Edison Investment Research

HSBC Holdings (HSBA); announces scrip dividend alternative

In February 2020, HSBC Holdings declared its fourth interim dividend of US$0.21 per ordinary share for 2019. The dividend will be paid on 14 April 2020 to holders of record on 28 February 2020 on the Principal Register in the United Kingdom, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register.

Quadrise Fuels International (QFI); announces an update on Morocco pilot trial

Quadrise Fuels International announced that significant progress has been made in preparation for the MSAR® pilot trial at an industrial client site in Morocco. The company said that fabrication of the MSAR pumping and heating unit (PHU) was completed at the Quadrise Research Facility (QRF) during February 2020 as planned.

Walker Greenbank (WGB); Scion brand announces tie-up with NEXT

Walker Greenback’s Scion brand announced a licensing collaboration with major retailer NEXT. The tie-up will see NEXT create and sell extensive range of homeware, nursery and fashion items. The range, to be launched in July this year, will be available both online at next.co.uk and selected NEXT stores.

PageGroup (PAGE); gross profit increases 5.0% to £855.5m for FY 2019

PageGroup announced its full year results for the year ended 31 December 2019. Revenue increased 6.7% to £1,653.9m and PBT increased 1.4% to £144.2m. Basic EPS decreased 0.9% to 32.2p while total dividend per share increased 4.6% to 13.70p. The company also paid a special dividend of 12.73p per share in October 2019, totalling £40.7m.

Hutchison China Medi (HCM); group revenue at $204.9m for FY 2019

Hutchison China MediTech (Chi-Med) announced its audited financial results for the year ended 31 December 2019 and provided updates on key clinical and commercial developments. The company’s operating loss stood at $99.4m, while cash, cash equivalents and short-term investments together accounted for $217.2m, as of 31 December 2019.

In January 2020, the company conducted a Nasdaq follow-on offering, raising an additional $110.1m in net proceeds, to strengthen its cash position.

Nanoco Group (NANO); releases update on formal sale process

Nanoco announced that it had engaged with multiple interested parties as part of a formal sale process. The company noted that certain of those parties were being invited to enter into further due diligence and detailed discussions about the sale of the company.

Nanoco confirmed that it has not to date received any firm proposals that, in light of the current market environment, it believes would lead to an offer for the company. The company continues to engage with a number of parties to establish whether they are prepared to make such a proposal.

Chemring Group (CHG); outlook for current year unchanged

In its trading update, Chemring announced that its board kept unchanged its expectations for the current year. Order intake in the period to 29 February 2020 was £132m (2019: £120m), with a book to bill ratio of 125% (2019: 154%). The expected FY20 revenue is now 88% covered by period to date revenue and the order book.

In Countermeasures & Energetics, the company’s Australian facility has successfully delivered its first batches of training countermeasures for the F-35 program to the US DoD and has commenced production of the first batch of operational countermeasures.

Greggs (GRG); total sales increases 13.5% to £1,167.9m for FY 2019

Greggs announced its preliminary results for the 52 weeks ended 28 December 2019. The company-managed shop like-for-like (LFL) sales increased 9.2%, while pre-tax profit excluding exceptional items was up 27.2% to £114.2m. Total ordinary dividend per share increased 25.8% to 44.9p.

Boku (BOKU); starts 2020 on a strong note

Boku starts 2020 on a strong note with payment volumes rise in January and February, despite the rising prevalence of coronavirus and remains confident of reaching current market expectations. Edison forecasts $50m revenue for 2019 and $54m for 2020, PBT of $6.7m and $7.1m respectively.

4imprint Group (FOUR); reports 22% increase in profit before tax for FY19

Trading results have been in line with the board's expectations for the first two months of 2020.

4imprint’s consistent approach of investing in marketing to grow its revenue base continues to produce results well in excess of the market growth. FY19 results are as indicated in January’s update, with the top line up 17%, from new and returning customers. 4imprint is the largest distributor of promotional products in the US, yet its market share is under 4%. The key unknown for FY20 is the coronavirus, although the supply chain is well stocked. Our revenue and earnings forecasts are broadly unchanged. There is potential for expansion of 4imprint’s valuation multiples once current global health uncertainties are resolved.