Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Pennant International Group. We currently have 10 research reports from 3 professional analysts.
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. Due 26 March
Companies: MER ANR NAH WYN IQE PEN IKA RED AMPH EVG
Fusion Antibodies—Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer TBA. Due Mid Dec. Sirius Petroleum—RTO. Becoming an operating company in the Ororo Field in Nigeria. Raising £7.2m/ Mkt Cap £35.6m. Due 19 Dec. Bushveld Minerals—RTO of Bushveld Vametco and therefore 78.8% of Strategic Minerals Corporation, the intermediate holding company that owns a 75 per cent. interest in the Vametco Vanadium Mine. Range Resources— oil and gas company listed on the ASX plans to admit to AIM on 13 Dec with market cap of £17.4m. Also acquiring Range Resources Drilling Services Limited, an oil services business based in Trinidad & Tobago with extensive drilling capabilities. 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 21 Dec. Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £71m market cap. FYMar18E rev £241.5m and £7.19m PBT Belluscura— Provider of premium medical devices at value prices to address part of the global unmet need for affordable, premium quality medical devices. Raising £7.5m to £10m. Offer TBA. Due early Dec Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native invideo advertising . 2016 rev £0.7m and £7.3m operating loss. Offer TBA. Expected 6 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.
Companies: ARIX PEN ATYM ERGO PXS APH VRS BMR CTP ROSE
The Quoted Companies Alliance has set out its proposals for taxation ahead of next month’s Budget. The smaller company pressure group believes that the UK needs to build a post-EU tax regime that supports and incentivises smaller companies. One of the key aspects of the proposals is a levelling of the playing field between debt and equity. At the moment, a company can claim tax relief for costs incurred in raising debt but not the costs of a share issue. The QCA believes that the government should encourage long-term equity finance.
Companies: ITX CLIN OPM STEL PEN CROS
Forbidden Technologies plc (FBT.L, 5.75p/£10.4m) Interims - New CEO and Sales Director key to growth | Newmark Security plc (NWT.L, 0.875p/£4.1m) Prelims: A difficult year | Pennant International plc (PEN.L, 82p/£27.0m) Interims: Building recurring revenue streams | Tekcapital plc (TEK.L, 25.5p/£10.9m) Update note published: Solving the innovation dilemma
Companies: FBT NWT PEN TEK
LoopUp—The provider of conference calls and online meetings is seeking to join AIM. 2015 revs of £9.2m and EBITDA of £1.02m | Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap | Aura Energy—ASX listed uranium developer (ASX:AEE) expected to join AIM 6 September | Autins Group plc - The acoustic and thermal insulation specialist now looks to join AIM late August
Companies: MSG PEN EOG NASA THR UVEN AOR NAK EDL SRES
Velocity Composites—Schedule 1. Manufactures advanced carbon fibre and ancillary material kits (predominantly carbon fibre) for use in the production of aircraft. Mid May admission expected. Offer details TBC. Shearwater Group—Schedule 1. Acquiring SecureEnvoy for £20m in cash and shares—a provider of multifactor authentication enterprise software solutions. RTO under the AIM rules. ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017. Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $200m+ raise including $75m primary offer. Expected price range 735p to 875p. Mkt cap up to £539m. 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 May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
Companies: IDP RXB OSI IHC AAU RED PEN SLN AHCG UKOG
REDX Pharma (REDX.L) | Netcall (NET.L) | Pennant Group (PEN.L) | Alternative Networks (AN.L) | Chaarat Gold Holdings (CGH.L) | Immedia Group (IME.L) | Earthport (EPO . L) | Mercia Technologies (MERC.L) | Ilika (IKA.L) | CloudTag Inc (CTAG.L)
Companies: REDX NET PEN AN CGH EPO MERC IKA CTAG IME
EDENVILLE ENERGY PLC (EDL LN) | EUROPA OIL & GAS(HLDGS) (EOG LN) | NASSTAR (NASA LN) | PENNANT INTERNATIONAL GROUP (PEN LN) | SUNRISE RESOURCES PLC (SRES LN) | THOR MINING (THR LN)
Companies: PEN EOG NASA SRES MSG UVEN AOR NAK EDL THR
So what is the profile of a typical AIM quoted company? The market’s detractors may argue that London’s junior market is peppered with cash consuming companies that are not sufficiently advanced in their route to profitability nor corporate governance regimes to justify their listing. Supporters of the London Stock Exchange’s growth market would say that the Alternative Investment Market is the world’s most successful market for growing companies rewarding investors prepared to brave the risks of earlier stage funding, and driving innovation and job creation. Neither view suggests that AIM would be a fertile hunting ground for income generating stocks. However a glance at the FTSE AIM All Share constituents (Source: Fidessa) suggests that over 250 of its members or circa a quarter of the market’s members pay dividends.
Companies: BVXP BOTB ITQ SHOE CGS DX/ HSP JIL IBEX PRP CAML GTC JIM CCAP ENTU FXI NAH ASY HGM PEN PEG AVG NXR
Support services can mean many things to many organisations but essentially the sector can be seen as a lubricant that helps the wheels of the economy continue to turn. A common thread is outsourcing activities that are most economically and effectively performed by a specialist rather than keeping in house. Companies in the sector tend to provide business critical services to their customers, thereby providing an element of stickiness. The sector benefits when the economy grows, but also offers an element of defensiveness as client companies and public sector bodies strive to keep their own fixed cost bases down. However given the broad range of businesses within the industry it is difficult to apply a broad brush description, and stock selection according to one’s investment criteria is vital.
Companies: XCH CSC CPI VP/ DSCV EQN WPG BILB PTSG PNA MACF AUK VIP MPAY UNG PEG PEN
Research Tree provides access to ongoing research coverage, media content and regulatory news on Pennant International Group. We currently have 10 research reports from 3 professional analysts.
|23Mar18 17:16||RNS||Directors' Dealings|
|20Mar18 07:00||RNS||Major UK Contract Update & £10m SOI received|
|12Mar18 07:00||RNS||Directorate Changes: Board Appointments|
|12Mar18 07:00||RNS||2017 Final Results|
|12Feb18 07:00||RNS||Trading Update, IFRS15 Impact & Notice of Results|
|10Jan18 14:00||RNS||Holding(s) in Company|
|12Oct17 12:05||RNS||Director/PDMR Shareholding|
IQE has released its results for the year to December ’17. While the results themselves are strong, these were largely flagged at the trading update in December, and we see the FY’18 and FY’19 outlook as more important for the share price from here. The group expects continued growth in wafer sales, driven by both the expansion of existing business and qualifications of new business streams. Given the group’s strong operational gearing, we expect this to lead to a steady expansion in group margins. The group has given explicit forward guidance for the first time, which is in-line with our FY’18 revenue and EBIT forecasts, although a higher non-cash tax charge is likely to lead to EPS downgrades. With further high growth expected in FY’18 and the potential for more strong growth in FY’19 and beyond, we retain our positive stance.
CALL’s solid FY’17 results continue to underpin our conviction. Growth continues at pace in all regions assisted by rising internal efficiency while the outlook statement points to management confidence, good momentum on product development and support from regulatory trends. While we have cut our FY’18E numbers on accelerated investment in growth (and FY19-20E on lower R&D credits – see detail inside), we view management’s FY19E aspiration of ~break-even and cash trough as intact, with tangible upside risk from further M&A by Bullhorn and improving ARPU from new products launches in the mid-term. We reiterate our Buy rating and retain our PT of 300p.
Companies: Cloudcall Group
As the quarter ends and Easter approaches, the results marathon is set to pause. As highlighted previously, the vast majority of results have been as anticipated, with some notable exceptions. The state of the UK economy is improving according to the Chancellor. The MPC meeting on Thursday is likely to leave interest rates unchanged but an increase in May seems likely, even though inflation is set to fall over the next 12 months. We have continued to see significant M&A activity. In Share News & Views, we comment on Braemar Shipping*, Burford, CLS, ECSC*, FDM*, GetBusy* and XLMedia.
Companies: APC BMS CRPR EUSP FDM GETB PCF SNX SPRP TCN W7L
Sopheon has delivered a very strong 2017 – in line with the previous trading updates, and benefiting from a very good end to the year. The group is ahead of our estimates on all metrics, and is well placed going into 2018 and beyond. Management have signalled their confidence with the welcome introduction of a maiden dividend (2.5p). We upgrade our estimates for both 2018 and 2019.
accesso has released full year results in line with the indications given in the 25 January trading update, which highlighted a small revenue beat and an adjusted EBITDA performance substantially ahead of expectations. Full year revenue increased 30% to $133.4m, delivering adjusted EBITDA up 29% to $24.6m – 8% ahead of our estimate. While the group result was ahead of expectations, we suspect that the positive impact of strong Ticketing volumes was offset by lower than expected Queuing revenues. Both acquisitions made positive contributions, with an impressive early performance from TE2 highlighting the attractions of its personalisation capabilities to multiple verticals. We need to review our forecasts and target price in detail, but anticipate putting through a 5-10% upgrade to our revenue and earnings estimates.
Companies: Accesso Technology Group
Strong momentum continues, with a checklist of positive catalysts into FY18 and FY19: repeat outperformance; reinstated forecasts, having been upgraded since being suspended at the time of the trading update in December; product excellence leading to global large enterprise adoption; regular product updates and functionality improvements to keep existing customers enthused and potential customers even more interested; a focus on distribution partners to further boost sales; and the financial strength and confidence in balance sheet to accelerate inward investment – while also instating a maiden dividend, showing a commitment to cash management, shareholder returns, and the broadening the potential investor base. Having delivered 23% organic revenue growth, and 53% EBITDA growth, management has taken the decision to invest for growth, accelerating the expansion of sales and marketing and R&D in order to create the platform to deliver accelerating growth. The stars are aligned and visibility is at record levels, with 62% of FY18 revenue (FY17: 51%) already contracted: we lift our 12-month target to 1000p (620p), Sopheon having shown the evolved maturity to merit a fuller enterprise software multiple of a target 17x FY18 EBITDA.
GetBusy’s maiden results published today were robust, coming in ahead of our forecast at both the revenue and pre-tax level; despite the impact of IFRS 15. Recurring revenue increased to 86% of revenue (83% in 2016) and the number of paying users increased to 57,000 (+11% YoY). Non-UK business, which accounted for a mere 6% of group revenue in 2015, increased to 45% in 2017. We have updated our forecasts for GetBusy and upgraded our Target Price to 48p/ share, +17% higher than our prior 41p TP. We reiterate our Buy rating.
IQE is a leading global supplier of advanced semiconductor wafers that are used in various applications ranging from mobile communications to industrial power. The company boasts a diversified global customer base and a unique IP portfolio with over 150 patents that enables the firm to provide a unique service to its customers. Headquartered in Cardiff, Wales, IQE shares were often misunderstood or underappreciated by investors in the past. However, as the company continued to deliver healthy growth winning volume contracts for new technologies (e.g. VCSEL), the share price nearly tripled in 2017 and the company successfully placed new shares raising £95m in November. Recent reports published by funds with short positions questioning IQE’s accounting with regard to profit and cash flow contribution from its joint ventures sent the stock price down by 45% from its November high. That said, the company rejected the allegation with the statement saying that the information in the short sellers report is “either factually inaccurate or has previously been disclosed in IQE’s annual reports and financial statements”. The company also appointed KPMG as a new auditor replacing PwC as of 12th February saying “the company holds itself to the highest standards of transparency, governance and integrity”. We find the management responses were timely and expect the share price to be stabilised going forward.
WANdisco’s co-sell agreement with Microsoft is possibly the company’s most important partnership to date, strengthening the company’s already enviable platform to capitalise on the rapid growth in cloud and hybrid cloud computing. Agreements with IBM, Alibaba, Dell/Virtustream and now Microsoft give a clear indication of the capability and uniqueness of Fusion. Near- and long-term prospects are reinforced as is the potential for WANdisco to grow into and exceed the current rating.
Proxama (to be renamed Location Sciences on 21 March) is a mobile location data intelligence business that analyses consumer behaviour using its proprietary location technology. Over the past few months a new management team effected a complete restructuring of the business positioning the company at the forefront of this rapidly evolving part of the wider £5.4bn UK digital media sector. The company has built a large and growing footprint in terms of consumer reach and monetises its data products in sectors including retail, city and transport planning and financial services as well as media. As at year end 2017, the Location Sciences’ UK consumer base exceeded 7.3m and its data lake had amassed 14bn data points. These market leading figures, combined with the company suite of data products, in our view positions Location Sciences as a leading UK player in this high growth sector.
The phenomenal take-up of cloud services is turning the IT industry on its head. Here corporate networks and in-house data centres are being replaced by third-party hosted (eg Amazon, Google and Microsoft) services, streamed from almost anywhere on the planet.
Companies: Blancco Technology Group
Reliable as ever, the platform supplier to gaming machine industry has delivered yet another impressively strong year to December 2017, beating revenue, earnings and dividend expectations. Organic adj. FD EPS growth of 39% last year follows 45% growth delivered in FY 2016 and 20% in FY 2015, highlighting the sustainability of its growth model. With few competitors, its outsourcing argument continues to gain traction in the global gaming machine market where it now has over 10% market share. It is expanding its opportunity with more offerings per machine in terms of monitors and crucially, a complementary ‘gaming ecosystem’ which captures and retains customers with its ease of use, smoothness of integration and speed of deployment. Cash generation has returned Quixant to a net cash position and a restructured management team has a buoyant outlook, underpinned by volume shipments to Novomatic and a major new client in Japan. We lift our FY 2018 forecasts and our TP accordingly.
In today’s more detailed trading update, Sopheon has confirmed its brief statement in early January that revenue and profit for FY 2017E will exceed market expectations. As well as providing an anticipated revenue figure above U$28 million, it states that both EBITDA and pretax profits will be ‘significantly ahead of current market expectations.’ Today’s update notes that volume of transactions increased with a greater number of license deals and new SaaS customers – and Q4 contained two substantial deals. Sopheon ended 2017 with net cash of U$9.5 million. The group has a higher recurring revenue base and greater revenue visibility overall. We adjust FY 2017E numbers to reflect the guidance given today, driving a 31% increase in our Adjusted EBITDA estimate to U$6.9 million. We also adjust estimates for December’s conversion of loan stock and that is the only influence on our estimates for subsequent years where we retain a conservative stance and note future investment in the Accolade platform. We will look to revisit those estimates when further detail is available at the time of the results announcement.
In the March 2018 edition of the Hardman Monthly Newsletter, Nigel Hawkins addresses the attractions of quoted infrastructure funds that maintain a low profile.
Companies: OPM ABZA AVO AGY APH ARBB AVCT BNO BUR CMH CLIG COS DNL EVG GTLY GDR INL MCL MUR NSF OBT OXB PPH NIPT PHP RE/ REDX SCLP SCE SIXH TRX TON VAL
Pharmaceutical Services is a vast and varied landscape, reflecting the complexities in the discovery, development, manufacturing and monitoring of drugs and devices, all within a stringent regulatory environment. The overall growth prospects are highly favourable: drug development activity globally is on the up, led by smaller companies, which is driving demand for outsourced services. In this report we provide a breakdown of the sector into its main activity segments, and identify biologics, increasing service specialisation and consolidation as important value drivers. Finally, we present 15 companies (9 of which are publicly listed) that, in our view, are well placed to benefit from the sector’s secular growth trends.
Companies: ABZA BQE CSRT OXB INS UDG CLIN ABZA HZD ERGO