AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019
Companies: SRC SIS 88E CTR EAH ACP KRM CGNR ALTN
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.
Companies: FRAN MVR WALG CRU EMAN EKF STAF CTR HDD
Charles Taylor is a global provider of professional services to clients across the insurance sector. In addition to providing the traditional services of insurance management, loss adjusting and claims services, it is at the forefront of exciting new developments in “insurtech”. Charles Taylor has three main professional services’ segments, which provide a good mix of 1) steady earnings stream from decades old relationships, 2) potential for pick-up in earnings as and when complex loss adjusting activity in the insurance sector “normalises” and management action to improve margins takes effect, and 3) exposure to growth areas through Charles Taylor InsureTech, its new insurance technology business, and the turn-key management of Lloyd’s syndicates, the development of medical claims and assistance services and the expansion of outsourced service provision. The group being a service company means there are none of the usual material risks associated with a traditional insurance company.
Companies: Charles Taylor
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Tekmar’s H1 results were well flagged in the 30th October update. Revenue was slightly lower YoY at £15.2m (H1’20: £17.1m), with EBITDA of £0.8m (H1’20: £2.0m), reflecting the impact of COVID-19. Whilst there continues to be some short term disruption, the COVID-19 backdrop is improving and we believe Tekmar is well placed to return to growth as its markets recover. The balance sheet is robust, with net cash of £0.7m, and demand is strong, with the enquiry book increasing by 21% YoY to £225m. Industry forecasts point to significant long term structural growth in Tekmar’s end markets and new CEO Ally MacDonald is conducting a strategic review focused on positioning the Group to capitalise on this. N+1 Singer has been appointed joint broker and we will initiate coverage in due course. We believe the historic EV/EBITDA rating of 7.7x is undemanding and see the current share price as an attractive entry point given the scale of the growth opportunity and strong recovery prospects.
Companies: Tekmar Group Plc
Today's news & views, plus announcements from AZN, LLOY, WEIR, TATE, GFTU, INCE, DELT, SOLG, HYVE
Companies: LLOY SOLG INCE
FY20 has been a transformational year for Avon Rubber as it exited from dairy and recycled the proceeds into higher-return businesses with better growth prospects to further strengthen Avon Protection. The redeployment of capital to form a more focused group should enhance value creation for shareholders. The $91m acquisition of Helmets & Armor on 2 January 2020 was joined by Team Wendy from 2 November 2020. Overall, our FY21 EPS estimate falls by 2% in FY21, although this still represents strong growth. The reporting currency will switch to US$ in FY21 as more than 90% of revenues are of US origin.
Companies: Avon Rubber p.l.c.
Ince has announced excellent interim results with promising trends for the near and medium term which bode well for the Group's earnings and cash progression. First half revenue has grown 6% YoY, a strong result considering the impact of COVID during the period.
Companies: Ince Group plc (INCE:LON)Ince Group plc (W1G1:BER)
H1/21A results reflect a period where COVID-19 impacted Q1/21 trading, masking over early signs of progress from the company's new strategic plan. Given activity rebounded during Q2/21 to pre-COVID levels, we expect a stronger H2/21E delivery and a profitable FY21E on flattish revenues. In FY22E, we expect to see material signs of progress in trading from strategic growth initiatives (housebuilding/EV/smart metering etc). Given these long-term drivers, we believe Fulcrum should be viewed as an attractive growth, rather than prior earnings quality, investment case.
Companies: Fulcrum Utility Services Ltd
President Trump likes to project himself as a highly successful businessman, but surprisingly little is known about his true financial position. Various articles, including a 2016 in-depth analysis by The Wall Street Journal, have speculated about his income and asset base. All sorts of claims and counter-claims have been made about his wealth – by Trump himself, pitching his fortune at some $9bn, and by journalist Timothy O'Brien, suggesting that it is as “low” as $150m-$250m. It is doubtful whether we shall ever know the truth, but we can use Trump’s UK corporate filings to gain an insight into his businesses in Scotland.
Companies: AVO ARBB ARIX CLIG DNL FLTA ICGT PCA PIN PHP RECI STX SCE TRX SHED VTA YEW
Checkit has emerged from a period of corporate activity as a pure-play business focused on driving the adoption of its connected SaaS software, in particular its workflow management application. Checkit’s software is designed to enable smarter operations management, exploiting Internet of Things technology to connect people, processes and assets. With a proven ability to sign up blue-chip customers across a number of target verticals, growth in recurring revenues and an expanding customer base should help to close the valuation discount to software peers.
Companies: ECKTF CKT EKC
Cohort has completed the acquisition of ELAC Nautik from Wartsila for a headline consideration of €11.25m, as previously announced. ELAC extends Cohort’s maritime offering and has attractive medium- to long-term prospects. It will make an initial five-month contribution and should be modestly earnings enhancing. More detail should be available with interim results next week, but the lack of a trading comment suggests the ongoing activities remain on track to meet market expectations.
Companies: Cohort plc
The Group's cash generation and profitability remained robust in H1/21A despite the onset of COVID-19. This enabled the Group to pay down a further £8.2m of term loan principal, resulting in net debt declining 44.6% to £34.9m. In light of improving visibility in industrial electricity demand we release prudent FY21E and FY22E forecasts. We believe OPG is undervalued, trading at a c50% discount to its peer Group. We move our recommendation from Under Review to Buy.
Companies: OPG Power Ventures Plc
Volex has reported interim results that are in-line with expectations following a strong trading update in mid-October. Of far greater significance is today’s announcement of the proposed acquisition of DEKA for a consideration of up to €61.8m on a debt free basis. DEKA is a leading and highly profitable power cord manufacturer, strategically located in Turkey, that serves leading European white goods manufacturers. The acquisition should close in early CY2021, subject to expected Turkish Competition Authority approval. We foresee 15% earnings enhancement in FY2022E with further opportunities for revenue synergies with Volex in the Far East as its operations also vertically integrate, production efficiencies increase and the cost of production falls. The statement highlights that pro forma net debt/EBITDA remains under 0.4x and this provides scope for further bolt-on acquisitions alongside a new $70m RCF and $30m accordion, also announced with the interims.
Companies: Volex plc
This week the global specialist in technologies reported further successful test reports from the Laboratory of Virology at the University of Campinas, Brazil (Unicamp) on the Company's anti-viral nitrile gloves and polypropylene fabric facemasks, made with Symphony's d2pAM (antimicrobial) technology.
Companies: Symphony Environmental Technologies plc
Empresaria has issued a very encouraging update, confirming continued profitability in each month of H2 to date. Evidence of recovery is being seen across many parts of the Group. Whilst the pace of recovery remains slow, the COVID-19 backdrop is improving and the Group’s sectoral and geographical diversity continues to benefit its performance. Strategic initiatives continue to progress at pace, not least investment in new IT systems, positioning the Group for growth as its markets recover. Management now anticipates full year net fee income of £52m to £55m and adj. PBT of £4.4m to £4.9m, which we reflect by introducing an FY20 forecast. The Group is trading on a Dec. ’20 P/E rating of 11.6x on new forecasts, which looks undemanding to us given the depressed earnings level and the Group’s recovery prospects. Whilst we do not introduce FY21 forecasts at this stage, we would expect some advancement on the FY20 outturn given an improving backdrop.
Companies: Empresaria Group plc
Brickability has traded through COVID-19 with great resilience giving credibility to the operating model and to management. Recovery remains tied to the (PD) housing market but product diversification, cross-selling and share gains are drivers to organic growth, whilst acquisition(s), in limbo through the pandemic, remain an essential part of the strategy. We are reinstating forecasts for FY21 through FY23 and see a strong bounce in profitability in FY22E against which the rating is hugely attractive to growth, value or income funds; a prospective EV/EBITDA of 5.7x, PE of c8.0x, yield 4.3% and likely debt free. The underperformance of the stock since COVID-19 is an opportunity for investors, not a reason to fear that Brickability has gone ex-growth or become strategically impaired. On our revised forecasts we model a ‘fair value' of c70p; Buy.
Companies: Brickability Group PLC
Trading to date in FY 2021 has been positive, with no sign of an adverse impact from the second national UK lockdown. Net new business across both divisions is described by management as encouraging and the new business pipeline remains very healthy. With volumes better than expected and margins improving DX is on track to perform materially better than market expectations and we have, consequently, upgraded FY 2021 EPS by 29% and FY 2022 by 15%, driven by stronger assumptions in DX Freight. We have also raised our FCF-based target price from 29p to 33p and reiterate our view that the group is in a strong position to rebuild profitability by winning new business and improving efficiency, productivity and margins.
Companies: DX (Group) Plc
Directa Plus has released a trading update guiding to revenue for FY20 of approximately €6.0m, 9% ahead of our expectations of €5.5m. The strong trading performance has been primarily driven by the sales of G+ enhanced face masks, including Co-Masks, which have proven popular with both individual and corporate customers and have generated strong demand. The strengthening performance of Setcar, the Environmental division, has also contributed to the improved revenue expectations for the current year.
The company has also announced a new development agreement with the Soft Goods Division of a major international developer and manufacturer of consumer electronics, personal computers and related services. The agreement covers the potential application of G+® graphene on covering materials of consumer devices, exploiting the antiviral-antibacterial properties of G+® graphene as well as its thermal and electrical conductivity. Directa Plus has been granted a new and second patent on its core plasma technology; specifically relating to new machinery with five times the previous capacity and greater durability.
Companies: Directa Plus Plc