UK Other Main Markets

UK Other Main Markets equity research

Explore the most viewed and latest equity research and media content for companies in the UK's other main markets.

Other UK Stocks

Broker research, valuations, & analysis on other UK stocks

16 Jul 19

Small Cap Feast

Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raising EUR135m with market cap on admission of EUR309.6m, expected 17 July 2019. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

Companies: CALL BIRD ABC KDR EMAN BST SCE ZEG SAG FUL

16 Jul 19

Facebook to use Libra to become utility, Slack not worried about Microsoft, Symantec ends talks with Broadcom

The Senate Banking Committee on Monday released the testimony of David Marcus, the head of Facebook's cryptocurrency projects ahead of his testimony Tuesday. In his prepared remarks, Marcus perfectly outlines the business model behind the social network’s upcoming Libra digital currency and its Calibra digital wallet. Microsoft might be the primary competitor for Slack, but the widespread adoption of Microsoft's software is not a major problem for Stewart Butterfield, co-founder and CEO of the messaging app. Last week, Microsoft said Teams had more daily active users than Slack. Cybersecurity company Symantec Corp has walked away from negotiations to sell itself to chipmaker Broadcom over price disagreements, people familiar with the matter said on Monday. Symantec's decision raises new questions over the future of the US antivirus software provider, which is looking for a new CEO and has been struggling to grow its business serving companies.

Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH

18 Jul 19

Laundry remains the core growth driver

FY 2019 results are line with our revised expectations, save for a higher net cash balance (£16m) due to lower capital expenditure and cash tax. Free cash flow covered the dividend cost for the first time since FY 2016 and management has highlighted its intention to again hold the FY 2020 dividend. As previously highlighted, the UK suffered from Brexit-related uncertainty and weaker consumer demand. We have downgraded our EPS forecasts by 5%, assuming difficult UK conditions continue. Rolling forward our free cash flow and net cash based valuation model plus our revised short-term outlook edges down our target price from 155p to 150p.

Companies: Photo-Me International

15 Jul 19

LIBERUM: AEW UK REIT* - Industrial gains

AEW UK REIT delivered strong NAV returns in FY2019 despite retail headwinds in Q1. Operational progress was demonstrated by reduced vacancy and full cover of the 8.4% dividend.

Companies: AEW UK Reit

15 Jul 19

Allenby Capital TMT Update 15.07.19 (GFIN.L, MIRA.L, BOOM.L)

Gfinity plc* (GFIN.L, 5.25p/£23.6m) Proposed placing of £5.25m (15.07.19) | Mirada plc* (MIRA.L, 1.0p/£8.9m) Finals - Revenue growth & profitability; positive outlook (12.07.19) | Audioboom plc* (BOOM.L, 255p/£35.7m) New podcast studios in New York increases capacity (12.07.19)

Companies: GFIN MIRA BOOM

18 Jul 19

UK Renewable Energy Infrastructure Funds – For all the fans

Over the past two decades, onshore wind power has prospered and now exceeds 12 GW in the UK. The termination of subsidies for new plants from 2017 onwards has cut investment. Instead, offshore wind power is the new ‘goto’ investment sector, as there has been a sea-change in costs. The key event was the 2017 auction for the development of the Hornsea Project Two and the Moray East fields, when 15-year contract for differences (CfDs) were awarded, at just £57.50p per MWh; this compares with the 2018 £100 per MWh target that had been set previously by the Government. In recent years, solar power has come of age. Total UK solar capacity now exceeds 12 GW. Inevitably, most solar farms are based in the Midlands or in the South, where irradiation levels exceed the UK average. A typical solar farm portfolio might include 50 sites with 8 MW of capacity per site. Despite the removal of subsidies for new solar plants, the prospects remain bright for new build, since costs have fallen appreciably in recent years. The levelised cost (LCOE) of solar power should fall below £70 per MWh. The UK’s first subsidy-free solar farm has been commissioned at Clay Hill in Milton Keynes. For many investors, REIFs offer an attractive means of securing exposure to the benefits of rising UK investment in these sectors, much of which is backed by long-term contracts delivering generally solid and secure returns. Our sector research focuses on 11 quoted REIFs, which mirror those selected by members of the Association of Investment Companies (AIC). The recently floated Aquila European Renewables fund is included, despite its declared policy not to invest in UK generation. Since May 2014, REIF returns have been solid, with total returns approaching 10% per year. As a group, their combined market capitalisation is ca.£7bn; the most valuable quoted funds are Greencoat UK Wind (£2.1bn) and The Renewables Infrastructure Group (£1.8bn). The sector premia over net asset valuations (NAVs) for most REIFs now lie in the 9%-19% range. The premium for Greencoat UK Wind, following its £375m gross fundraise, is ca.14%; The Renewables Infrastructure Group premium is similar. Targeted real dividend increases underpin the attractions, in particular, of wind and solar investments; major earnings shortfalls are low-risk, with little likelihood of a dividend cut. Prospective dividend yields for most REIFs currently lie in the range of 5.0%-6.0%. In terms of risk, future movements of interest rates could have a material impact on NAVs and, consequently, upon share price ratings. The precise effect will depend on the degree to which the discount rates moves relative to the riskfree rate. Regulatory amendments, subsidy changes and possible tax adjustments are also key risk factors with one company commenting that movements in long term power price forecasts are the most significant risk.

Companies: TRIG UKW NESF FSFL AERI GSF GRP SEIT USFP

16 Jul 19

Pre-close nudges forecasts up

CLIG unaudited pre-close statement confirms its Funds under Management (FuM) on 30 June 2019 was US$5,389m (see our note of 8 July 2019, which increased our forecast 3.6%).

Companies: City Of London Investment Group

18 Jul 19

Strategic appointment compliments transition story

Kin & Carta has announced the appointment of John Kerr as Non-Exec Chairman, effective 22 nd July 2019. Today’s statement suggests that John brings a wealth of experience having served a number of senior roles at Deloitte Consulting, and specifically leading the creation of Deloitte Digital in 2012. We see this as a sound appointment for the company as it continues to make progress in executing its strategy, with a focus on digital transformation. At 11.4x FY19e P/E (falling to 9.5x in FY20e), we remain buyers and reiterate KCT as one of our top picks for 2019, seeing 31% upside to the shares.

Companies: Kin and Carta

22 Jul 19

LIBERUM: Sthree* - Results in line, strong relative positioning

Results in line, strong relative positioning

Companies: SThree

15 Jul 19

Palace Capital - A wealth of asset management opportunities

Palace Capital recently reported FY19 results and announced plans to convert to REIT status, approved by shareholders at the AGM. The results showed further growth in recurring earnings and positive like-for-like valuation growth but they also reflected the deferral of some letting activity to pursue refurbishment and redevelopment opportunities. Our revised forecasts now include the impact of the Hudson Quarter development in York, which we expect to be a key driver of returns over the next two years.

Companies: Palace Capital

17 Jul 19

Flash Update: Q2 and H1 Trading Update

Capital reiterated it is on track to achieve full year revenue guidance of US$110-120 million, and whilst the headline revenue number for the half year is slightly below our expectations, we are confident that the company will be able to achieve guidance. The newly announced contract wins (described below), and some H1 seasonal effects in West Africa, imply a stronger H2 for the company. We are assuming an EBITDA margin of 24.2% for the half year, implying H1/2019 EBITDA of US$13.2 million, or 3.0x current EV on an annualised basis. We estimate US$5.5 million of free cash flow generated for the half year, equivalent to a 12.1% yield, which well covered the US$2.0 million dividend payment in May.

Companies: Capital Drilling

02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

18 Jul 19

Finishing ahead in a volatile year for markets

City of London has announced its pre-close trading update for FY2019. After a volatile fourth quarter, FUM finished ahead of the end-March figure, at $5.39bn. This was an increase of $282m (5.5%) over a year ago, of which $96m was net inflows, with the balance from market movements. As indicated in the quarterly statements, both the Developed Markets and Opportunistic Value strategies saw net inflows over the year. Emerging Markets and Frontier Markets experienced net outflows. Performance in the Emerging Markets strategy was good, with outperformance of ca.300bps over the year.

Companies: City Of London Investment Group

19 Jul 19

Cenkos: Record Plc - A positive, if unspectacular, update

Record's Q1 update reports a 1.7% increase in the $ value of AUME (4.0% in £ terms) to $58.3bn, with a net client inflow of +$0.3bn and exchange rate movements of +$0.7bn. The uncertain economic backdrop and associated volatility in FX is creating a welcome backdrop for Record, with 3 new mandates added in Q1. Given flattish AUME and fee rates, we leave FY20E forecasts unchanged, which produce a yield of 7% before specials.

Companies: Record

05 Jul 19

UK Housebuilding Sector in 2Q 2019

Dwight Barkley PhD is a Professor of Mathematics at the University of Warwick. He studies waves in excitable media such as the Belousov-Zhabotinsky reaction, heart tissue and neurons. In 1997, Dr Barkley and Dr Laurette Tuckerman, a Paris-based mathematical physicist, developed ‘bifurcation analysis for time steppers’, which is a technique for modifying computer codes to perform bifurcation analysis. More lyrical, perhaps, Dwight is also known for formulating an equation to estimate how long it will be until a child in a car asks the question “are we there yet?” And, it is shown on the image on page 3 of this report. Herein, there are three factors which decide the timing of this wearisome question i.e. one plus the number of activities, divided by the number of children in the car squared. That figure is then added to the time it took the family to get into the car and set off on its journey. Crucial in putting off the first query as to the proximity of the destination are onboard activities for children i.e. no activities equals a question before leaving the driveway. Dr Barkley says: “Mathematics can help answer many of life’s questions”. If only the Brexit journey were that simple. It is not. We are all children now stuck in the back seat; and, maybe, we are still on the driveway with a dearth of on-board activities. Yes, three years on Brexit-resolution-fatigue is making itself felt across the board, including the UK Housebuilding Sector, where the fall in value in 2Q’19 was 7%. Berkeley said something similarin its final results, on 20 June, when it lamented an uncertain operating environment and “a lack of visibility in the political outlook”; and its PBT is expected to fall by a further third this fiscal year. The daily Sector value chart is also lurching from top-left to bottom-right (as is the British Pound versus the Euro). Yes, there were two palpable positives in 2Q from the NHBC and UK Finance about building activity and mortgages; plus, on the third day of 3Q, CBRE’s bid for Telford Homes. Nonetheless, prospective earnings growth for the Sector is now flat in both 2019 and 2020. This is about the journey.

Companies: MCS TW/ PSN BDEV ABBY CSP WJG BVS TEF INL GLV GLE CRST BWY BKG

19 May 17

Leading UK fund manager, Gervais Williams, discusses investing, his outlook and two companies he's excited about

22 Jul 19

SThree (STHR) H1 results interview July 2019

02 Apr 19

Emmerson Potash Mining

19 Jun 19

JLEN Financial Results

03 Jul 19

John Laing Environmental Assets Group Ltd

12 Jun 19

Norcros plc - Full Year Results 2018/2019

17 Jun 19

T Clarke (CTO) Presentation at Mello May 2019

11 Jun 19

Executive interview - MOD Resources

04 Jul 19

Executive interview - Acorn Income Fund

10 Jun 19

National Milk Records (NMRP) Presentation at Mello May 2019

11 May 18

Harbourvest - 10 years of success and the future of Private Equity

31 May 19

Charles Stanley (CAY) Full year results 2019

28 Jun 19

Axiom European Financial Debt Fund (AXI) presentation at Mello Trusts & Funds May 2019

29 May 19

Executive interview - Picton Property Income

03 Jun 19

Sirius Real Estate - Full Year Results for the year ended 31 March 2019

Latest Content

SThree

LIBERUM: Sthree* - Results in line, strong relative positioning

Results in line, strong relative positioning

View

22 Jul 19
-
-

SThree

SThree (STHR) H1 results interview July 2019

View

22 Jul 19

JTC

Update shows good momentum

JTC has published a trading update which confirms. Both divisions performed well throughout the first six months. Interim results will be in line with management guidance. Opportunities for both organic and inorganic growth in 2H and beyond

View

22 Jul 19
-
-

BOOM MIRA BIRD ATQT

Allenby Capital TMT Update 22.07.19 (BOOM.L, MIRA.L, BIRD.L, ATQT.L)

Audioboom plc* (BOOM.L, 277.5p/£38.9m) Interims: H1 in line; strong performance against KPIs (18.07.19) | Mirada plc* (MIRA.L, 1.30p/£11.6m) Netflix integration (17.07.19) | Blackbird plc* (BIRD.L, 7.1p/£20.1m) TownNews extends deployment (16.07.19) | Attraqt Group plc* (ATQT.L, 35p/£63m) Meeting with management: Cross-sell opportunity (18.07.19)

View

22 Jul 19
-
-

AGL C21 GAL PERE HMI DKL SWG BLV ERGO ING

Small Cap Feast

Interswitch, a Nigeria-based payments firm, has hired advisers to resurrect plans for a stock-market listing in London and Lagos later this year, which may value the financial technology company at $1.3 billion to $1.5 billion. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

View

22 Jul 19
-
-

Volution Group

LIBERUM: CEO Video: Ronnie George - Volution Group*

In these three short videos, Volution Group CEO, Ronnie George discusses the new Reading site, some of the operational difficulties and how the site can deliver in the future.

View

19 Jul 19
-
-

Record

Cenkos: Record Plc - A positive, if unspectacular, update

View

19 Jul 19
-
-

Volution Group

LIBERUM: Volution Group* - Reading resolution raising returns

A recent visit to Reading persuaded us that its production issues have been resolved. This should help reverse the recent margin decline as Reading’s production costs fall once again and better service levels restore pricing power.

View

19 Jul 19
-
-

XPS Pensions

LIBERUM: XPS Pensions Group* - Investment case remains intact

Although the recent resetting of FY20 estimates was disappointing, we believe that the core investment case remains intact. As the leading independent provider of pension advisory and administration services, XPS is uniquely position within an industry with a growing end market and high barriers to entry.

View