Broker Upgrades and Downgrades & Key UK Corporate Snapshots 01 December 2015

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Aggreko Plc (AGK.L) Announced, that Rebecca McDonald will retire as a Non-Executive Director with effect from 1 December 2015

Ariana Resources Plc (AAU.L) Announced, in its drilling update on its Kiziltepe Project, that deep drilling at Arzu South yielded several positive intercepts including 11m @ 4.07 g/t Gold equivalent and 7m at 2.96 g/t Gold equivalent. Drilling has increased the confidence in the presence of several dipping shoots extending beyond the base of the current optimised pit. Results has also given a boost in the potential for underground mining targets, which need to be tested in future drilling along strike and down dip.

Barclays Plc (BARC.L) Announced that under the BoE’s assessment of the effects of the modelled adverse stress scenario, Barclays’ minimum stressed Common Equity Tier 1 (“CET1”) ratio over the period 2015-19 was 7.3% after the impact of strategic management actions. Barclays reported a 10.2% PRA Transitional CET1 ratio as at 31 December 2014, which was the starting point for the stress test modelling. This had increased to 11.1% as at 30 September 2015. Barclays continues to target an end state fully loaded CET1 ratio of greater than 12%. The minimum stressed Tier 1 leverage ratio was calculated at 3.3% after management actions and 3.2% before management actions, both above the 3.0% minimum threshold. Barclays reported a 3.7% Tier 1 leverage ratio as at 31 December 2014, which was the starting point for the stress test modelling. This had increased to 4.2% as at 30 September 2015.

Begbies Traynor Group Plc (BEG.L) Announced its first property services acquisition since it entered this market with the acquisition of Eddisons in December 2014. The Group has acquired the entire issued share capital of TBS&V Limited, which trades as Taylors Business Surveyors and Valuers (“Taylors”) for a maximum consideration of £1.85 million. The team, including management, will be integrated with the Group’s existing Eddisons property services consultancy. The acquisition is for an initial consideration of £1.1 million, to be satisfied in cash of £0.5 million, from the Group’s existing resources and through the issue of 1,389,661 new ordinary shares of 5 pence each in Begbies Traynor Group plc (“Ordinary Shares”). The acquisition is on a cash free, debt free basis. Under the terms of the acquisition, additional contingent consideration of up to £0.75 million will become payable subject to the financial performance of the Taylors business over the five years from completion, satisfied by issuing new Ordinary Shares at the prevailing market value.

Character Group Plc (CCT.L) Announced, in its preliminary results for the year ended 31 August 2015, that revenue stood at £99.05 million, compared to £97.89 million in the same period last year. Operating profit stood at £12.48 million, compared to £7.46 million. Profit after tax was £10.24 million, compared to £5.95 million. Fully diluted earnings per share stood at 45.73p, compared to 25.18p. The proposed final dividend is 11.0p per share (2014: 7.25p).

Croda International Plc (CRDA.L) Announced that it has agreed to acquire Incotec Group B.V., an independent world leader of innovative seed enhancement, headquartered in Enkhuizen in the Netherlands. The total consideration, inclusive of debt, is €155 million (£109 million). The acquisition is expected to complete on 4 December 2015.

Diageo Plc (DGE.L) Announced that it has completed the respective restructuring of the joint venture operations in South Africa and Namibia with Heineken N.V. and The Ohlthaver & List Group of Companies, the controlling shareholder of Namibia Breweries Limited. The closing of the transaction was followed with the fulfilment of all conditions precedent which was been agreed on 28 July 2015, when the intention to restructure the joint ventures was announced. The company has received a total net cash consideration of ZAR 2.5 billion for the equity and debt positions it had sold.

Digital Barriers Plc (DGB.L) Announced that it has won two new contract totalling £1.9 million in its Asia Pacific region. The first one is a follow-on contract with a defence agency in Asia Pacific to supply its ISP solution for use in the protection of a maritime security zone. The new contract, valued at £1.45 million is expected to deliver in the current financial year and represents a material scale-up of this relationship with further significant awards expected in 2016 and beyond. The second award is for the Group’s ThruVision solution with a government agency in Asia Pacific. The contract is valued at £0.45 million and also for delivery this financial year.

Edge Resources Inc. (EDG.L) Announced, in its results for the half year ended September 30, 2015, that revenue stood at C$2.82 million, compared to C$5.83 million in the same period last year. Loss and comprehensive loss stood at C$2.01 million, compared to C$0.17 million. Basic and diluted loss per share stood at C$0.01, compared to C$0.00.

Fulcrum Utility Services Limited (FCRM.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £17.1 million, compared to £16.76 million in the same period last year. Operating profit stood at £1.56 million, compared to an operation loss of £0.17 million. Profit after tax was £1.56 million, compared to a loss after tax of £0.2 million. Basic earnings per share stood at 1.0p, compared to a basic loss per share of 0.1p. Diluted earnings per share stood at 0.9p, compared to a basic loss per share of 0.1p. At the start of the year the Group declared a maiden dividend of 0.4p per share. This was paid on 30 October 2015. The Board have proposed an interim dividend of 0.3 pence per share for the FY2016, this will be payable in January 2016. It awarded a £4.0 million contract to install a 13 kilometre pipeline to link Scotland’s main gas network to four distilleries.

Fusionex International Plc (FXI.L) Announced that it has secured a new contract for Fusionex Insights GIANT, its advanced big data analytics software, with a regional patent registration office in Asia. Fusionex GIANT will offer enhanced visualization and advanced analytics that correspond to each respective chart’s movement when queried/edited. Real-time information would be accessible via easy-to-understand dashboards, which can be used by staff at all levels instead of just being limited to technical teams. Most importantly, users at the client’s office will be able to delve deeper into their datasets and discover useful trends to streamline their work processes and decision making. This, in turn, can be transformed into actionable insights to derive business value.

Gooch & Housego Plc (GHH.L) Announced, in its preliminary results for the year ended 30 September 2015, that revenue stood at £78.70 million, compared to £70.05 million in the same period last year. Operating profit stood at £10.29 million, compared to £8.40 million. Profit after tax was £7.46 million, compared to £5.40 million. Diluted earnings per share stood at 30.4p, compared to 22.3p. The Directors propose a final dividend of 5.2p per share making a total dividend per share for the year of 8.2p (2014: 7.2p).

Homeserve Plc (HSV.L) Announced that Chris Havemann has been appointed as the Non-Executive Director of the board and will also join the Audit & Risk Committee.

Iomart Group Plc (IOM.L) Announced that it has acquired the entire issued share capital of United Communications Limited on a cash-free/debt-free normalised working capital basis for a total consideration of up to £11.0 million. £7.5 million will be settled in cash on completion. It is liable to pay a further amount of £3.5 million on United Hosting achieving agreed EBIT performance targets in years to April 2016 and 2017.

ISG Plc (ISG.L) Announced, in its trading update or the period 1 July to 30 November 2015, that it witnessed better trading conditions for the majority of its businesses since the start of the year, with a particular strong performance from its UK Fit Out and Engineering Services division. However, trading in the construction division was disappointing. It anticipates the full year results in line with the board’s expectations for all divisions except UK Construction. The board also expects a greater second half weighting to current year’s results. Total order book increased by 12% to £1,130 million (October 2014: £1,010 million) of which £840 million (October 2014: £770 million) has been for delivery in the current year. It anticipates a net cash position in excess of £50.0 million as at 31 December 2015 (2014: £38.3 million).

KAZ Minerals Plc (KAZ.L) Announced that it has produced its first copper cathode from oxide ore at the Aktogay project in the East of Kazakhstan. The SX/EW plant is expected to swiftly reach an output level of 15 kt per annum. The sulphide concentrator remains on track for commissioning in 2017, which will result in the Aktogay project delivering a combined production from sulphide and oxide ore of 105 kt per annum on average for the first 10 years.

Kromek Group Plc (KMK.L) Announced that entered into a partnership with Canberra Industries, Inc. for product distribution and R&D collaboration. Under the distribution agreement, Canberra will be the exclusive global distributor for four product families from Kromek’s nuclear portfolio (excluding a limited number of territories where Kromek has pre-existing distributor networks). Kromek has also entered into a three-year, collaborative R&D programme with CANBERRA. The programme, which is expected to be worth at least $900k over the life of the contract, will see the two organisations work closely together on new product development and customisation of existing products by utilising Kromek’s expertise and IP.

Lekoil Limited (LEK.L) Announced that it has agreed to acquire Afren Plc’s entire 22.86% participating interest in OPL 310, which contains the Ogo discovery, for a total cash consideration of $13 million.

Merlin Entertainments Plc (MERL.L) Announced, in its trading statement, that group trading since the 17 September update has been in line with expectations, with year to date growth rates similar to those provided at that time. Like for like revenue growth in the LEGOLAND Parks Operating Group remains strong, with the resorts enjoying an excellent Halloween period. Continued growth in RPC is expected to contribute to a strong margin performance for the Operating Group in 2015. The new attractions and accommodation opened across the Group this year, and in 2014, have continued to perform well. The outlook for New Business Development more broadly remains positive. Merlin expects to report full year results in line with current expectations, with underlying profit before tax broadly in line with the 2014 result.

MXC Capital Limited (MXCP.L) Announced, in its final results for year ended 31 August 2015, that revenues stood at £2.1 million (2014: Nil). The company’s profit before tax stood at £5.1 million, compared to a loss of £1.0 million reported in the previous year. The basic earnings per share stood at 0.23p compared to loss of 0.10p reported in the previous year. The company’s cash and cash equivalents stood at £28.4 million (2014: £11.1 million).

Northgate Plc (NTG.L) Announced, in its interim results for the six months ended 31 October 2015, that revenue stood at £313.15 million, compared to £304.95 million in the same period last year. Operating profit stood at £51.56 million, compared to £54.09 million. Profit after tax was £36.07 million, compared to £38.06 million. Diluted earnings per share stood at 26.7p, compared to 28.0p. The Directors have declared a dividend of 5.1p per share for the six months ended 31 October 2015 (2014 – 4.3p).

OPG Power Ventures Plc (OPG.L) Announced, in its half year results for six months ended 30 September 2015, that revenues rose to £56.6 million from £46.5 million posted in the same period preceding year. The company’s profit before tax stood at £12.0 million, compared to a profit of £7.9 million reported in the previous year. The basic earnings per share stood at 3.4p compared to earnings of 2.2p reported in the previous year. The company’s cash and cash equivalents stood at £2.8 million (2014: £4.6 million).

Park Group Plc (PKG.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £72.08 million, compared to £58.50 million in the same period last year. Operating loss stood at £2.17 million, compared to £3.05 million. Loss after tax was £1.12 million, compared £1.91 million. Loss per share stood at 0.62p, compared to 1.05p. Dividend per share was 0.85p, compared to 0.80p. The firm noted that online business continues to grow. Consumer billings increase 59.0% to £26.8 million.

Pinewood Group Plc (PWS.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £38.25 million, compared to £38.51 million in the same period last year. Operating profit stood at £7.03 million, compared to £2.45 million. Profit after tax was £4.30 million, compared to £3.80 million. Basic and diluted earnings per share stood at 7.6p, compared to 7.7p.

Premier Technical Services Group Plc (PTSG.L) Announced that on 30 November 2015 it completed the acquisition of two businesses, as explained further below. Access Contracting, a specialist in the maintenance, inspection, testing, repair and installation of permanent façade access equipment and fall arrest systems, based in Sheffield, was acquired for a maximum cash consideration of £1.3 million, comprising an initial payment of £1.0 million and a maximum of £0.3 million in deferred payments over three years. PTSG inherited the cash balances of Access Contracting at completion, totalling approximately £0.3 million. PTSG acquired LPT, a tester, repairer and maintainer of lightning protection and earthing systems, also based in Sheffield, for a total consideration of £0.3 million, payable in cash on completion.

Private & Commercial Finance Group Plc (PCF.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £24.94 million, compared to £21.99 million in the same period last year. Operating profit stood at £4.09 million, compared to £3.17 million. Profit after tax was £1.22 million, compared to £0.65 million. Diluted earnings per 5p ordinary share stood at 0.9p, compared to 0.6p. Additionally, the company announced the appointments of Mark Brown and Andrew Brook as new Non-Executive Directors of the company with immediate effect.

Richland Resources Ltd (RLD.L) Announced, in its operational and sales update on Capricorn mine during November, that it achieved a total revenue of £0.21 million from the sale of approximately 159,000 carats of lower quality sapphire and corundum during the month. The production target for Q4 2015 was already achieved with over 250,000 carats, larger than 4mm produced to date during the quarter as part of production start-up and ramp-up process. Two new exploration licenses awarded for highly prospective sapphire exploration areas in Central Queensland

Royal Bank of Scotland Group Plc (RBS.L) Announced, in its stress results that RBS’s transitional Common Equity Tier 1 (“CET1”) capital ratio under the hypothetical adverse scenario was 5.9%. After the impact of management actions, the ratio was 6.1%, which was above the 4.5% post-stress minimum CET1 capital ratio threshold set by the Bank of England (BoE). RBS’s Tier 1 leverage ratio under the hypothetical adverse scenario was 2.9%. After the impact of management actions, the ratio was 3.0%, which met the 3.0% post-stress minimum Tier 1 leverage ratio threshold set by the BoE. Chief Financial Officer, Ewen Stevenson said, “We are pleased with the progress we have made relative to the 2014 stress test, but recognise we still have much to do to restore RBS to be a strong and resilient bank for our customers.”

Sanderson Group Plc (SND.L) Announced, in its preliminary results for the year ended 30 September 2015, that revenue stood at £19.18 million, compared to £16.41 million in the same period last year. Profit after tax was £1.87 million, compared to £1.60 million. Diluted earnings per share stood at 3.3p, compared to 2.9p. The proposed final dividend is 1.2p per share (2014: 1.0p), making total for year of 2.1p (2014: 1.8p).

St. Modwen Properties Plc (SMP.L) Announced, in its trading update, that activity across its commercial portfolio is progressing in line with the regional market recovery. It has witnessed a steady stream of occupational demand, demonstrated by the performance of its well-let income producing portfolio, and have experienced encouraging results from its speculative commercial development programme. Profit before all tax for the full year is likely to be in line with market expectations. The Group’s net debt position at 30th November 2015 is expected to be slightly higher than current market expectations. Its housebuilding business continues to perform well and overall profits from residential development remain in line with management expectations.

Standard Chartered Plc (STAN.L) Announced, in its results of Prudential Regulation Authority stress test, that the group met both the CET1 Capital ratio and the Tier 1 Leverage Ratio requirements after the impact of strategic management actions. The results of the stress test showed that the Group had a CET1 Capital ratio of 5.1% before the impact of strategic management actions, and 5.4% after the impact of strategic management actions, compared with the threshold CET1 Capital ratio of 4.5%. The Group reported an increase in its CET1 Capital ratio from 10.7% at the start of 2015 to 11.5% as at 30 June 2015. The Group is operating with capital levels above current minimum regulatory requirements and has a number of additional levers at its disposal to further manage capital.

Vertu Motors Plc (VTU.L) Announced that it has acquired the entire share capital of Who’s Ace Holdings Ltd (“AceParts”) which operates a well-established on-line vehicle parts business (www.aceparts.com) headquartered in Sittingbourne, Kent. Total consideration is estimated at £2.2 million which includes an earn-out over a five year period, which would include goodwill of £1 million. The initial payment of £1.8 million has been settled in cash from the Group’s existing resources.