Edison Investment Research

Chemring Group (CHG); reports performance in line with expectations

Chemring's board has declared an interim dividend of 1.2p per ordinary share to be paid on 13 September 2019.

Chemring’s revenue increased by 5% to £139.3m (H1 2018: £133.1m), while underlying operating profit increased 4% to £12.1m (H1 2018: £11.6m) and underlying EPS was up 22% to 2.8p (H1 2018: 2.3p). Overall, half-year performance was in line with expectations.

Martin Currie Asia (MCP): announces its intention to wind down

A further update will be given as soon as practicable

Martin Currie Asia Unconstrained Trust has decided to voluntarily liquidate the company. Having reported on its intentions, the company will provide shareholders the option of rolling some or all of their shares into an open ended fund managed by Martin Currie Investment Management Limited, within the Legg Mason Investment Funds ICVC umbrella. The alternative will be a cash exit for shareholders.

UKCS 31st round awards reflect ongoing shift in mix of North Sea companies

37 licences have been offered to 30 companies in the 31st Offshore Licensing round, which focused on frontier areas of the North Sea. The round has followed recent trends seen in the basin, as European supermajors concentrate on specific areas and US companies leave the region to focus on US shale opportunities. Shell, BP, Total and Equinor are all represented and of these, Equinor has picked up the most awards with five, including four as operator.

Palace Capital (PCA); PBT at £6.4m for year ended 31 March 2019

Palace Capital posted its annual results for the year ended 31 March 2019. Adjusted PBT and EPS stood at £8.9m and 17.3p, respectively. The dividend was maintained at 19.0p, net assets decreased 1.6% to £180.3m and EPRA NAV stood at 407p. LTV of 34% was within the target range and the average cost of debt reduced to 3.3%.

discoverIE Group (DSCV); posts strong financial and operating performance

Record year end order book of £139m

discoverIE announced its preliminary results for the year ended 31 March 2019. Group sales for the year increased by 13% to £438.9m and by 14% at constant exchange rates (CER). Underlying operating profit increased by £6.1m to £30.6m and underlying PBT increased by £5.3m to £27.2m (up 24%).

The Mission Marketing Group (TMMG); reports conditions of Growth Share Scheme met

A total of 17 individuals were invited to participate in the scheme

The Mission Marketing Group announced that the performance condition of its Growth Share Scheme has been met. This scheme was introduced in February 2017 to incentivise senior management to increase shareholder value. The scheme’s participants were invited to subscribe, at a nominal value, for Ordinary A shares (Growth Shares). These could be exchanged in April 2020 for an equivalent number of ordinary shares of 10p each, if the group’s share price equalled or exceeded 75p for at least 15 business days during this period. If the performance condition was not met, the growth shares would have no value.

Avacta Group (AVCT); plans clinical trial for early 2020

The study is expected to demonstrate improved tolerability over standard doxorubicin

Avacta Group plans to submit an IND/CTA application in early 2020 to test the TMACTM linker in a phase I study in patients with selected solid tumours. In an acceleration of the tumour microenvironment activated drug conjugates (TMAC) programme, Avacta is currently in a position to test its TMAC linker in humans in early 2020, ahead of its original plans.

Smith & Nephew (SN.); completes acquisition of Brainlab’s orthopaedic joint reconstruction bus

Smith & Nephew has completed an acquisition of the Brainlab orthopaedic joint reconstruction business for an undisclosed sum. The acquisition supports Smith & Nephew’s strategy to invest in technologies that promote its multi-asset digital surgery and robotics business.

Low & Bonar (LWB); agrees to dispose of Construction Fibres business for €6.4m

Low & Bonar has agreed to dispose of its Construction Fibres (CF) business (comprising a part of its Civil Engineering division) to Adfil NV and Industria BV for a cash consideration of €6.4m. Adfil NV will purchase the business and production assets, while Industria BV will purchase the CF factory site.

GCP Student Living (DIGS); raises £5m through issuing 3,076,923 ordinary shares

GCP Student announced that it has raised gross proceeds of £5m through an issue of 3,076,923 ordinary shares at a price of 162.5p per share. Recently, GCP Student announced a potential placing of new ordinary shares to fund the acquisition of Scape Canalside.