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  • 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
  • 16 Mar 18

FY results – encouraging margin gain

Full-year results were encouraging and were $1.7m ahead of our PBT forecast, accompanied by a better than expected dividend and strong operational cash flow. 2017 was a year of transition. Existing production contracts have performed well, while rigs are being moved to West Africa to service new production contracts. Focus on operational efficiencies helped boost margins to 11.4%. No change to forecasts. Sentiment remains focused on Tanzanian issues, which remain unresolved, but should also recognise a strong improvement in operational performance. We maintain our 85p price target.

Companies: Capital Drilling
  • 16 Mar 18

Morning Note

Capital Drilling (CAPD): Corp FY results – encouraging margin gain | Water Intelligence (WATR): Corp Acquisition of an underperforming franchise

Companies: Capital Drilling Water Intelligence

  • 16 Mar 18

SP Angel – Morning View

Avocet Mining (AVM LN) – Sale of Wega Mining | Capital Drilling (CAPD LN) – Rig rates and sales recover as exploration activity grows | Phoenix Global Mining* (PGM LN) – Increasing our valuation as a result of recent nearby cobalt transaction | Premier African Minerals (PREM LN) – Placing to cancel Death spiral warrants | URU Metals (URU LN) – Platinum Group Metals seen in Nickel, copper intersections at Zebediela project

Companies: AVM CAPD PGM PREM URU

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Capital Drilling. We currently have 45 research reports from 3 professional analysts.

Open
37.5p
Volume
0.0m
Range Today
37.5/37.5p
52 Week
35.0/48.3p
Market Cap
£50.9m
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
11Oct18 07:00 RNS Q3 Trading Update
16Aug18 07:00 RNS Half Year Results
26Jul18 07:30 RNS Board Changes
10Jul18 07:00 RNS Trading Update
18Jun18 07:01 RNS West Africa Update
18Jun18 07:00 RNS Exploration Contract Wins
21May18 12:00 RNS Notification of Major Interest in Shares
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  • 23 Oct 18

Flowtech Fluidpower - 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
  • 19 Oct 18

Cenkos: Smart Metering Systems Plc - Landmark contract win

Yesterday, SMS announced that it has extended its relationship with First Utility and signed an exclusive agreement until 31 December 2021 to be its fully integrated domestic smart meter installer and Meter Asset Provider (MAP). This agreement provides SMS with an initial access to up to 1 million meter points, significantly underpinning our forecast of 2.5 meters installed by end 2020. Based on our assumed average supply and install cost (SMETS2 dual fuel), we estimate that SMS will be investing at least another £175m in smart meter assets for First Utility. By the end of August 2018 SMS had installed 748,000 smart meters in total, with index linked annualised recurring revenue (ARR) of £71.4m. The 5-year ARR CAGR to end 2017 was 39.5%. SMS offers investors exposure to recurring index linked earnings which will grow significantly over the next two to three years as the smart rollout accelerates towards completion.

Companies: Smart Metering Systems
  • 23 Oct 18

Q3 trading update

Today’s trading update reassuringly states that trading is in line with market expectations following a solid performance in Q3. Group revenue growth for the nine-month period to the end of September was 54%. This was driven by the acquisition of Balu (20th March 2018) and three additional acquisitions in Q3 and Q4 2017. Importantly, organic growth continues to show good momentum at 6.7%, albeit, this is down on the 9% reported for the six months of the year as the strong growth in H1 has moderated. Net debt at £17.6m is in line with that reported at the HY and in line with the FY18 forecast. We leave forecasts that were revised at the time of the interim results (18th Sept) unchanged on today’s trading update. The short-term focus of the business is to drive synergies from the acquired businesses through operational and procurement improvements. The recent derating offers investors an interesting entry point with the shares trading on a single digit PER of just 7.7x and yielding 5.3%. This is a material discount to its listed peers (page 2). The shares should re-rate as management de-gear the balance sheet and the growth from the acquisitions becomes increasingly apparent.

Companies: Flowtech Fluidpower
  • 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
  • 18 Oct 18

Does sector weakness belie fundamentals?

Shares of housebuilders have fallen, possibly prompted by concerns about home prices and margins, potentially triggering weakness in the wider sector. We believe, however, that developers and basic material producers such as Forterra have limited exposure to those drivers and operate under very different dynamics. Their pricing power is underpinned by low inventories and a consolidated sector. The positive demand-supply situation could improve further due to new government housebuilding initiatives.

Companies: Forterra
  • 19 Oct 18

Solid State - Positive H119 pre-close trading update

Solid State’s pre-close trading update notes that group H118 revenues will be c 4% ahead of prior year levels. Moreover, the 64% year-on-year increase in order book at end H119 leads management to believe the group will exceed FY19 market expectations. Consensus EPS estimates have risen by 7.9% and 5.0% for FY19 and FY20 respectively. Despite a favourable response to the news, the shares continue to trade at a significant discount to peers.

Companies: Solid State
  • 15 May 18

Financial sector holds back progress elsewhere

A customer in the Financial sector has experienced a downturn in activity in H1 which has offset strong progress in the Gaming sector. After a poor H1, Financials has seen an improvement in demand and a generally stronger H2 is expected. Exciting opportunities remain in Gaming and elsewhere, and with more normal Financial sales, the outlook remains positive. We have reduced our PBT forecast in FY18 from £5.6m to £5.2m and await updates as the year progresses. Year end net cash is expected to be £14.8m. Given the expected improvement in H2, an ex cash P/E of c.13x and a dividend yield of over 5% are still strong attractions.

Companies: Zytronic
  • 04 Oct 18

THE MONTHLY October 2018

We are in the midst of the Conference season for political parties and trade unions in Britain. We all have a lot on our minds, with generational constitutional issues to the fore, but these have come to the fore after many years of concerns building up about citizens’ ‘place in the world’.

Companies: OPM AGY ARBB AVCT DISH BNO BUR CMH CLIG DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PHP RE/ REDX SCE SIXH TRX TON VAL VTA W7L

  • 16 Oct 18

SolarWinds Partnership update

Following its recently announced selection by US-based SolarWinds, to be its first and only Threat Monitoring Service Provider (TMSP) in the UK and South Africa, the Group announces its collaboration is now an exclusive partnership. In addition, Falanx has released further information on commercial pricing, quantifying the potential financial benefits of the partnership over the near term. Although we leave estimates unchanged at present, the release underscores the potential for Falanx to capture material benefits from its partnership with SolarWinds through the delivery of managed security services in partnership with SolarWinds TMSPs and also through the opportunity to cross sell its own product and service portfolio to SolarWinds’ extensive network of clients. We look forward to further updates.

Companies: Falanx Group
  • 18 Oct 18

Life in the fast lane

The interim results to end of June demonstrated very strong progress, with revenues and operating profits rising 61% and 133% respectively, and underlying growth of 30%. Organic operating profit was 61% ahead y-o-y. Current trading remains in-line with expectations, and demand for freight management services across all core markets is high. To underline this confidence, the interim dividend was increased 21% y-o-y to 0.42p / share.

Companies: Xpediator
  • 08 Oct 18

XP Power - Q3 trading supports FY18 outlook

XP Power’s Q3 trading update confirms strong revenue growth, despite currency headwinds, and good progress in design wins across all end markets. Q3 bookings growth has moderated slightly, partially reflecting uncertainty in the semiconductor sector over capex plans, but management is confident of achieving expectations set at its recent interim results; we leave our forecasts unchanged.

Companies: XP Power
  • 18 Oct 18

Norcros - Positive progress in H1

The Norcros H119 pre-close update reiterated management’s expectations for progress in FY19. Trading newsflow was similar to that reported in Q1 – with a good uplift to UK EBIT anticipated for H119 and a growing South African top-line – albeit with an implicitly slightly quieter second quarter. Brand presence, coupled with product and channel diversity, appears to be supporting ongoing progress in variable market conditions. Our estimates are unchanged and H119 results are scheduled for 15 November.

Companies: Norcros
  • 23 Oct 18

1Spatial - Building a platform for sustainable growth

H1 results showed good progress and financial discipline, significantly expanding EBITDA and reducing operating losses. A strong pipeline should support a return to growth in H2 and our estimates are unchanged. There is still work to do on the transformation, but by focusing on delivering repeatable spatial solutions based around the company’s core 1Integrate IP, we believe that the company is laying the foundations to deliver sustainable growth and margin expansion.

Companies: 1Spatial
  • 03 Sep 18

The Monthly September 2018

September’s Hardman Monthly features an article from guest contributor, Tim Ward. Tim is the Chief Executive of the Quoted Companies Alliance (QCA), an organisation that champions the interests of small to mid-size quoted companies.

Companies: OPM AVO AGY APH ARBB AVCT BNO CMH DNL EVG GDR INL KOOV MCL MUR NSF OXB PHP RE/ REDX SCLP SCE SIXH TRX TON VAL W7L