Broker Upgrades and Downgrades & Key UK Corporate Snapshots 02 December 2015

UK Broker Upgrades / Downgrades

US Broker Upgrades / Downgrades

Key UK Corporate Snapshots Today

600 Group Plc (SIXH.L) Announced, in its interim results for the six months ended 26 September 2015, that revenues rose to £23.35 million from £21.05 million recorded in the same period a year ago. Profit after tax narrowed to £1.12 million from £2.14 million. The board does not recommend the payment of an interim dividend.

Amec Foster Wheeler Plc (AMFW.L) Announced today its founding membership of the Capital Deliver Alliance (the Alliance), launched by UK Power Networks. Alongside three other key supply chain companies the Alliance will operate together as one body to implement a major £1 billion infrastructure programme over the next 12 years.

ASA Resource Group Plc (ASA.L) Announced, in the unaudited interim results of Bindura Nickel Corporation (“BNC”), a 74.73% owned subsidiary, for the six months ended 30 September 2015, that loss after taxation was $3.35 million (2014: profit of $8.5 million) during the period on turnover of $ 20.56 million (2014: $46.38 million)

Brewin Dolphin Holdings Plc (BRW.L) Announced, in its preliminary results for the year ended 30 September 2015, that total income stood at £283.7 million, compared to £280.8 million in the same period last year. Operating profit stood at £50.8 million, compared to £5.8 million. Profit after tax was £48.3 million, compared to £5.4 million. Diluted earnings per share stood at 17.1p, compared to 1.9p. The board is proposing a final dividend of 8.25p per share (2014: 6.25p), bringing the total dividend for the year to 12.0p per share (2014: 9.9p).

Ceres Power Holdings Plc (CWR.L) Announced, in its technology update, that it has achieved excellent progress with the latest release of its V3 Steel Cell technology platform. This improves efficiency and power density to the point which enables Ceres to address high efficiency, power only applications for the commercial scale market, as well as significantly improving the economic case for the residential market. Ultimately the latest increase in performance enables Ceres to tap into a more significant part of the distributed generation market, which is predicted to be worth around $200 billion globally by 2020, of which approximately $40 billion is expected to come from fuel cell power systems.

Coral Products Plc (CRU.L) Announced, in its half yearly report for the six months ended 31 October 2015, that revenue stood at £8.26 million, compared to £9.07 million in the same period last year. Operating profit stood at £0.78 million, compared to £0.38 million. Profit after tax was £0.61 million, compared to £0.29 million. Basic and diluted earnings per share stood at 1.00p, compared to 0.55p. The board proposed interim dividend of 0.3p per share (2014: 0.2p).

Greene King Plc (GNK.L) Announced, in its interim results for the six months ended 18 October 2015, that revenues rose to £917.7 million from £614.9 million recorded in the same period a year ago. Profit after tax widened to £70.0 million from £64.3 million. The board has declared an interim dividend of 8.45p per share, up 6.3% on last year.

Howden Joinery Group Plc (HWDN.L) Announced that having served as Non-Executive Chairman of the Company since 2006, Will Samuel would step down from the board with effect from the close of the Annual General Meeting in May 2016. Richard Pennycook, who has been a Non-Executive Director of Howdens since September 2013, would assume the role of non-executive Chairman from that date. Prior to becoming Non-Executive Chairman, Richard would remain as Chairman of the Audit Committee. The Company is also pleased to announce the appointment of Andrew Cripps as an independent Non-Executive Director with immediate effect. Upon appointment he will be a member of the Audit, Remuneration and Nomination Committees.

Imperial Innovations Group Plc (IVO.L) Announced that portfolio company Kesios Therapeutics (‘Kesios’ or ‘the Company’), which is developing novel therapeutics for the treatment of multiple myeloma and other cancers, has closed a £19.0 million Series A funding round from a syndicate of leading venture investors including Innovations, SV Life Sciences and Abingworth. Innovations has committed £6.0 million to Kesios as part of the Series A financing. Innovations’ aggregate investment in Kesios to date is £3.3 million, and after this funding round, the Group will hold a 42.0 per cent stake in the Company. Maina Bhaman, Director of Healthcare Ventures, Imperial Innovations, indicated that it is just over a year since Innovations completed a seed funding round in Kesios and in that time the company has made swift progress in building a world-class management team to advance its innovative science and drug development.

International Greetings Plc (IGR.L) Announced, in its interim results for six months ended 30 September 2015, that revenues rose to £119.8 million from £111.9 million posted in the same period preceding year. The company’s profit before tax stood at £4.9 million, compared to a profit of £2.9 million reported in the previous year. The basic earnings per share stood at 6.2p compared to earnings of 3.5p reported in the previous year. The board declared an interim dividend of 0.75p per share, payable on 19 January 2016 to shareholders on the register on 11 December 2015.

Iomart Group Plc (IOM.L) Announced, in its interim results for the six months ended 30 September 2015, that revenues rose to £36.4 million from £31.5 million recorded in the same period a year ago. Profit after tax widened to £4.9 million from £4.5 million.

LondonMetric Property Plc (LMP.L) Announced that it has sold its PC World property in Hove to clients of Aberdeen Asset Management Plc for £13.6 million, reflecting a NIY of 5.4%. The company acquired the asset for £8.1 million and recently signed a new 15 year lease (with a break at 10 years) with PC World at a new rent of £0.8 million pa (£27.50 psf) on an extended 28,000 sq ft store. Work on the 9,000 sq ft extension will commence shortly. The sale is expected to complete in January 2016 and crystallises a geared IRR of 17% and profit on cost of 33%.

Monks Investment Trust Plc (MNKS.L) Announced, in its results for the six months to 31 October 2015, that net return on ordinary activities after taxation was a loss of £35.74 million, compared to £45.23 million. Loss per share stood at 16.7p, compared to 20.0p. Additionally, the company announced that following a review, the board and Managers are of the opinion that the company would benefit from the flexibility of being able to hold repurchased shares in Treasury rather than automatically cancelling them. At present the company does not have the power to sell shares out of Treasury but will be seeking shareholder authority to do so as part of its August 2016 Annual General Meeting business. Any shares held in Treasury would have an indefinite life and would only be re-sold at a premium to net asset value, when calculated at par cum income, and after associated costs. Should the company’s shares move to a premium to net asset value, any shares held in Treasury could be sold in a flexible and cost effective manner.

National Express Group Plc (NEX.L) Announced the appointment of Dr. Ashley Steel as an independent Non-Executive Director. She would join the Board on 1 January 2016 and would be a member of the Safety & Environment and Audit Committees.

Numis Corporation Plc (NUM.L) Announced, in its preliminary results for year ended 30 September 2015, that revenues rose to £97.9 million from £92.8 million posted in the same period preceding year. The company’s profit before tax stood at £26.1 million, compared to a profit of £24.4 million reported in the previous year. The basic earnings per share stood at 19.5p compared to earnings of 18.7p reported in the previous year. The board has proposed a final dividend of 6.0p per share for the year ended 30 September 2015, subject to the shareholders’ approval.

RedT Energy Plc (RED.L) Announced that its first manufactured unit is approved for connection to the UK grid and that units will receive the CE mark, enabling EU wide distribution. The 40kWh unit delivered to the company’s Wokingham development centre is now grid tied, charging from and discharging into the distribution network.

Renewable Energy Generation Limited (WIND.L) Announced, in its final results for the year ended 30 June 2015, that revenue stood at £12.0 million, compared to £11.6 million in the same period last year. Operating loss stood at £17.87 million, compared to £4.45 million. Loss after tax was £5.26 million, compared to profit after tax of £3.9 million. Basic loss per share stood at 5.08p, compared to earnings per share of 3.74p. Diluted loss per share stood at 3.74p compared to 3.66p. The sale of various assets resulted in an overall increase in cash resources to the Group with unrestricted cash at the year end of £19.2 million (2014: £11.0million) with restricted cash held as security against project finance debt and construction letters of credit of £2.7 million (2014: £2.7 million). Additionally, the company recommended disposal of the entire business for cash in a transaction with a fund managed by BlackRock that values the Company’s equity before exit costs, at £64.5 million. Following completion of the Sale and Delisting, it is proposed that Liquidators be appointed pursuant to oversee a liquidation process during which the majority of the net cash proceeds of the Sale will be returned to Shareholders. The target initial (and likely final) liquidation distribution is expected to be approximately 60.0p per Ordinary Share which should be payable on or around 29 January 2016. On conclusion of the liquidation a maximum final distribution (if any) of up to a further 0.3 pence per Ordinary Share will be made. The initial liquidation payment represents a premium of 61.1 per cent to the closing price of an Ordinary Share on 8 October 2015, the day immediately prior to the announcement by the Company of receipt of the initial non-binding offer. The Sale is conditional only on approval by more than 50% of the votes cast (in person or by proxy) at the Extraordinary General Meeting (“the Sale Resolution”). In order to return cash to Shareholders by way of a liquidation payment, Shareholders approval is sought for the Delisting, Winding Up and Liquidation Resolutions.

Sage Group Plc (SGE.L) Announced, in its audited results for year ended 30 September 2015, that revenues rose to £1435.5 million from £1353.5 million posted in the same period preceding year. The company’s profit before tax stood at £275.8 million, compared to a profit of £278.7 million reported in the previous year. The basic earnings per share stood at 18.11p compared to earnings of 17.26p reported in the previous year. The company further stated that the board has proposed a final dividend of 8.65p per share, amounting to £96.7 million, payable on 4 March 2016 to shareholders who are on the register of members on 12 February 2016.

SKIL Ports & Logistics Limited (SPL.L) Announced, in its project update in regard to the development of its port and logistics project in Navi Mumbai, India, that onsite reclamation work continues to progress, and the company confirms completion of the 300 metre bund to allow the new piling gantry to be erected at the point where the quay wall will commence. All parts of the gantry are scheduled to be in position within the next three weeks, with reclamation work continuing in parallel. The company’s engineers have reported 10 hectares have been reclaimed to date.

Sweett Group Plc (CSG.L) Announced, in its interim results for the six months ended 30 September 2015, that revenues rose to £30.2 million from £27.8 million recorded in the same period a year ago. Loss after tax stood at £11.4 million compared to a profit of £0.13 million.

Tanfield Group Plc (TAN.L) Announced that Tanfield is a 49% shareholder in the equity of Snorkel, following the disposal of 51% of the Snorkel business in 2013. The carrying value of its 49% holding and its preferred interest holding (Loan note) is $60.1 million as set out in the Company’s interim accounts. The trigger event for the initial realisation of the Snorkel investment occurs when the company has achieved an annualised trailing EBITDA of $25 million dollars in any 12 month period by 30 September 2018.

Telford Homes Plc (TEF.L) Announced, in its interim results for six months ended 30 September 2015, that revenues jumped to £138.7 million from £42.3 million posted in the same period preceding year. The company’s profit before tax stood at £21.0 million, compared to a profit of £9.4 million reported in the previous year. The basic earnings per share stood at 28.0p compared to earnings of 12.6p reported in the previous year. The board declared an interim dividend of 6.5p per share, payable on 8 January 2016 to those shareholders on the register at the close of business on 11 December 2015.

Tricorn Group Plc (TCN.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that revenue stood at £10.09 million, compared to £10.63 million in the same period last year. Operating profit stood at £0.09 million, compared to a loss of £0.02 million. Loss after tax from continuing operations was £0.05 million, compared to a loss of £0.13 million. Diluted loss per share from continuing operations stood at 0.14p, compared to a loss of 0.38p.

Vernalis Plc (VER.L) Announced, in its AGM statement, that launch of TuzistraTM XR in the US in September 2015 was a significant milestone and confirmed the company’s low development risk, fast path to market and commercial strategy in the US prescription cough cold market. TuzistraTM XR targets a market worth over $1.8 billion at current brand pricing, where there is less competition. The company also had further four cough cold programmes in active development with Tris, that might follow the same approval route with the FDA. Tris completed the stability batches for CCP-07 and CCP-08 and the company expects NDA submissions for both programmes to be made during the 2016 calendar year. Tris continued to work on achieving proof of concept for CCP-05 and CCP-06, which could be achieved by the end of the 2016 calendar year.

Vodafone Group Plc (VOD.L) Announced that it has agreed to extend its strategic partner market agreement with Swisscom for four more years, taking their close collaboration to more than a decade. Under the renewal, Swisscom’s customers will continue to benefit from the company’s mobile, voice and data products and unrivalled global reach, with effect from the beginning of 2016.

Zoopla Property Group Plc (ZPLA.L) Announced, in its full year results for the year ended 30 September 2015, that revenues rose to £107.6 million from £80.2 million recorded in the previous year. Profit after tax widened to £25.4 million from £21.1 million. The board proposed a final dividend of 2.5p per share.