this basis, we believe Codemasters (CDM LN), Sumo Group (SUMO LN) and Team17 (TM17 LN) are best positioned, and we are initiating coverage with Buy ratings, with Frontier Developments (FDEV LN) and Keywords Studios (KWS LN) on Neutral ratings.

Companies: CDM FDEV KWS SUMO TM17

  • 05 Dec 19
Prelims: Perfect storm but brighter outlook

FY19 proved to be challenging, as flagged in September’s pre-close, for the UK’s largest independent toy manufacturer. The collapse of Top Toy, historically the largest customer of OVG-Proxy where CCT has a 75% holding, has cast a long shadow over the Scandinavian toy market; sterling’s weakness against the dollar has impacted gross margins; and the UK domestic toy market has remained weak. This weakness is likely to continue through this Xmas before picking up in H2. In this situation, the strength of CCT’s portfolio of ‘ever-green’ brands and new products and management’s considerable experience is crucial. CCT continued to grow on an organic basis and take market share and remains well funded and offers an attractive income stream. FY20 forecasts remain largely unchanged and we introduce FY21 forecasts that assume a return to higher growth. Fair value moves to 470p from 430p/share.

Companies: Character Group
  • 13 Dec 19
LIBERUM: Codemasters* - Major movie franchise: Fast & Furious

Codemasters has proven its standing as a leading developer in the racing genre, a position which has been bolstered in recent weeks through the acquisition of award-winning Slightly Mad Studios. Today’s news confirms that the list of global partners now includes Universal Studios, through the launch of Fast & Furious Crossroads in May 2020. The game represents Codemasters’ second license-IP franchise, and will be released across PC, PlayStation 4 and Xbox One. Owing to the widespread success of the Fast & Furious franchise, we believe this new game could bring both global appeal and major revenue potential. This morning’s announcement underpins our forecast of 36% revenue growth for the combined group in FY21, as well as our expectation for the stock to re-rate from the current 12m forward P/E of 17.9x towards its UK games developer peers on 24.5x. We reiterate our Target Price of 370p.

Companies: Codemasters