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We update our forecasts to reflect the outperformance achieved in 2018 when BCA delivered another set of record results, which were 11% ahead of our forecasts at the adjusted PBT level and 9% at the adjusted EPS level. This reflects strong growth, progress and efficiency measures coming through across all divisions within the Group. We view our upgraded forecasts as conservative given the 2018 outperformance which is not fully extrapolated into this upgrade. In addition, contract momentum remains strong within its vehicle re-marketing business.

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  • 20 Jul 18
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Strix Group

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.

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  • 18 Jul 18
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City Of London Investment Group

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).

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  • 17 Jul 18
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Simplybiz

Update reveals strong membership growth

Group membership numbers rose by 5.7% to 3,628, from 3,433 at 31 Dec 2017 (8.0% above 3,367 at 30 June 2017). New strategic Partners include Vitality Invest, which is launching in the UK. Group revenues rose 13.7% to £24.2m (1H17: £21.3m; 2H17 £22.8m), with £1.8m due to the acquisition of Landmark Services [and] underlying growth in revenues reflecting the similar growth in membership. Net cash of £1.2m, (net debt of £23.0m at 31 Dec 2017), reflecting operating performance and the beneficial impact of capital raised at IPO.

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  • 17 Jul 18
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Flowtech Fluidpower

Sustained growth in H1/FY2018

Macro conditions remain favourable and this has supported organic revenue growth of 9.1% in H1/FY2018. With the benefit of strategic acquisitions, sales increased by 66% to £56.5m, and this underpins our FY2018 revenue and profit expectations. Gross margins are also noted as strong. The acquisition of Balu in March for £10.2m, alongside the major investment in the Group’s Skelmersdale facility in 2017 has positioned Flowtech to drive significant further scale over the medium term. The focus for the remainder of FY2018 is still on driving efficiencies via procurement benefits and information systems investments, while extracting synergy opportunities across the enlarged Group. The statement also points to a higher than anticipated working capital (detail below) that has seen the Group end H1 with £17.5m net debt. Our full year expectations are for this to reduce to £16.5m (previously £13.6m). Nevertheless, gearing is comfortable at only 1.3x, and the shares continue to offer attractive value on a prospective PER of 10.8x.

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  • 17 Jul 18
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Centralnic Group

Strategic acquisition of KeyDrive transforms quality of earnings

CentralNic is acquiring KeyDrive S.A. (an existing strategic partner since 2017) for an initial enterprise value of $44.5m or c.£33.6m, with an additional earnout of up to $10.5m or c.£7.9m implying a maximum Enterprise Value of $55.0m or c.£41.5m. Founded in 1998, KeyDrive has established itself as one of the leading European companies for the distribution and management of domain names, administering over 6.0m domains via its internally developed software platform for over 1,700 retailers and 40,000 direct customers across 160 countries. The largest division of KeyDrive is its reseller platform RRPproxy, which is one of the top two providers globally with a range of blue chip customers.

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  • 16 Jul 18
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