Broker Upgrades and Downgrades & Key UK Corporate Snapshots 18 December 2015

UK Broker Upgrades / Downgrades

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1PM Plc (OPM.L) Announced, in its pre-closing trading update for the six months ended 30 November 2015, that the revenues and profits are expected to deliver better performance compared to its previous expectations. The results also includes contribution from Academy Leasing Limited, which was acquired by the company on 25th August 2015, for the period from 25th August 2015 to 30th November 2015. The group won £9.7 million of new lease and hire purchase contracts (H1 2015: £5.8 million) and £6.1 million of business loans (H1 2015: £1.0 million) during the period. After the acquisition of Academy, the group earned £0.2 million of commission from broked-on lease and hire purchase contracts (H1 2015: £nil) and £0.3 million of commission from broked-on vehicle leases (H1 2015: £nil).

Aggreko Plc (AGK.L) Announced that it has withdrawn from the bidding process for the 2016 Rio de Janeiro Olympic and Paralympic Games. The contracting entities have taken the decision to award the power provision in parts and it has been advised that the company has not been awarded the first tranche of contracts. Given the preparation required for an event of this scale, it has withdrawn from bidding for the remaining tranche.

All Leisure Group Plc (ALLG.L) Announced, in its trading update for the year ended 31 October 2015, that the trading conditions were challenging throughout the year in both of its Tours and Cruise divisions. Although the board anticipated the full year performance to be below expectations in its previous report, it now expects a neutral profit before tax due to slight improvement in the final quarter trading. The unaudited results for the year showed revenues of £127.3 million (2014: £138.9 million) while the current year profit before tax is expected to be neutral as against a loss of £7.2 million in the last year.

Amec Foster Wheeler Plc (AMFW.L) Announced that it has been awarded an Engineering Procurement and Construction (EPC) Contract for the Cullinan Mill Extension Project, near Pretoria, in South Africa. The award of this contract, valued at approximately $113 million (ZAR1.4 billion out of the Plant’s total ZAR1.6 billion capital cost), follows the successful Front End Engineering and Design (FEED) work for this project. The contract will be executed by Amec Foster Wheeler’s South African mining company, MDM Engineering.

Applied Graphene Materials Plc (AGM.L) Announced that it has conditionally raised £8.1 million before expenses through the placing of 4,628,571 new ordinary shares at 175p per share. Additionally, the company announced an open offer to raise up to approximately £2.0 million, on the basis of 1 Open offer share for every 15 existing ordinary shares held on the record date, at 175p each. Both the placing and open offer are conditional upon shareholder approval.

AstraZeneca Plc (AZN.L) Announced an update on preliminary findings from the ATLANTIC trial of durvalumab as 3rd-line or later stage therapy in patients with locally advanced or metastatic programmed death ligand-1 (PD-L1) positive non-small cell lung cancer (NSCLC) that lacks epidermal growth factor receptor (EGFR) or ALK alterations. An initial analysis supports durvalumab’s clinical activity, with durable responses and an established safety profile in these difficult-to-treat patients. ATLANTIC investigated the efficacy and tolerability of durvalumab in patients who received at least two prior systemic treatment regimens including platinum-based chemotherapy, and who have limited options for further therapy. A full evaluation of the data is ongoing and the results will be presented at a scientific congress in 2016. A comprehensive durvalumab registration programme is underway across multiple tumour types, stages of disease, and lines of therapy both as monotherapy and in combination. This forms part of AstraZeneca’s late-stage immuno-oncology programme and includes more than 9,000 patients in 16 clinical trials in lung, bladder, head & neck, and other cancers, summarised below.

BG Group Plc (BG..L) Announced that the Lake Charles LNG export project has received approval from the US Federal Energy Regulatory Commission (FERC) to construct and operate a natural gas liquefaction and export facility in Lake Charles, Louisiana. The project has conditional authorization from the US Department of Energy for the export of up to 2 billion cubic feet of natural gas per day or approximately 15 million metric tons of LNG per annum.

BP Plc (BP..L) Announced the confirmation of the allotment and issue of 49,692,565 ordinary shares of $0.25 each (‘shares’) to shareholders who elected to receive ordinary shares (ISIN number GB0007980591) under the Scrip Dividend Programme as an alternative for the third quarter interim dividend for 2015, payable on 18 December 2015. This allotment and issue includes the election made by the Depositary, JPMorgan Chase Bank in order to issue ADSs to ADS holders who elected to receive ADSs under the Scrip Dividend Programme, as outlined below. Following the issue of the above shares, the number of ordinary shares in issue will be 20,108,770,973 of which 1,741,564,076 are held as treasury shares leaving a balance of 18,367,206,897 ordinary shares with voting rights.

Electric Word Plc (ELE.L) Announced that it has conditionally agreed to sell its indirect 70%. shareholding in iGaming Business Limited (iGB), to Clarion Events Limited. The sale values the whole of iGB on a cash free debt free basis at £19.7 million. The holder of the remaining iGB Shares, Michael Caselli, has also agreed to sell 5.1% of the issued iGB Shares and will retain the balance.

GlaxoSmithKline Plc (GSK.L) Announced that its global HIV business, ViiV Healthcare, has reached two separate agreements with Bristol-Myers Squibb, to acquire its late-stage HIV R&D assets; and to acquire Bristol-Myers Squibb’s portfolio of preclinical and discovery stage HIV research assets. Under the terms agreed in the two transactions, ViiV Healthcare will acquire: Late stage assets, including fostemsavir (BMS-663068), an attachment inhibitor, currently in phase III development for heavily treatment experienced patients. Fostemsavir has received a Breakthrough Therapy Designation from the FDA and is expected to be filed for regulatory approval in 2018. The second late stage asset is a maturation inhibitor (BMS-955176), currently in phase IIb development for both treatment-naive and treatment experienced patients. A back-up maturation inhibitor candidate (BMS-986173) is also included in the purchase.. Assets in preclinical and discovery phases of development including a novel biologic (BMS-986197) with a triple mechanism of action, a further maturation inhibitor, an allosteric integrase inhibitor and a capsid inhibitor. A number of Bristol-Myers Squibb drug discovery employees will also be offered the opportunity to transfer to ViiV Healthcare. The late-stage asset purchase comprises an upfront payment of $317 million, followed by development and first commercial sale milestones of up to $518M, and tiered royalties on sales. The purchase of preclinical and discovery stage research assets comprises an upfront payment of $33 million, followed by development and first commercial sales milestones of up to $587 million, and further consideration contingent on future sales performance.

Hutchison China Meditech Limited (HCM.L) Announced that Hutchison MediPharma Limited, its drug R&D subsidiary, has begun SANET-ep, a Phase III sulfatinib (HMPL-012) registration trial in China in patients with extra-pancreatic neuroendocrine tumours. It has started all the preparations while it commenced the site selection in the middle of this year and the first patient was dosed on 17 December 2015. In addition to its four NET studies, the company also plans to start a Phase Ib study in China to evaluate the safety, pharmacokinetics and efficacy of sulfatinib in patients with both medullary and differentiated thyroid cancer by the end of 2015.

Impact Holdings (UK) Plc (IHUK.L) Announced, in its unaudited half year results for the six months ended 30 September 2015, that revenue stood at £0.086 million, compared to £0.91 million in the same period last year. Operating loss stood at £0.25 million, compared to £0.23 million. Loss after tax was £0.25 million, compared to £0.23 million. Basic loss per share stood at 9.4p, compared to 8.9p. Diluted loss per share was £8.1 million, compared to £7.7 million. The group remains focused on recovering monies owed to it by third parties. The development of the strategic direction of the business has continued with a reduction in exposure to third party funders and a withdrawal from new exposures in the specialty funding market. The Board of Directors is committed to the opportunities Identified and continues to develop this strategy which is expected to provide, over time, enhanced shareholder value.

Intertek Group Plc (ITRK.L) Announced that it has agreed to acquire Food International Trust (“FIT-Italia”), an Italian company specialising in providing assurance services to the retail and agricultural sectors through food quality and safety assessments. Founded in 2007 and privately owned, FIT-Italia employs 15 people across two facilities located in Bergamo and Fermo. The business generated revenues of around EUR2 million in 2014. The acquisition is expected to close in January 2016.

Ironveld Plc (IRON.L) Announced that it has been informed by Hacra Mining and Exploration (Pty) Ltd that the mining right for magnetite on the Harriets Wish, Cracouw and Aurora farms has been executed and the associated Environmental Management Program (EMPR) has been approved by the Department of Mineral Resources. In addition, the company, has successfully executed the prospecting right on the farm Non Plus Ultra. The execution of the mining right and EMPR means the only outstanding agreement required is the land lease agreement for the 15MW smelter which is expected in January following which the company will be in a position to conclude the financing package and commence construction. As previously advised, the company has received specific financing proposals and following completion of due diligence is in discussions to finalise these agreements. ENSafrica, Africa’s largest legal firm, has been appointed to advise the company on the documentation. Furthermore the company has received a formal letter from ESKOM confirming power supply availability. The company intends to augment this power supply with backup power for critical operations as contained in the DFS published in 2014.

John Lewis Of Hungerford Plc (JLH.L) Announced, in its final results for year ended 31 August 2015, that revenues rose to £7.8 million from £7.4 million posted in the same period preceding year. The company’s loss before tax stood at £153,827, compared to a profit of £59,740 reported in the previous year. The basic loss per share stood at 0.07p compared to earnings of 0.02p reported in the previous year. The board has not recommended any dividend for the period. The company’s cash and cash equivalents stood at £1.2 million (2014: £1.5 million).

Laird Plc (LRD.L) Announced the acquisition of Novero, a leading integrated vehicle connectivity systems provider, which will enhance Laird’s offering of innovative wireless solutions in one of its core and fastest growing markets. Novero represents an excellent strategic fit and is complementary to its existing connected vehicle activities. This is in line with the compay’s strategy to invest significantly in Enterprise Internet of Things (EIoT) markets. The company will acquire Novero for a total consideration of €65 million (approximately £47.1 million) from Donares Limited. Consideration will be satisfied through the issue of 3.2 million shares in Laird to the vendors of Novero, valued at €15.5 million (approximately £11.3 million) as at the close of business on 15th December 2015 and representing approximately 1.2% of Laird’s enlarged share capital. The balance of the consideration will be paid in cash from Laird’s existing bank facilities. Completion of the acquisition is conditional upon receiving standard regulatory approvals, which are expected within 30 days.

Lifeline Scientific, Inc (LSIC.L) Announced a receipt of a stocking order from its principal distributor in China worth approximately $3.3 million. The company also announces that it expects revenues for the year ending 31 December 2015 to be ahead of market expectations of $36.3 million and for adjusted pre-tax profit to be materially ahead of market expectations of $3.4 million. A further trading update will be provided in January.

MediaZest Plc (MDZ.L) Announced, in its trading update, that it has secured material additional contracts and has completed several significant projects. The Company recently completed the second Hyundai Rockar dealership at the Westfield Stratford shopping centre, which has now opened. It also announced that it has begun working with a new client, Specsavers Limited (“Specsavers”). MediaZest was initially engaged to design, produce and deliver a Smart Store concept for the annual Partners Conference in Birmingham on the 28 November 2015 in collaboration with Specsavers key stakeholders. Following this successful event, the solutions provided have been installed in Head Office. It has finished works with the Post Office Limited, supplying audiovisual systems for new concept stores. The Company also began working with Kikki.K an Australian/Swedish stationary retailer, on their first two UK stores.

Midatech Pharma Plc (MTPH.L) Announced that it has entered into an agreement to acquire Zuplenz® (ondansetron), a marketed anti-emetic oral soluble film from Galena Biopharma, Inc. (NASDAQ: GALE) for the prevention of chemotherapy-induced nausea and vomiting (CINV), radiotherapy-induced nausea and vomiting (RINV), and post-operative nausea and vomiting (PONV), (the “Acquisition”). Midatech will pay a total up front consideration of $3.75 million in cash, with further cash payments, totalling up to $26 million, becoming payable if certain sales milestones are achieved, which are expected to be self-financed by milestone-generated cashflow. Following the Acquisition, Management expects cash reserves to be approximately £16 million at the financial year-end. The transaction is expected to be completed on or prior to Thursday, December 24, 2015, subject to customary closing conditions.

Octagonal Plc (OCT.L) Announced, in unaudited half year results for the six months to 30 September 2015, that revenue stood at £1.91 million, compared to £1.52 million in the same period last year. Operating profit stood at £0.42 million, compared to £0.23 million. Profit after tax was £0.14 million, compared to £0.26 million. Basic and diluted earnings per share stood at 0.02p, compared to 0.05p.

Oilex Ltd (OEX.L) Announced that it has filed its defence in the Federal Court proceedings initiated by Zeta Resources Limited. It has also filed a cross-claim against Zeta seeking orders of specific performance requiring Zeta to perform its obligations and complete the relevant share subscription and convertible note agreements (or otherwise pay damages to the company).

Progressive Digital Media Group Plc (PRO.L) Announced that it in advanced talks regarding a possible acquisition of healthcare business information provider, GlobalData Holding Limited, a private company owned by Mike Danson and Wayne Lloyd. Moreover, the company is also in advanced discussions concerning a possible disposal of a number of its non-core, B2B print assets to a private company also controlled by the vendors. It expects the consideration for the disposal to be around £4.5 million.

Senior Plc (SNR.L) Announced the completion of the acquisition of 100% of the issued share capital of Steico Industries, Incorporation (“Steico”) and its trading facilities.

UK Oil & Gas Investments Plc (UKOG.L) Announced that it has received final regulatory consent from the Oil and Gas Authority (OGA) to acquire a further 10% interest in UK onshore Weald Basin licence PEDL143, via the farm-in with Warwick Energy Exploration and Production Limited announced on 23 November 2015.

United Carpets Group Plc (UCG.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £10.15 million, compared to £9.1 million in the same period last year. Operating profit stood at £0.58 million, compared to £0.53 million. Profit after tax was £0.50 million, compared £0.35 million. Basic and diluted earnings per share stood at 0.61p, compared to 0.42p. An interim dividend of 0.125p per share will be payable on 22 January 2016. During the period, it opened 3 new stores, 2 of which were relocations within towns where it had existing stores. The general performance across the network has progressed further and the number of underperforming stores continues to reduce. Floor coverings are the Group’s primary driver of sales (predominately carpet, laminate, and vinyl flooring) through both franchised stores and the Group’s own corporate stores.

W.H. Ireland Group Plc (WHI.L) Announced, in its trading update for its financial year ended 30 November 2015, total revenue for the year will see a marginal increase on that reported a year earlier which is a reasonable performance, given the more challenging trading environment since the half-year end, with the reduction in transaction fees and market making revenue in corporate broking division being more than offset by the continued growth in recurring fee income from both corporate broking and wealth management. Management fee income in private wealth management division has increased by approximately 35% from the previous year, whilst retainer income in the corporate broking division has risen by approximately 6%. Recurring revenue across the company has continued to grow and now represents nearly 37% of total revenue. Assets Under Management and Administration on an adjusted basis rose by 2% over the year to £2.5 billion. Of this total, discretionary assets rose by 6% to approximately £770 million. Corporate client list grew during the financial year from 93 clients to 98 as of the year end. It is anticipated that the full year figures to 30 November 2015 will be released on Monday 29 February 2016.