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

10 Jul 18

AIM Market – A game of two halves?

In January, we highlighted the progress that AIM had made in H2 2017. We now review the performance in H1 2018. The latest AIM Statistics published on Friday showed that there are currently 944 companies, with 38 new issues so far in 2018, raising £781m and secondary issues raising a further £2.4bn. However, with 51 companies cancelling their listing there was a net fall in H1 2018 of 13 companies. That said, new listings appear to have accelerated recently. In Share News & Views, we comment on Braemar*, Cohort, Cropper*, GetBusy*, IG Design, Lakehouse* Porvair and Wynnstay Group.

Companies: AOR APC BMS CRPR DMTR ECSC ESC EUSP FDM GETB PCF SNX TCN W7L

18 Jul 18

Quarterly Research Outlook

In Q2, UK equities regained some of their poise after the draw down in Q1, although uncertainty around Brexit continued to grab the headlines. On the back of this, investor concern about the UK economy has been understandable in recent months given a number of negative data points. However, we see reasons for optimism for UK Plc with wage growth supporting an improving outlook for the consumer and business investment holding up. That said, continuing UK political disruption clearly remains a risk going forward.

Companies: AMER EMR HMI JOG PDG ABBY AMS AVON BLVN PIER CGS CALL CSRT TIDE DTG DEMG ELM EMR FPM FPO GTLY GENL GOR GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG LAM MACF MKLW NAH OXIG PCA PKG CAKE PDG RBW REDD RSW RNO RKH ROR SUS SCPA SHG SIV TRAK TRI VTC ZTF

17 Jul 18

Half time scorecard: Q2 to the rescue

With the first half of 2018 behind us, we evaluate the performance of the tech sector versus the broader market, and peers across the pond to see how the London listed technology universe compares to its bigger and better known US counterparts. We examine if the UK listed tech sector is overvalued on a relative basis. No tech sector review can be complete without analysing the performance of the big eight mega tech companies who had a strong H1 period and currently have an aggregate market capitalisation of US$5.18tn, marginally bigger than the Japanese economy.

Companies: APC ECSC EUSP FDM GETB LSAI SNX

18 Jul 18

Good performance in H1 underpins FY18 outlook

Strix has released a trading update for the six months to the end of June confirming that trading is on course to meet FY18 expectations (ZC forecast FY18 revenue of £96.1m and profit before tax of £29.1m) leading us to leave forecasts unchanged. Global market share has been maintained at c. 38% with the US showing particularly good growth in Regulated Markets. The U9 series is starting to attain good volume with c.20% of specifications going into Less Regulated Markets. In other product segments Aqua Optima has continued the performance seen in FY17 taking UK market share up to 20%, a record level. The shares have rerated recently closing last night at c.169p. This puts the shares on 14.5x current year earnings, assuming a 19% tax rate. The balance sheet is robust with a forecast net debt to EBITDA of sub 1.0x and the shares yield 4.2%, covered almost twice by earnings.

Companies: Strix Group

19 Jul 18

Photo-Me International - Laundry opportunities and Japanese restructuring

Photo-Me’s (PHTM’s) FY18 results confirmed a successful business model divided by mutually exclusive sectors. A choppy market in Asia squeezed segment revenues but restructuring plans potentially improve profitability beyond FY19. FX headwinds and reduced tax benefited margins, although politically driven tax breaks can’t be assumed to be permanent. The aggressive laundry unit roll-out helped to drive the top line with segment revenue mix shifting in Portugal and Ireland. We expect consensus to be downgraded temporarily but expansion in underpenetrated markets supports low single-digit growth over coming years.

Companies: Photo-Me International

10 Jul 18

Investing for the long term

FY 2018 results are in line with the recent trading statement except for a lower tax charge. Sales are up +5.9% at constant currency driven by rapid expansion in Laundry and growth in Kiosks. EBITDA is up a slightly more subdued +2.8% as Japan dragged. As promised, the dividend has been raised by +20% and net cash was £26.7m. Laundry now accounts for 16% of group sales (up from 10%) and is expected to continue to grow in importance. Management has stated that FY 2019E reported PBT is expected to be at least £44m, which is in line with our forecasts. Similarly, this year’s dividend will be held flat. Slightly better cash flow and lower tax, which we assume continues, enables us to raise our target price from 163p to 183p based on a 5% FY 2019E free cash flow yield.

Companies: Photo-Me International

02 Jul 18

H1 Review

Best Ideas - 2018 H1 Review

Companies: SAA VP/ GLE AMO IOM HSP CVSG EKF PGIT VRP RLM AVG SOG DNLM SFR YU/ CBP

17 Jul 18

Avon Rubber - More M50s

Avon Rubber has announced another M50 order in the final year of the 10-year sole-source contract with the US Department of Defense (DoD). This order underpins FY18 and FY19 expectations and we make no changes to our forecasts. However, Avon is in advanced negotiations with the US DoD on future programmes, which fit comfortably with its growth strategy.

Companies: Avon Rubber

27 Mar 18

LIBERUM: GAME Digital* - Moving parts, but full year on track

H1 EBITDA of £21.2m is in line, leaving our FY18E-20E estimates unchanged. Profit growth in new Hardware and Accessories, alongside reduced losses in Events/Esports /Digital were more than offset by a fall in Preowned due to the lagged impact from weaker software sales in H1 17.

Companies: Game Digital

29 Jun 18

The Monthly

We have analysed every IPO on the London Stock Exchange (LSE) between January 2015 and February 2018. Our analysis proves that, as expected, liquidity does dry up after float. The scale varies between markets and sectors.

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

12 Jul 18

LIBERUM: Flybe - Waiting to turn the corner on costs

Flybe’s strong commercial performance has continued, with 18 months of unit revenue improvements as capacity has been brought under control. A poor unit cost performance has prevented the revenue benefits from driving better profitability.

Companies: Flybe Group

18 Jul 18

Trading update – no change to forecasts

The pre-close update highlights a sustained pattern of revenue decline with UK like-for-like decline of 5.5% over H118. Management refer to a soft UK market backdrop affecting revenue in both the residential and commercial sectors and a reduction in orders from its largest customer.

Companies: Headlam Group

16 Jul 18

JPMorgan European Smaller Companies Trust - Building on long-term positive track record

JPMorgan European Smaller Companies Trust (JESC) aims to generate long-term capital growth from a portfolio of high-quality, reasonably valued, small-cap European equities. While the European stock market, in keeping with global markets, has been more volatile year to date compared with the abnormally low levels of volatility in 2017, the managers believe that there is potential for further upside. They cite an improving European and global economy, low inflation and a benign interest rate environment, which is supportive for corporate earnings growth. JESC has a very strong investment track record, outperforming the EMIX Smaller Europe ex-UK index over the last one, three, five and 10 years. The trust currently offers a 1.7% dividend yield.

Companies: JPMorgan European Smaller Cos Trust

17 Jul 18

Detailed pre-close statement

10% rise in Group Funds under Management to US$5.1bn (£3.9bn), with Emerging Market products contributing 82% and diversification products (i.e. Developed Market, Opportunistic Value and Frontier products) 18%. 10.3% rise in PBT to £12.8m (3.8% below Zeus forecast of £13.3m), with a 22% tax charge 11.0% rise in PAT to £10.1m (0.9% below Zeus forecast of £10.2m). 7.1% rise in fully diluted EPS to 39.3p (2.5% below Zeus forecast of 40.3p) and 8.0% rise in Full Year DPS to 27p (precisely in line with Zeus forecast of 27p).

Companies: City Of London Investment Group

16 Jul 18

HCM UPDATE - 16.07.18 (CPS.L, HAS.L. NAK.L, PAGE.L, RWA.L)

CPL Resources plc (CPS.L, 530p/£144m) Trading update (12.07.18) | Hays plc (HAS.L, 208p/£3,013m) Q4 trading update (13.07.18) | Nakama Group plc (NAK.L, 0.9p/£1.1m) Trading update (11.07.18) | PageGroup plc (PAGE.L, 595p/£1,949m) Q2 trading update (11.07.18) | Robert Walters plc (RWA.L, 754p/£570m) Q2 trading update (10.07.18)

Companies: CPS HAS NAK PAGE RWA

19 May 17

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

14 Jun 18

Petropavlovsk plc - Shareholder Update

29 Jun 18

Stobart Group (STOB) CEO Interview June 2018

14 Jun 18

Executive interview – Picton Property Income

30 Jun 18

Creightons (CRL) Full year preliminary results presentation June 2018

13 Jun 18

Norcros plc - Preliminary Results, Year Ended 31st March 2018

26 Jun 18

Capital Drilling - Introduction to Julian Blake

31 May 18

Ed Stacey discusses Custodian REIT's strong performance

10 May 18

Stobart Group (STOB) Full year results to 28th February 2018

30 May 18

De La Rue - Full Year Results 2018 interview

13 Jul 18

Primary Health Properties Plc - Republic of Ireland Acquisition

29 May 18

Executive Interview - Renewi

14 Jun 18

Primary Health Properties - Aquisition

24 May 18

Helical plc - Full Year Results 2018

23 Mar 15

Executive Interview - Severfield

Latest Content

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Regional Reit

Regional REIT - Retail eligible bond 4.5% 2024

Despite continuing Brexit uncertainty and some slowing of UK economic growth regional property markets have remained robust in recent months, with industrial and office properties benefiting from a continuing positive supply-demand balance. Against this backdrop, Regional REIT (RGL) continues to actively manage its portfolio and has also launched an offer of retail-eligible bonds at a fixed rate of 4.5%. The bonds are intended to diversify and enhance RGL’s overall debt portfolio and provide added flexibility as the group targets a medium term reduction in gearing from current levels.

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20 Jul 18
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Speedy Hire

LIBERUM: Speedy Hire* - Encouraging start to FY19

We believe that the AGM statement provides further evidence that the group continues to successfully execute its strategy. As well as confirming that the robust revenue momentum experienced in 2H18 has continued into FY19, the company also continues to outperform in relation to working capital management.

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19 Jul 18
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Photo-Me International

Photo-Me International - Laundry opportunities and Japanese restructuring

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19 Jul 18
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BHRD DOTD EKF GOAL LID NICL SDY

Morning Song

Be Heard (BHRD LN) H1 shows strong revenue growth, but profit shortfall | dotdigital Group (DOTD LN) Another year of strong growth & cash generation | EKF Diagnostics (EKF LN) Manufacturing agreement with Oragenics Inc | Goals Soccer Centres (GOAL LN) Profit warning | LiDCO Group (LID LN) UK distribution deal with Maicuff Technology | Nichols (NICL LN) Solid interims with a 3% PBT beat | Speedy Hire (SDY LN) In line Q1 update, with ROCE continuing to move forwards |

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19 Jul 18
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Zenith Energy

New equiment coming on-stream should boost output

Zenith has an ambitious field rehabilitation programme underway in Azerbaijan that is potentially transformational. After a promising start, operational difficulties were encountered in the second half of 2017/18 that severely constrained production growth. We believe, however, that this should be treated as a hiatus along an upward path rather than an invalidation of the hypothesis on which the development programme was based. Management has indicated that its view of geological prospectivity is undimmed. Operational efficiency should also be enhanced with the introduction of new equipment and bringing work in-house. Development drilling in Azerbaijan is scheduled to commence in early 2019 following delivery of a high-performance rig. The upward trend in oil prices over the past year provides a bullish backdrop for operations. Near-term, Zenith is very much a play on high-impact workovers boosting output significantly above 300 b/d before year end. Selling on US$0.5/barrel of 2P, market expectations for the stock are distinctly subdued.

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19 Jul 18
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HUM HNR AO/ CAR GSH AMYT TAX LID SPE BHRD

Small Cap Breakfast

CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late July 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

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19 Jul 18
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International Biotechnology Trust

Outperformance and income

Under the leadership of its manager, Carl Harald Janson, International Biotechnology Trust (IBT) is building a track record of outperformance of both its benchmark, the Nasdaq Biotechnology Index and the average of its peer group (see page 13 of this note for the figures).

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19 Jul 18
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International Biotechnology Trust

Outperformance and income

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19 Jul 18
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Volution Group

LIBERUM: Volution* - 11th acquisition since IPO

Volution yesterday announced the acquisition of Air Connection, for £3m, in Denmark. This is the Group’s 11th acquisition since the IPO in 2014, spending a combined total of almost £100m from its own internally generated free cash flow. Instead of upgrading estimates by 1% in line with potential earnings enhancement from Air Connection, we leave estimates unchanged.

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