Edison Investment Research

Serco Group (SRP); signs £560m contract with Bupa

Full operational service under the new contract will start on 1 July 2019.

Serco has announced that it has signed a £560m contract with Bupa Health Services Pty to support the Australian Defence Force through the provision of National Garrison Health Services (NGHS). The contract has an initial term of six years and up to four, one-year extensions.

Avacta Group (AVCT); announces that Moderna exercised its option for an exclusive product license

According to the agreement terms, the group may receive undisclosed payments upon future clinical development milestones

Avacta Group announced that ModernaTX has exercised its option to enter into an exclusive licensing agreement with regard to certain Affimers. The agreement is against a potential therapeutic target that has been part of an ongoing research collaboration between the two companies.

Baker Steel Res Tst (BSRT); acquires Futura asset for AU$6m

The properties, subject to royalties, contain significant mineral resources at 2.6 billion tonnes of coal

Baker Steel announced the acquisition of 0.75% in Gross Revenue Royalty (GRR) over the future production of coal from the Wilton and Fairhill properties for AU$6m. It also has the option of acquiring 0.25% GRR on Futura’s metallurgical coal assets in Queensland, Australia, for another AU$2m.

Euromoney Institutional Investor (ERM); trading in line with board expectations

Trading continues the previous year's trends, with the full year outlook unchanged.

Euromoney Institutional Investor announced its trading update for the period from 1 October 2018 to 31 December 2018, ahead of the group’s AGM at 9:30am today. Revenue for the three months to 31 December 2018 was £92.6m vs. £100.8m in 2017. That’s after the disposal of the Global Markets Intelligence Division in April 2018.

Exploration Watch: 2019 exploration wells

Worldwide exploration continued to be dominated by ExxonMobil’s ongoing success offshore Guyana, with five discovery wells and the opening up of two new plays. In 2019, this activity will continue, but will be joined by two separate efforts led by Tullow Oil and Repsol that will look to extend this success to the inboard Orinduik and Kanuku blocks. In Latin America attention will also be focused on Mexico, as drilling extends into deeper waters alongside further exploration of the shallower Sureste Basin. In the North Sea, potential high impact wells in the Barents Sea and West of Shetland were deferred into 2019 and activity looks set to increase in these areas this year. Onshore, we look at high impact wells in the Nanushuk trend of Alaska’s North Slope and the frontier region of Western Mongolia. Click here for full report

PPHE Hotel Group (PPH); continues to deliver with a firm end to the year

The current period should see continued material payoff from recent transformative investments

PPHE continues to deliver with a firm end to the year, reinforcing confidence that expectations for 2018 will be met (results due in late February). Disclosure of 5% like-for-like RevPAR growth for the full year suggests c. 8% in the final quarter, which is impressive, as it is not materially boosted by either currency or a buoyant Croatia (Q4 is its low season).

Stock Spirits (STCK); to acquire Distillerie Franciacorta SpA

The purchase price for the business is up to €23.5, a multiple of c. 11.8 on pro-forma operating profit of c. €2m

Stock Spirits is acquiring Distillerie Franciacorta SpA in Italy for a total of €26.5m. The company says this establishes it as the leading branded grappa player in the Italian off trade. 

Glaxosmithkline (GSK); AB generic approved as substitute for Advair

For most of 2018 GSK had two versions of its guidance in the event of Advair generics

Two and a half years after the last patent expired on its blockbuster inhaled medicine, Advair to treat asthma and chronic obstructive pulmonary disease, the FDA tonight approved the first AB generic that is directly substitutable for Advair (in some states, without consultation with the physician).

Britvic (BVIC); confirms trading in the first quarter was in line with expectations

Britvic’s growth record to date has been a five-year EPS CAGR of 9.8%

Britvic, supplier of Pepsi Max, Robinsons and R Whites, confirms today that trading in the first quarter was in line with expectations. Reported revenue increased 4.5% to £352.4m. Organic constant currency revenue, excluding soft drink levies, grew 1.5% to £337.3m.

Target Healthcare REIT (THRL); NAV total return of 2.3% for the quarter

The company declared a second interim dividend of 1.64475p per share

Target Healthcare REIT announced its unaudited quarterly NAV. It also provided an update on its corporate activity during the quarter, and declared its second interim dividend. Like-for-like value of the operational portfolio grew 1.6%. Total portfolio value stood at £463.9m, comprising 61 assets.