Edison Investment Research

Destiny Pharma (DEST); post results on US Phase IIb

Results for the US Phase IIb clinical study have been delayed by a quarter to mid-2020, so investors’ attention will now turn to the YE19 study update. However, Destiny’s H119 results showed continuing prudent management and targeted resourcing of the clinical programme, with grant income and a regulatory backdrop that supports novel antimicrobial development.

WANdisco (WAND); interims fell short estimates

Though Wandisco have fallen short of Edison estimates, strengthened partnerships with key cloud partners demonstrate that the company is making strategic progress which underpins FY20 momentum.  FY19 revenue guidance of $24m, implies H2 revenues of $18m, up 59% y-o-y. This growth reflects a substantial strengthening of the order book over the last six months driven by a pipeline of new deals plus the first sales from new products and its strategic deal.

Park Group (PKG); trading in line and implementing strategic plan

Park Group’s AGM statement says that trading in the first five months of the current financial year has been in line with management expectations and provides an update on implementation of the strategic business plan aimed at boosting medium-term growth. Shareholders also approved changing the name of the group to Appreciate Group, which the board believes will better reflect the company’s product and market position as an innovative payments, savings and rewards provider.

Allied Minds (ALM); has announced the sale of its stake in HawkEye 360

Allied Minds has announced the sale of its stake in HawkEye 360 for $65.6m to Advance Publications, a US family office. The transaction is expected to complete in Q419, subject to shareholder approval (shareholders representing 58% of the shares have indicated they will vote in favour).

S&U (SUS); reports H120 results with first half revenues 7% ahead

S&U has reported H120 results with first half revenues 7% ahead to £47.7m with pre-tax profit and EPS (116.5p) both up 3%. The dividend has been increased by 6% to 34p. At Advantage Motor Finance the trends are encouraging against an uncertain macro backdrop. Receivables growth has resumed (+5.8% compared with year end) and the reported risk adjusted yield was slightly up 24.9% versus 24.6%.

Silence Therapeutics (SLN); to receive first research milestone for SLN500

The research milestone relates to the completion of specific preclinical aspects of the SLN500 programme

Silence Therapeutics announced the triggering of the first $2m research milestone for SLN500 under the tie-up with global biopharmaceutical company Mallinckrodt Pharmaceuticals. Mallinckrodt has a choice to license up to two further complement-targeted assets in Silence’s preclinical complement-directed RNAi development programme.

Brady (BRY); highlight a slowdown in new sales

The commodities sector remains attractive

Following its August trading update highlighting a slowdown in new sales, Brady’s interim results were in line with expectations. H119 revenue was £9.5m, 9.5% down on H118 (£10.5m), due to a fall in client project work impacting both services and development revenue and licence revenue. H119 recurring revenue was stable at £7.8m (H118: £7.8m), representing 82% of sales (H1 2018: 74%).  EBITDA was £(1.8)m (H118: £1.5m) and PBT was £(2.5)m (H118: £1.7m). Net cash fell to £1.0m from £4.6m at FY18.

Esker (ALESK); Setting its sights higher

Esker reported another period of strong revenue and profit growth while continuing to invest in product development, consulting and sales & marketing resource. This policy of ongoing investment has fuelled double-digit revenue growth, 80% of which is recurring, over the last five years and supports the company’s premium rating.

Serco Group (SRP); receives £450m contract for Northern Isles Ferry

There is an option for Scottish ministers to extend the contract for a further two years

Serco Group has been selected as a preferred bidder to continue managing and operating the lifeline Northern Isles Ferry Services for passengers and freight between the Scottish mainland and the Orkney and Shetland Islands. The new contract will ensure continuity of service and is anticipated to start in Q4 with a total estimated revenue value to Serco of about £450m over the initial six-year term.

Low & Bonar (LWB); announces recommended cash acquisition

Low & Bonar announced that the trading conditions that impacted performance in H1 continued in H2

FV Beteiligungs-GmbH (FVB) and Low & Bonar have reached an agreement on the terms of a recommended cash acquisition. Under the terms of the agreement, the entire issued and to be issued ordinary share capital of Low & Bonar will be acquired by FVB, a company wholly and directly owned by Freudenberg SE.