Edison Investment Research

Egdon Resources (EDR); announced an exclusivity agreement

Both NAV and share price total returns remain well ahead of the index over 3 and 5 years

Egdon Resources has announced that it has signed an exclusivity agreement with a large internationally recognised exploration and production company in respect of its P1929 and P2304 licences in the UK Southern North Sea, which contain the Resolution and Endeavour gas discoveries. Resolution has been independently assessed to hold mean Contingent Gas Resources of 231bcf in the Zechstein reservoir.

4imprint Group (FOUR); report demand activity in H2 remains robust

The board expects a strong full year trading performance, with revenue growth of ~16% over 2018

4imprint Group issued an update on group trading performance. 2019 half-year results, announced on 31 July 2019, demonstrated encouraging y-o-y organic revenue growth of 16%. Demand activity in the second half remained robust, with growth in both new and existing customer orders consistent with that seen in the first half.

Team17 (TM17); posts positive trading update

Both NAV and share price total returns remain well ahead of the index over 3 and 5 years

A positive trading update from Team 17 the independent games developer and publisher – “has continued to experience strong customer traction from both new and established games throughout the second half of the year and now expects both adjusted EBITDA and revenue to be ahead of market expectations for the current year.”

Chemring Group (CHG); reports a contract award and year-end update

Board anticipates adjusted operating profit to be slightly ahead of expectations

The company has announced the receipt of a contract award for a further 75 units under the US DoD’s competitive AVCAD (Aerosol and Vapor Chemical Agent Detector) Program of Record, following a successful Critical Design Review earlier this month.

Globalworth Real Estate Inv (GWI); secures a €200m unsecured revolving credit facility

Globalworth Real Estate Investments entered into a new €200m unsecured revolving credit facility (RCF) with a syndicate of its relationship banks and selected new lenders. The RCF has a term of 4.5 years and an additional €50m uncommitted accordion option.

Carclo (CAR); revenue declined 1.0% to £144.9m for FY 2019

Basic proforma unaudited adjusted earnings per share were 7.0p (2018: 9.8p)

Carclo announced its results for the full year ending 31 March 2019 (2019). Proforma unaudited adjusted operating profit reduced £2.4m to £8.4m, with underlying operating profit down £9.5m to £1.3m. Proforma unaudited adjusted PBT fell £2.7m to £6.4m, with underlying loss before tax of £0.7m.

Lookers (LOOK); expects underlying PBT to be c. £20m for full year

The balance sheet remained underpinned by a strong property portfolio.

Lookers announced its trading update for the period ended 30 September 2019 (Q3). During the period, trading in new vehicles was below the board’s expectations, while the used car market remained relatively stable. Like-for-like (LFL) unit sales of new cars decreased by 3.2%, and LFL unit sales of used cars increased by 2.6%. Net debt was £73.9m as of 30 June 2019.

PPHE Hotel Group (PPH): deliver against a strong comparative

Q319 has seen PPHE deliver (eg like-for-like RevPAR +4%) against a strong comparative. Unsurprisingly, given positive market reports (Q319 RevPAR up 5%, per STR), London, the company’s largest profit source, has been the driver, boosted by maturing properties as well as the newly-repositioned Holmes Hotel.

Duke Royalty (DUKE); issues c. £17.45m of equity

Duke Royalty has raised an additional £892,287 by way of an open offer. The fundraising comes as the company received final valid applications from qualifying shareholders for 2,027,925 open offer shares, including applications under the excess application facility.

Smith & Nephew (SN.); revenue up 4.0% to $1,246m

Smith & Nephew announced its trading report for the third quarter ended 28 September 2019. The company’s reported growth of 6.5% includes a 140bps foreign exchange headwind and a 390bps benefit from acquisitions.