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

17 Jan 19

Small Cap Feast

Companies: ORCP IOF FOX TEG XLM TAP FST SNG ARE SRB

21 Jan 19

LIBERUM: The 4S’s - The negative working capital model in Construction is changing

Four measures are being considered to protect the supply chains in the wake of the Carillion collapse, a year or so ago; 1) Project Bank Accounts, 2) The Prompt Payment Code; 3) Retentions Reform; and 4) Assigning non-executives for the supply chain. (Read here). This means that in most cases, Costain is an exception, working capital will become less negative, which has a negative impact on cash flows, while Construction companies grow.

Companies: AA/ BAB BBY CPI COST GFRD HSV IRV KLR KIE MER MTO MGNS PAY RPS SRP STAF

14 Jan 19

Opportunity knocks

We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.

Companies: BCA CLIN CLG CBP DNLM EAH FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

17 Jan 19

Game Digital - Resilience over the peak trading period

Against a challenging retail landscape, Game Digital (GMD) delivered a solid sales performance and growth in higher-margin categories over the peak trading period, alongside ongoing cost efficiencies, which continue to counter trading pressures. Momentum in the BELONG roll-out, which accounts for a significant part of our 67p valuation, remains crucial.

Companies: Game Digital

22 Jan 19

FY18 profitability in line with expectations, net debt ahead

Strix has confirmed that it expects to report FY18 results in line with market expectations. ZC forecast constant currency revenue of £96.1m, adj operating profit of £30.8m and PBT of £29.1m, in line with consensus expectations. The global kettle market continued to grow strongly at an estimated 7%. Strix states it has maintained its market share by volume at c.38%, indicating that it has also seen good underlying growth. Albeit, the mix of growth has shifted towards less regulated markets and the US and away from China. We view this positively in terms of margin outlook and potential to increase global market share. The only change to numbers today relates to lower net debt, ZC reduces its FY18 forecast from £30.8m to £28.0m, as stated in the trading update. This flows through into FY19 and FY20 estimates, however, forecasts currently assume no impact from the investment into the new factory. The shares trade on 9.6x FY19e earnings and yield 5.3% on the 7.7p dividend committed to by management.

Companies: Strix Group

17 Jan 19

China stimulus boosting demand

China has received a large amount of pessimistic sentiment due to the perceived weakness in the economy from a slowdown in Industrial Production and slowing GDP growth. We believe that China has gone through a planned and necessary set of reforms in 2017 and 2018 and will emerge out of this self-imposed reform chrysalis into a period of infrastructure growth focused on two key dates: 2021 and 2022; the 100th year anniversary of the founding of the Communist Party of China in 2021 and President Xi’s 10th year in office in 2022.

Companies: ARS CAML MOD SOLG NDA BOL UMI VNP

16 Jan 19

Tough 1H trading update

CLIG’s 1H trading update released this morning reveals details of lower Group Funds under Management (FuM) and reduced operating profitability: In 1H to Dec, FuM fell 9.4% to US$4,625m, with the MXEF Index down 9.7%; Year-on-Year FUM fell 12.5%, while the MXEF Index fell 16.6%; 1H flows were $42m negative: $136m of net inflows to the Developed and Opportunistic Value strategies (1Q $124m; 2Q $12m), and $157m net outflow from Emerging Market (1Q $95m; 2Q $62m) and $21m of net outflow from Frontier (1Q $21m; 2Q none) strategies. 1H investment performance was negative: the statement echoes the 1Q statement which referred to “underlying close-end fund manager underperformance” and “widening discounts”. Unaudited 1H PBT of £5.2m is 21% below 1H18 PBT: £6.6m. The run rate for operating profit before profit share of 30% and estimated EIP charge of 5% is now approximately £1.2m per month (1Q19: £1.4m a month); The statement includes a graph based on assumptions, which compares an illustrated profit after tax to an estimated quarterly cost of a maintained dividend.

Companies: City Of London Investment Group

17 Jan 19

LIBERUM: GAME Digital* - Solid Christmas gives confidence in FY forecasts

Group LFL sales were up 2.0% over the peak trading period and have increased 1.0% in the first 23 weeks of FY19E. Mint software, hardware and digital growth continue to offset the decline in pre-owned.

Companies: Game Digital

11 Jan 19

THE MONTHLY January 2019

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. 2018 was a difficult year; however, the index still outperformed its comparative London indices, falling 10.0% to 393.2, compared with -13.0% and - 18.2% for the Allshare index and the AIM index, respectively. Furthermore, several (17) companies in our index increased their capital base – 15 of our 50 constituents raised new funds, two issued shares as part consideration for acquisitions, and two had share buybacks – all factors that influence the performance of the index. Even allowing for both capital increases and share buybacks, the 12.5% fall in the index still represented a modest outperformance compared with the decline in the Allshare index. With active industry consolidation, shareholder returns remain attractive.

Companies: OPM AVO AGY APH ARBB AVCT BUR CLIG DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA PHP REDX SCE SIXH TRX TON VAL VTA

14 Jan 19

UK Housebuilding Sector in 2018

‘From the deserts of East Ham to the gardens of Cottenham’, the UK Housebuilding Sector was whacked to the tune of 27% in 2018; and not one share price (out of 18) rose on the London Stock Exchange.

Companies: BWY CRST BDEV WJG PSN RDW TW/ MCS CSP TEF BKG ABBY GLE

09 Jan 19

Arden Research best ideas 2019

We present our best research ideas for 2019 in this report seeking to provide investors with some value opportunities highlighting stocks that we believe warrant investor attention, regardless of near-term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.

Companies: ANX ARS CALL HUR JHD JOG KCT MACF RBGP SOLG VNET

14 Jan 19

XP Power - Revising forecasts to reflect weaker semis sector

As previously flagged, a drop in demand from XP’s semiconductor customers had a negative impact on Q4 revenues and orders. Conversely, demand from all other end-markets remained strong. With FY18 revenues likely to be 2% lower than we had expected, we have revised our forecasts to reflect this and expected weaker demand from the semiconductor sector in FY19. Despite the resulting 5% cut in EPS forecasts for FY19, the stock is trading at a discount to peers, with a superior dividend yield.

Companies: XP Power

15 Jan 19

Share & share alike

It may only be a fortnight into the new year but many of the factors that unnerved the market last month have continued to impact sentiment. The outcome of trade talks between the US and China, concerns about global economic growth and some poor trading statements, especially in the retail sector, have all featured. Above all, Brexit and the progress of the Withdrawal Bill have dominated with the latest “high noon” due later. Despite this, we have seen a good rally in the junior markets year to date. In Share News & Views we comment on Bloomsbury, DeepMatter*, James Fisher and Helios*.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN W7L

16 Jan 19

Cashflow beats expectations (yet again)

Forterra's year-end trading statement confirmed results are expected to be “in line” and the outlook for 2019 appeared to be benign. Once again, net debt declined faster than expected – a regular feature since the company floated in April 2016. We are not changing estimates, other than nudging down debt. We believe that increasing housing construction, across all tenures, and a constrained and consolidated supply base should continue to underpin prospects.

Companies: Forterra

17 Jan 19

LIBERUM: 4imprint* - Brand marketing continues to be effective

Underlying sales growth accelerates to 18% in H2 2018, all organic. We increase our top of the range EPS by 0.5% to 127.2c, 20% growth yoy.

Companies: 4Imprint Group

19 May 17

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

20 Dec 18

Bitesize briefing – Aberdeen Asian Income Fund

21 Sep 18

InnovaDerma PLC's growth trajectory 'very much back on track'

27 Nov 18

VP

24 Dec 18

Highlights 2018: alfa Systems - 2018 Hackathon London

22 Nov 18

Charles Stanley (CAY) Interim results November 2018

09 Oct 18

Supermarket Income REIT Investor Overview

19 Nov 18

Executive interview – Picton Property Income

02 Jan 19

Highlights 2018: Primary Health Properties - Irish portfolio film

15 Nov 18

Premier Oil - Zama appraisal progamme

18 Jan 19

Executive interview – Custodian REIT

15 Nov 18

Norcros plc - Half year results for the six months to 30 September 2018

09 Dec 18

Zotefoams (ZTF) Presentation at MELLO London November 2018

13 Nov 18

Zenith Energy - Operational update

04 Oct 18

Avacta Plc 'making significant progress towards commercialising Affimer platform'

Latest Content

Record

Record - Another performance fee to bolster FY19

Record’s Q319 trading update showed a 6.5% decline in AUME, reflecting a combination of outflows, market weakness and foreign exchange moves. This leads to a 10% reduction in our FY20e earnings. For the current year the negative effect is more than offset by crystallisation of a further performance fee, which is a reminder of the potential for positive earnings surprises in subsequent periods, where we assume none. Following further price weakness, the valuation appears cautious.

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22 Jan 19
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MOD Resources

MOD Resources - Sandfire’s bid undervalues MOD

MOD Resources has raised A$10m through an oversubscribed institutional placing at a price of A$0.30/share (17p/share), a 36% premium to the closing price on 18 January 2019. The company also intends to raise a further A$5m through a fully underwritten rights issue at A$24/share (13p/share). In addition, the company has received an unsolicited, non-binding, indicative all-share offer from Sandfire Resources (SFR:AU) at a price of A$0.38/share (21p/share). The board of MOD believes the Sandfire offer undervalues the company’s assets.

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22 Jan 19
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Strix Group

FY18 profitability in line with expectations, net debt ahead

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22 Jan 19
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FDM Group

2018 rock solid – 2019 off to a good start

FDM’s trading update provides reassurance around the 2018 outcome (which appears to be ahead of our expectations in terms of revenue and Mountie numbers) and in terms of the outlook for 2019 and beyond. The announcement describes “record levels of client engagement and demand” and presents a strong and upbeat message. We take comfort from both the metrics and the upbeat tone – we make no changes to forecasts, but strongly reiterate our Buy recommendation and 1050p Target Price.

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22 Jan 19
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BGLP CIFU RESI AGR

Fidante Daily Digest

BGLF* - Blackstone / GSO Loan Financing - December 2018 NAV | CIFU - Carador Income - December 2018 NAV and dividend | RESI - Residential Secure Income - Partnership agreement | AGR - Assura - Trading update to 31 December 2018

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22 Jan 19
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Sureserve Group

‘Transformational’ year ends with small ‘beat’

The social housing safety compliance and energy services group has delivered a 21% rise in adj. PBT to £6.6m beating our £6.4m estimate. The outlook statement showed the year started “ahead of expectations”. We have raised FY 2019 and 2020 estimates by £0.5m and £0.2m respectively. The group took a balanced view on the dividend, proposing a 0.25p against our 0.7p. With the Construction and Property Services divisions disposed, it is underpinned by regulatory and political drivers. We maintain our Buy recommendation.

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22 Jan 19
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JPMorgan Russian Securities

Expert access to attractively valued market

Russia’s economy benefitted for much of 2018 from a recovery in the oil price and rising prices for a range of other commodities. A weaker rouble has offset the recent oil price fall. Oleg Biryulyov, longstanding manager of JPMorgan Russian Securities (JRS), has many years of experience managing Russian equities. He is comforted by prospect of rising dividends over the coming year.

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22 Jan 19
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JPMorgan Russian Securities

Expert access to attractively valued market

When we last wrote on JPMorgan Russian Securities (JRS), we drew attention to Russia’s deteriorating relationship with the west and how this had impacted on foreign investors’ attitudes towards Russian stocks. Since this time, while sentiment has worsened; Russia’s domestically focused economy appears resilient and its corporates are generally providing good earnings growth. Valuations and yields are therefore all the more attractive.

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22 Jan 19
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CRN MIDW KETL IGAS IGR LTG INS STX DSG

Small Cap Feast

Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb