Broker Upgrades and Downgrades & Key UK Corporate Snapshots 19 October 2015

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Carillion Plc (CLLN.L) Announced that the company has signed a contract with the Homes and Communities Agency to deliver the regeneration of Tower Works in Holbeck Urban Village on Leeds’ South Bank. The combined value of the proposed development is approximately £80 million and a site-wide masterplan will be submitted for planning approval shortly, subject to which construction work is expected to begin in Spring 2016.

Dekeloil Public Limited (DKL.L) Announced that the Kernel Crushing Plant at the project is in the wet testing phase and pilot production has commenced. The company also announced that share options over a total of 18,000,000 ordinary shares of €0.00003367 each have been issued to members of the operations management team.

ECR Minerals Plc (ECR.L) Announced, in its update of its Itogon gold project in the Philippines, that an NI43-101 compliant resource estimate and technical report has been prepared for the project. The directors expect the report to be completed, announced and made available soon. The Exploration Permit (“EP”) relating to the Itogon project was renewed with a date of 1 October 2013 for a two year term (having originally been issued with a date of 15 February 2011 for an initial two year term and hence the most recent term of the EP expired on 30 September 2015. Accordingly, an application for renewal of the EP for a further two year term was lodged with the Mines & Geosciences Bureau in the Philippines. The directors expect that the EP will be renewed for a third two year term in due course.

Elegant Hotels Group Plc (EHG.L) Announced, in its trading update in relation to the year ended 30 September 2015, that trading since the interim results in June has remained solid and the operating results are in line with expectations at the EBITDA and earnings before tax level. In the second half of the year there have been continuing steady increases in passenger arrivals to Barbados. In line with the group’s strategy, the board has been working to develop a pipeline of potential acquisitions in Barbados and the surrounding Caribbean islands and is actively considering a number of opportunities. It is hoped that there will be material progress in this area in the short to medium term. As previously announced, the board has declared an interim dividend for the period to 30 September 2015 of 1.75p per ordinary share, which is consistent with the intentions at the time of the IPO. This is intended to be followed by a second dividend of 1.75p in February 2016 representing a total of 3.5p per ordinary share for the company’s first accounts covering the period from listing to 30 September 2015. Additionally, the company also announced that Nick Basing, Senior Independent Non-Executive Director will be leaving the company.

Galileo Resources Plc (GLR.L) Announced that it has renewed the majority of its wholly owned Nevada claims for a further 12 months. Further, it said that the Silverton property hosted a major rock chip anomaly which was greater than 100ppb measuring 2.5 km x 3 km. Meanwhile, the Crow Springs Esmeralda County property’s limited exploration has been carried out by other parties which have identified a large, mineralised porphyry copper molybdenum system.

Inland Homes Plc (INL.L) Announced that further to the announcement on 30 September 2015, having considered the application of IFRS 10 the board has concluded that the group should consolidate the results and financial position of Drayton Garden Village Limited (DGVL). The preparation of these consolidated accounts and the respective audit is taking longer than initially anticipated due to the need to adjust for different income recognition policies and financial year ends. Accordingly the Group will release the results as soon as this process is completed. The board confirms that the consolidation of DGVL does not affect its expectation, as first advised on 17 June 2015, that the group’s profit before tax for the year ended 30 June 2015 will be significantly ahead of the then consensus forecast in the market of £12.7 million.

IP Group Plc (IPO.L) Announced, that it has issued 28,799 new ordinary shares of 2.0p each to its Employee Share Ownership Trust as a result of the exercise of options by current and former group employees.

ITV Plc (ITV.L) Announced that it has agreed to acquire 100% of UTV Limited, which owns the television assets of UTV Media plc, for a total cash consideration of £100 million. This is subject to regulatory and UTV Media plc shareholder approval. The transaction will be financed through existing cash and debt facilities.

IXICO Plc (IXI.L) Announced, in its pre-close trading update, that the company reported revenues for the year at £3.1 million and other income at £1.0 million, in line with market expectations, giving combined total income of £4.1 million for the year. This compares to £4.3 million of total income for the 16 month period to 30 September 2014. Revenues in the year were achieved in the clinical trials business, including new contracts in Huntington’s Disease, together with initial revenues from the company’s proprietary digital healthcare platform. Operating expenses have been tightly controlled which has contributed towards a net cash figure at 30 September 2015 of £1.92 million which is ahead of market expectations and reflects a modest reduction from the net cash figure of £1.95 million at 31 March 2015. The company anticipates that its preliminary results to 30 September 2015 will be announced in December 2015.

John Laing Infrastructure Fund (JLIF.L) Announced that an application has been made to the United Kingdom Listing Authority (UKLA) and the London Stock Exchange (LSE) for 2,043,105 ordinary shares of 0.01 pence each in the capital of JLIF to be admitted to the Official List of the UKLA and to be traded on the main market of the LSE. These ordinary shares are to be issued as a scrip dividend alternative to receiving a cash dividend in respect of the 2015 First Half Dividend and dealings are expected to commence on 20 October 2015.

KEFI Minerals Plc (KEFI.L) Announced, in its third quarter 2015 operational update, that gold production remaining at 960,000oz over 13 years with an average of 75,000oz per year. Post period, the Company announced an increase in planned production to an average of c. 100,000oz per annum over a 10-year period. This was achieved by increasing the planned rate of ore processing, without change to the Mine Plan. All-in Sustaining Costs remained at c. US$780/oz, which ranks the project in the lowest cost quartile globally for gold producers. This includes all operating costs, royalties, sustaining capital and closure, but excludes initial capital investment. Post period, this was adjusted to US$760/oz based on the terms of contractor bidding. Additionally, Preferred contractors have been appointed for plant construction and start-up and for mine establishment and operation, namely Sedgman Ltd and, Ausdrill Ltd’s subsidiary, African Mining Services respectively. Both preferred contractors are Australian and Africa-based international industry specialists. Their proposed contract terms have allowed the company to increase planned gold production to 105,000oz per annum for the first five years. Meanwhile, Initial funding requirement remains at c. $120 million, with approximately $50 million anticipated to come from debt and the rest from a gold stream facility of c. $50 million and equity at the project level of c. $20 million from the Government of Ethiopia. Formal approval processes will be triggered shortly after the independent technical experts for the financiers have updated their assessment reports for the results of the bidding by project contractors. For gold prices of $1,100-1,400/oz, the summary projected economic outputs of Tulu Kapi open pit are: EBITDA average: US$35-62 million, investment payback: 3-5 years, NPV (100% of project): $106-240 million, on after tax cash flows discounted at 8%, IRR 33-64% after tax for leveraged cases, Net cash in the bank at the end of year 4 of $56-133 million, after full repayment of project debt.

LGO Energy Plc (LGO.L) Announced, in its update on its recently drilled well GY-678, that in the interim statement released on 18 September 2015, the company reported a mechanical problem had been encountered with well GY-678, the last of its seven planned wells in 2015 to the C-Sand formation. The company attempted to recover the downhole equipment which was causing an obstruction below the 9 5/8-inch casing, however, without success. Consequently a cement plug has now been set in the surface casing of the well and the rig has been released, pending a decision on possible re-entry and sidetracking, or re-drilling, to reach the extensive C-sand net oil pay zone previously drilled and logged in the well. In addition to the cost of the well and the unsuccessful recovery attempts totaling approximately $1.9 million, the company is potentially liable for the cost of the lost downhole equipment of approximately $1.5 million. As previously reported, the net oil pay observed in GY-678 was exceptionally thick. The loss of anticipated production from this well has had a negative impact on the group’s cash flow forecasts to the extent that the liquidity ratios as specified in the group’s banking arrangements with BNP Paribas have dropped below those originally envisaged in the covenants associated with the loan. Separately, the group is continuing with the planning work for a program of activity in the Goudron Sandstone with the benefit of the funds recently raised for that purpose.

Lok’nStore Group Plc (LOK.L) Announced, in its preliminary results for the year ended 31 July 2015, that its reported revenue stood at £15.42 million, compared to £13.91 million in the preceding year. Profit after tax was £1.97 million compared to £0.20 million. The company’s diluted earnings per share was 7.64p, compared to 0.79p.

LondonMetric Property Plc (LMP.L) Announced that it has sold the DFS property in Enfield for £24.5 million (LondonMetric share £7.5 million) on behalf of its DFS joint venture. Separately, it also announced that it has sold its Watling Retail Park in Cannock for £7.5 million to a UK institution reflecting a NIY of 6.15%.

Michelmersh Brick Holdings Plc (MBH.L) Announced, in its trading statement for second half of the year ending 31 December 2015, that the group is likely to exceed the market expectations of profit before taxation for the year, through operating efficiencies, continued low energy costs and aided by the additional capacity from Freshfield Lane. Delivery volumes are below previous expectations as a result of a softening of the market, however average selling prices are ahead of those budgeted.

Pace Plc (PIC.L) Announced that as a result of the continuation of the outstanding antitrust clearance processes in Brazil, Colombia and the United States, it is now expected that the transaction will not close until late December 2015 or the first quarter of 2016.

Richland Resources Limited (RLD.L) Announced in its quarterly operational, sales and market update for Q3 2015 that approximately 156,000 carats, larger than 4mm, produced during Q3 2015 as part of production start-up and ramp-up process. 21,628 tonnes of sapphire bearing alluvials mined and processed. Moreover, economical cut-off size currenty set at 4mm and material smaller than 4mm in diameter is stock-piled for future sorting and grading. Average grade of 7 carats per tonnes achieved for mined material larger than 4mm. The current estimated cash cost per carat of less than $3 / carat. The first sapphire parcel sale concluded in September, 1,200 carats sold at $14.30 per carat.

Shire Plc (SHP.L) Announced that the US Food and Drug Administration (FDA) requested an additional clinical study as part of a complete response letter (CRL) to the company’s new drug application for lifitegrast for the signs and symptoms of dry eye disease in adults. Shire has recently completed a Phase 3 study of lifitegrast, OPUS-3, that, if positive, will be the basis of the company’s response to the CRL.

StatPro Group Plc (SOG.L) Announced, in its third quarter trading update, that revenue and profits for the nine months ended 30 September 2015 are in line with expectations for the year. In the 12 months to the end of September 2015, Annualised Recurring Revenue for StatPro Revolution, the cloud-based portfolio analysis service, grew by 68% to £7.2 million. StatPro Revolution related revenue, grew to £13.6 million and 54% of total software revenue.

Sula Iron & Gold Plc (SULA.L) Announced, in its corporate update, that it has successfully raised £500,000 (before expenses) to carry out an extended drill programme on its Ferensola Gold Project, the comopany is pleased to announce that, on 16 October 2015, a drilling contract was entered into with Energold Drilling Corp. Energold is scheduled to mobilise two drilling rigs on 1 November 2015 to the company’s Ferensola licence area in Sierra Leone. Ferensola Gold Project drill programme now comprises a total of 1,500 metres – sufficient level to subsequently seek to formally engage with a potentially interested Tier 1 international gold company. Coltan Project IFC loan application to enable the company to potentially monetise a small scale operating coltan and gold mine project without significant dilution for shareholders.

Telit Communications Plc (TCM.L) Announced that it has secured a supply contract valued nearly $220 million as one of the technology providers for the GB SMIP, Great Britain’s ambitious, world-leading £11.3 billion Smart Metering infrastructure project. Supplies are expected to commence in Q4 2016 and continue through to the end of 2021. The company’s IoT cellular modules will power a portion of the nearly 30 million “comms” hubs bridging ZigBee data communication between the smart meters and either RF or cellular networks. Its equipped cellular comms hubs will use a specially developed UE910 UMTS/HSPA module delivering the 3G backhaul communication, leveraging the company’s extensive experience in the energy market.

Venn Life Sciences Holdings Plc (VENN.L) Announced the completion of the acquisition of Kinesis Pharma BV. The final terms of the initial consideration for the acquisition, following the adjustment mechanism set out in the sale and purchase agreement, are a cash consideration of €1,846,620 and 4,780,320 Consideration Shares representing a value of €1,477,517. It is expected that the Consideration Shares will be admitted to trading on AIM on Friday 23 October 2015. Moreover, the company appointed Mr Kees Groen as its Executive Director with immediate effect.

Vianet Group Plc (VNET.L) Announced, in its trading update for half year ended 30 September 2015, that the first half trading was ahead of the same period last year which is in line with the Board’s expectations. Positive commercial and operational progress was made across the group’s businesses, notwithstanding the continued pressure on trading in the pub sector, with the focused approach to exploiting growth opportunities, such as in vending telemetry, will support the group’s return to growth. The company’s board is intending to declare an interim dividend of 1.7p per share.

Wynnstay Group Plc (WYN.L) Announced that it has reached agreement with T. G. Jeary Ltd on terms for the acquisition of its West Country farm supplies operation, Agricentre, and certain related assets. The company expects to enter into a legally binding agreement for the acquisition shortly with a view to completing the acquisition on 30 October 2015. The company is also pleased to report that following satisfactory trading in the second half of the financial year to date, final results for the 12 months to 31 October 2015, before acquisition costs, are expected to be in line with market expectations. Looking ahead, the trading backdrop for farmers remains difficult and the company is taking a cautious view on the expected recovery in output prices over the next twelve months. The investment programme in the business is progressing well and underpins the group’s continuing development.