Broker Upgrades and Downgrades & Key UK Corporate Snapshots 29 February 2016

UK Broker Upgrades / Downgrades

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Amara Mining Plc (AMA.L)  Announced that the Boards of Perseus Mining Limited and Amara Mining Plc have reached agreement on the terms of a recommended combination of Amara with Perseus, pursuant to which Perseus will acquire the entire issued and to be issued share capital of Amara in exchange for New Perseus Shares and Warrants. It is intended that the Combination is implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act. The Combination will create a leading mid-tier West African gold producer, delivering significant benefits to shareholders of the Combined Group. The Combined Group will retain the name Perseus Mining Limited. On completion of the Combination, Jeff Quartermaine will become Managing Director and Chief Executive Officer of the Combined Group and two Amara Directors, John McGloin and Alex Davidson, will be invited to join the Perseus Board as Non-Executive Directors.

Amino Technologies Plc (AMO.L)  Announced that Karen Bach joins the Company as an Independent Non-Executive Director with immediate effect. Karen also joins the Audit and Remuneration Committees. This will be in succession to Dr Colin Smithers who retires from his position as Non-Executive Director from today. Also announced, that its Annual Report and Accounts for the financial year ended 30 November 2015 (“Annual Report”) and Notice of Annual General Meeting (“AGM”) have been posted to shareholders. As previously announced, the Annual Report is also available to view on the Group’s website: www.aminocom.com. The AGM of the Company will be held at the offices of finnCap, 60 New Broad Street, London EC2M 1JJ on Wednesday 23 March 2016 at 10.00am.

Aqua Bounty Technologies Inc (ABTU.L)  Announced, in its preliminary financial results for the year ended 31 December 2015, that net loss narrowed to $7.03 million from $7.13 million recorded in the previous year. Basic and diluted net loss per share stood at $0.05, unchanged from 2014. Also, the company announced that it would be holding its Annual General Meeting on 26 April 2016 at 08:30 a.m. (Eastern Daylight Time) at the Nine Zero Hotel, 90 Tremont Street, Boston, Massachusetts. Stockholders of record on 18 March 2016 shall be entitled to vote at the AGM.

Assura Plc (AGR.L)  Announced that the company’s Non-Executive Chairman, Simon Laffin has joined the Board of Watkin Jones as an Independent Non-Executive Director.

Barclays Plc (BARC.L)  Announced that the Board has been continuously evaluating its strategic options with respect to its shareholding in Barclays Africa Group Limited (BAGL) and will update the market during its announcement of its results.

Beowulf Mining Plc (BEM.L)  Announced, in its unaudited financial results for the year ended 31 December 2015, that operating loss widened to £1.77 million from £1.03 million posted in the same period preceding year. The company’s loss before tax stood at £1.76 million, compared to a loss of £3.1 million reported in the previous year. The basic and diluted loss per share stood at 0.38p compared to loss of 1.0p reported in the previous year. The company’s cash and cash equivalents stood at £0.352 million (2014: £0.186 million).

Brown (N.) Group Plc (BWNG.L)  Announced restatements of its debtor impairment provisions and consequent increases to reported profits. This is as a direct result of a change in the technical interpretation of this accounting standard and in no way affects the way in which we have operated or will operate our business. An adjustment to reduce net assets at 1 March 2014 by between £45 million and £55 million. This reflects the impact on net assets from an increase in the provision against debtors within payment arrangements, net of anticipated associated tax impacts. A similar, albeit lower, net asset adjustment will be required as at 28 February 2015. These net asset adjustments reflect an increase in the debtor impairment provision level from c.8.0% to a range of between 17.5% and 19.0% as at 1 March 2014; from c.6.5% to a range of between 15.5% and 16.5% as at 28 February 2015; and an estimated increase in the debtor impairment provision to a range of between 14.5% and 15.5% for the year ended 27 February 2016. The net result of the adjustments above is an increase to expected Profit before Tax for the year ended 27 February 2016 of c.£4 million to £7 million and of c.£3 million to £4million for the previous year; and an increase to expected Profit after Tax for the year ended 27 February 2016 of c.£3 million to £6 million and of c.£2 million to £3 million for the previous year.

Bunzl Plc (BNZL.L)  Announced, in its annual results for the year ended 31 December 2015, that revenues increased to £6,489.7 million from £6,156.5 million recorded in the previous year. Profit after tax widened to £232.7 million from £210.7 million. The board recommended a final dividend of 26.25p. This brings the total dividend for the year to 38.0p, up 7% compared to 2014. Separately, the company announced that it has completed two further acquisitions in Brazil and the US and has entered into an agreement to acquire a business in Turkey. Finally, the Company has agreed to acquire Bursa Pazari Ýnþaat Sanayi ve Ticaret AS. The Company has initially agreed to acquire 80% of the shares with an option to purchase the remaining 20% in the future.

Cable & Wireless Communications Plc (JUP.L)  Announced, in its offer update, that the Exchange Ratio Calculation Time were 29 February 2016 (being the date of this announcement), under the terms of the Transaction, the Exchange Ratio and the Alternative Exchange Ratio would be calculated such that: under the Recommended Offer, CWC Shareholders would be entitled to receive, for each CWC Share, 0.008301 New Liberty Global Class A Ordinary Shares and 0.020321 New Liberty Global Class C Ordinary Shares, as well as the Special Dividend; under the First Dual Share Alternative, CWC Shareholders would be entitled to receive, for each CWC Share, 0.005593 New Liberty Global Class A Ordinary Shares, 0.013693 New Liberty Global Class C Ordinary Shares, 0.002343 New LiLAC Class A Ordinary Shares and 0.005739 New LiLAC Class C Ordinary Shares, as well as the Special Dividend; and under the Second Dual Share Alternative, CWC Shareholders would be entitled to receive, for each CWC Share 0.004601 New Liberty Global Class A Ordinary Shares, 0.011265 New Liberty Global Class C Ordinary Shares, 0.002343 New LiLAC Class A Ordinary Shares and 0.005739 New LiLAC Class C Ordinary Shares, as well as the Special Dividend. At such illustrative Exchange Ratio and Alternative Exchange Ratio: the consideration under the Recommended Offer would represent an indicative value of 78.04p per CWC Share (including the Special Dividend and using the Closing Price of Liberty Global Shares on 26 February 2016); the consideration under the First Dual Share Alternative would represent an indicative value of 74.04p per CWC Share (including the Special Dividend and using the Closing Price of Liberty Global Shares on 26 February 2016); and the consideration under the Second Dual Share Alternative would represent an indicative value of 65.07p per CWC Share (including the Special Dividend and using the Closing Price of Liberty Global Shares on 26 February 2016).

Chamberlin Plc (CMH.L)  Announced, in its trading update or the financial year ending 31 March 2016, that results for the full year are expected to show underlying profit before tax ahead of current market expectations on slightly lower revenues. Further it also announced a major new automotive contract win worth an additional £3.3 million of sales per annum and a new machining facility will be established with an initial £1.6 million of investment which will be funded through a Regional Growth Fund grant and new debt facilities from HSBC and production at the new facility and is scheduled to commence in early 2017.

Corero Network Security Plc (CNS.L)  Announced its first significant order for its SmartWall Threat Defense System (“SmartWall TDS”) from a European regional service provider. The order, valued at more than $200,000 follows a successful Proof of Concept trial during which Corero was able to demonstrate the effectiveness of automatic, in-line, real-time DDoS protection. The customer is one of the fastest growing service providers in Belgium.

DX (Group) Plc (DX..L)  Announced, in its unaudited interim results for the six months ended 31 December 2015, that revenue stood at £141.6 million, compared to £147.4 million in the same period last year. EBIDTA stood at £5.6 million, compared to £14.2 million. Profit before tax before exceptional item was £2.4 million, compared to £10.7 million. Adjusted earnings per share before exceptional item stood at 1.1p, compared to 4.3p. Further, interim dividend of 1.0p per share proposed (2014: 2.0p), subject to shareholder and Court approval of a capital reduction. Board commitment to full year dividend of 2.5p per share.

Elecosoft Plc (ELCO.L)  Announced the appointment of Jason Ruddle as an Executive Director of the company.

Hiscox Limited (HSX.L)  Announced, in its preliminary results for the year ended 31 December 2015, that gross written premium rose to £1944.2 million from £1756.3 million posted in the preceding year. The company’s profit before tax stood at £216.1 million, compared to a profit of £231.1 million reported in the previous year. The basic earnings per share stood at 72.8p compared to earnings of 67.4p reported in the previous year. The company further stated that the board has proposed a final dividend of 32.0p per share.

Home Retail Group Plc (HOME.L)  Announced that all conditions relating to the sale of Homebase have been satisfied and the disposal was duly completed on 27 February 2016.

JPMorgan Emerging Mkts Invest Trust (JMG.L)  Announced the indicative gearing ratios of the business as at 25 February 2016.

Jupiter Fund Management Plc (JUP.L)  Announced, in its final results for the year ended 31 December 2015, that its reported revenue stood at £403.5 million, compared to £388.3 million in the preceding year. Profit after tax was £132.1 million compared to £125.8 million. The company’s diluted earnings per share was 28.5p, compared to 27.2p.

KEFI Minerals Plc (KEFI.L)  Announced, in its progress report for its Tulu Kapi Gold Project in Ethiopia, that the project remains on track for financing mid-2016 and production end-2017. FEED (Front-End Engineering and Design) has been delivered on schedule, this month, by the Engineering, Procurement and Construction contractor (via a fixed-price, lump-sum arrangement). KEFI’s expanded Social Performance Team has refined the plans for livelihood restoration of community members to be resettled and for the community development foundation. The Company now also plans to build an airstrip, which will provide advantages operationally for KEFI and for the community. Capital estimate remains at c. US$120 million (including working capital) and c. US$130 million after adding transaction, financing and insurance costs. Stress testing of the financial projections re-affirm robust cash flows for coverage of all planned commitments.

Keller Group Plc (KLR.L)  Announced, in its final results for the year ended 31 December 2015, that its reported revenue stood at £1,526.4 million, compared to £1,599.7 million in the preceding year. Profit after tax was £26.3 million compared to loss net of tax of £1.2 million. The company’s diluted earnings per share was 85.4p, compared to loss per share of 4.2p.

Macau Property Opportunities Fund Limited (MPO.L)  Announced, in its interim results for the six months ended 31 December 2015, that operating loss jumped to $38.5 million from $16.0 million posted in the same period preceding year. The company’s loss before tax stood at $41.1 million, compared to a loss of $18.2 million reported in the previous year. The basic and diluted loss per share stood at 0.48c compared to loss of 0.21c reported in the previous year. The company’s cash and cash equivalents stood at $17.5 million (31 December 2014: $4.6 million).

Marlowe Holdings Limited (MRL.L)  Announced its intention to merge with Marlowe, to effect a re-domicile to the UK, and the conditional acquisition, by Marlowe, of Swift, a leading national provider of fire protection and security systems services in the UK, for a total consideration of £13.0 million. Marlowe also announced an underwritten subscription with new and existing shareholders to raise £3.0 million in order to part finance the consideration for Swift and provide resources to support Marlowe’s acquisitive growth strategy.

Ocado Group Plc (OCDO.L)  Announced that it has agreed headline terms with Morrisons for it to share some of the capacity of its customer fulfilment centre currently under construction in Erith, south east London. Under these terms the company will also provide Morrisons with the software necessary to fulfil online orders from its stores, primarily intended to enable online services in areas not currently serviced by a CFC. The parties are working on the detailed terms of the agreement; there can be no certainty that an agreement will be reached.

Onesavings Bank Plc (OSB.L)  Announced that it has completed the purchase of a portfolio of UK 2nd charge mortgages (the “Portfolio”) from Melbourne Mortgages Limited. The Portfolio has a principal outstanding balance of £14 million as at 31 December 2015, is well seasoned and predominantly performing. The Transaction is in the ordinary course of business for OSB and has been satisfied by cash from the Company’s existing resources.

Ormonde Mining Plc (ORM.L)  Announced, in its update on progress at the Barruecopardo Tungsten Project in Salamanca, Spain, that 100% of Priority 1 1 capital equipment orders and 60% of Priority 2 2 capital equipment orders have been placed. Further, the Plant Construction Management contract has been awarded to Fairport Engineering Ltd. 30% of project capital budget is now committed, with capital expenditure costs running below budget. Other progress includes the 80% installation of potable water feed line and 96% of land ‘option to purchase’ agreements has been exercised. Further, resource expansion drilling campaign is 85% complete and assay results are being received and evaluated. Focus of activities over the coming period will be on execution of onsite earthworks compaction trials and commencement of water dam construction works.

Palace Capital Plc (PCA.L)  Announced that it has acquired 249 Midsummer Boulevard, Milton Keynes for a consideration of £7.2 million in an off market transaction. The consideration was satisfied from the Company’s existing cash resources.

Pantheon Resources Plc (PANR.L)  Announced, in its operational update on its VOS#1 well, Tyler County, onshore East Texas, that having earlier completed a pressure build up test on the VOS#1 discovery, the operator Vision has completed a diagnostic spinner survey in order to determine the relative flow contribution from the perforated intervals and to identify more accurately where flows are being restricted to determine the optimal remediation procedure. Vision has subsequently made a further detailed analysis of a number of wells in the nearby Double A Wells field, which are also known to have experienced restricted flow rates during testing. Additionally, following the successful 2015 exploration drilling programme, which validates the geological modelling of the firm’s licence areas, the next objective is to exploit commercially the full potential of the acreage portfolio, taking advantage of falling costs in the mid and upstream sectors of the industry.

Polymetal International Plc (POLY.L)  Announced that the company has posted an updated company presentation on its website. The company reconfirms its production guidance for 2016-2019 (after restatement of the gold/silver price ratio to 1/80) and provides production guidance for 2020 which will comprise 1,600 Koz of gold equivalent. Given the persistent change in gold/silver market price ratio, the company has changed the gold/silver ratio used in presenting gold equivalent (GE) production from 1/60 to 1/80.

Proteome Sciences Plc (PRM.L)  Announced that after closing 2015 with a good increase in revenues in the second half, the current year has started well with a strong order book and a growing pipeline in biomarker services. Following the addition of a further Fusion mass spectrometer in Q4 that doubled the levels of SysQuant®/TMTcalibrator™ production, the increased capacity is being fully utilised in 2016 with four customer projects completed and the volume of customer enquiries rising on a monthly basis. Importantly we are also gaining more repeat business with two significant service contracts signed using SysQuant® and TMTcalibrator™ together totalling £500,000 and with further contracts in discussion. These revenues will fall into the current financial year. The company is delighted that the encouraging trends and growth across the business in 2015 have continued into the new year. Proteome Sciences remains firmly on track to deliver a significant increase in revenue from biomarker services and TMT® in 2016 and the possibility of further services contracts and developments in licensing.

Quartix Holdings Plc (QTX.L)  Announced, in its final results for the year ended 31 December 2015, that its reported revenue stood at £19.67 million, compared to £15.33 million in the preceding year. Profit after tax was £5.01 million compared to £4.03 million. The company’s diluted earnings per share was 10.53p, compared to 8.55p.

Reach4Entertainment Enterprises Plc (R4E.L)  Announced in its trading statement ahead of its results announcement for the year ended 31 December 2015, which will be announced before the end of May 2016, that as previously reported, the Group delivered an encouraging set of half year and third quarter results and trading has continued well in the last quarter of the year, with the expected seasonal uptick in revenues. The company therefore expects to report revenue, EBITDA and statutory profit before tax for the full year in line with market expectations. SpotCo in New York continues to maintain a strong market position and while 2015 couldn’t match the exceptional performance in 2014, trading in 2015 was very satisfactory. Dewynters in London has also performed well with actions to reduce costs helping to produce an increase in profit contribution for the year. On 04 December 2015, the company announced that it had successfully completed an equity placing to raise £4.0 million and secured a three-year debt facility of £9.5 million with PNC Business Credit, which enabled the Group to refinance its existing debt facility with Allied Irish Bank. The results will include a net exceptional gain of £4.9 million for the write down of the Existing Facility, related fees from the re-financing, and other exceptional income/expenses the business has incurred in the year.

RTC Group Plc (RTC.L)  Announced, in its audited results for the year ended 31 December 2015, that its revenues rose to £64.9 million from £50.9 million posted in the same period preceding year. The company’s profit before tax stood at £1.3 million, compared to a profit of £1.0 million reported in the previous year. The basic earnings per share stood at 7.85p compared to earnings of 5.92p reported in the previous year. The company further stated that the board has proposed a final dividend of 2.0p per share, amounting to £273,263, subject to shareholders’ approval.

Senior Plc (SNR.L)  Announced, in its results for the year ended 31 December 2015, that revenue stood at £849.5 million, compared to £820.8 million in the same period last year. Operating profit stood at £72.3 million, compared to £89.6 million. Adjusted profit before tax was £99.3 million, compared to £102.6 million. Basic earnings per share stood at 11.59p, compared to 15.25p. The Board is proposing a final dividend of 4.36p per share. This would bring total dividends, paid and proposed for 2015 to 6.20p per share, representing an increase of 10% over the prior year. In Aerospace, the company expects further revenue growth in 2016 with a stronger profit in the second half, driven by increasing revenues and the operational improvements we are implementing across the Division. Whilst the Group will continue with its focus on cost management and efficiency initiatives, challenging conditions are expected to outweigh progress in the Aerospace Division.

Ultra Electronics Holdings Plc (ULE.L)  Announced, in its preliminary results for the year ended 31 December 2015, that its reported gross profit stood at £226.8 million, compared to £219.5 million in the preceding year. Profit after tax was £24.9 million compared to £0.7 million. The company’s diluted earnings per share was 35.6p, compared to 29.7p. It also announced that its Ultra Herley business has received a contract valued at $14.25 million from a major U.S. prime contractor for the continuing production of electronic hardware for a U.S. ballistic missile programme. The contract will be executed over the next two years.

Victoria Oil & Gas Plc (VOG.L)  Announced, in its unaudited interim results for the six months ended 30 November 2015, that its reported revenue stood at $18.86 million, compared to $11.56 million in the preceding period. Loss net of tax was $0.89 million compared to $53.38 million. The company’s basic and diluted loss per share was 0.85c, compared to 50.73c.

W.H. Ireland Group Plc (WHI.L)  Announced, in its final results for the year ended 30 November 2015, that its reported revenue stood at £30.8 million, compared to £30.0 million in the preceding year. Loss after tax was £0.6 million compared to profit of £0.3 million. The company’s diluted loss per share was 2.81p, compared to earnings per share of 1.34p. moreover, the company announced the appointment of Jonathan Hugh David Carey as a Non-Executive Director with immediate effect.

Webis Holdings Plc (WEB.L)  Announced, in its interim results for the six months ended 30 November 2015, that its reported revenue stood at $67.8 million, compared to $48.9 million in the preceding year. Operating loss stood at $0.5 million, compared to loss of $0.4 million. Net loss after tax was $0.7 million compared to loss of $0.2 million. The company’s diluted loss per share was 0.18c, compared to loss per share of 0.17c.

Wm Morrison Supermarkets Plc (MRW.L)  Announced that the company has entered into a new supply agreement with Amazon. In the coming months, hundreds of Morrisons products will be available to Amazon Prime Now and Amazon Pantry customers. Morrisons will provide a wholesale supply service to Amazon, allowing Amazon’s customers access to a wide range of Morrisons ambient, fresh and frozen products. Further, this amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online. There can be no certainty that an agreement will be concluded.

WPP Plc (WPP.L)  Announced that its operating network Millward Brown, a global leader in brand, media and communications research, has agreed to acquire the business operations of Analytics Quotient (“AQ”), a marketing analytics company that extracts insights from data to help clients define their marketing strategies. AQ also builds data visualization tools and custom analytics solutions to help clients slice, dice, simulate and monitor business data. AQ will become part of Millward Brown Analytics, a Kantar brand focused on using connected data intelligence to unlock insights that help clients drive growth. This acquisition continues WPP’s strategy of investing in important markets and sectors and strengthening its capabilities in digital and data investment management businesses.