Edison Investment Research

Renewi (RWI); commercial division is the standout performer

In amongst a complex set of numbers (IFRS16, business disposals) Renewi’s Commercial division is the standout performer showing growing in revenue, underlying EBIT and margin (in both the Netherlands and Belgium), despite some market challenges.

GCP Student Living (DIGS); announces first interim

GCP Student Living has announced a first interim dividend of 1.57p per ordinary share related to the quarter ended 30 September 2019. This dividend will be paid on 16 December 2019 to ordinary shareholders on the register as on 15 November 2019.

Plant Health Care (PHC); raises £2,350,386 through issue of shares

Plant Health Care has conditionally raised £2,350,386 through the issue of 34,564,500 new ordinary shares (subscription shares) at £0.068 per share to Ospraie Ag Science (the subscription), the venture capital arm of Ospraie Management.

OTC Markets (OTCM); ahead in all three segments

Revenues were ahead in all three segments (OTC Link, Market Data Licensing and Corporate Services) with the total up 7% y-o-y. As in the previous quarter investment in IT and personnel and costs in acquired businesses has pushed up operating expenses, which were up 16%. This meant profit before tax was 11% lower at $4.75m. The tax rate was lower than we estimated and net profits were down 8% y-o-y at $4.0m. 

Tyman (TYMN); trading update points to flattish US markets

Today’s trading update points to flattish US markets and has seen some weakening in the UK and RoW markets that it serves since the half year. Nevertheless, management expects to report y-o-y progress in revenue and operating profit for the year as a whole, performing in line with consensus EBIT of £84.8m (slightly above our £83.9m estimate and versus the c £83.6m reported for FY18). As at the half year, favourable FX and full year acquisition effects contribute to this expected outturn, though to a lesser extent than seen in H1 we believe.

Endeavour Mining (EDV); considerably ahead of our forecasts

Notwithstanding the fact that quarterly forecasts come with a fairly stringent health warning, Endeavour Q3 results were nevertheless considerably ahead of our forecasts, despite a challenging rainy season in which more than four times as much precipitation fell than in the equivalent period in Q316, for example. The effects of the weather were notable particularly in individual mines’ mining costs (as opposed to processing or G&A costs), which were flat or increased in every instance. However, production rose at three of Endeavour’s four mines – the exception being Hounde, where output dropped by 6.1% quarter-on-quarter.

Earnings forecasts: 2019 wraps up with a whimper

Steady downgrades over the last 12m leave 2019 profits little higher than 2018

Author: Alastair George

Trainline (TRN); Post FY results

In its first set of full results since the IPO, Trainline has delivered strong growth for its first half.  Revenue growth of 29% had already been reported at the trading update in September. Adjusted EBITDA growth of 99% is strong and has been driven by volume growth and operating leverage. The adjusted EBITDA margin increased from 21.1% to 32.5%.

Euromoney Institutional Investor (ERM); announces an update on the strategic review

FY 2019 results are slightly above the board's expectations

Euromoney announced an update on the strategic review announced in September and trading for the year ended 30 September 2019 (FY 2019). Adjusted revenue is expected to be c. £401m for FY 2019. This reflects a continuation of good growth in the Pricing, Data & Market Intelligence segment, with underlying revenue up c. 4% and c. 10% growth in Fastmarkets subscriptions.

Nanoco Group (NANO); announces formal sale process

The company currently expects proposals to be submitted in mid-December

The company confirmed it has entered into preliminary discussions with certain parties about its potential sale. It also announced today that it is undertaking a review of all strategic options, including its potential sale.