Broker Upgrades and Downgrades & Key UK Corporate Snapshots 10 November 2015

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AdEPT Telecom Plc (ADT.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £13.91 million, compared to £11.32 million in the same period last year. Operating profit stood at £1.40 million, compared to £1.25 million. Profit after tax was £0.82 million, compared to £0.76 million. Diluted earnings per share stood at 9.69p, compared to 7.75p. The directors have declared an interim dividend of 3.00p per ordinary share (2014: 2.25p).

AVEVA Group Plc (AVV.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its reported revenue stood at £81.9 million, compared to £85.9 million in the preceding period. Loss net of tax was £2.6 million, compared to profit after tax of £10.7 million. The company’s diluted loss per share was 3.99p, compared to earnings per share of 16.70p. It also mentioned that following the announcement on 20 July 2015 of the non-binding terms relating to the proposed transaction, both parties (AVEVA and Schneider Electric industrial software assets) have been engaged in detailed due diligence, with a timing consistent with the complex nature of the transaction. Based on the current timetable, both parties are working towards finalising due diligence and reaching definitive terms in December 2015, with completion expected to occur by mid-2016. Meanwhile, over the first six months to 30 September 2015, Schneider Software reported revenue of $239 million, corresponding to a 7% contraction vs. H1 FY15, driven by a 7% negative FX translation effect, a 3% organic decline and the positive effect from the acquisition of InStep (+3%). EBITA was in line with last year on a constant currency basis, and 4% below on a headline basis. On a like for like basis, EBITA decreased by 6% mainly as a function of the impact of lower licence revenue offset by cost reduction actions that have been implemented by Schneider management.

BowLeven Plc (BLVN.L) Announced, in its preliminary results for the year ended 30 June 2015, that operating loss before financing costs stood at $87.83 million, compared to a loss of $12.03 million in the same period last year. Loss after tax was $90.01 million, compared to a loss of $13.60 million. Basic and diluted loss per share from continuing operations stood at $0.28, compared to $0.04.

BTG Plc (BTG.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £229.6 million, compared to £191.2 million in the same period last year. Operating profit stood at £44.2 million, compared to £42.8 million. Profit after tax was £51.3 million, compared to £39.2 million. Diluted earnings per share stood at 13.2p, compared to 10.7p.

Capital & Counties Properties Plc (CAPC.L) Announced, in its trading update, that it is on track to achieve ERV target of £100 million by 2017, representing underlying annualised rental growth of approximately 10%. The group reported new openings across the estate including KIKO and Kiehl’s, while Charlotte Tilbury and the new larger Chanel store are expected to open shortly. Demolition of EC1 & EC2 buildings to ground level is progressing well and is on track for completion in the second half of 2016. As at 30 September 2015, Capco had capital commitments of £241 million.

Cropper(James) Plc (CRPR.L) Announced, in its half year results ended 26 September 2015, that revenues rose to £42.1 million from £40.1 million posted in the same period preceding year. The company’s profit before tax stood at £1.0 million, compared to a profit of £0.778 million reported in the previous year. The basic earnings per share stood at 8.5p compared to earnings of 6.8p reported in the previous year. The company further stated that the board has proposed an interim dividend of 2.2p per share, to be paid on 8 January 2016 to holders on the register at the close of business on 11 December 2015.

DCC Plc (DCC.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its reported revenue stood at £5066.2 million, compared to £5425.3 million in the preceding period. Profit after tax was £42.2 million compared to £42.3 million. The company’s diluted earnings per share was 46.91p, compared to 44.93p.

Elektron Technology Plc (EKT.L) Announced, in its third quarter trading update, that the sales of products from brands in which the group invests continuously on a strategic basis via new product development, namely Bulgin, Queensgate and Ophthalmic, showed better growth over the prior year. Bulgin showed modest growth while Queensgate and Ophthalmic showed 50% growth against prior year, representing nearly 7.0% of total group sales. Other remaining brands that accounts for a majority of the group’s sales are in low growth or declining markets and are experiencing weak demand. Group net debt was seen at approximately £1.5 million at 31 October (31 July 2015: £2.1 million, 31 January 2015: £2.7 million and 31 October 2014: £2.7 million).

Experian Plc (EXPN.L) Announced, in its half-yearly report for the six months ended 30 September 2015, that its reported revenue stood at $2,239.0 million, compared to $2,393.0 million in the preceding period. Profit after tax was $331.0 million compared to $409.0 million. The company’s diluted earnings per share was 34.1c, compared to 41.4c.

Fidessa Group Plc (FDSA.L) Announced that it will be hosting an afternoon of presentations for analysts and institutional investors today at its London offices, One Old Jewry, London EC2R 8DN.

Hayward Tyler Group Plc (HAYT.L) Announced, in its half year results for six months ended 30 September 2015, that revenues fell to £21.8 million from £24.0 million posted in the same period preceding year. The company’s profit before tax stood at £1.5 million, compared to a profit of £1.8 million reported in the previous year. The basic earnings per share stood at 3.33p compared to earnings of 3.26p reported in the previous year. The company further stated that an interim dividend in respect of the current year of 0.55p per ordinary share will be paid in February 2016.

Hornby Plc (HRN.L) Announced, in its trading statement, that in the UK, it has already improved its distribution capabilities by moving to modern warehousing premises at Hersden near Canterbury. UK revenue for the ten weeks from early September to 8 November increased by 9% compared to last year. After the impact of the UK turnaround plan on the recent trading seemed to be positive, the board decided to accelerate the strategic plan to reorganise its European businesses. As a result, the board expects that the impact of the European restructuring on the group’s financial performance will cause the revenue and profit for the current financial year to be lower than market expectations but it will recover next year.

IP Group Plc (IPO.L) Announced that it would be holding its first US Technology Summit for the investment community in New York later today.

ITV Plc (ITV.L) Announced, in Q3 trading update, that total external revenues rose 13% to £2,045 million (2014: £1,803 million). Broadcast & Online revenues gained 7% to £1,528 million (2014: £1,432 million) with ITV Family NAR up 6% and continued strong growth in Online, Pay & Interactive, up 29%. ITV Studios revenues climbed 28%, driven by acquisitions and 9% organic growth. The group expects to deliver another year of strong double digit profit growth and the initial outlook for 2016 is encouraging.

Land Securities Group Plc (LAND.L) Announced, in its interim results for the six months ended 30 September 2015, that revenues rose to £370.2 million from £347.9 million recorded in the same period a year ago. However, profit after tax narrowed to £708.1 million from £1,031.2 million. The Board has declared a second interim dividend of 8.15p per ordinary share. Chief Executive, Robert Noel said, “Our strategy is working and we are well positioned for the future. We have better assets, with higher quality income, and our balance sheet is stronger than ever. We are delivering for our customers, our communities and our shareholders and look forward to the second half of the year with confidence.” Separately, the company announced that it has pre-let 92,000 sq. ft. at The Zig Zag Building, Victoria, SW1 to Deutsche Bank on a 15-year lease. The move would see Deutsche Bank relocate its Asset Management and Private Wealth Management units from their current City locations to Victoria, taking The Zig Zag Building from 37% to 77% pre-let.

Mincon Group Plc (MCON.L) Announced, in its interim trading update for third quarter ending 30 September 2015, that the quarter witnessed good growth in sales, both organically and through acquisition, compared to the same period in 2014 and Q2 2015. Working capital improved while the net cash rose by €3.4 million, after paying the interim dividend of €2.1 million in the quarter. Revenue rose by 43% to €19.3 million compared to Q3 2014, driven by additional revenue from acquisitions and increased volumes. During Q3 2015, the gross margin was 42% (Q3 2014: 40%) and operating profit margin was 18% (Q3 2014: 17%). The group has a strong balance sheet at 30 September 2015, with net cash of €37.7 million (30 June 2015: €34.3 million).

National Grid Plc (NG..L) Announced, in its interim results for the six months ended 30 September 2015, that revenues rose to £6,854 million from £6,364 million recorded in the same period a year ago. Profit after tax widened to £1,049 million from £904 million. The board has approved an interim dividend of 15.00p per ordinary share. Chief Executive, Steve Holliday said, “Our business has delivered a strong performance in the first half of the year while maintaining high standards of safety and reliability for our customers and increasing our level of investment. Headline profits have benefited from an excellent performance from our interconnectors and property activities, which are strongly weighted towards the first half.”

Penna Consulting Plc (PNA.L) Announced, in its interim unaudited results for the six months ended 30 September 2015, that revenue stood at £47.13 million, compared to £41.11 million in the same period last year. Operating profit stood at £2.77 million, compared to £2.07 million. Profit after tax was £2.29 million, compared to £1.68 million. Diluted earnings per share from continuing operations stood at 8.65p, compared to 6.53p. An interim dividend of 4.0p per ordinary share has been declared (2014:2.0p).

Physiomics Plc (PYC.L) Announced, in its final results for year ended 30 June 2015, that revenues fell to £0.235 million from £0.267 million posted in the same period preceding year. The company’s loss before tax stood at £0.414 million, compared to a loss of £0.464 million reported in the previous year. The basic and diluted loss per share stood at 0.017p compared to loss of 0.026 reported in the previous year. The company’s cash and cash equivalents stood at £0.266 million (2014: £0.132 million).

Pressure Technologies Plc (PRES.L) Announced, in its trading update on the financial year ended 3 October 2015 (FY2015), ahead of the publication of the audited preliminary results on 15 December 2015, that as a result of strong performances across certain of the group’s divisions adjusted EBIT will be slightly ahead of market expectations. This is particularly pleasing given the conditions in main oil and gas market and reflects the positive actions initiated in the first half of the year to integrate acquisitions and significantly reduce our operational cost base. The steps taken during FY2015 will deliver annualised operational efficiencies in FY2016 of around £1.5 million across the group. The board continues to explore opportunities for further operational synergies and efficiencies across the group.

Redrow Plc (RDW.L) Announced, in its AGM statement, that this year’s positive sales trend reported in September prelims, has continued. Currently, net private reservations are 28% ahead at 1,560 and the sales rate for the 19 weeks to 6 November 2015 is 0.68 per outlet per week, up 5% on last year. With strong sales performance, the Chairman is confident that this will be another year of significant progress for Redrow.

Redx Pharma Plc (REDX.L) Announced that it is participating today at BioInfect, the major one day conference bringing together industry leaders to focus on the threat of antimicrobial resistance and the critical issues relating to the development of new anti-infectives. Antimicrobial resistance (AMR) is an increasingly serious global public health issue that threatens the effective prevention and treatment of an ever-increasing range of infections caused by bacteria, parasites, viruses and fungi. The company is working in collaboration with the NHS to tackle AMR, and the group’s anti-infective subsidiary has one of the biggest research teams in the UK, if not Europe, developing the next generation of antibiotics. AMR requires action across all government sectors and society, and the BioInfect Conference recognises this urgent need.

Software Radio Technology Plc (SRT.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that revenue stood at £3.64 million, compared to £5.41 million in the same period last year. Operating loss stood at £0.72 million, compared to £0.54 million. Loss after tax was £0.52 million, compared to £0.94 million. Diluted loss per share stood at 0.40p, compared to 0.75p.

Tyman Plc (TYMN.L) Announced, in its trading update, that constant currency like for like revenues in the year to date were flat compared with 2014, however the group’s operating profitability improved continuously as its margins are expanding which are generated through pricing actions and cost reduction initiatives. Constant currency like for like revenues were flat compared with 2014. UK and Ireland RMI markets continued to contract across the summer. Our new product introductions have enabled us to grow share within the OEM sector of the market, however this was more than offset by declines in our share of the distribution market. The group has a strong balance sheet with good cash generation in the year to date.

UBM Plc (UBM.L) Announced, in its trading update for the current financial year to date, that it has continued to perform in line with expectations during the period. The largest events continue to drive performance, consistent with the ‘Events First’ strategy. Recent events such as CBME, Black Hat, MAGIC, Hong Kong Jewellery and Gem, CPHI and ICSE all performed strongly as expected. Following the move in location and timing, Sign China revenue was lower and there was weakness in some of the smaller shows. Furniture China revenue was as anticipated and the show ran well with positive exhibitor interest for 2016, although the competition is ongoing. PR Newswire and Other Marketing Services performed in line with expectation’s. Advanstar’s performance remains in line with its expectations and the integration is on track. Meanwhile, the outlook for the profitability of the group in 2015 remains unchanged.

Wolseley Plc (WOS.L) Announced, in its interim management statement for the 3 months ended 31 October 2015, that during the quarter the Group generated revenue from the ongoing businesses of £3,556 million, 3.9% ahead of last year at constant exchange rates and 3.2% ahead on a like-for-like basis including about 1.0% price deflation. Trading profit of £250 million was 3.3% higher than last year at constant exchange rates and the trading margin was consistent with last year. There was one fewer trading day in the period versus last year which represents about £6 million of trading profit. Exchange rate movements increased revenue by £45 million and trading profit by £6 million. Central costs of £12 million included a £2 million one-off insurance charge. Ferguson, its US plumbing and heating business, grew revenue by 4.5% on a like-for-like basis against strong prior year comparatives of 12.4%. Blended Branches, Heating, Ventilation and Air Conditioning, Fire and Fabrication and B2C all generated good like-for-like revenue growth. Industrial markets, which represent 15% of Ferguson’s revenues, continued to be impacted by a weak oil and gas sector and the strength of the US dollar. Like-for-like revenue in the UK was 1.1% lower. Repairs, maintenance and improvement markets remained weak. The acquisitions made last year contributed a further 4.0% to revenue growth. In the Nordic region like-for-like revenue was 5.5% ahead with growth in each country. Gross margins were broadly consistent with last year. Trading profit in constant currency was £1 million ahead, though the adverse impact of exchange rates was £2 million. Like-for-like revenue in Canada was 3.7% lower due to the impact of oil and gas in the West. Gross margins were ahead and costs were in line. Trading profit of £13 million was £2 million lower principally due to unfavourable movements in exchange rates. In Central Europe like-for-like revenue declined by 1.2%. Market conditions remained weak in Switzerland. Gross margins were in line and costs were lower with trading profit £1 million ahead of last year at £9 million. Net debt at 31 October 2015 was £990 million (31 October 2014: £858 million) after purchasing 3.2 million shares for £121 million at an average price of £37.45 per share in accordance with the share buyback programme announced in September.