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  • 25 Oct 18

New contract wins

The Company has announced two contract awards with Centamin and Sama Resources, which are both highly significant for different reasons. The contract extension with Centamin underwrites continuity of a substantial proportion of group revenues over a 5-year period, while the new contract with Sama is the first in the Cote d’Ivoire and highlights the potential of West Africa, since the Company strategically repositioned one-third of its rigs in this growth region. While we retain existing forecasts, these contracts greatly improve revenue visibility and therefore should increase investor confidence. Further contract awards would have a significant drop through to profits and offer potential forecast upside. The shares offer good upside to our 85p price target. These contract awards should be taken well.

Companies: Capital Drilling
  • 25 Oct 18

Morning Note – 25 October 2018

Alumasc (ALU): Corp AGM update – trading in line | ANGLE (AGL): Corp Update on ANG-002 FDA study | Capital Drilling (CAPD): Corp New contract wins

Companies: ALU CAPD AGL

  • 24 Oct 18

Small Cap Feast

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: PVG PHTM CAPD ANG SCHO SCLP ENET ERIS AUTG TLY

  • 11 Oct 18

Q3 update – on track

The group has announced a strong Q3 and YTD revenue, suggesting that the company is on track to achieve its guidance range of $105-115m. We maintain our existing forecasts based on revenues of $111.1m. West Africa now accounts for 1/3 of the fleet, with new contracts starting to kick in and utilisation for the group rising. There is plenty of scope to increase utilisation from further contract wins, with a significant profit drop through from additional contract revenues. The shares remain attractively rated and we view today’s announcement as being encouraging for the shares.

Companies: Capital Drilling
  • 11 Oct 18

Morning Note – 11 October 2018

Capital Drilling (CAPD): Corp Q3 update – on track | Chariot Oil & Gas (CHAR): Corp Live to fight another day | discoverIE (DSCV): Corp Increasing organic sales growth and rising margins

Companies: DSCV CAPD CHAR

  • 16 Aug 18

Interims point to stronger 2H as utilisation rises

Interim results were in line with expectations and on track to achieve FY forecasts, which were raised in June. Q1 was the low point in revenue and rig utilisation. Once the relocation of rigs is complete in Q3, there will be 32 rigs in West Africa, where exploration is growing and active. Utilisation should progressively increase on known new contracts starting in Q3 as well as the expectation of further contract wins. Tanzania will remain a drag on sentiment until resolved. The shares look good value, and our 85p price target is based on an EV/EBITDA of 5.3x for 2019, compared to the current level of 2.7x.

Companies: Capital Drilling
  • 10 Jul 18

H1 trading update – H2 rig utilisation set to improve

The group has announced its H1 trading update, providing evidence of improving Q2 utilisation rates and revenue growth, as rigs transferred to West Africa are deployed. Tendering and drilling activity is increasing in this high growth area. Additional exploration contracts in West Africa are set to deliver a stronger H2 performance and help underpin the increase in guidance made in June. As such, we retain our recently raised forecasts and 85p price target, which highlights that the shares are currently attractively rated, with significant upside.

Companies: Capital Drilling
  • 10 Jul 18

Small Cap Brunch

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: DERR EML PHTM PRTC ACC MYSL IMTK COS CAPD JWNG

  • 26 Jun 18

Capital Drilling - Introduction to Julian Blake

capital-drilling-introduction-to-julian-blake-26-06-2018
  • 18 Jun 18

Raising forecasts on new contract wins

The company has announced several new exploration and delineation contracts. The contracts are in existing areas of operation and leverage existing capabilities, raising rig utilisation rates. Management comments that there has been an increase in demand for exploration rigs over recent months. Management has raised its guidance and accordingly we increase our revenue by 4.7%, significant drop through results in an increase in our adjusted EPS of 13.7% to 3.6ȼ. The shares have started to see the start of a recovery, having been deeply oversold due to Tanzanian risks. We still see significant upside from current levels towards our 85p target, driven by positive trading.

Companies: Capital Drilling
  • 18 Jun 18

Morning Note

Capital Drilling (CAPD): Corp Raising forecasts on new contract wins | Iofina (IOF): Corp Market update | M.P. Evans (MPE): Corp Strong crop growth in 2018 | President Energy (PPC): Corp Puesto Flores update

Companies: CAPD IOF MPE PPC

  • 26 Apr 18

Q1 trading satisfactory as rigs move to W Africa

The group’s Q1 trading update points to the group trading in line and on track to achieve its full-year forecasts. The temporary dip in quarterly revenues was previously flagged and related to the movement of idle rigs to West Africa, where market conditions and growth opportunities are much stronger. The group expects to win further contracts as the year progresses, which should enable rig utilisation to improve. The shares remain significantly under rated due to the Tanzanian regulatory situation and do not reflect the significant operational improvements achieved.

Companies: Capital Drilling
  • 26 Apr 18

Morning Note

Capital Drilling (CAPD): Corp Q1 trading satisfactory as rigs move to W Africa | Morses Club (MCL): Corp Accelerating as quality improves | Redcentric (RCN): Corp Major contract award | Savannah Resources (SAV): Corp Bulk sampling underway at Mina do Barosso

Companies: CAPD MCL RCN SAV

  • 26 Apr 18

SP Angel – Morning View

Bluebird Merchant Ventures* (BMV LN) – Work ongoing at Gubong and Kochang mines in South Korea | Capital Drilling (CAPD LN) – Management forecast better demand with 15 rigs in transit to new contracts | Gem Diamonds (GEMD LN) –Diamond sales update | Highland Gold (HGM LN) – Proposed acquisition of Chukotka assets | Savannah Resources (SAV LN) – Bulk sampling underway at NOA | Strategic Minerals* (SML LN) – Leigh Creek work programme and Cobre update | W Resources (WRES LN) – Tarouca drilling

Companies: BMV CAPD GEMD HGM SAV SML WRES

  • 20 Mar 18

Capital Drilling - PDAC 2018 interview with Tony Woolfe

capital-drilling-pdac-2018-interview-with-tony-woolfe-20-03-2018

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Capital Drilling. We currently have 48 research reports from 3 professional analysts.

Open
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Volume
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Range Today
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52 Week
35.0/48.3p
Market Cap
£53.6m
Enterprise Value
£54.2m
Pension Liability
£0m
# Shares
135.8m
Latest PE (hist)
8.43
Div Yield
3.90

Latest News/RNS

(more news)
Date Source Announcement
12Dec18 07:00 RNS Contract Extension at Geita Gold Mine, Tanzania
23Nov18 07:00 RNS Change of Joint Broker
25Oct18 07:00 RNS Contract Extension at Sukari
24Oct18 08:21 RNS Contract Win
11Oct18 07:00 RNS Q3 Trading Update
16Aug18 07:00 RNS Half Year Results
26Jul18 07:30 RNS Board Changes
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  • 13 Dec 18

Protecting shareholder value

Strix announced three important updates in relation to its IP and patent protection in an RNS yesterday. This announcement is important both for the quality of the company’s growth and for the valuation placed on the company’s shares. As a result, we view it positively.

Companies: Strix Group
  • 11 Dec 18

FY18 PBT in line; Positive dividend surprise

Driver’s FY18 results were well flagged in the October trading update (EPS upgrades of 9%/12% in FY18/19 at the time). Today’s results are in line with expectations, highlighting a year of significant profit growth. Adj. PBT increased by 54% to £3.8m, driven by higher utilisation rates (80% in FY18 vs. 76% in FY17) and a focus on higher margin work (e.g. growth in services provided by Diales). The turnaround has been delivered and management’s focus is now on growing revenue, profit and cash generation. The outlook statement is positive and a return to dividend payments (0.5p final dividend recommended) is a statement of management’s confidence in the outlook for the Group. We believe earnings momentum will continue to drive the share price higher and we expect a positive reaction to today’s results.

Companies: Driver Group
  • 11 Dec 18

FY18 results in line with October guidance

Zytronic reported results for FY18 in line with its October guidance, with adjusted PBT down 16%. This was driven by a decline in gross margin, due to operating inefficiencies resulting from lower revenues to its Financial end market, and yield problems as new designs for the Gaming market, requiring new processes, moved into production. We have made no changes to our forecasts for adjusted PBT and EPS, which assume modest sales growth and no uplift in margin while the group works to improve yields. These put the shares on an EV/EBITDA multiple of 7.6x for calendar 2019, which represents a c.13% discount to the smaller cap goods stocks.

Companies: Zytronic
  • 14 Dec 18

LIBERUM: SThree* - Strong 4Q and encouraging outlook enables CEO to leave on high

Although the announced departure of CEO Gary Elden is s surprise, it comes at a time when momentum in the business is strong and the strategic shift undertaken during his six year tenure is paying off. This is evidenced by the 12% growth in underlying gross profit during 4Q18, driven by strong momentum in both the US and EU businesses.

Companies: SThree
  • 12 Dec 18

LIBERUM: Volex* - GTK deal 11% accretive to FY20 EPS

We estimate that the acquisition of GTK will be 11% accretive to FY20 EPS. An EV of £13m equates to an underlying trailing EV/EBIT multiple of just 5.7x, which appears very good value for a company that has delivered a three-year revenue CAGR of 14% and compares to Volex which trades on an FY20 EV/EBIT multiple of under 6x.

Companies: Volex
  • 13 Dec 18

LIBERUM: Speedy Hire* - Acquisition of Geason scales up services and boosts EPS

Speedy has acquired Geason, a leading provider of construction and professional services training for an initial consideration of £9m and deferred payment of up to a further £26m over three years based on an ambitious earn-out schedule. The acquisition contributes to management’s strategy of improving the proportion of revenues from services and brings critical mass to training, allowing Speedy to better utilise spare training facilities with new training staff.

Companies: Speedy Hire
  • 04 Dec 18

Share & share alike

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

  • 07 Dec 18

Strong trading and industry opportunity

Gateley’s trading statement in respect of 1H 2019 was sparkling, with 20% revenue growth in 1H and a highly confident outlook for 2H. We expect to revise our forecasts up by £2m at the revenue line and by more than £0.5m in EBITDA with the interims, a highly positive picture 7 months into the financial year, after upward revisions with the finals. A broad-based law-led professional services group, it is a leader in serving the UK mid-market. It is delivering on its pre-IPO plan, growing revenue, profit, breadth of service offering and geographical footprint since flotation. The opportunity for long-term growth at Gateley is substantial.

Companies: Gateley
  • 07 Dec 18

Boku - Accelerating mobile identity offering

Boku has accelerated its move into products adjacent to its carrier billing services – it had already started developing mobile identity verification services, and the acquisition of US-based Danal will add a fully formed business in this field and bring a new set of customers. Boku is paying mainly share-based initial consideration of $37.2m, with up to a further $64m payable in equity if ambitious revenue targets for FY19 are achieved. While initially dilutive, the deal broadens the company’s product portfolio and expands the types of merchants it can serve, supporting Boku’s growth prospects in the medium- to long-term.

Companies: Boku
  • 04 Dec 18

Cenkos: Fulcrum Utility Services Ltd - On track to deliver

Fulcrum's interims illustrate a robust H1/19A delivery, in which the core infrastructure services and utility assets businesses have continued to grow organically at double-digit rates, now supplemented by the synergistic acquisitions of Dunamis and CDS. The anticipated margin on future projects across the Group to be delivered in H2/19E are above that previously forecast. We expect this increase to offset the delay in the delivery of the Dunamis order book owing to external market factors. Asset ownership is beginning to scale, notably with external agreements developing. We consider today's update to indicate in-line FY19E trading.

Companies: Fulcrum Utility Services
  • 16 Oct 18

Positive conclusion to FY18, ahead of forecast

Driver continued to trade positively throughout H2, with FY18 results expected to be ahead of expectations. As a result we have increased our EPS forecasts by 9%/12% in FY18/19 (0%/16% including share based payments). The outperformance was driven primarily by higher utilisation rates (80% in FY18 vs. 76% in FY17) and a focus on higher margin work (e.g. growth in services provided by Diales). Driver’s management team has successfully delivered on its turnaround plan. Since the February 2017 placing, we have cumulatively upgraded our EPS forecasts by 56% and 53% respectively. The focus is now on delivering continued revenue and profit growth. We believe earnings momentum will continue to drive the share price higher and we expect a positive reaction to today’s trading update.

Companies: Driver Group
  • 17 Oct 18

October investment case review

The current liquidity squeeze on UK small cap has had a disproportionate impact on the Gateley share price and presents an attractive entry point. Gateley generates a high quality earnings stream given the organic growth record from a broad service offering and significant litigation expertise that implies meaningful defensive characteristics. Revenue CAGR of 12.3% and PBT CAGR of 14.3% in the three years since IPO highlights a management team delivering to a clear growth strategy. This is not reflected in a rating that is now at a meaningful discount to comparable professional service groups; attributing a sector average rating infers 31% upside from current depressed share price levels.

Companies: Gateley
  • 08 Nov 18

Getting its ‘Mojo’ back

As with any walk of life, the occasional setback is inevitable when tackling complex new challenges. The key is recognising when difficulties arise, responding quickly, learning from the experience and ultimately reaching one’s goals - perhaps via a different route. It’s no different in the corporate world.

Companies: Gattaca
  • 23 Oct 18

Quarterly Research Outlook

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

  • 23 Oct 18

Q3 trading update: on track, no surprises

Overall trading was in line for the nine-month period, with revenue growth of 54%, of which organic growth was 6.7%, with a significant boost gained from the acquired Balu operations. Q3 was solid, but as previously signalled, the buoyancy seen at the start of the year has now settled to a steadier pace, with a cautious tone for the outlook for 2019. We reiterate our recently reduced forecasts. The shares remain deeply oversold, on a substantial discount to its peers. We see significant upside once growth is delivered on schedule, which should provide a catalyst to narrowing the current valuation gap.

Companies: Flowtech Fluidpower