Edison Investment Research

Boku Inc (BOKU); on track to meet full-year expectations

Boku Inc announced its unaudited trading update for the six months ending 30 June 2019. The board expects group revenue for H1 2019 to be US$22.5m-US$23m, reflecting growth of more than 33% YoY. Mobile Identity is anticipated to represent 14-16% of group revenue in H1 2019. Total payment volume grew 49% YoY to US$2.3bn in H1 2019. The platform’s monthly active users increased 48% to 15.3m in June 2019.

Watches of Switzerland (WOSG); reports strong FY numbers

Current trading is not quantified beyond being 'encouraging'

Watches of Switzerland has reported a good set of FY numbers after its IPO.  The company had already released revenue, which shows UK LFL growth of 10% and US LFL growth of 7% to give total growth of 22.5%.

2019 earnings forecasts back on a declining trend

Faith in policymakers’ support for corporate profits may yet be tested by markets

Author: Alastair George

Consistent with the weakness in global PMI survey data, we find that a weakening trend in 2019 earnings forecasts has taken hold. We recognise that for many investors corporate fundamentals will matter less than the near-term direction of monetary policy at the present time. However, slowing economic growth does appear to be having a detrimental effect on profits momentum. On an unweighted basis, 2019 forecasts are now 10% lower than a year ago in the UK and eurozone and nearly 15% lower in emerging markets. The US has held up better with a 3% decline in earnings forecasts over the same period.

Focusrite (TUNE); announces strategic acquisition of Pro Audio

ADAM is a leading German developer and global distributor of professional studio monitor loudspeakers

Focusrite has announced the strategic acquisition of Pro Audio, the holding company for ADAM Audio and its subsidiaries (ADAM) for a cash consideration of €18.0m (£16.2m), representing 1.4x price/sales and 18x price/earnings multiples for 2018 and funded entirely from existing cash resources.

Town Centre Securities (TOWN); like-for-like passing rent up 2.6% as of end-June 2019

The company ended its year in line with its expectations.

Town Centre Securities announced its trading update for the financial year ended 30 June 2019. According to Town Centre, the company continued to deliver on the strategy of repositioning its portfolio, investing in its estate and delivering and improving its development pipeline. Town also reported that it continued to produce consistent operational results despite the challenging market, and remains focused on delivering improving long-term returns.

Carr’s Group (CARR); trading in line with board’s expectations for FY 2019

Carr’s announced its trading update for the 19-week period ended 13 July 2019. The impact on the reduced demand for feed and fuel in the UK Agriculture business was partially offset by high levels of farm activity due to good growing conditions, along with ongoing cost management activities, good procurement, and strong positions on raw materials. The group is trading in line with the board’s expectations for the current financial year.

Henderson Intl. Income Trust (HINT); publishes residual net asset value of EIT

IT’s shareholders will receive 1.350157 new ordinary shares of the company for every EIT share held

Pursuant to the circular in connection with the reconstruction and winding up of The Establishment Investment Trust (EIT), the company’s board announced the residual net asset value of EIT as 222.105945p at 11.59pm on 12 July 2019. The Formula Asset Value per share of the company was 164.503807p.

Euromoney Institutional Investor (ERM); trading meets board’s expectations

Reported revenues for three months up to 30 June 2019 were £110.9m

Euromoney announced a trading update for the period from 1 April 2019 to 30 June 2019 ahead of the group’s Capital Markets Day today. Underlying revenues are flat year-on-year. Euromoney is trading in line with the board’s expectations. The Pricing, Data & Market Intelligence segment’s underlying revenues grew 6% in the quarter compared to a 3% increase that was reported for the six months up to 31 March 2019, with a strong performance in subscriptions and a better performance from events than in the first half of the year. The Banking & Finance segment’s revenues went up 1% in the quarter compared to 4% in the half year.

AG Barr (BAG); affected by the introduction of the Soft Drinks Industry Levy (SDIL)

2018 was affected by the introduction of the Soft Drinks Industry Levy (SDIL), the shortage of CO2 and the unseasonably hot summer. Management chose to prioritise volume growth under these circumstances and had made it very clear this was a reasoned decision. The company had also been clear that it would return to managing on a total value basis in 2019, and that the exceptional trading performance of 2018 would not recur. That said, today’s statement makes it clear that trading has been weaker than expected, in particular affected by the disappointing weather, and of course further exacerbated by such warm weather in the comparative period. In addition, there are specific “brand challenges” with Rubicon and Rockstar energy drinks. Action has already been taken to fix these brand issues, but the benefit of these will not be felt until later in H2.

EMIS Group (EMIS); the board remains confident in outlook

EMIS Group announced a trading update for the six months ended 30 June 2019. The group’s net cash was £26.7m and trading for the half year was in line with the board’s expectations, with revenue ahead of the comparative period. The board’s expectations for the full year remain unchanged.