Edison Investment Research

Epwin Group (EPWN); HY trading update; revenue better than anticipated; PBT expected to be in line

Stock up 1.06% to 71.80p at 8:40

In its 1H trading update, EPWN noted that revenues were better than anticipated at £142.4m (H1 2017: £149.9m), despite adverse weather in early 2018. It expects full-year profit before tax to be in line with market expectations (2H weighted).

Town Centre Securities (TOWN); Lynda Shillaw to join as new property director

Stock down 1.29% to 276.40p at 8:32

TOWN has announced the appointment of Lynda Shillaw as its new property director. Lynda will join the board on 5 November 2018, after the retirement of current property director, Richard Lewis.

GAME Digital (GMD); YE trading update: 2H18 GTV declines 1.6%

Stock down 0.54% to 27.40p at 8:39

GMD provided a trading update for 2H18/YE18*. The group’s gross transaction value (GTV) grew 1.8% y/y to £907.2m in YE18. The group’s revenue is expected to decline slightly to £780m (2017: £782.9m). 2H18 GTV declined 1.6% y/y to £320.4m.

Game Digital’s year end prime measure of sales grew 1.8%

Game Digital has finished its trading year to July with cost measures countering trading pressures and with the strategically important BELONG gaming arena concept moving into action as the first larger sites open.

Southern gas corridor to the EU nears agreement

The EU’s desire to diversify sources of gas supply, reducing its dependency on Russia, has driven interest in developing a southern gas corridor from the East Mediterranean towards Europe. Following last month’s meeting between Trump and European Commission President Jean-Claude Juncker, an agreement between both parties was reached, and the EU is poised to raise its US LNG imports in the coming years. In addition, Egypt and Cyprus reaching an agreement to connect the Aphrodite gas field to Egypt highlights a new potential gas supply source to the EU.

Keywords Studios (KWS); acquires Studio Gobo and Electric Square for £26m

Stock up 1.58% to 1,798.00p at 8:08

KWS has acquired Studio Gobo Ltd and Electric Square Ltd (together, “Gobo”) for a total consideration of up to £26m from the founders and other members of the management team. The acquisition is expected to be earnings accretive in the first year.

BlackRock Emerging Europe (BEEP); board proposes voluntary liquidation

Stock flat at 316.5p at 8:15

BEEP’s board proposes to put the company into voluntary liquidation. It also proposes to offer shareholders the option of receiving cash at net asset value less costs or rolling over their investments into new C shares of BlackRock Frontiers Investment Trust (BRFI).

Regional REIT (RGL); acquires a portfolio of eight offices for £31.4m

Stock up 0.48% to 95.36p at 8:08

RGL announced purchase of a portfolio of eight offices totalling ~275,000 sq ft for a consideration of £31.4m. These properties are let to 24 tenants, and should provide a net income of approximately £2.81m annually (net initial yield of 8.66%).

Pan African Resources (PAF); announces inaugural gold pour at Elikhulu retreatment plant

Stock down 0.40% to 07.45p at 8:04

PAF announced the inaugural gold pour at its Elikhulu tailings retreatment plant (‘Elikhulu’ or ‘the project’). After commissioning (estimated by September 2018), the plant is expected to produce ~55,000oz of gold annually (operational life – 14 years), at an all-in sustaining production cost between USD650/oz and USD700/oz.

Amur Minerals (AMC); drilling programme remains well advanced

Stock up 0.79% to 03.85p at 8:10

AMC provided a drilling update in relation to its 2018 drill programme at its wholly owned Kun-Manie nickel copper sulphide project. A total of 48 diamond core drill holes (7,457.4 metres) were completed in July, bringing the total drilling until July to 114 drill holes containing a total of 16,558.3 metres (82% of the 20,300 planned metres).