Edison Investment Research

Severfield (SFR); agrees to acquire Harry Peers for a net initial consideration of £18.0m

It plans to fund the acquisition consideration using a combination of cash reserves and a term loan

Severfield has entered into an agreement to acquire 100% of Harry Peers & Co Limited’s share capital for a net initial consideration of £18.0m payable in cash on completion. A performance-based deferred consideration is in place, which could increase the purchase price by up to £7.0m, which would be payable in late 2020.

Globalworth Real Estate Investments (GWI); plans to raise additional equity

Additional equity capital to be raised via a placing of up to ~28.5m new shares

The company announced its intention to raise additional equity capital via a placing of up to approximately 28.5m new shares to existing and new investors. It plans to leverage the strong pipeline of acquisition opportunities identified by the company.

Greggs (GRG); continued to trade very strongly in 3Q19

Total sales grew 12.4% for the 13 weeks ending 28 September 2019

The company announced its third quarter trading update. Company-managed shop like-for-like sales up 7.4% for the 13 weeks ending 28 September 2019. Total sales for the nine months ending 28 September 2019 grew 13.9% and company-managed shop like-for-like sales rose 9.4%.

KEFI Minerals (KEFI); drilling commences at Hawiah Prospect

KEFI Minerals provided an update on exploration activities at its Hawiah Exploration Licence in Saudi Arabia. Drilling rig and team have been mobilised to Hawiah for a programme designed to test the extent of gold mineralisation in the upper oxidised zone and for a significant subsurface copper-gold-zinc deposit.

Hutchison China MediTech (HCM); announces results of Phase III study of surufatinib

Discusses surufatinib phase III and U.S. phase I/Ib efficacy and safety data presented at the 2019 ESMO Annual Meeting

Hutchison China MediTech presented the results of the Phase III study of surufatinib in advanced neuroendocrine tumours – extra-pancreatic – at the 2019 European Society for Medical Oncology Congress (ESMO). The study met the predefined primary endpoint of progression-free survival (PFS) early. Patients treated with surufatinib were 67% less expected to see their disease progress or die compared with patients on placebo control, assessed by local investigators.

Numis (NUM); indicate that second half revenues remained in line

Numis’ full year trading update (year end September) indicated that second half revenues remained in line with the first half. Full year revenues are therefore expected to see a mid to high teens percentage decline YoY with profits falling further given the impact of operational gearing. Investment banking has been particularly affected by lower M&A and capital markets activity while equity trading activity has also been depressed.

Brady (BRY); interim results were in line

Following its August trading update highlighting a slowdown in new sales, Brady’s interim results were in line with our expectations. H119 revenue was £9.5m, a 9% fall vs H118, with an EBITDA loss of £1.8m and a PBT loss of £2.5m. Net cash fell to £1.0m from £4.6m at FY18. Recurring revenues represented 82% of total revenues.

Raven Property Group (RAV); approves the issue of 121,820 shares

These new shares will rank on par with all existing preference shares

Raven Property Group announced that it has approved the issue and allotment of 121,820 new preference shares of 1p each in the company with ticker RAVP subsequent to the payment of the scrip preference share dividend.

Sumo (SUMO); report they are on track to meet market expectations,

Reported revenue was £20.8m (H1 18: £19.3m), with gross profit of £9.3m

Sumo, the video games co-developer and services provider, announced its interim results today, indicating that it was on track to meet market expectations, though with “considerable” H2 weighting in FY19.

Ebiquity (EBQ); interim figures reflect its transitional phase

Ebiquity announced its interim results for the six months ended 30 June 2019. Underlying operating profit stood at £3.4m (2018: £3.7m). Underlying earnings per share grew to 2.6p, and net debt reduced significantly to £7m.