Broker Upgrades and Downgrades & Key UK Corporate Snapshots 31 July 2015

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Alent Plc (ALNT.L) Announced, in its interim results for the half year ended 30 June 2015, that revenues declined to £307.1 million from £315.9 million recorded in the same period a year ago. Profit after tax widened to £42.7 million from £30.2 million. Diluted earnings per share stood at 16.0p, up from 10.8p. There would be no interim dividend in respect of the year ending 31 December 2015 (2014: 3.0p per ordinary share).

Antofagasta Plc (ANTO.L) Announced that it has entered into a definitive agreement with Barrick Gold Corporation (“Barrick”) under which it will acquire a 50% interest in Compañia Minera Zaldívar Limitada (“Zaldivar”), and will become the operator of the Zaldivar copper mine.

AO World Plc (AO.L) Announced that Mark Higgins has been appointed as its Chief Financial Officer and as an Executive Director of the company with effect from 1st August 2015. Steve Caunce, who has held the combined role of Chief Operating Officer and Chief Financial Officer, will remain on the board as Chief Operating Officer.

Balfour Beatty Plc (BBY.L) Announced that its joint venture with NG Bailey, the UK’s largest independent services and engineering company, has been appointed as preferred bidder for the £460 million Hinkley Point C power station electrical package, for EDF Energy.

Berendsen Plc (BRSN.L) Announced, in its unaudited interim results for the six months ended 30 June 2015, that its reported revenue stood at £493.7 million, compared to £517.3 million in the preceding period. Profit after tax was £36.8 million compared to £39.4 million. The company’s diluted earnings per share was 21.4p, compared to 23.0p.

BG Group Plc (BG..L) Announced, in its interim results for the half year ended 2015, that revenues declined to $7,775 million from $10,493 million recorded in the same period a year ago. Profit after tax narrowed slightly to $2,464 million from $2,477 million. In, its quarterly results BG announced that during the period revenues dropped to $3,954 from $5,514 million and profit after tax widened to $2,224 million from $1,367 million. The board declared an interim dividend of 14.38 cents per share.

Colt Group S.A (COLT.L) Announced, in its half yearly results ended 30 June 2015, that revenue rose to €790.8 million from €770.4 million posted in the same period preceding year. The company’s loss before tax stood at €141.4 million, compared to a profit of €2.4 million reported in the previous year. The basic and diluted loss per share stood at €0.02 compared to earnings of €0.00 reported in the previous year. The company’s cash and cash equivalents stood at €73.3 million (H12014: €167.1 million).

Coms Plc (COMS.L) Announced, in its audited annual accounts for the year ended 31 January 2015, that revenue stood at £45.95 million, compared to £14.00 million in the same period last year. Operating loss stood at £14.65 million, compared to £0.83 million. Loss after tax was £15.07 million, compared to £1.01 million. Diluted loss per share from continuing operations stood at 1.57p, compared to 0.22p.

Essentra Plc (ESNT.L) Announced results for the half year ended 30 June 2015. HY 2015 revenue increased 27.7% (+27.0% at constant exchange) to £550.4 million, with LFL growth of 1.8%. On an adjusted basis, net income of £59.0 million was up 23.2% (+22.1% at constant exchange) and earnings per share growth was 11.8% (+10.2% at constant exchange) to 22.7p. The Board of Directors has approved an interim dividend of 6.3p per 25p ordinary share (HY 2014: 5.7p), an increase of 10.5%. While the current environment in the oil and gas sector remains uncertain, Essentra remains well-positioned to deliver balanced, profitable growth in 2015 under its Drive for 2020 strategy.

Fulham Shore Plc (FUL.L) Announced its audited results for the 9 months ended 29 March 2015. Revenue for the 9 months period ended 29 March 2015 was £8,310,000 (12 months ended 29 June 2014: £8,646,000) and Headline Operating Profit for the same period was £790,000 (12 months ended 29 June 2014: £1,229,000). Loss after tax was £0.11 million, compared to £0.79 million. Diluted loss per share from stood at 0.0p, compared to 0.4p.

Global Petroleum Ltd (GBP.L) Announced its Quarterly Report for the period ending 30 June 2015. In 2014, the Company agreed with the Namibian Ministry of Mines and Energy (“MME”) a 12 month extension of the Initial Exploration Period of its Namibian Licence until December 2015 on the basis of an agreed work programme entailing further interpretation of existing seismic data and gravity work. A new evaluation of the deeper petroleum potential across Blocks 1910B and 2010A is nearing completion and the results of this combined seismic and gravity work are very encouraging with regard to the hydrocarbon potential in Global’s blocks. Regarding the Company’s Juan de Nova Permit in the Mozambique Channel, the Company applied for an extension of the Permit into the second phase in August 2013. As the Company recently announced to the market, the Board has taken the decision to withdraw from the application. The Company’s four exploration applications offshore Italy are progressing towards approval of the environmental impact assessment (“EIA”) documentation, which was originally submitted in mid-2014. EIA approvals have recently been granted by the Italian authorities to other E&P companies with long-standing licence applications in the offshore Adriatic, and the Company regards this recent development as very encouraging for the progress of its own applications. Consistent with its previously announced strategy, the Company will continue to evaluate asset acquisitions as well as appropriate corporate opportunities. The Company has held detailed discussions with various parties with a view to concluding an acquisition of assets which would add significant near-term value, to be funded from internal resources and, if market conditions permit, the raising of further capital. Global has noted a more realistic view recently on the part of asset or corporate vendors, and believes that the Company will be able to execute a transaction on terms that deliver good value to shareholders. Subsequent to the reporting period, the Company announced that it has commenced a programme to reduce its corporate costs in response to the lower oil price environment and the time it has taken to find a value enhancing acquisition. As a result of its cost review, the Board is implementing a substantial reduction in corporate costs, including a significant reduction in the cash element of the compensation of the Board and management.

IMI Plc (IMI.L) Announced Interim results for six months ended 30 June 2015. The Group performed broadly in line with expectations in the first half of the year despite challenging economic conditions in a number of key markets. On a reported basis, revenues of £765 million (2014: £809 million) were 5% lower after the impact of adverse exchange rate movements of £31 million, organic revenue reduction of £18 million and a net benefit of £5 million related to acquisitions and disposals. After adjusting for the impact of adverse exchange rate movements and for acquisitions and disposals, Group revenues on an organic basis were 2% lower than the comparable period in 2014. On a reported basis, segmental operating profit of £116 million (2014: £137 million) was 15% lower. Excluding the impact of adverse exchange rate movements of £6.1 million and £3.0 million related to acquisitions and disposals, segmental operating profit on an organic basis was 9% lower than the comparable period in 2014. Reflecting continued confidence in the Group’s prospects, the Board is recommending that the interim dividend be increased by 2% to 13.9p (2014: 13.6p). In the remainder of the year organic revenue is expected to have a comparable percentage reduction to the first half result. Second half margins, supported by improved results in Critical together with second half seasonality and new product sales in Hydronic, are expected to be broadly equivalent to the second half of 2014.

Independent Oil & Gas Plc (IOG.L) Announced, in its funding update that on 8 July 2015, the company anticipated that it would be able to complete an equity subscription for gross proceeds of £7.1 million in cash by the issue of 30012610 ordinary shares at a price of 23.79p per ordinary share with an internationally listed group with a multi-billion dollar market capitalisation by 31 July 2015. The company also anticipated that a corresponding debt facility would be completed within two months of this date. The company anticipates that the equity and debt transactions will be agreed simultaneously in mid to late August, which is later than envisaged for the equity and earlier than envisaged for the debt commitment. The company is prioritising completion of the acquisition of 50% of the Skipper licence and funding 100% of the commitment well including contingency.

Inspired Energy Plc (INSE.L) Announced that it has today completed the acquisition of Wholesale Power UK Limited (“WPUK”), an energy procurement consultant, which delivers integrated energy solutions to UK Corporates, for an initial consideration of £2.0 million payable in cash and shares (the “Acquisition”). The Acquisition further enhances Inspired’s service offering to its core Corporate customers, as well as providing the Group with entry into new industry sectors, including leisure and logistics. The Acquisition is expected to be earnings enhancing.

International Consolidated Airlines Group SA (IAG.L) Announced, in its interim results for the half year ended 30 June 2015, that revenues increased to €10,363 million from €9,289 million recorded in the same period a year ago. Profit after tax widened to €332.0 million from €96.0 million. Fuel unit costs for the quarter up 3.0%, down 12.0% at constant currency. The Directors propose that no dividend be paid for the six months to June 30, 2015 (June 30, 2014: nil). Separately, the company announced that as on 30 July 2015, AERL Holding had received valid acceptances of the recommended cash offer (the “Offer”) by AERL Holding Limited in respect of 333,702,888 Aer Lingus Shares, representing 62.48% of the existing issued share capital of Aer Lingus, which AERL Holding counts towards the satisfaction of the acceptance condition to the Offer. IAG and AERL Holding have waived the 90% acceptance condition and confirms the Offer is now unconditional as to acceptances.

ITM POWER Plc (ITM.L) Announced, in its audited results for the year ended 30 April 2015, that revenue stood at £1.64 million, compared to £1.13 million in the same period last year. Operating loss stood at £5.72 million, compared to a loss of £7.98 million. Loss after tax was £5.63 million, compared to a loss of £7.79 million. Basic and diluted loss per share from stood at 3.4p, compared to a loss of 5.9p.

JD Sports Fashion Plc (JD..L) Announced, in its trading statement for the first half of the year, that the company’s performance in its business has continued to be strong with like for like sales remaining in excess of management forecasts although, as previously reported, we have suffered some loss of margin from the weakness in the Euro in the company’s Euro denominated business. The company anticipates that the headline profit before tax for the current year will be approximately 10% ahead of the current consensus market expectations of around £110 million.

Jimmy Choo Plc (CHOO.L) Announced the appointment of Meribeth Parker as an independent Non-Executive Director. Additionally, Anna-Lena Kamenetzky is appointed as a Non-Executive Director replacing Bart Becht who has informed the board of directors of the company of his intention to step down following the announcement of his continued involvement as Chairman and interim CEO of Coty Incorporation.

Learning Technologies Group Plc (LTG.L) Announced that it has agreed to acquire the entire issued share capital of Eukleia, a provider of e-learning to the financial services sector. The consideration comprises an initial payment of £7.5 million of which £6.0 million will be paid in cash and £1.5 million in new LTG shares, at a price of 22p per share, issued to the shareholders of Eukleia (“Consideration Shares”). Cash consideration will be adjusted to take account of surplus cash of £0.8m in Eukleia at completion. Up to a further £3.5m will be payable based on the revenue growth of Eukleia in each of the years ending 31 December 2016 and 2017, payable with up to 20% in new LTG shares at the option of the Company with the remainder in cash.

Merlin Entertainments Plc (MERL.L) Announced an interim dividend of 2.1p per Ordinary Share (gross of tax) to paid on 24 September 2015 for the 2015 financial year.

Minoan Group Plc (MIN.L) Announced, in its unaudited interim results for the 6 months ended 30 April 2015, that revenue stood at £2.98 million, compared to £2.50 million in the same period last year. Operating loss stood at £0.58 million, compared to a loss of £0.59 million. Loss after tax was £0.76 million, compared to a loss of £0.69 million. Basic and diluted loss per share stood at 0.43p, compared to a loss of 0.42p.

Oxford Pharmascience Group Plc (OXP.L) Announced in the results of its proof of concept clinical study to determine the extent of upper gastrointestinal (GI) tract irritation of its OXPzeroTM 250mg tablet (“OXP005”) compared with the NaprosynR 250mg (Naproxen) tablet by endoscopic evaluation that it achieved a statistically significant reduction in the number of upper gastrointestinal erosions observed by endoscopy after administration of OXP005 compared to NaprosynR in healthy volunteers. Lanza score (a clinical rating score of gastrointestinal irritation in the stomach and duodenum on endoscopic evaluation) was comparable between OXP005 and NaprosynR. The PK data confirmed the bioequivalence of OXP005 and NaprosynR at Day 1 and Day 7. The company believes the technology can be further optimized specifically for naproxen and a programme to define the improved product is being initiated.

Parkmead Group (The) Plc (PMG.L) Announced that it has been awarded three new licences covering three offshore blocks in the UK 28th Licensing Round. These newly awarded licences are part of the second tranche of 28th Round awards. It follows the award of six licences covering nine offshore blocks in the first tranche of awards. Two of the new licences are located in the highly prospective West of Shetland area, and will both be operated by the company. The third licence is located in the Southern North Sea, and will be operated by Atlantic Petroleum. The new licences complete an excellent 28th Round for the company winning a total of nine new oil and gas licences covering 12 offshore blocks.

Pires Investments Plc (PIRI.L) Announced interim results for the six months to 30 April 2015. The company reported a loss before taxation of £355,376 for the period under review, compared to a profit of £22,528 reported in the same period a year ago. Total revenue increased to £8,314 from £6,000 reported in the same period a year ago.

Proxama Plc (PROX.L) Announced a new contract win with the South African franchise of the Standard Bank of South Africa-owned Diners Club. The contract commences in July 2015.

Shawbrook Group Plc (SHAW.L) Announced that it has appointed Bank of America Merrill Lynch, Goldman Sachs International and Macquarie Capital (Europe) Limited as its joint corporate brokers with immediate effect.

Terra Catalyst Fund Plc (TCF.L) Announced, in its audited financial statements for the year ended 31 March 2015, that total net expense stood at £4.29 million, compared to £20.38 million in the same period last year. Operating loss stood at £4.89 million, compared to £19.56 million. Basic and diluted loss per share stood at £0.30, compared to £0.87.

UBM Plc (UBM.L) Announced results for the six months ended 30 June 2015. Reported revenue in H1 2015 was £456.0 million, up 26.3% (H1 2014: £361.0 million). Adjusted operating profit for H1 2015 was 13.0% higher at £98.8 million (H1 2014: £87.4 million) and adjusted operating margin was 21.7% (H1 2014: 24.2%) with the inclusion of Advanstar and beneficial FX partially offset by strategic opex of £4.6 million and the absence of £11.0 million of 2014 non-recurring central gains. The Board has declared an interim dividend of 5.3p per share (H1 2014: 5.3p). The outlook for UBM for the year remains unchanged and the Board is confident of meeting its expectations for the full year.

Ultra Electronics Holdings Plc (ULE.L) Announced that the group’s business reporting lines have been changed and the divisions are renamed as: Aerospace & Infrastructure; Communications & Security and Maritime & Land. The group will report against these Divisions from the 2015 interim results to be announced on Monday 3 August 2015.

Vedanta Resources Plc (VED.L) Announced, in its first quarter FY 2016 production release that during Q1 FY2016, average gross production was 209,738 barrels of oil equivalent per day (boepd), from Rajasthan, Ravva and Cambay. Revenue and EBITDA in Q1 FY2016 were lower due to the significant drop in oil prices as compared to the corresponding prior period. Mined metal production in Q1 FY2016 increased by 42% to 232,162 tonnes during the quarter, compared with 163,131 tonnes a year ago. The cost of production (COP) of zinc excluding royalty 7 was lower at $799 per tonne as compared with $927 per tonne in the corresponding prior quarter, and $868 per tonne for FY 2015. EBITDA was higher at $255.4 million, as compared with the corresponding prior period. The Kayad mine ramp up is on track and expected to achieve 1 million tonnes production capacity by year end. COP in Q1 FY2016 was at $1,409 per tonne and for the full year, COP is expected to be approximately $1,500 per tonne as volumes from Lisheen ramp down. EBITDA was at $37.3 million. Pig iron had a record quarterly production at 170,000 tonnes as a result of the debottlenecking exercise carried out in Q4 FY2015. EBITDA for Q1 was lower at $3.4 million, to the lower sales prices. In the Aluminium segment, EBITDA for the quarter was significantly lower and negative at US$(1.9) million due to reduced LME and metal premiums and $37 million provision made for RPO for previous years. At Karnataka, iron ore sales commenced during the quarter; production was 0.2 million tonnes, constrained by existing ore stockpiles, which will be liquidated by Q2 FY2016.

Vesuvius Plc (VSVS.L) Announced, in its half yearly ended 30 June 2015, that revenue fell to £702.6 million from £729.8 million posted in the same period preceding year. The company’s profit before tax stood at £61.4 million, compared to a profit of £54.9 million reported in the previous year. The basic earnings per share stood at 13.0p compared to earnings of 14.2p reported in the previous year. The company further stated that the directors have declared an interim dividend of 5.15p per ordinary share in respect of the year ending 31 December 2015. The dividend will be paid on 25 September 2015 to ordinary shareholders on the register at the close of business on 14 August 2015. Based upon the number of ordinary shares in issue at 30 June 2015, the total cost of the dividend would be £13.9 million.