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

19 Jun 17

Support Group

In light of the UK election, we highlight our favoured overseas earners, operators in defensive markets and those capable of taking market share, but our main topic is the structure of the UK employment market. The UK has the lowest unemployment rate since 1975 at 4.6%, and there are, consequently, fewer and fewer candidates to fill vacancies. This suggests recruitment companies may struggle to grow, but there are structural changes in the UK labour force that offer growth opportunities. Temporary labour continues to expand relative to the point in the economic cycle, its importance accelerating since 2008, and part-time labour has grown at twice the rate of full-time labour throughout both the last cycle and over the long term. There are, of course, specialist temporary recruiters, but the part-time market appears relatively untapped (at least by the quoted companies) despite being c.5x the size of the temporary segment in terms of numbers.

Companies: FOUR ACL BOOT CLL CMS CNCT FCRM LOK PPH RNWH SVCA STAF UTW WATR

20 Jun 17

Good momentum in fasteners

As already announced, record FY17 profits have exceeded management expectations and growth was delivered with a strong cash performance and a sharp rise in the dividend. We have increased our EPS estimates marginally for 2018 with restrained growth expectations. As Trifast continues to deliver on its strategy, the 10% rating discount to peers should moderate.

Companies: Trifast

21 Jun 17

UCIT showcases performance

In May 2017, CLIG’s UCIT – The Emerging World Fund (EWF), a sub-fund of The World Markets Umbrella Fund plc - reached £104m in assets.

Companies: City Of London Investment Group

19 Jun 17

Delivering against strategy

Good momentum is apparent in Severfield’s results, with healthy progress in revenue and margins in the UK and a profit contribution from the Indian JV. Our estimates now expect a sustained JV profit contribution (previously neutral) and, with unchanged UK expectations, Severfield is on track to double PBT between FY16 and FY20. All in all, we see a clear strategy that is being well executed against visible financial targets.

Companies: Severfield

22 Jun 17

Progress in Q1 though end markets still tough

Today’s AGM update reflects an improvement in Q1 over a disappointing comparable period. Trading profit has improved, benefitting from cost savings undertaken. Shipbroking has performed well in Q1 and Technical has seen a modest improvement, helped by cost savings. Regarding the outlook, the improvement in Q1 is encouraging, although end markets remain challenging. Full year expectations remain unchanged. We are forecasting FY2018E PBT of £7.9m, EPS of 21.7p and a 15p dividend. We retain our Buy and 400p TP.

Companies: Braemar Shipping Services

16 Jun 17

N+1 Singer - Severfield - Continuing to deliver on the strategy

Wednesday’s results confirmed a solid FY’17 outturn, with PBT (at £19.7m) in line with expectations and outperformance on net cash (at £33m vs. £30m forecast). After an encouraging meeting with management post the results we are confident that the outlook remains positive for Severfield and believe it is on its way to achieving its target to double PBT by FY’20 (from £13.2m in FY’16). While the UK order book stepped back to a more normal level in the year (at £229m vs. a peak of £315m in June ‘16 and a 5 year avg. of £211m), the bidding pipeline in the UK is strong with a good mix of prospective work. International opportunities are also strengthening, with further progress made in India in FY’17 and a recent Director appointment in Europe. Trading on an FY’18 P/E multiple of 13.9x we believe Severfield is attractively valued vs. peers.

Companies: Severfield

22 Jun 17

Panmure Morning Note 22-06-2017

In recent years, Chemring has been a graveyard for reputations. Today’s interims show that the new FD is leaving nothing to chance but at the same time offering a glimpse of what is possible. For instance, the £20m investment in working capital to improve supplier payments looks like a sensible move if the management wants to achieve operational excellence. There are still shortterm risks to FY2017 such as the requirement to extend the funding on the letter of credit for the 40mm ammunition contract offers. However, we believe that the management has a reasonable chance to become consistently predictable in an "under promise over deliver" way. We raise our TP to 216p reflecting the re-rating of the Aerospace and Defence sector.

Companies: Chemring Group

22 Jun 17

N+1 Singer - Imagination Technologies Group - No progress with Apple; Whole group for sale

Imagination has announced that it has initiated a formal sale process for the whole group and is engaged in preliminary discussions with potential bidders. The group has also confirmed that it remains in dispute with Apple, its largest customer. Without Apple we are not convinced of the long term viability of the business model. We believe the PowerVR IP will be attractive to a number of potential bidders, but as a primarily IP based sale it is very difficult to quantify the value. The stock remains firmly in special situation territory, but given the likelihood of an offer emerging we move our recommendation to Hold.

Companies: Imagination Technologies Group

18 May 17

N+1 Singer - Speedy Hire - Focused on restoring profitability

FY’17 was focused on stabilising the business after a difficult trading period. Trading has improved, with all metrics ahead of expectations in FY’17. Accordingly, we have upgraded our forecasts (PBT up 8% in FY’18 and 4% in FY’19). Now, the focus turns to the Group’s ability to drive sustainable, profitable growth. Our revenue forecasts imply growth of 2.0%-2.5% across the forecast period. Growth is already said to be coming through after a good start to the year. Management has introduced a mid-teens (c.15%) medium term ROCE target (FY’17: 7.7%), a sign of confidence in Speedy’s prospects. With net debt/EBITDA falling towards 1x, we expect earnings enhancing M&A opportunities to form part of the ongoing strategy. Overall, we believe the risk remain to the upside, with potential for further upgrades as the year progresses. We therefore move from Hold to Buy and increase our target price from 56p to 63p.

Companies: Speedy Hire

13 Jun 17

Positive signals of progress

Following the latest quarterly review, Coats Group is to enter the FTSE 250 Index with effect from 19 June. As well as signifying a strong share price performance over the last year, this concludes the company’s transition phase to a strong independent entity in our view. Valuation metrics are on a more conventional footing now and as the market’s understanding of the underlying business model increases we sense that it is starting to anticipate faster growth rates.

Companies: Coats Group

22 Jun 17

Finding exciting investment opportunities

JPMorgan European Smaller Companies Trust (JESC) aims to generate long-term capital growth from a portfolio of European (ex-UK) small-cap equities. Despite a period of underperformance versus the Euromoney Smaller Europe ex-UK benchmark in 2016 due to conservative portfolio positioning, JESC’s longer-term performance record remains intact. It has outperformed the benchmark over three, five and 10 years. The managers believe that the European economic backdrop is favourable, political risk has been reduced and they are finding plenty of investment opportunities, across a range of industries, including companies that are adapting in a period of rapid technological change.

Companies: Jpmorgan European Smaller Cos Trust

13 Jun 17

“A week is a long time in politics …. now and then”

It was true then and is even more so now: a week is indeed a long time in politics. Now, a minority government in the UK must start Brexit negotiations, which inevitably will have become a more complicated process. This, together with interest rate decisions in the US, UK and Japan this week should point to caution among investors. Yet despite some recent declines, indices remain close to their highs. In Share News & Views we have covered Carclo, Establishment Investment Trust*, Helios*, Northbridge* PCFG* and Tricorn*.

Companies: BMS CRPR ECSC EUSP FDM PCF PPIX QRT SNX SPRP SQS TCN TRI W7L

15 Jun 17

High growth healthcare/engineering stock trading >30% below SOTP valuation

You don’t have to be a ‘Silicon Valley’ tech startup to deliver double-digit top line growth. Carclo – an innovative designer and manufacturer (70% non-UK sales) of complex plastic parts, cables and premium LEDs (see below) to the healthcare and engineering sectors - has been doing exactly this for years.

Companies: Carclo

15 Jun 17

Girding the loins

Raven Russia is strengthening its balance sheet further while eyeing acquisition possibilities and other developments.

Companies: Raven Russia

13 Jun 17

UK E&P Sector

We briefly look at what impact a lower for longer oil price could have on the NAVs of our names under coverage. Cairn Energy remains our top pick.

Companies: CNE ENQ FPM TLW

19 May 17

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

23 Jun 17

Capital Network's Sam Catalano on Thor Mining

03 May 17

Executive Interview - Dialight

15 Jun 17

121 Group - 2017 Highlights New York

25 May 17

Helical - Annual Results to 31 March 2017

12 Jun 17

Vietnam Opportunity Fund (VOF)

13 Jun 17

Trifast - Final results

17 May 17

finnCap - Henry Boot, The ultimate scarce resource - land

Premium

05 Jun 17

Petropavlovsk - Company update

28 Apr 17

Capital Network's Riccardo Lowi on Avacta Group Plc

14 Jun 17

Norcros PLC - Executive interview with CEO Nick Kelsall

19 Apr 17

Bitesize Briefing - Game Digital

02 Jun 17

Capital Network's Ed Stacey on AFC Energy

11 Apr 17

Charles Taylor (CTR) interview at Redleaf breaking the mould capital markets day

23 May 17

De la Rue - Full Year Results 2017

Latest Content

Thor Mining

Capital Network's Sam Catalano on Thor Mining

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23 Jun 17

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Imagination Technologies Group

Imagination Technologies up for sale amid Apple dispute

Apple cancelled its contract with Imagination earlier this year in a surprise move that Imagination has since challenged

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22 Jun 17
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Imagination Technologies Group

N+1 Singer - Imagination Technologies Group - No progress with Apple; Whole group for sale

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22 Jun 17
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Carador Income Fund

N+1 Singer - Carador Income Fund - Level of refinancing and reset activity remains high

The level of refinancing activity across the CLO market was still strong during May, although lower than in April. Portfolio activity remained high with continued level of resets and refinancing opportunities delivering good uplifts. NAV as at end of May was 75.49c, up by 0.91% on a TR basis from last month. Shares were trading on a discount of 4.3% as at the month end, and currently on 4.6% discount based upon price of 72c.

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22 Jun 17
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BEZ HUW HSX JLT LRE NVA

The Money Bin

In the week to 19 June the FTSE All Share rose 0.3% vs. +2.0% for the Insurance Index and +2.9% for the Lloyd’s Index. The best performer was Hiscox (+4.0%); Helios* (0%) and Novae (+1.7%) were the worst performers. We flag the growth in global cyber insurance demand. Beazley leads, writing cUS$400m of cyber premium and partnering with Munich Re. Hiscox has said it will write US$100m+ of cyber premiums in 2017. Novae’s cyber premiums totalled c£45m in 2016 (c5% of its then book) and will be one of its core classes.

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22 Jun 17
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N+1 Singer - Morning Song 22-06-2017

Carador Income Fund (CIFU LN) Level of refinancing and reset activity remains high | Imagination Technologies Group (IMG LN) No progress with Apple; Whole group for sale | Uncovered Gems - Speed Dating Lunch Another five sparkling gems

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22 Jun 17
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Chemring Group

Panmure Morning Note 22-06-2017

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22 Jun 17
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Imagination Technologies Group

Imagination now officially and entirely up for sale

Imagination has announced the commencement of the formal sale process for the whole group. Having announced in May the intention to sell the MIPS and Ensigma businesses, it has now announced that preliminary discussions are engaged with several potential bidders. The company also said that it was still in dispute with Apple.