Edison Investment Research

Hurricane Energy (HUR); update confirms strong performance

Hurricane Energy has provided an update confirming the strong performance of its Lancaster Early Production System (EPS) and has extended the P1638 licence containing Lancaster and Lincoln for five years

Hurricane Energy has provided an update confirming the strong performance of its Lancaster Early Production System (EPS) and has extended the P1638 licence containing Lancaster and Lincoln for five years. This extension requires a change in the forward work programme, with a well required to determine the maximum extent of the Lincoln field in 2020, and of the Lancaster field in 2021.

Aberdeen Diversified (ADIG); NAV total return at +1.1% for FY 2019

Aberdeen Diversified Income and Growth Trust announced its annual financial report for the year ended 30 September 2019

Share price total return was -9.0% while revenue return per share was 5.68p. Total dividends for the year increased 2.3% to 5.36p per share. Net gearing rose to 12.5% as of 30 September 2019.

Henderson Int Income (HINT); allots 250,000 ordinary shares at 165.5p per share

Henderson International Income Trust has allotted 250,000 new ordinary shares of 1p each fully paid under its block listing facility

Henderson International Income Trust has allotted 250,000 new ordinary shares of 1p each fully paid under its block listing facility. The shares were issued for cash at a price of 165.5p per share.

Hutchison China MediTech (HCM); announces grant of share options

Hutchison China MediTech has granted share options under the Share Option Scheme conditionally adopted at its AGM in 2015 (the 2015 HCML Share Option Scheme)

Hutchison China MediTech has granted share options under the Share Option Scheme conditionally adopted at its AGM in 2015 (the 2015 HCML Share Option Scheme). Hutchison granted 400,000 share options under its 2015 HCML Share Option Scheme to an employee to subscribe for ordinary shares subject to the acceptance of the grantee.

Fidelity Special Values (FSV); issues 750,000 ordinary shares at 262p per share

Fidelity Special Values issued 750,000 new ordinary shares of 5p each at a price of 262p per share from its block listing authority of 15 January 2019. The shares rank pari passu with the existing ordinary shares in issue

Fidelity Special Values issued 750,000 new ordinary shares of 5p each at a price of 262p per share from its block listing authority of 15 January 2019. The shares rank pari passu with the existing ordinary shares in issue.

Cohort (CHRT); Interims to October 19, FY guidance in line

Cohort delivered a strong H120 performance with all of its operations growing revenues and adjusted operating profit contributions with the exception of SEA which saw a modest reduction in both. Group revenues were £60.2m (H119 £39.5m), including an initial first half contribution from Chess acquired in December 2018 which augmented like-for-like basis revenues growth of 17%. Adjusted operating profit was £4.0m (H119 £1.0m), again including a full period contribution from Chess and an increase of 120% on a like for like basis, with adjusted EPS of 6.94p (H119 1.99p). The interim dividend increased by 12% to 3.20p (H119 2.85p) maintaining the group’s progressive policy. Net debt (excluding lease liabilities) of £6.8m (H119 net cash £4.7m) was slightly above the FY19 level of £6.4m. Once again the cash flow performance was better than we had expected. The strong order intake continued at £77.2m (H119 £45.6m), with a period end order backlog record of £206.7m, which provides 83% sales cover for FY20 well ahead of last year. Management expects to meet market expectations for FY20

Tungsten (TUNG); H120 results show progress on strategic aims.

While revenue growth was slightly behind target (+5%) at +4% (ex-Tungsten Network Finance) and cash is down from £2.8m at year end to £1m there are positive indicators. Adjusted EBITDA ex-TNF) was £1.8m vs £0.5m. Transaction volumes on the Tungsten Network were up 7% to 9.6m which we see as an important indicator for the longer-term value of the platform. New sales billings met management targets, the sales pipeline is said to be up 300% since end FY20 and the first sale of the new Total AR product has been made.

John Laing Group (JLG); announced underlying business health remains strong

JLG has announced that the underlying health of the business remains strong, both in terms of PPP project delivery and ongoing value enhancements. However, negative impacts from: strength in sterling in 2H (£50m - 10p share), a decline in power price forecasts (c.£40 million - 8p share) and changes in macroeconomic and tax assumptions, (c.£7m - 1p share) are expected by JLG to lead to a FY19 NAV per share for the full year, “before the impact of foreign exchange…to be marginally below market expectations.” Market consensus NAV per share is currently 355p (Edison 353p/share).

John Laing Group (JLG); announced underlying business health remains strong

JLG has announced that the underlying health of the business remains strong, both in terms of PPP project delivery and ongoing value enhancements. However, negative impacts from: strength in sterling in 2H (£50m - 10p share), a decline in power price forecasts (c.£40 million - 8p share) and changes in macroeconomic and tax assumptions, (c.£7m - 1p share) are expected by JLG to lead to a FY19 NAV per share for the full year, “before the impact of foreign exchange…to be marginally below market expectations.” Market consensus NAV per share is currently 355p (Edison 353p/share).

PPHE Hotel Group (PPH); acquires a freehold site for £12m

PPHE Hotel Group has acquired freehold interest in a site in London SE from a third-party seller at a total investment of £12m. The company plans to develop the site into a hotel, subject to planning permission being obtained.