Edison Investment Research

1Spatial (SPA); secures government contract worth over £1m

The terms of the contract also provide for a further option year

1Spatial announced that it has secured a contract worth over £1m with No1 Aeronautical Information Documents Unit (No1 AIDU) to maintain and support its APS system. This contract builds on the existing services that 1Spatial currently provides for No1 AIDU. According to the terms of the new contract, the company will enhance the APS system by providing services to adapt the system for the supplied data due to evolving customer needs.

1Spatial (SPA); announces amendment to Enables IT Disposal Agreement

Post amendment, the exercise price has been brought down to £20,000

1Spatial has announced an amendment relating to the disposal of 80.1% of the issued share capital of Enables IT Group Limited to Champall Consultancy Limited. As per the original agreement, Champall was granted an option to buy the remaining 19.9% interest for an exercise price of £100,000.

Walker Greenbank (WGB); reports strong performance in licensing income for FY ended 31 January 2019

FY results expected to be in line with management’s expectations

Group sales for the financial year are anticipated to increase 1.1% to £113.3m (2018: £112.1m), according to Walker Greenbank. This would reflect an increase in overseas third-party manufacturing orders and a very strong performance from licensing. Total brand product sales, excluding licensing, decreased 4.1% in reportable currency (3.9% in constant currency) compared with the previous year.

Greggs (GRG); stores have had an exceptionally strong first seven weeks

Stores saw like-for-like sales growth of 9.6% against 2.9% for the prior year's first 7 week period and total sales were up 14.1% against 6.2%

Greggs’ vegan sausage roll has already contributed to an upgrade in profit expectations for 2019. Hard on the heels of its last upgrade for 2018, in January, the company is now guiding to still higher profits for this year. 

Primary Health Properties (PHP); announces acquisition and funding of new care centre

The centre has 3,975 sqm of lettable space

Primary Health Properties ICAV, a wholly owned Irish investment vehicle of PHP, was contracted to fund the development and acquisition of a purpose built primary care centre in Athy, Co. Kildare. The total cost of the project sits at €11.4m (net assets acquired: €11.4m).

Palace Capital (PCA); signs 15-year lease at Sol Northampton

The lease terms consist of a 9-month rent-free period and a break at 10 years.

Palace Capital has completed a 15-year lease for 12,800 sq ft with Soo Yoga Group at its Sol Northampton leisure scheme. Soo Yoga Group signed the lease at a headline rent of £85,000 p.a., with RPI-linked uplifts and a minimum uplift at first review to £100,000 p.a.

Telford Homes (TEF); sells Equipment Works site for £105.5m

Telford sold the freehold interest in the land and the construction of 257 build-to-rent homes

Having delivered its first completed build to rent (BTR) development during 2018 (The Pavillions, N1), Telford has announced another in exchanging contracts for 257 BTR homes at its Equipment Works site in Walthamstow, E17 with a total delivery value of £105.5m.

Strandline Resources (STA); Strandline Resources first assay results at the Tajiri Project

In the announcement of its initial results Strandline claims that “Outstanding drill results point to substantial Resource increase at Tajiri mineral sands project in Tanzania”

Strandline Resources recently reported the first assay results from the latest resource drill programme at the Tajiri Heavy Mineral Sands Project. The company makes some bold claims, but a detailed look at the drill results returns more hot air and less heavy mineral sands than expected.

McColls (MCLS); breathes an audible sigh of relief

Recovery is apparent in like-for-like sales up 1.2% for the first 11 weeks of FY19

McColl’s management breathes an audible sigh of relief on exiting its annus horribilis ending November 2018, in which adjusted profit before tax slumped 60% to £10.5m with an 80bps gross margin decline to 26.0%. CEO Jonathan Miller says that in nearly 30 years he has never known such a challenging year.

Regional REIT (RGL); property portfolio valuation at £718.4m as of 31 December 2018

Regional REIT reported its property portfolio valuation at £718.4m as of 31 December 2018 (31 December 2017: £737.7m). This represents a 4.5% increase on a like-for-like basis from 2017, adjusting for capital expenditure and disposals during the period.