Broker Upgrades and Downgrades & Key UK Corporate Snapshots 16 November 2015

UK Broker Upgrades / Downgrades

US Broker Upgrades / Downgrades

Key UK Corporate Snapshots Today

Applied Graphene Materials Plc (AGM.L) Announced, in its full year results ended 31 July 2015, that revenues surged to £41,000 from £4,000 posted in the same period preceding year. The company’s loss before tax stood at £4.0 million, compared to a loss of £2.6 million reported in the previous year. The basic loss per share stood at 22.9p compared to loss of 17.9p reported in the previous year. The company further stated that the board has not proposed any dividend for the year. The company’s cash balance stood at £3.7 million (2014: £2.9 million).

Asiamet Resources Limited (ARS.L) Announced that the initial wide spaced scout drilling at the Beruang Kanan South prospect in Central Kalimantan, Indonesia had intersected shallow high grade copper mineralization. The BKS prospect is approximately one kilometre to the south of the BKM deposit where the company recently reported a substantial increase in N43-101 compliant copper resources. These results confirm excellent potential to delineate additional copper mineralization close to the BKM deposit. Holes were targeted on a strong, broad 800 x 900 meter copper in soil anomaly where rock chip samples assaying up to 17.6% Cu were collected, and where previous scout drilling intersected copper mineralization with associated high gold grades including 10.5m @ 0.9% Cu, from 14.5m depth and 3m @ 11.52g/t Au, (including 1.5m @ 21.7g/t Au) from 11.5m depth, in hole KBK28.

BT Group Plc (BT.A.L) Announced that Joe Garner is to step down as CEO of Openreach after deciding to take up a new challenge as CEO of Nationwide, the world’s largest building society with 15 million members and Britain’s second largest mortgage and savings provider. Joe is expected to take up his new post in the spring of 2016 after handing over to his successor who would be named in due course.

Dalradian Resources (DALR.L) Announced, in its third quarter results for nine months ended 30 September 2015, that operating loss rose to C$4.8 million from C$4.2 million posted in the same period preceding year. The company’s loss for the period jumped to C$4.7 million from C$4.1 million reported in the previous year. The basic and diluted loss per share stood at 0.03c compared to loss of 0.04c in the previous year. The company’s cash balance stood at C$24.4 million (31 December 2014: C$29.8 million).

Diploma Plc (DPLM.L) Announced, in its preliminary results for the year ended 30 September 2015, that its reported revenue stood at £333.8 million, compared to £305.8 million in the preceding year. Profit after tax was £37.4 million compared to £36.1 million. The company’s basic and diluted earnings per share was 32.5p, compared to 31.4p.

Eden Research Plc (EDEN.L) Announced that its partner, Lachlan Kenya Limited, has received approval to commence sales of 3AEY in Kenya. 3AEY is a fungicide formulated from plant-derived actives and a natural microencapsulation system that primarily targets Botrytis on various edible and inedible crops. The approval allows Lachlan to sell 3AEY into markets in Kenya through its distribution network. Under the existing licence agreement between both the parties, the company owes a milestone payment and will receive royalties based on net sales of 3AEY. It will also supply Lachlan with 3AEY from the UK using its network of toll manufacturers and suppliers and has received an initial order to provide enough 3AEY to treat an area of approximately 1,667 hectares.

Eland Oil & Gas Plc (ELA.L) Announced, in its operational update, that it has materially increased current production rates. Following the successful workover of the Opuama-1 well, the Opuama field is now producing from 4 strings from 2 wells. This successful intervention has resulted in an increase in average gross production output to 4,400 bopd (1,980 bopd net to Elcrest Exploration and Production Nigeria Ltd, the company’s joint venture company). This represents an increase of over 50% from previously announced production levels. The Opuama Field has recorded 93% uptime in the 4 months between July and October this year.

Gateley (Holdings) Plc (GTLY.L) Announced, in its trading update for the six months ended 31 October 2015, that the group has made a solid start to the financial year and is trading in-line with management expectations. Revenues for the first six months are expected to be not less than £29.5 million, being not less than 10% ahead of the corresponding pro-forma period last year. The board expects to announce the group’s audited half year results in December 2015.

HML Holdings Plc (HMLH.L) Announced, in its half year results for six months ended 30 September 2015, that revenues rose to £8.9 million from £8.3 million posted in the same period preceding year. The company’s profit before tax stood at £0.614 million, compared to a profit of £0.611 million reported in the previous year. The basic earnings per share stood at 1.3p compared to similar earnings in the previous year.

Ithaca Energy Incorporation (IAE.L) Announced, in its unaudited third quarter financial results for the three months ended 30 September 2015, that its reported revenue stood at $42.1 million, compared to $90.1 million in the preceding period. Profit after tax was $42.8 million compared to $7.9 million. The company’s diluted earnings per share was 0.13c, compared to 0.02c. Meanwhile, the company’s revenue for the nine months ended 30 September 2015 stood at $171.6 million, compared to $289.7 million in the preceding period. The company’s diluted earnings per share was 0.17c, compared to 0.08c.

Keller Group Plc (KLR.L) Announced, in its trading update for covering the period from 1 July 2015 to 15 November 2015, that overall trading for the Group in the four months to the end of October has been in line with management expectations. Year to date revenue remains down on last year as a result of lower revenues from major projects, primarily due to the completion of the Wheatstone project in 2014. Operating profit is ahead of the same time last year, supported by solid operational progress and some good final project settlements, particularly in the US. The order book at the end of October, for work to be executed over the next twelve months, including that of acquired businesses, is around 20% higher than the same time last year. On a like-for-like basis, this increase is around 15%. The financial position of the Group remains strong. The acquisitions of GeoConstruction group (“Bencor”) for a consideration of $44 million (£29 million) and Austral Construction Private Limited (“Austral”) for an initial consideration of A$40 million (£19 million) were both completed in the period. Additionally, In North America, which accounts for over half of the Group’s revenue, the US construction market continues to grow steadily while the market in Canada remains very challenging. European construction markets as a whole remain stable while the outlook in Australia shows no sign of improvement.

Majestic Wine Plc (MJW.L) Announced, in its unaudited interim results for the 26 weeks ended 28 September 2015, that revenue stood at £181.61 million, compared to £133.77 million in the same period last year. Profit after tax was £1.81 million, compared to £6.44 million. Diluted earnings per share stood at 2.6p, compared to 9.7p.

Meggitt Plc (MGGT.L) Announced that Securaplane Technologies, a wholly owned subsidiary of Meggitt PLC, has been selected by Gulfstream to provide high definition (HD) cameras for the G650 aircraft. Securaplane and Gulfstream have entered into a multi-million dollar contract for a system that will be standard fit on all future production G650 aircraft and offered as a retrofit for aircraft in service.

Mytrah Energy Limited (MYT.L) Announced in its trading update that an additional 9 turbines have been commissioned at the Bhesada project, increasing the project’s current operational capacity to 35.7 MW. This brings the total additional capacity added in 2015 to 50.2 MW, taking Mytrah’s operating wind portfolio to 578 MW. The remaining 14 MW of the Bhesada project will be commissioned ahead of the 2016 wind season as planned. The other projects in construction are developing on track and the company expects to enter the 2016 wind season with 743 MW of capacity, in line with previous guidance. The operating portfolio has performed well technically in 2015, with some plants exceeding 99% mechanical availability in the year to date. Moreover, the company has also continued its early success in the solar power generation sector, winning the right to develop 50 MW in Punjab and commissioning 3 small rooftop projects during 2015. The company also announced that, with effect from 16 November 2015, the registered office of the company has moved from its existing location in St. Peter Port to Ground Floor, Dorey Court, Admiral Park, St. Peter Port, Guernsey GY1 2HT.

PCG Entertainment Plc (PCGE.L) Announced, in its trading update on activities for the July/August/September 2015 trading quarter, that the company was readmitted to AIM in August 2015 following the acquisition of Center Point Development Corporation (CPDC), distributors of gaming software and services in Asia. It acquired CPDC for $10 million in June 2015, payable in shares, with a further payment due of $10 million (also in shares) if CPDC meets certain performance targets. Meanwhile, unaudited figures show that Group revenue in Q3 2015 rose to around $6 million from Q3 2014 Group revenue of $1,112. The company’s operating profit in the same quarter for 2015 is around $400,000 up from Q3 2014 losses of $2,217,089.

Polymetal International Plc (POLY.L) Announced the successful completion of the Feasibility Study (”FS” or the ”Study”) for the Kyzyl gold project and the updated Ore Reserve and Mineral Resource estimates audited by Roscoe Postle Associates Inc. The results showed that total Probable Ore Reserves1 for the Bakyrchik deposit at Kyzyl in accordance with the JORC Code (2012) were estimated at 29.2 Mt at the average grade of 7.7 g/t Au with 7.3 Moz of contained gold. This represented an 8% increase as compared to the previous estimate of 6.7 Moz of gold at 7.5 g/t. Mineral Resources1 (additional to Ore Reserves) were estimated at 14.2 Mt of ore at the average grade of 6.8 g/t Au containing 3.1 Moz of gold. The average All-in Sustaining Cash Cost was US$ 630/oz of gold and the average Total Cash Cost was $ 591/oz of gold. Polymetal was on track to start full-scale construction in Q2 2016. Processing would start in the H2 2018 with first full year of production in 2019.

Premier Oil Plc (PMO.L) Announced that it has agreed to sell Premier Oil Norge AS (“PONAS”) which comprises all its Norwegian assets, to Det norske oljeselskap ASA (“Det norske”) for a cash consideration of $120 million. The proceeds would be used to pay down the Company’s debt and represents another step in Premier’s previously stated programme of portfolio management.

Rose Petroleum Plc (ROSE.L) Announced that it has made the final payment of $500,000 to Rockies Standard Oil Company regarding the acquisition of a 75% working interest in acreage in the Uinta Basin and Paradox Basin, as announced on 17 March 2014. This payment is the final instalment of the total $2.0 million consideration due. Additionally, the company also announced that following six years as Chairman of the company, the Rt Hon Earl of Kilmorey PC, will be retiring and is stepping down from the Board of Directors at the end of the year. The company will look to appoint a new Chairman who will fit well with its North American oil and gas operations. Philip Jeffcock, currently a Non-Executive Director will stand in as interim Chairman from year end.

Safeland Plc (SAF.L) Announced, in its half year results for six months ended 30 September 2015, that revenues climbed to £12.5 million from £7.8 million posted in the same period preceding year. The company’s profit before tax more than doubled to £4.3 million from £2.2 million reported in the previous year. The basic earnings per share stood at 20.24p compared to earnings of 11.15p in the previous year. The company further stated that the board has declared an interim dividend of 1.5p per share, payable on 18 December 2015 to shareholders on the register on 27 November 2015.

SIG Plc (SHI.L) Announced that the company is hosting a Capital Markets Day in London today at 2.30pm. The Group is targeting £20 million of cost savings from the implementation of step one of its supply chain strategy, and £30 million of additional profit from growth in its air handling and offsite construction businesses over the next three years. Together with ongoing procurement savings, these initiatives provide the Group with a £60 million profit improvement opportunity by 2018. Furthermore, the company believes there is potential for an additional £30 million of savings from enacting the second step of its supply chain strategy. On 22 October 2015, it released a trading update in which it cited difficult Q3 market conditions, particularly in France and the UK RMI sector. Trading improved in October, with positive LFLs in both UK & Ireland and Mainland Europe. The Group continues to expect underlying profit before tax to be in the range of £85-90 million for the full year.

Stride Gaming Plc (STR.L) Announced, in its preliminary results for the year ended 31 August 2015, that net gaming revenue stood at £27.81 million, compared to £8.49 million in the same period last year. Operating profit stood at £1.15 million, compared to £0.85 million. Profit after tax was £0.42 million, compared to £0.85 million. Diluted earnings per share stood at 0.931p, compared to 2.711p.

Taylor Wimpey Plc (TW..L) Announced, in its trading statement, that the UK housing market has continued to be very positive, with high levels of customer confidence and demand converting into increased sales and healthy sales price growth. Sales rates for the year to date were ahead of last year at 0.76 sales per outlet per week (2014 equivalent period: 0.66). Cancellation rates for the year to date continued to remain very low at 12% (2014 equivalent period: 13%). The current total order book represented 8,546 homes (week ended 9 November 2014: 7,814) and stood at a record £2.1 billion, excluding joint ventures (week ended 9 November 2014: £1.7 billion). The group expects net cash at the end of 2015 to be around £220 million (31 December 2014: £112.8 million).

Trinity Exploration & Production Plc (TRIN.L) Announced, in its operations and financials update for the year to September 2015 as well as details on its forward strategy and portfolio following the proposed divestment of its onshore portfolio, that group average net production levels of 2,963 boepd (H1 2015: 3,085 boepd). The group’s assets that will remain following the disposal of WD-2, WD-5/6, WD-13, WD-14, FZ-2 licences and Block GU-1 had an average net production levels of 1,354 boepd for the year to 30th of September 2015. Production levels continue to reflect the robust nature of the asset base with declines being modest against a backdrop of reduced levels of investment. Effective from 13th November 2015, Joel (Monty) Pemberton has resigned his directorships of the company and its subsidiaries but as previously announced his employment with the company will continue until the end of the year. Cash balance at end of September of $ 10.4 million, trade and other receivables of $14.5 million, taxation recoverable of $0.5 million, inventories of $6.6 million, debt of $13.0 million, trade and other payables of $28.3 million and taxation payable of $24.1 million. Current moratorium on principal repayments relating to the company’s outstanding debt extended to 20th November 2015.

Vodafone Group Plc (VOD.L) Announced that Vodafone Wallet users would be able to pay for goods and services contactlessly using their MasterCard cards, with the service scheduled to launch to consumers in European markets within weeks. Contactless card payments using Vodafone Wallet require a Vodafone NFC SIM and are supported on more than 60 Android smartphones. As s result, payments are automatically charged to the selected cards, which are protected with a user-defined 4-digit PIN for higher value payments.