Jubilee, which specialises in creating value from African mine tailings, today provides its interims for the half year ending December 2019. As previously announced this has been a transformational period for Jubilee, during which everything increased relative to the prior period: revenues to £25.4m (+205%), attributable Group earnings to £9.8m (+778%), cash from operations to £4.9m (+574%) and EPS to 0.35p (0.06p). Growth came from Windsor (PGM and chrome production in SA), with several intra-period transactions that will enable the growth profile to continue, at Inyoni (SA) and Kabwe (Zambia). Covid-19 has had an obvious impact (on prices received and on operating) but we see a robust, cashrich company, operating a high-margin business that is poised to restart production and capitalise on the progress made to date.
26 Mar 20
Petards supplies advanced security and surveillance systems to the Rail, Defence and Traffic Technology markets. This morning, the group has released a trading update for the year to 31 December 2019, pointing to an outturn below our previous expectations, driven by three specific contracts in rail. As a result, the Board now anticipates reporting revenue some £1.5m lower than we forecast, at £15.8m, and a pre-tax loss for the year compared to our previous expectation of PBT of £0.6m. Year-end net debt stood at £0.5m (post-IFRS 16). Whilst this morning’s update is clearly disappointing, the order book is reported to have remained stable at c.£15m and we believe that Petards remains well positioned in its respective markets if it is able to capitalise on the opportunities being presented following the investment made in recent years.
04 Feb 20
Two announcements from PEN this morning partially fill in contours of FY2019E and apprise the market of contract wins respectively. In terms of the year just concluded, likely reported figures look to be marginally below our forecast. However we read this as the net effect of investment in the company as it gears up for a major anticipated contract (the so-called “down-select”) as against costs which have been taken out (£1m-plus gross, but c.£0.6m net). The wins announced this morning are respectively in the Middle East (£1.5m) where the company has supplied software and training equipment to a string of training colleges, and for the Australian Defence Force (ADF – amount unspecified). We await completion of the Absolute Data Group (ADG) acquisition at the end of the current month (which we expect to be modestly earnings enhancing) and full results to be announced on March 23rd. The order book for 2020 at £16m provides meaningful cover to our £22.3m revenue forecast, and we note the company’s statement that it sees future opportunities.
Pennant International Group
03 Feb 20