Broker Upgrades and Downgrades & Key UK Corporate Snapshots 27 October 2015

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Amino Technologies Plc (AMO.L) Announced, in its trading update, that the company now expects to report a second half shortfall in revenue versus expectations within its core company business. As a result, the company expects profit before tax, before exceptional items, to be below expectations, but in line with that achieved in the previous financial year. The company also confirms that revenue and cost synergies arising from its recent acquisitions of Entone Inc. and Booxmedia Oy are tracking ahead of plan and both the teams and product lines of each acquired company are integrating well. In spite of this expected trading outcome, the board reconfirms its commitment to the company’s progressive dividend policy and expects net cash balances at the period end to remain in line with current expectations. The company has identified that its sales execution efforts in the second half have not been satisfactory. The company will provide a full trading update for the year ending 30 November 2015 on 3 December 2015.

Baron Oil Plc (BOIL.L) Announced that the seismic program on Block XXI onshore Peru is now expected to commence in the block on or about the 10th of November 2015. The company’s seismic contractor GSS has confirmed that some seismic acquisition equipment in transit from Mexico was delayed at the Port of Manzanillo by Hurricane Patricia. They also confirmed that the equipment was not damaged and will be leaving the port later this week for Peru.

Beximco Pharmaceuticals Ltd (BXP.L) Announced, in its third quarter results for nine months ended 30 September 2015, that revenues rose to Taka3385.7 million from Taka2946.4 million posted in the same period preceding year. The company’s profit before tax stood at Taka 571.9 million, compared to a profit of Taka 587.0 million reported in the previous year. The basic earnings per share stood at Taka1.09 compared to earnings of Taka1.11 reported in the previous year. The company’s cash and cash equivalents stood at Taka175.2 million (31 December 2014: Taka222.2 million).

BP Plc (BP..L) Announced, in its results for the third quarter of 2015, that cash flow for 3Q 2015 was $5.2 billion bringing the total for the first nine months of the year to $13.3 billion. Underlying replacement cost profit of $1.8 billion for the quarter, compared with $1.3 billion for the previous quarter and $3.0 billion for the third quarter of 2014 and expects organic capital expenditure will be in the range of $17-19 billion a year through to 2017, closer to $19 billion in 2015. Expectations for 2015 capital expenditure were $24-26 billion a year ago and under $20 billion in the second quarter of 2015. Controllable cash costs for the group over the first nine months of 2015 were $3 billion lower than in the same period of 2014. The current divestment programme is nearing completion with total agreed divestments expected to approach $10 billion by the end of 2015 – the total is currently $7.8 billion. Additionally, it announced a quarterly dividend of 10c per ordinary share, expected to be paid in December. Meanwhile, it reported estimated underlying net income from Rosneft for the quarter of $382 million compared with $110 million in 3Q 2014. As previously announced, the company received an annual dividend from Rosneft of $271 million during the quarter.

Circassia Pharmaceuticals Plc (CIR.L) Announced, in its business update for the period ended 27 October 2015, that NIOX® sales grew strongly during the third quarter of 2015, with revenues totalling £4.5 million, an increase of 35% compared with the same period the year before. Sales for the nine months to 30 September also show good growth, reaching £13.6 million, an increase of 30% compared with the first three quarters of 2014.

Clinigen Group Plc (CLIN.L) Announced, in its AGM statement, that the size of its business doubled during the period. It strengthened its global capabilities, becoming the global market leader in the ethical supply of unlicensed medicines. The group stretched its unique, synergistic business model through the acquisition of Idis which created a better balanced portfolio of businesses. The company currently is the market leader in the $5.0 billion unlicensed medicine supply sector and the $2.0 billion clinical trial supply market. The proposed acquisition of Link will also substantially broaden the group’s international distribution footprint across the AAA (Asia, Africa and Australasia) region.

DS Smith Plc (SMDS.L) Announced, in its pre-close trading statement for 31 October 2015, that the group’s performance remains in line with its expectations. Its volume growth is expected to remain good while margins, ROACE and EPS will continue to show strong growth.

Frontier IP Group Plc (FIPP.L) Announced that the value of its portfolio company, PulsiV Solar Ltd, has significantly gained after the successful completion of PulsiV Solar’s first fundraising. PulsiV Solar received commitments up to £0.5 million which will result in the company’s holding in PulsiV Solar being revalued, showing a rise of over £0.87 million. The increase will be partially recognised in its financial statements for the year ended 30 June 2015, with the balance expected to be recognised in the group’s interim statements for the six months ending 31 December 2015.

Grafton Group Plc (GFTU.L) Announced that it has signed an agreement to acquire Isero BV (“Isero”), the leading specialist distributor of tools and fixings in the Netherlands, which trades from 38 branches under the Gerritse, Breur Ceintuurbaan and Van der Winkel brands. Isero is being acquired from H2 Equity Partners, the majority shareholder, private individuals and management who have a small shareholding. The purchase consideration of €91.5 million, including the refinancing of assumed debt, is payable in cash on completion. Isero generated revenue of €94 million and reported adjusted EBITDA of €10.0 million and adjusted operating profit of €8.8 million for the year to 30 June 2015.

International Personal Finance Plc (IPF.L) Announced, in its trading update for 3Q15, that its issued credit grew 8.0%. Its home credit showed a growth of 6.08% and digital growth of 35.0%. Its customers increased 2.0% from the previous year. It put up another strong performance in Mexico and is on track to reach profit per customer target of MXN $660 by the end of 2015.

Minds + Machines Group Limited Plc (MMX.L) Announced, in its operational update for 3Q15, that it eliminated $940,000 of annualised costs and identified another $700,000 which will be implemented in the near future. The board instituted a share buy-back programme of up to £15 million ($23 million) over 12 months, which is now being actively pursued. During third quarter new sales and marketing launch strategies were tested and implemented for the launches of .miami and .law, both of which yielded significant results.

Noricum Gold Limited (NMG.L) Announced a positive update on resource development work currently underway at the 861 km2 Bolnisi Project. The presence of significant gold mineralisation at Bolnisi re-emphasised through high grade historic results returned from the Kvemo Bolnisi target from trenching and short hole diamond drilling. Builds on the positive results returned through similar initiatives undertaken at the Tsitel Sopeli target, announced on 29 September 2015. Both drilling campaigns have focused on outcropping mineralisation, which have the potential to be mined in the next 12-18 months as ‘Starter Pits’. Near term production potential is strengthened significantly through the presence of a 30 year mining licence, the current excess capacity at the joint venture partner’s mine processing operation and the excellent existing infrastructure in the area. The two priority targets are part of a larger project area that has a combined non-JORC C1, C2 & P1 Soviet Resources of 980,000 tonnes of contained copper; 6.6 million ounces of gold; and 22 million ounces of silver. Data compilation is continuing at Tsitel Sopeli and Kvemo Bolnisi to convert historic approved Soviet Resources to JORC compliance.

Nostrum Oil & Gas Plc (NOG.L) Announced, in its operational update for the nine months ended 30 September 2015, that average daily production for first 9 months in 2015 of 44,042 boepd. GTU3 construction progressing with completion expected on time and on budget before the end of 2016. Additionally, it is on track for 2015 drilling target to complete 8 wells (6 production and 2 appraisal). Meanwhile, 2015 production guidance of 40,000-42,000 boepd, reduced from 45,000 boepd due to unexpected repair work carried out by Intergas Central Asia (ICA) on the export pipeline operated by ICA that is used by Nostrum to transport its gas. Also, 9 month revenue expected to be in excess of $370 million, cash position in excess of $210 million (including short-term deposits), total debt remains at $960 million and net debt of approximately $750 million as at 30 September 2015. Fully funded capex programme both to maintain current production in 2015 and 2016 and to complete the construction of GTU3 on time in 2016 while 32% of liquids production (7,500 bopd) hedged at $85 until February 2016.

Premier African Minerals Limited (PREM.L) Announced that on 23 October 2015 it received a notice of exercise by Darwin Capital Limited to convert £500,000 unsecured convertible loan notes, into equity. The Note has been used to fund the re-opening of underground operations at RHA Tungsten Limited, the company’s tungsten project located in Zimbabwe and for general working capital purposes. Moreover, the company is pleased to advise that first ore from the underground operation was delivered on 20 October 2015 with ore being delivered on a daily basis now from historic workings to build up a stockpile for processing through the plant.

Sanderson Group Plc (SND.L) Announced, in its trading update ahead of the announcement of its preliminary results for the year ended 30 September 2015, scheduled to be released on 1 December 2015, that the trading results are in line with market expectations and will show group revenue growing to over £19.0 million (2014: £16.4 million) and adjusted operating profit (stated before the amortisation of acquisition-related intangibles, share-based payment charges and acquisition-related costs) growing to over £3.3 million (2014: £2.8 million). The group acquired Proteus Software Limited, it has made a positive contribution in its first year as part of the company. Notwithstanding the ongoing investment in product development and complementary acquisitions which have been funded by the group’s cash generative business model, the company’s balance sheet remains strong with a cash balance in excess of £4.4 million at the year-end (31 March 2015: £4.2 million).

Serica Energy Plc (SQZ.L) Announced that agreement has been reached with BG International Limited and SSE E&P UK Limited for BG and SSE to transfer their equity in that part of Block 23/21a which contains an extension to the Columbus field to the Block 23/16f participants, Serica Energy (UK) Limited, Endeavour Energy UK Limited and EOG Resources United Kingdom Limited, for a nominal sum. The transaction is subject to the consent of the Licensing Authorities, and is in the spirit of the Oil & Gas Authority’s commitment to expediting UK offshore oil and gas field developments.

Shoe Zone Plc (SHOE.L) Announced, in its pre-closing update for the 52 week period to 3 October 2015, prior to entering its close period, that the group has traded well in the second half of the year and expects to report revenues to be in the region of £166.8 million (2014: £172.9 million), reflecting the continued planned closure of loss making stores. The board expects pre-tax profit for the period to be in line with expectations. The group ended the year with 535 stores, having opened 18 and closed 28 during the period. The business continues to have strong cash conversion and closed the year with an approximate net cash balance of £14.2 million (2014: £9.1 million). The board will announce final results for the period on Wednesday 13 January 2016.

Spirax-Sarco Engineering Plc (SPX.L) Announced that David Meredith, Group Finance Director and Executive Director, has informed the Board of his desire and intention to retire from the Group after 27 years of service. David will retire at the AGM on 10th May 2016. David joined the Company in 1988 and was appointed to the Board in 1992; he will have served in his current post for nearly 24 years.

St. James’s Place Plc (STJ.L) Announced, in its update on new business inflows and funds under management for the quarter ended 30 September 2015, that gross inflow of funds under management of £2.32 billion (2014: £1.94 billion) up 20% in the quarter and up 16% over the nine months to £6.72 billion (2014: £5.78 billion) and continued strong retention of client funds c.95%. Net inflow of funds under management of £1.48 billion (2014: £1.26 billion) up 17% in the quarter and 12% over the nine months to £4.15 billion (2014: £3.70 billion). Funds under management were £54.5 billion (2014: £49.1 billion).

Strat Aero Plc (AERO.L) Announced that Geocurve Holdings Limited, the company’s UAV inspection and surveying division, has entered into a £1.3 million contract with Barhale PLC, to provide Geocurve’s UAV based engineering, inspection and surveying services over a five year period. It is a part of a £1.25 billion framework agreement between Barhale and Anglian Water. The project is subject to enter into a final contract for which it will make a further announcement once the contract has been executed.

Telecom Plus Plc (TEP.L) Announced that its half year results for the six months ended 30 September 2015 will be released on Tuesday 24 November 2015. There will be a presentation for analysts on the day of the results at 9.00am at Peel Hunt’s offices, Moor House, 120 London Wall, London, EC2Y 5ET. Please contact MHP Communications for details at: telecomplus@mhpc.com.

Utilitywise Plc (UTW.L) Announced, in its final results for the year ended 31 July 2015, that its reported revenue stood at £69.11 million, compared to £48.95 million in the preceding year. Profit after tax was £11.20 million compared to £9.50 million. The company’s diluted earnings per share was 0.146p, compared to 0.124p. Moreover, the company announced the appointment of Brin Sheridan to the Board as Chief Operating Officer, effective from 16 November 2015. It also announced an important and immediate change to its existing payment terms with a key energy supplier. The supplier has agreed to amend its terms such that any extension secured on a contract that has not expired receives the same payment terms as a new customer would, in this case 80% on the extension signing and 20%, subject to the normal reconciliation process at the end of that contract.