Most viewed research
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - NCC Group - Interims confirm underlying business sound
19 Jan 17
NCC’s interim results were largely flagged in the detailed trading update released in December. Group revenue increased 35% to £125.8 (organic growth +18%) and adj. EBITDA grew 15% to £21.3m. The group’s issues relating to contract losses/deferrals in the period were previously announced and are already included in our forecasts. The group has maintained its interim dividend at 1.5p, which we believe is an indication of the strong underlying business. Separately, NCC has announced that Paul Mitchell intends to step down as chairman in May ’17. We continue to believe that NCC remains a highly attractive asset in an area seeing strong structural growth and see the current share price weakness as an opportunity. We retain our Buy recommendation and 233p target price.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
Retain forecasts for FY17E and FY18E
05 Oct 16
While LFL sales growth of 1.8% for the first 12 weeks of FY17 looked a little light, this was on the back of 2.8% growth in the prior period. H2 comps become easier to lap and Christmas bookings (festive trading comprises 15% of FY sales on average) are up 10% YoY.
Videos and Podcasts
New ThioBridge licence agreement
20 Jan 17
Abzena has achieved a significant licensing deal for its proprietary site-specific ThioBridge antibody drug conjugate (ADC) linker technology with a San Diego-based biopharmaceutical company. The agreement covers the use of ThioBridge in up to 10 ADCs across a wide range of indications. The agreement also includes a master services agreement, which enables access to Abzena’s chemistry services. This provides important validation of both its proprietary ADC technology and its hybrid business model. Our valuation is under review, but we expect upside on the basis of this positive newsflow.
N+1 Singer - Abzena - ThioBridge™ licensing deal demonstrates technology leadership
20 Jan 17
The licensing agreement with an undisclosed San Diego based biopharmaceutical company again demonstrates the value and market-leading nature of Abzena’s ThioBridge™ technology. Although details are limited at this point, Abzena is eligible for up to >$300m of license fees and milestone payments in addition to a royalty on potential sales. We reiterate our positive stance and intrinsic value of 93p/share, which could increase substantially as the partnered pipeline of Abzena inside programmes progress through clinical trials.
Strong H1 17 performance, confident outlook for H2
20 Jan 17
Following on from the positive AGM statement at the end of November, MySale has released an upbeat pre-close trading update. Group revenue increased 6% to A$136.1m, while higher margin online revenue, now representing over 90% of the total group, experienced a strong rate of growth of 18% to A$126.5m. As a result, gross margin showed continued improvement of 270bps driving a 17% uplift in gross profit to A$38.4m (versus A$32.7m). Strong trading for the half, combined with a carefully controlled cost base, led to a doubling in EBITDA to A$3.0m. Management are confident going into the second half period and following the increase in guidance at the end of November, the company remains comfortable with current full year forecasts. More detail and an update on trading will be given at the interims expected on 1st March 2017.
Update post NASDAQ IPO
20 Jan 17
Motif Bio (LSE: MTFB, NASDAQ: MTFB), is a late clinical stage antibiotic development company. The company completed its IPO on NASDAQ in November last year raising $25m before expenses. With the funds from the IPO the company is now funded to completion of REVIVE-1, the first of its two phase III clinical trials of its lead drug candidate, iclaprim. This antibiotic is being developed for the treatment of serious and life threatening bacterial infections, particularly those caused by drug resistant bacteria. It is a next-generation antibiotic targeting an under-utilised mechanism of action which causes rapid killing of bacteria making it an attractive candidate for acute infections. Given our belief in iclaprim showing positive results in REVIVE-1 and Motif’s current share price, we think an investment now would be timely with REVIVE-1 on-track to report soon (Q2’17). Our risk-adjusted fair value estimate for Motif Bio now stands at £210m (107p per share).
N+1 Singer - Halfords Group - Positive lead indicators + FX mitigation progress
20 Jan 17
A year ago the market was deeply concerned Cycling had gone ex growth. This is evidently not the case. The market’s concern has since moved on to its inability to offset FX headwinds. Despite managing in 09/10, and management’s growing confidence in doing so this time, consensus assumes only a fraction is mitigated, reflected in a -4% 3 year EPS CAGR. We assume +4% on less bearish assumptions and see scope for the 15% gap by FY19 to progressively close up. Alongside scope for £50m+ p.a. capital returns the investment case remains compelling. Buy.