Broker Upgrades and Downgrades & Key UK Corporate Snapshots 21 October 2015

UK Broker Upgrades / Downgrades

US Broker Upgrades / Downgrades

Key UK Corporate Snapshots Today

Acacia Mining Plc (ACA.L) Announced, in its third quarter results for three months ended 30 September 2015, that revenues fell to $192.7 million from $240.9 million posted in the same period preceding year. The company’s loss before tax stood at $14.6 million, compared to a profit of $45.6 million reported in the previous year. The basic loss per share stood at 3.2c compared to earnings of 6.9c reported in the previous year. The company’s cash balance stood at $226.4 million (Q32014: $286.8 million).

ARM Holdings Plc (ARM.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its reported revenue stood at £243.1 million, compared to £195.5 million in the preceding period. Profit after tax was £85.9 million compared to £64.8 million. The company’s diluted earnings per share was 6.1p, compared to 4.6p.

Asiamet Resources Limited (ARS.L) Announced an updated Mineral Resource estimate for the Beruang Kanan Main (BKM) deposit within the company’s 100% owned KSK Contract of Work in Kalimantan, Indonesia. The Resource has been independently estimated by Duncan Hackman of Hackman & Associates Pty Ltd (Australia) and a technical Report compliant with NI 43-101 will be published and available on the company’s website and SEDAR within 45 days of publication of this news release. 231MIbs (105,000 tonnes) of contained copper has been added as Indicated Resources and 35Mlbs (18,000 tonnes) of contained copper has been added as Inferred Resources. The company’s 2015 drill program has demonstrated good continuity of shallow near-surface copper mineralization and successfully upgraded a significant portion of the previous Inferred resource to the Indicated resource category. The previous September 26, 2014 BKM Mineral Resource estimate contained no Indicated Resources. Substantial Mineral Resource inventory at a 0.5% copper cut-off grade provides a solid basis for upcoming mining studies to be undertaken as part of the BKM preliminary economic assessment (PEA). The larger inventory of available Mineral Resource provides an opportunity to assess various options relating to plant throughput and/or increased mine life in the mining studies. Two discrete near surface higher grade zones identified in the 2015 drilling provide the company with an opportunity to assess the potential for higher grade starter pit opportunities that can enhance project economics.

Berkeley Energy Limited (BKY.L) Announced that following the gazetting of the approval from the Ministry of Industry, Energy and Tourism the Company has now received all the European Union, National, Regional and Provincial level approvals required for the initial infrastructure development of the Salamanca project. The final stages of the local approvals are well advanced and expected to be finalised well ahead of the target commencement date of mid-2016.

BHP Billiton Plc (BLT.L) Announced, in its operational review for the quarter ended 30 September 2015, that production guidance was maintained across all businesses. Petroleum capital expenditure of $2.9 billion now planned for the 2016 financial year, a 6% decline from prior guidance of $3.1 billion. Four major projects under development are tracking to plan. The group continues to pursue high-quality oil plays with additional prospective acreage acquired in the Beagle sub-basin in Western Australia and the Western Gulf of Mexico. On 29 September 2015, the Regional Environmental Committee of the Tarapacá Region approved the extension of operational permits for Cerro Colorado until 2023. Production at Pampa Norte for the 2016 financial year is expected to remain broadly unchanged from the prior year. On 14 and 15 October, the company priced multi-currency hybrid notes in the Euro, Sterling and US Dollar markets.

Bunzl Plc (BNZL.L) Announced, in its trading statement for the period since 30 June 2015, that overall performance is consistent with expectations at the time of the half year results announcement in August. At constant exchange rates, group revenue for the third quarter has increased 4% compared to the same period last year due to the impact of acquisitions. Underlying revenue for the quarter was at the same level as last year and was also consistent with the second quarter of this year. There has been no significant change in the company’s financial position during the period and the group continues to have substantial funding headroom available. Growth through acquisitions is an important part of the ongoing strategy of the company. The purchase of Meier Verpackungen in Austria, that was announced on 24 August 2015, has recently been completed following clearance of the transaction by the Austrian competition authority and today the company is also announcing the acquisition of the business of Planet Clean Canada Inc.

Computacenter Plc (CCC.L) Announced, in its trading update for the third quarter, that its revenue was up 4% to £721 million on an as reported basis, and up 10% in constant currency. Year-to-date revenue grew by 2% on an as reported basis, and by 8% in constant currency. The Group Services revenue grew by 1% on an as reported basis and by 7% in constant currency in the third quarter, bringing the year-to-date position to a growth of 1% and 6% respectively. The Group Supply Chain revenue grew by 5% on an as reported basis and by 12% in constant currency in the third quarter, bringing the year-to-date position to a growth of 2% and 8% respectively. The outlook for the Group’s trading result for the whole of 2015 remains in line with the Board’s expectations which were upgraded at the time of its interim results, despite continuing significant currency headwinds.

Coms Plc (COMS.L) Announced, in its unaudited interim results for the six months ended 31 July 2015, that its reported revenue stood at £21.32 million, compared to £15.49 million in the preceding period. Profit after tax was £0.01 million compared to £0.21 million. The company’s basic and diluted earnings per share was 0.00p, compared to 0.02p.

Fidessa Group Plc (FDSA.L) Announced, in its management update for the period starting from 1 July 2015 to date, that it saw customer markets entering new phase of recovery due to the impact if regulatory and structural changes. The increased competition within the customer base might lead to further closures and consolidations, while similar levels of growth seen in the first half are anticipated for the year as a whole, which may result in a higher level of headwind into 2016. It believes that it is entering a period where significant opportunity is returning to the markets. Strong progress with the multi-asset initiative will be expected and it will continue its research into the rates segment of the fixed income market, although no decision has yet been made to provide support for this asset class.

GoldBridges Global Resources Plc (GBGR.L) Announced that it has uploaded a new corporate video onto the website, ww.goldbridgesplc.com, which shows the Sekisovskoye mine in North East Kazakhstan, and demonstrates that decline development work is underway. The link to the video is http://www.goldbridgesplc.com/sekisovskoye-mine-video.html

Hammerson Plc (HMSO.L) Announced, the successful launch and pricing of a ten year, £350 million bond maturing 2025. The bond was priced at 173 basis points over the reference gilt and has an annual coupon of 3.5%. The issue was more than two times oversubscribed. It subsequently swapped the sterling bond nominal amount and coupon payments into euros resulting in a net coupon cost of 2.5%. The new coupon, post swaps, of 2.5% is in line with our target financing costs and the proceeds of the issue will be used to enhance liquidity following the recent investment in Dublin. The tenor of ten years is longer than its recent euro bond issues and will extend the weighted average maturity of debt by approximately one year.

Home Retail Group Plc (HOME.L) Announced, in its unaudited interim results for the six months ended 29 August 2015, that its reported revenue stood at £2628.5 million, compared to £2668.6 million in the preceding period. Profit after tax was £17.3 million compared to £9.5 million. The company’s diluted earnings per share was 2.2p, compared to 1.2p.

HydroDec Group Plc (HYR.L) Announced that it saw strong sales of its Superfine transformer oil to customers in the US and Mexico. The renovated and expanded plant at Canton, Ohio produced transformer oil since 24 September while it expects to increase production from the first four trains to operating design capacity of 70,000 litres per day. The plant is on track to deliver the 10 million litres of processed oil this year, as previously advised, with the plant anticipated to be cash generative from an operating perspective by the end of 2015

Merlin Entertainments Plc (MERL.L) Announced that they are forming a joint venture to create world-class visitor attractions in China and to build on and expand its existing location-based entertainment expertise and brands. As part of the agreement along with CMC it plans to develop a LEGOLANDR Park in Shanghai area as well as additional midway attractions across China; including existing and new brands.

Nature Group Plc (NGR.L) Announced that Maarten Smits has been appointed as Chief Financial Officer of the company with effect from 16 November 2015. Mr Smits will replace Kieron Becerra, who will remain as an Adviser to the Executive Management on a consultancy basis in order to ensure an orderly transition.

Nektan Plc (NKTN.L) Announced that it has signed a license agreement with NetEnt, a leading provider of real money gaming solutions to the world’s most successful online casino operators, for the delivery of a significant portfolio of online casino games across Nektan’s platform, including over 40 mobile games.

NewRiver Retail Limited (NRR.L) Announced, following portfolio update for the second quarter ended 30 September 2015, that it has declared a second quarterly dividend of 4.5p per share in respect of the year ended 31 March 2016. The ex-dividend date will be 22 October 2015. The quarterly dividend will be payable as a REIT Property Income Distribution (PID) on 13 November 2015, to shareholders on the register at close of business on 23 October 2015. For the half year to 30 September 2015, the dividend increased by 5.9% to total 9p per share (2014: 8.5p). During the period, the company completed four strategic acquisitions totalling £222.3 million, deploying the proceeds from the recent £150 million equity fundraise into strategically selected acquisitions. Acquisitions during the period saw the company’s assets under management increase to £1 billion. It continues to enhance and drive the value of its portfolio through strategic active asset management. The company successfully completed 54 leasing events during the period including key lettings with Pandora, Holland & Barratt, Evans and Warren James. Long-term leasing events achieved a rental income 22.6% above valuation ERV at an average lease length of 8.7 years securing an annual rent of £0.6 million. The company has delivered an improved occupancy of 96.3% and a sustained footfall, with a total of 27.6 million shoppers visiting its shopping centres during the period with the company’s annual footfall now totalling 126 million. During the period the company entered into a new £98 million debt facility with Lloyds Bank Plc to fund its retail warehouse portfolio including Project Ramsey. The margin payable on the investment facility is 1.90% and with an intention to fixed rate swap at least 75% of the loan, the total interest cost of the loan at inception will be 3.16%. The company is pleased to establish this new arrangement with Lloyds who now sit alongside Santander, HSBC, Barclays and Venn as the company’s principle bankers. The company’s current cost of debt remains low at 3.72% with good maturity of 4 years. The company’s last reported Loan to Value as at 31 March 2015 was 39%.

Oilex Limited (OEX.L) Announced that a workover campaign has commenced with mobilisation of rig to Cambay-19z an oil producer from the Eocene (EP IV) formation. Bhandut-3 production facility construction is about 40% complete and is expected to be completed during November 2015. Evaluation of tenders for the Cambay 2015/2016 drilling campaign have been nearly completed and final approvals to award contracts are being sought.

Pearson Plc (PSON.L) Announced, in its interim management statement, that its competitive performance remained strong in the first nine months of the year with share gains across our major markets including US higher education courseware, US school courseware and UK qualifications. Cyclical and policy related factors made some of our largest markets weaker than we expected with, in particular, lower Community College enrolments and higher returns affecting the US higher education market; and lower purchasing in certain provinces affecting the school textbook market in South Africa. For the third quarter, sales were down 2% in headline terms, down 5% at constant exchange rates (CER) and down 4% in underlying terms. For the nine months, sales were up 2% in headline terms and down 2% at CER and in underlying terms. At its preliminary results on 27 February 2015 the company stated that it expected to report adjusted earnings per share of between 75p and 80p in 2015, on the basis of no changes in portfolio for all of 2015 and based on exchange rates as at 21 January 2015. The disposal of PowerSchool, FT Group and The Economist Group, as well as movements in exchange rates, reduces this range by approximately 5p to 70p to 75p. Given a strong competitive performance but continued challenging market conditions, we expect our adjusted earnings per share to be around the bottom end of this range. This guidance is struck assuming: current exchange rates continue to the end of the year, no further acquisitions or disposals, a tax rate of approximately 15% and an interest charge of approximately £70 million.

Reckitt Benckiser Group Plc (RB..L) Announced, in its third quarter 2015 trading update, that it expects like-for-like group revenue to increase by 7.0%. It raised its like-for-like revenue target to more than 5.0% for full year 2015.

Serabi Gold Plc (SRB.L) Announced the first results from its surface drilling exploration campaign at its Sao Chico gold mine in the Tapajos. A drilling programme of approximately 5,000 metres, totaling some 35 holes, has been ongoing since April this year, targeting the strike and depth extension of the known Sao Chico Main Vein, as well as some infill drill holes. The longitudinal section and drill plan reproduced within this release summarise the drilling undertaken to date.

Sky Plc (SKY.L) Announced, in its unaudited results for the six months ended 30 September 2015, that there was 6% increase in group revenue to £2.8 billion and 10% increase in operating profit to £375 million. Also, there were 134,000 new customer additions, 937,000 new paid-for subscription products, with 133,000 new broadband subscribers in the UK. Additionally, there was strong churn performance across all territories. In entertainment, the company had a stand-out quarter across the group with total viewing up over 70% year on year in the UK and Ireland, up 28% in Germany and Austria, and up 16% in Italy. This was driven by the second series of True Detective across the group, as well as the channel’s strong box set offering – including titles such as Sons of Anarchy, Entourage and True Blood – in the UK and Ireland. Meanwhile, it extended its collaboration with Viacom by adding two new pay channels to Sky’s offer in Italy – MTV Next and Teen Nick – as well as agreeing improved streaming and catch-up rights for Comedy Central, Nick Jr and Nickelodeon. The company also agreed a new multi-year deal with Disney in the UK and Ireland, meaning our customers can continue to enjoy the very best Disney movies and TV entertainment.

Smith & Nephew Plc (SN..L) Announced that it will be holding a Capital Markets Event for institutional investors and analysts from 1.00pm GMT on 10 November 2015 in London, UK. The event will provide insights into the Advanced Wound Management franchises and will be hosted by Olivier Bohuon, Chief Executive Officer, with presentations from senior leaders of the company’s Advanced Wound Management franchises.

Trinity Exploration & Production (TRIN.L) Announced that it has entered into an agreement to sell its interests in the WD-2, WD-5/6, WD-13, WD-14 and FZ-2 licences and related fixed assets to Touchstone Exploration Inc for cash consideration of $20.8 million. Together, the blocks constitute substantially all of the company’s onshore licence portfolio. Under the terms of the transaction, Touchstone has agreed to deposit an initial payment of $2.08 million into escrow to be released, along with the remaining $18.72 million payable, on completion. The transaction is expected to complete in the fourth quarter of 2015 and will be effective as at the completion date. The company separately announced that it has agreed a further extension to the moratorium on principal repayments, relating to its outstanding debt balance of $13.0 million with its lender, until the 23rd of October 2015. Currently, discussions are being held with the lender for a further extension of its credit facilities while the management expects a continued support, particularly following the announcement of the sale of substantially all of its onshore assets for $20.8 million.