Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CAPITAL DRILLING LTD. We currently have 15 research reports from 2 professional analysts.
|26Oct16 07:00||RNS||Q3 2016 Trading Update|
|28Sep16 01:05||RNS||COMPLETION OF SECONDARY PLACING|
|28Sep16 08:00||RNS||PROPOSED SECONDARY PLACING|
|20Sep16 07:00||RNS||New Contract & Senior Management Update|
|23Aug16 07:00||RNS||Appointment of Joint Broker|
|17Aug16 07:29||RNS||Half-year Results|
|07Jul16 11:05||RNS||Second Price Monitoring Extn|
Frequency of research reports
Research reports on
CAPITAL DRILLING LTD
CAPITAL DRILLING LTD
17 Aug 16
Robinson* (RBN): Uncertainties delaying new business (CORP) | Gem Diamonds (GEMD): Interim results (BUY) | Shanta Gold (SHG): Interim results (BUY) | Independent Oil & Gas* (IOG): Skipper appraisal result (CORP) | Imaginatik* (IMTK): Prelims in line, focus on execution (CORP) | Capital Drilling* (CAPD): Interim results – new contracts offer stronger H2 (CORP) | The Joy of Techs: Technology sector quarterly – analyst interview | Hurricane Energy (HUR): Initiation of coverage – analyst interview (BUY)
Interim results – new contracts offer a stronger H2
17 Aug 16
Key operating metrics are improving, while up-front costs on new contracts have marginally held back H1 profitability. A full revenue contribution from these contracts offers a much stronger profit in H2. Internal improvements, such as the lean operating model, offer commercial advantages that are being converted into new contracts. New exploration tender opportunities are arising on the back of the higher gold price. We maintain current year profit forecasts, though EPS is held back by a higher tax rate. In 2017, we raise EPS by 18%. We increase our price target to 50p, with the shares attractively rated and significant scope for further outperformance.
18 Jul 16
Topic of the quarter: Could Brexit be a positive for the UK Industrials sector? While the EU and UK are important to each other in terms of trade, the level of that importance is asymmetric: 44% of UK exports go to the EU and a further 10% go to countries with free trade agreements with the EU; only 15% of EU exports go to the UK. As a result, we feel that UK bargaining power is relatively weak and we need to accept the possibility that the UK drops out of the single market and trades under WTO terms with Europe. The extent to which this is a positive or negative for UK Industrials depends entirely on the value of Sterling versus the Euro or US Dollar. We analyse this and conclude that with a 7% (or greater) depreciation of Sterling (versus pre-Brexit levels), all the costs associated with WTO trade are more than compensated for. Big exporters become strategic winners and big foreign FX earners become financial winners. Largely domestic players are at risk. Export or die!
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.