Broker Upgrades and Downgrades & Key UK Corporate Snapshots 08 July 2015

UK Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
CNE Cairn Energy Plc Deutsche Bank Buy 165 225
CWC Cable & Wireless Communications Plc Goldman Sachs Buy Buy 70 83
LLOY Lloyds Banking Group Plc Nomura Buy Buy 95 100
PMO Premier Oil Plc Deutsche Bank Buy Buy 210 215
TATE Tate & Lyle Plc Credit Suisse Underperform Neutral 550 510
YNGN Young & Co.’s Brewery Plc JP Morgan Cazenove Overweight Overweight 1200 1340
Downgrades
GKN GKN Plc JP Morgan Cazenove Overweight Overweight 426 413
JUP Jupiter Fund Management Plc RBC Capital Markets Outperform Sector Perform 450
MKS Marks & Spencer Group Plc Barclays Capital Equal weight Equal weight 600 580
OPHR Ophir Energy Plc Deutsche Bank Hold Hold 165 140
PSON Pearson Plc Berenberg Hold Sell 1200 1090
RR. Rolls-Royce Holdings Plc Exane BNP Paribas Neutral 950 840
SAB SABMiller Plc Deutsche Bank Hold Hold 3600 3500
Initiate/Neutral/Unchanged
AAL Anglo American Plc Barclays Capital Underweight Underweight 950 950
ACA Acacia Mining Plc Barclays Capital Overweight Overweight 325 325
ALD Allied Gold Mining Plc Deutsche Bank Buy Buy
ANTO Antofagasta Plc Barclays Capital Equal weight Equal weight 735 735
ASC ASOS Plc Barclays Capital Overweight Overweight 4100 4100
ASC ASOS Plc JP Morgan Cazenove Overweight Overweight 4000 4000
ASC ASOS Plc Societe Generale Buy Buy 4960 4960
BARC Barclays Plc Deutsche Bank Buy Buy
BARC Barclays Plc HSBC Buy Buy 290 290
BDEV Barratt Developments Plc Deutsche Bank Buy Buy 661 661
BGEO Bank of Georgia Holdings Plc Jefferies International Buy 2517
BLT BHP Billiton Plc Barclays Capital Overweight Overweight 1580 1580
BVIC Britvic Plc Nomura Buy Buy 830 830
CCH Coca-Cola HBC AG Nomura Reduce Reduce 1100 1100
CCL Carnival Plc Jefferies International Underperform Underperform
CINE Cineworld Group Plc JP Morgan Cazenove Overweight Overweight 540 540
CNA Centrica Plc Deutsche Bank Hold Hold 250 250
CNCT Connect Group Plc JP Morgan Cazenove Overweight Overweight 160 160
DGE Diageo Plc Nomura Buy Buy 2180 2180
EVR Evraz Plc Barclays Capital Underweight Underweight 150 150
FQM First Quantum Minerals Ltd Barclays Capital Overweight Overweight 1100 1100
FRES Fresnillo Plc Barclays Capital Equal weight Equal weight 750 750
FXPO Ferrexpo Plc Barclays Capital Underweight Underweight 50 50
GEMD Gem Diamonds Ltd Barclays Capital Overweight Overweight 180 180
GENL Genel Energy Plc Deutsche Bank Buy Buy
GLEN Glencore Plc Barclays Capital Overweight Overweight 350 350
HOC Hochschild Mining Plc Barclays Capital Overweight Overweight 125 125
HSBA HSBC Holdings Plc Deutsche Bank Hold Hold
JE. Just Eat Plc Jefferies International Buy Buy 515 515
KAZ KAZ Minerals Plc Barclays Capital Equal weight Equal weight 150 150
LLOY Lloyds Banking Group Plc Deutsche Bank Buy Buy
LLOY Lloyds Banking Group Plc HSBC Buy Buy 130 130
MERL Merlin Entertainments Plc Barclays Capital Overweight Overweight 510 510
MKS Marks & Spencer Group Plc JP Morgan Cazenove Overweight Overweight
PDL Petra Diamonds Ltd Barclays Capital Overweight Overweight 240 240
PGIL Polyus Gold International Ltd Barclays Capital Underweight Underweight 140 140
POLY Polymetal International Plc Barclays Capital Equal weight Equal weight 570 570
RBS Royal Bank of Scotland Group Plc Deutsche Bank Hold Hold
RIO Rio Tinto Plc Barclays Capital Equal weight Equal weight 2850 2850
RRS Randgold Resources Ltd Barclays Capital Overweight Overweight 5600 5600
RSA RSA Insurance Group Plc JP Morgan Cazenove Neutral Neutral
S32 South32 Ltd Barclays Capital Equal weight Equal weight
S32 South32 Ltd Exane BNP Paribas Neutral 90
SAB SABMiller Plc Nomura Neutral Neutral 3000 3000
SGC Stagecoach Group Plc JP Morgan Cazenove Overweight Overweight
SMIN Smiths Group Plc JP Morgan Cazenove Overweight Overweight 1280 1280
SSE SSE Plc Deutsche Bank Hold Hold 1560 1560
STAN Standard Chartered Plc Deutsche Bank Sell Sell
SXS Spectris Plc Deutsche Bank Hold Hold 2000 2000
VED Vedanta Resources Plc Barclays Capital Overweight Overweight 650 650

 

US Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
GAS AGL Resources BofA Merrill Lynch Underperform Neutral
APC Anadarko Petroleum Jefferies Hold Buy
ARMH ARM Holdings Morgan Stanley Equal weight Overweight
BIP Brookfield Infrastructure Partners Credit Suisse Neutral Outperform
CAM Cameron International Scotia Capital Sector Perform Sector Outperform $58 $61
CPL CPFL Energia CitiGroup Neutral Buy
DBOEY Deutsche Boerse AG BofA Merrill Lynch Neutral Buy
EA Electronic Arts UBS Neutral Buy $65 $80
EOG EOG Resources Jefferies Underperform Hold
ES Eversource Energy Wells Fargo Market Perform Outperform
GPN Global Payments Keefe, Bruyette & Woods Market Perform Outperform
HIMX Himax Technologies Chardan Capital Markets Sell Buy $4 $13
HCMLY Holcim BofA Merrill Lynch Neutral Buy
KSU Kansas City Southern UBS Neutral Buy $102 $102
LYG Lloyds Banking Group Investec Sell Hold
LZAGY Lonza Group Kepler Sell Hold
MRVL Marvell Technology Group Oppenheimer Underperform Perform
MZDAY Mazda Motor JP Morgan Neutral Overweight
OGS ONE Gas BofA Merrill Lynch Underperform Neutral
CRM Salesforce.com Brean Capital Hold Buy $85 $85
SWX Southwest Gas BofA Merrill Lynch Neutral Buy
JOE St. Joe Company Raymond James Market Perform Outperform
TIF Tiffany & Co Bernstein Market Perform Outperform
WRB W.R. Berkley Deutsche Bank Sell Hold $48 $53
DIS Walt Disney Atlantic Equities Neutral Overweight
Downgrades
ASOMF ASOS Numis Buy Add
BRCM Broadcom Oppenheimer Outperform Perform
DDS Dillard’s BofA Merrill Lynch Neutral Underperform $130 $95
DIN DineEquity Longbow Buy Neutral
TV Grupo Televisa JP Morgan Overweight Neutral
HUM Humana Argus Buy Hold
KPLUF K+S JP Morgan Overweight Underweight
NGD New Gold Morgan Stanley Overweight Equal weight
RYCEY Rolls-Royce Holdings JP Morgan Neutral Underweight
SHAK Shake Shack Morgan Stanley Equal weight Underweight
Initiated
ABTL Autobytel Barrington Research Outperform $22
BITI Biotie Therapies ROTH Capital Buy $26
BOX Box Oppenheimer Perform
CDK CDK Global Wells Fargo Market Perform
CNP CenterPoint Energy Ladenburg Thalmann Neutral
CVT Cvent JMP Securities Market Outperform
DPSGY Deutsche Post Investec Sell
EPC Edgewell Personal Care CitiGroup Buy $116
EPC Edgewell Personal Care UBS Sell $94
ENR Energizer Holdings CitiGroup Buy $41
ENV Envestnet JMP Securities Market Outperform
FIT Fitbit Robert W. Baird Outperform $52
GFA Gafisa SA Goldman Sachs Sell
GWRE Guidewire Software JMP Securities Market Perform
FUL H.B. Fuller Global Hunter Securities Accumulate $48
KTWO K2M Group Holdings Needham Buy $30
QVCA Liberty Interactive Group Axiom Capital Buy $33
MODN Model N JMP Securities Market Outperform
OPHT Ophthotech Cowen Outperform $80
PYPL PayPal Holdings Goldman Sachs Buy $48
RLYP Relypsa Cantor Fitzgerald Buy $42
TYL Tyler Technologies JMP Securities Market Outperform
VEEV Veeva Systems JMP Securities Market Perform
WING Wingstop Goldman Sachs Neutral $22
WING Wingstop Morgan Stanley Overweight $42
WING Wingstop Jefferies Buy $33
WING Wingstop Robert W. Baird Outperform $35
WING Wingstop Wells Fargo Market Perform
WING Wingstop Barclays Equal weight $25

 

Key UK Corporate Snapshots Today

Abbey Plc (ABBY.L) Announced, in its preliminary statement for the year ended 30 April 2015, that the group reported a profit of €49.1 million before taxation against a profit of €24.1 million in the previous year. Group operating profits during the year were €46.3 million against €20.4 million the previous year. The Board is pleased to recommend a dividend of 7 cents per share for approval at the Annual General Meeting.

Bacanora Minerals Limited (BCN.L) Announced an update on progress on the ongoing development work that is being conducted in connection with its upcoming pre-feasibility study (PFS) at its Sonora Lithium Project. This ongoing development work and the resulting PFS are expected to be used to design a plant capable of potentially delivering up to 50,000 tonnes per year of lithium carbonate. This highlights the company’s strategy to continue the transition from an exploration company into a mine development company. This PFS programme will initially be comprised of infill drilling, detailed metallurgical design work, process engineering and mine design, with a planned timetable of completing a PFS in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) by the end of Q1 2016. Commencement of a 4,000 metre drilling programme has begun on the Fleur and El Sauz concessions with the primary objective of significantly increasing the Indicated Mineral Resources within the Sonora Lithium Project. The drill programme will also test the continuity of higher grade, near surface mineralisation in the northern area of the Fleur concession that immediately adjoins the southern end of the La Ventana concession with the objective of further expanding the current resource base.

Barclays Plc (BARC.L) Announced the departure of Antony Jenkins as Chief Executive and the appointment of John McFarlane as Executive Chairman pending the appointment of a new Chief Executive. Subject to regulatory approval the change will come fully into effect on 17 July 2015 when John retires from FirstGroup.

Belvoir Lettings Plc (BLV.L) Announced that it has entered into a conditional agreement to acquire the entire issued share capital of Newton Fallowell, a franchise property sales and lettings business based in the East Midlands for a total consideration of up to £6.38 million (the “Acquisition”), and that Cantor Fitzgerald Europe has conditionally placed on behalf of the Company 3,424,000 new ordinary shares of 1 pence each in the Company (“Ordinary Shares”) at a placing price of 125p per Ordinary Share (the “Placing”). The Placing will raise £4.28 million before expenses and is to a number of new as well as existing institutional investors.

Beowulf Mining Plc (BEM.L) Announced an update on the company’s application for an Exploitation Concession for Kallak North, further to an announcement published 7 July 2015 by the County Administrative Board (“CAB”) for Norrbotten County, Sweden, that CAB was asked by the Swedish Government to provide comments on the national economic assessment of Kallak North. The CAB’s findings are that mining is economically relevant and that the Kallak North project generates economic benefits at local, regional and national levels, including direct and indirect jobs, tax revenues, and more broadly across mining equipment and services sectors in Sweden. The concession area applied for by the company creates no conflicts where national interests are considered. The concession is designated as an Area of National Interest (“ANI”) for minerals. The company should work with communities that could be affected by the development of a mining project, in order to eliminate or mitigate any impacts, including reindeer herders and Sami villages. The company should consider in its ongoing studies the potential impact of its mining activities on tourism and transport infrastructure.

Booker Group Plc (BOK.L) Announced that it is holding its Annual General Meeting at 11am today. Additionally, it announced that in its quarter one trading update for the 12 weeks ended 19 June 2015, the company’s total sales were up 0.2% and non tobacco like-for-likes (including Makro) were up 1.0%. Customer satisfaction improved and performance was in line with expectations. The company has now eleven combined Booker/Makro sites, all working well. Its balance sheet remains strong with a net cash position and are today seeking shareholder approval to implement a capital return to shareholders of 3.50p per ordinary share at a cost of approximately £62 million.

Capital Drilling Limited (DI.L) Announced that it will release its half yearly results for the 6-month period ended 30 June 2015 on 25 August 2015. Trading conditions over the first half of 2015 continued to be challenging for the mining and mining services sectors, particularly in the exploration and delineation segments within the drilling industry where exploration expenditures remain under pressure. Further weakness in commodity prices is driving a continued focus from mining companies on core operations, cost cutting and capital discipline. Despite the industry headwinds, it again performed well financially. The company revenues of $19.1 million for the first quarter, previously reported in May, fell 1.4% on fourth quarter revenue for 2014, demonstrating signs of stabilisation after declining into the third quarter of 2014. Second quarter revenue showed a marginal improvement for the company with Q2 revenue of $19.7 million, up 3% on Q1 2015 (Q2 2014: $27.7 million). Key performance indicators for revenue in the second quarter were 97 rigs, 35% utilisation and average revenue per operating rig (“ARPOR”) of $186,000 (Q2 2014: $194,000). First half revenues are expected to be approximately $38.8 million (H1 2014: $53.8 million), with key performance indicators being an average fleet size of 97 rigs, 34% utilisation and ARPOR of $189,000 (H1 2014: $193,000). Meanwhile, it has been successful in tendering on a number of exploration & delineation contracts, having revised its model and pricing structure early in the first half of 2015. The company finished the period with net cash of $2.1 million, achieved after paying a maiden dividend of US1.9cps (US$ 2.6 million) in May 2015.

Cityfibre Infrastructure Holdings Plc (CFHL.L) Announced that its flagship York CORE network enjoyed a record month for new sales in June 2015. In total, the company signed contracts covering 70 new connections during the month, for a total contract value (TCV) of £527,000. The new connections span a diverse range of sites, including public safety (school security and traffic enforcement CCTV), business and data centre connectivity, and landmark public sector amenities such as the York Theatre Royal and the York Eco Business Centre. The latest additions to the network take the incremental TCV added to the York project to £3.4 million, an increase of 79% over the initial anchor contract. In keeping with the company’s financial return targets for incremental business, TCV/capex coverage on these new connections is well in excess of 100%, with an average payback period of 24 months.

Daejan Holdings Plc (DJAN.L) Announced, in its preliminary results for the year ended 31 March 2015, that total rental and related income rose to £129.0 million from £112.2 million recorded in the same period a year ago. Profit after tax widened to £223.0 million from £150.2 million. Basic and diluted earnings per share stood at £13.68, up from £9.19.

Dechra Pharmaceuticals Plc (DPH.L) Announced, in its trading update, that its revenue for the year went up by approximately 10% at constant exchange rates (CER) vs last year (circa 5% at actual exchange rates (AER). There is positive momentum in EU with revenue growth of 4% at CER (decline of 2% at AER) driven by the solid performance of our Companion Animal Products (CAP), while excellent performance in North America with revenue growing by 60% at CER. Meanwhile, its German and Danish businesses continue to be impacted by the increasing focus on the use and prescribing of antibiotics. After the successful completion of the transfer to a new third-party manufacturer, its Pet Diets sales have recovered from the stock-out issues reported in Q3 and sales ended practically in line with the previous year. Also, the company will announce its preliminary results year ended 30 June 2015, on 07 September 2015.

Empyrean Energy Plc (EME.L) Announced a significant increase in its Reserves and Resources at its flagship Sugarloaf AMI asset (‘the Project’) in the liquids rich core of the Eagle Ford Shale in Texas, USA, following the receipt of an independent appraisal and updated report prepared by DeGolyer & MacNaughton. Proven Reserves (1P) were up 63% to 5.78 MMboe. CEO Tom Kelly said, “These are fantastic improvements to our reserves and resources. As anticipated, further appraisal and drilling of the overlying Austin Chalk wells along with continued success from optimisation initiatives in the Eagle Ford Shale and Austin Chalk collectively have resulted in a very substantial increase in our reserves position at the Sugarloaf AMI. We anticipated a shift from contingent resources to reserves as further Austin Chalk wells were drilled and appraised. The excellent development rate during 2014 and, in particular, closer well spacing assumptions have resulted in assisting this conversion from contingent resource to reserves and an improvement in the volumes. Excellent upside potential from the relatively new productive zone, the Upper Eagle Ford formation, has now been identified by Marathon for further drilling and appraisal. The Upper Eagle Ford is already producing from a small number of wells and further pilot wells are already planned to test this productive zone. Although the fall in oil prices over the last 12 months has slightly impacted the Net Present Value at a 10% discount rate of Proven Reserves (1P), we are pleased to see that there has been a significant overall increase in both NPV10 of 2P and 3P reserves reflecting the increased potential of the Project. Our flagship asset continues to grow and represents a viable and attractive investment proposition even at current lower oil prices.”

Fevertree Drinks Plc (FEVR.L) Announced, in its trading update for the period ended 30 June 2015, that it has continued to perform strongly in the first six months of 2015. It is anticipated that sales in the first half of 2015 will be approximately £24 million, 61% ahead of the prior year period. June was a particularly strong sales month, although it was accentuated by certain customers and importers building inventory in advance of the summer season. The company anticipates that the results for the full year will be materially ahead of board expectations.

Galliford Try PLC (GFRD.L) Announced, in its trading update for the year ended 30 June 2015, that it expects to record full year results, with profit before tax towards the upper end of analysts’ range. Strong cash performance with net debt at 30 June 2015 was less than £20 million (2014: net debt £5.1 million), and despite landbank ahead of plan. Successful sale of shared equity portfolio achieved at balance sheet value. The group expects to announce its results for the full year on 16 September 2015.

Great Portland Estates Plc (GPOR.L) Announced, in its trading update that the group has continued with its successful leasing and asset management activity. The group signed 17 new lettings (34,900 sq ft) generating annual rent of £2.4 million (our share: £2.4 million). The letting transactions concluded during the quarter have helped to the Group to maintain a low vacancy rate of 2.4% at 30 June 2015 (2.0% at 31 March 2015). It completed sale of 95 Wigmore Street, W1 by GWP joint venture for £222.4 million (net initial yield of 3.4%), 16.4% premium to March 2015 book value, crystallising profit on cost of 105%. Cash and undrawn committed facilities amounted to £383 million. Total net debt (including joint ventures) increased over the quarter by £22.0 million.

GVC Holdings Plc (GVC.L) Announced, in its trading update for six months ended 30 June 2015, that sports wagers increased by 19% to €823 million (H1-2014: €694 million) and the aggregate sports margin was 8.9% (H1-2014: 9.9%), reflecting well publicised “punter-friendly” results in the year to date. Net Gaming Revenue (“NGR”) performed strongly, reaching €120 million in the period, up 14% on the same period last year despite the benefit, in June 2014 alone, of 54 additional football fixtures in the World Cup. Meanwhile, customer deposits also rose significantly reaching €1.7 million per day in H1-2015, 18% higher than H1-2014 (€1.5 million). Also, the second quarter of 2015 showed a particularly pleasing result with sports wagers averaging €4.5 million per day (Q2-2014: €3.9million), and NGR averaging €661,000 per day (Q2-2014: €602k). This strength in trading continued into June with NGR higher than that for June 2014 when the World Cup was being played. The company also announced quarterly dividend of €14.0c per share. The dividend will be payable on Monday 17 August 2014 to shareholders on the register on Friday 24 July 2014, and the shares will go ex-dividend on Thursday 23 July 2014.

H&T Group Plc (HAT.L) Announced, in its trading update that the board expects to deliver full year profit before tax in line with current market expectations. Retail has performed well with sales and gross profits ahead of prior year. The pledge book at 30 June 2015 was £37.4 million (30 June 2014: £38.5 million). The balance sheet is strong with net debt at 30 June 2015 of £8.9 million (30 June 2014: £13.5 million) and the focus has now shifted to achieving revenue growth. The Board believes that the Group is well positioned to take advantage of this changing marketplace as and when opportunities arise. Also, the company announced that it would release its interim results for the six months ended 30 June 2015 on 18 August 2015.

Micro Focus International (MCRO.L) Announced preliminary results for the year to 30 April 2015. The Group delivered Revenue, Underlying Adjusted EBITDA and cash generation ahead of expectations. On an actual reported basis the Group delivered total revenues of $834.5 million (2014: $433.1 million) as TAG revenues of $416.0 million only reflect the trading in the period from completion on 20 November 2014. Adjusted Operating Profit for the year ended 30 April 2015 on a CCY basis increased by 94.2% to $347.8 million (2014: CCY $179.1 million), Adjusted EBITDA increased by 96.5% to $360.7 million (2014: CCY $183.6 million) and Underlying Adjusted EBITDA increased by 85.3% to $348.3 million (2014: CCY $188.0 million) at a margin of 41.7% (2014: CCY 45.0%). In line with new progressive dividend policy, the company is increasing proposed final dividend by 10.0% to 33.0 cents per share (2014: 30.0 cents per share) which, if approved by shareholders, will bring the total dividend for the year to 48.4 cents per share (2014: 44.0 cents per share).

MySQUAR Limited (MYSQ.L) Announced an update in its user acquisition numbers which are ahead of expectations. As at 30 June 2015 the total number of users of MySQUAR’s products were approximately 907,360 representing an increase of approximately 17 % on total users as at 31 May 2015 being 774,636 total users as stated in the Company’s AIM Admission Document. The Company plans to update the market on its user account acquisition figures on a regular basis and upon the achievement of further key milestones.

Range Resources Limited (RRL.L) Announced that the Supreme Court of Western Australia has made orders in respect of the deadline for payment of the statutory demand for an amount of $7.225 million. If no appeal is lodged by the company, the deadline for payment is 24 July 2015, while if an appeal is lodged by it, the deadline for payment would be 31 July 2015, or until further order of the Court.

Rare Earth Minerals Plc (REM.L) Announced that the company has further increased interest in the Cinovec deposit (“Cinovec”) in the Czech Republic by increasing its shareholding in European Metals Holdings Limited (ASX code: EMH) (“European Metals”), which owns 100% of the Cinovec lithium/tin deposit, to 11.08%.The company separately announced an update on lithium processing optimisation test work, the current drilling programme and progress of the pre-feasibility study (“PFS”) at its Sonora Lithium Project in Mexico (a JV between REM and Bacanora Minerals (TSX:BCN)) which is an ongoing development work and is expected to be used to design a plant capable of potentially delivering up to 50,000 tonnes per year of lithium carbonate.

Rio Tinto Plc (RIO.L) Announced that the company is preparing its first shipments of metal from its world-class Kitimat aluminium smelter in Canada following a widespread modernisation of the facility which will increase production capacity by 48% and will result in Kitimat becoming one of the lowest cost smelters in the world. The company now focuses on safely ramping up towards its annual production rate of 420,000 tonnes.

SABMiller Plc (SAB.L) Announced that Domenic De Lorenzo, currently Director of Group Strategy and Corporate Development and a member of the Group’s executive committee, has been appointed as an executive director and as Chief Financial Officer of the company with effect from the conclusion of the forthcoming annual general meeting, to be held on 23 July 2015.

Savannah Petroleum Plc (SAVP.L) Announced a report on the work which has been conducted by an independent expert CGG Robertson (“CGG”) on resource volumes on the R1/R2 license area by updating their views against the Competent Persons Report published in the company’s AIM Admission Document of 29 July 2014. It has also reviewed the company’s conceptual development solution and associated economics for potential Agadem Rift Basin (“ARB”) economics. The company also announced an update in relation to the expected cost of crude export via the planned Agadem-Kribi pipeline route and the progress made towards ensuring operational readiness to recommence exploration activities on the permit area in 2H 2015. CGG has increased R1/R2 best estimate gross risked prospective oil resources from 573 mmbbls to 1,191 mmbbls. It has assessed the size and risk profile of the company’s previously announced 14 3D seismic backed drill ready exploration prospects. They have indicated a gross mean risked recoverable resource volume on these prospects of 259 mmbbls against the company’s estimate of 215 mmbbls. The company previously announced risk assessment of these prospects has been assessed as reasonable. CGG has reviewed the preliminary engineering studies and associated economic modelling conducted by the company in relation to a development plan for potential ARB discoveries; a break-even oil price of $43/bbl and NPV10 of $4.5/bbl at $70/bbl have been assessed as reasonable. Update from the Niger Ministry of Energy and Petroleum (“MEP”) received indicating central case expected cost of crude export reduced from c.$18/bbl to c.$16/bbl. Environmental authorisations now received to conduct drilling and seismic surveys on the license area. Well design and seismic acquisition planning contracts signed with intention of ensuring operational readiness for recommencement of exploration activities in 2H 2015.

Stagecoach Group Plc (SGC.L) Noted that the revised rail franchise schedule published by the UK Department for Transport which envisages is as follows 1) East Midlands Trains: the core period of a direct award to run to March 2018, rather than October 2017 as previously planned. 2) South West Trains: an extension option called to June 2017. The current franchise is due to end in February 2017. 3) Virgin Trains West Coast: the franchise running until September 2017. The franchise was previously planned to run until at least 31 March 2017.

Swallowfield Plc (SWL.L) Announced, in its trading update for the year ending 30th June 2015, that the company anticipates full year profitability to be in line with market expectations. Overall revenues for the full year are expected to show growth of 2.7% on a constant currency basis, 0.8% as reported versus the comparable 52 week period in the prior year (the year ended 30th June 2014 was a 53 week year). The group has made good progress on its strategic pillar of Product Category Focus which has helped improve contribution margin. Balance sheet also continues to strengthen with tight control of inventories and cash leading to a net debt position of £5.4 million, net of the outflow of £1.2 million on the acquisition of ‘The Real Shaving Company’ brand. Adjusted for this, net debt of £4.2 million compares favourably to the prior year at £5.1 million. The company expects the challenging retail market conditions currently being experienced in the UK and Europe to persist in the medium term. However, the board remains confident that the new strategy outlined last year will continue to gain further momentum, improve profitability and build shareholder value. The company expects to announce its results for the year ended 30th June 2015 on 22nd September 2015.

Unite Group Plc (UTG.L) Announced the quarterly property valuation of the Unite UK Student Accommodation Fund (‘USAF’) and the London Student Accommodation Joint Venture (‘LSAV’) as at 30 June 2015. Following the £271 million acquisition of the 2,100 bed Ahli United Bank portfolio, (which completed on 30 June), USAF’s property portfolio was valued at £1,975 million at 30 June 2015. Excluding the impact of the acquisition, the portfolio has increased in value by 4.0% on a like-for-like basis during the quarter (8.5% in the six months to June). The portfolio now comprises 26,813 beds in 75 properties across 24 University towns and cities in the UK. LSAV’s portfolio was independently valued at £612 million, up 5.6% on a like-for-like basis in the quarter (12.5% in the six months to 30 June). Its portfolio comprises 3,969 beds in 12 properties across London and three properties in Edinburgh. The increase in valuations is driven primarily by 20 basis points of yield compression in USAF on a like-for-like basis and 25 basis points of compression in LSAV in the quarter (46 and 62 basis points respectively in the six months to June). The overall USAF portfolio is now valued at an average yield of 5.9% and LSAV’s portfolio at 5.3%. The lettings performance has remained positive across Unite’s entire managed portfolio, with reservations in place across 86% of the rooms at 30 June 2015, compared with 80% at the same time in 2014. The strong reservation performance is supportive of rental growth towards the upper end of its 3-4% guidance. The company announced that it continued to make good progress in line with its plans with the identification and acquisition of development sites for delivery in 2018.

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