Edison Investment Research

XP Power (XPP); reports 32% decline in diluted EPS for FY19 to 105.0p

Gross margin declines -220bps in 2019

For the year ended 31 December 2019, XP Power reported 36% decline in profit before tax to £24.0m, driven by 32% fall in operating profit to £26.7m. Revenue increased 2% to £199.9m compared to 2018. Gross margin fell -220bps to 45.1%, reflecting a combination of impact from tariffs imposed by the US on Chinese goods and adverse product and geographic mix.

Midatech Pharma (MTPH); acquires regulatory approval to expand MTX110

Midatech Pharma announced that it has received regulatory and ethics approval to commence a further exploratory Phase I study for its MTX110 drug for diffuse midline glioma brain tumours, to be conducted at Columbia University in New York.

Avon Rubber (AVON); obtains $265m US Army body armour contract

Avon Rubber has been awarded a four-year, dual source framework contract to supply the US Army with next generation Vital Torso Protection (VTP) X-Side Ballistic Insert (XSBI) body armour plates. Under the terms of the framework agreement, the company will compete for each order of the $265m contract.

WPP (WPP); A tougher Q4 across all regions

A tougher Q4 across all regions has left WPP reporting organic growth shy of consensus (-1.6% vs consensus -1.1%, although within range), with operating margins of 14.4% also below the 14.8% pencilled in by the market. Guidance for FY20 is for l-f-l revenue less pass-through cots to be flat, with H@ better than H1, with a flat operating margin against the market-anticipated tick up to 14.9%.

Standard Life UK Small.Co’s Tst (SLS); NAV total return of 17.5%

The company’s NAV total return for the period was 17.5%, while the share price total return was 31.5%. This is in comparison with a total return of 11.3% for the company’s reference index, the Numis Smaller Companies including AIM (ex investment companies) Index.

PPHE Hotel Group (PPH); revenue increased 5.2%

PPHE Hotel Group announced its audited annual results for the year ended 31 December 2019. The company’s EBITDA grew 3.4% to £117.4m, while reported EBITDA increased 8.6% to £122.9m.

JPMorgan Global (JPGI); total return to shareholders at 5.9%

JPMorgan Global Growth & Income announced its half year results for the six months ended 31 December 2019. The company made good progress with a 4.7% return on net assets per share, in line with a return of 4.6% from its benchmark (the MSCI All Countries World Index in sterling terms).

Augean (AUG); adjusted PBT increases 68%

Augean’s adjusted revenue before landfill tax increased 33% to £91.5m in FY 2019. The company’s adjusted EBITDA and basic EPS increased 52% and 80% to £28.8m and 15.33p, respectively. The company’s statutory loss per share was 12.26p, while its net bank debt position was £13.2m.

Serco Group (SRP); reported 15% increase in underlying diluted EPS

Serco Group reported a 15% increase in underlying diluted EPS of 6.16p for the year ended 31 December 2019, driven by a 15% increase in revenue at constant currency. Revenue increased 14.5% comprising 8.2% organic growth, 4.8% contribution from acquisitions and 1.5% currency benefit. Strong order intake drove a £2.1bn increase in order book to £14.1bn.

TR European Growth (TRG); half year report: share price total return at 10.3%

TR European Growth Trust announced its unaudited results for the half year ended 31 December 2019. The company’s NAV per share total return was 5.9%, compared to a total return from the benchmark index of 4.0%. The shares were trading at a discount of 10.9% at the period end, down from 14.2% at the full year.