Broker Upgrades and Downgrades & Key UK Corporate Snapshots 25 November 2015

UK Broker Upgrades / Downgrades

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Betfair Group Plc (BET.L) Announced its interim results for the six months ended 31 October 2015. Revenue increased by 15% to £274.4 million (H1 FY15: £237.6 million). EBITDA excluding Betfair US increased by 3% to £72.2 million (H1 FY15: £70.4 million). The Board has declared an interim dividend of 15.0p per share (H1 FY15: 9.0p). CEO Breon Corcoran said “Betfair traded strongly in its key markets throughout the first half of FY16. These results, which came against a tough comparative period featuring last year’s football World Cup, are ahead of our original expectations and demonstrate the Group’s continued strong momentum.”

Better Capital PCC Limited (BCAP.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its loss net of tax was £74.74 million compared to £23.25 million. The company’s basic and diluted loss per share was 22.10p, compared to 4.46p.

Britvic Plc (BVIC.L) Announced its preliminary results for the 52 weeks ended 27 September 2015. In the period the group sold over 2.1 billion litres of soft drinks, an increase of 0.9% on the previous year, with Average Realised Price (ARP) of 60.5p, declining by 1.5%. The group’s revenue was £1,300.1 million, down 0.6% compared to last year. Adjusted basic EPS for the period was 46.3p. Adjusted underlying basic EPS for the period, excluding exceptional and other items and acquisition related amortisation, as well as the weighted average number of shares related to July share placing, was 46.7p, up 12.0% on the same period last year (41.8p). Basic EPS (after exceptional and other items charges post-tax) for the period was 41.8p compared with 36.5p for the same period last year. The board is recommending a final dividend of 16.3p per share, an increase of 10.1% on the dividend declared last year, with a total value of £42.6 million. CEO Simon Litherland said “We have seen a slow start to the year, reflecting the continued challenging market conditions. However, with our compelling marketing and innovation plans and our continued focus on disciplined cost management we are confident of increasing our profitability in 2016.” Separately, the company announced the appointment of Mathew Dunn, Chief Financial Officer, as a director of the company with immediate effect.

Cobham Plc (COB.L) Announced that, further to its Stock Exchange Announcement dated 10 August 2015, Cobham has now completed the divestment of its composites businesses to Meggitt PLC for US$200m in cash.

Cohort Plc (CHRT.L) Announced that its subsidiary SCS has been awarded a two year contract for providing training and exercise support to the UK Ministry of Defence’s Joint Forces Command amounting £9.7 million. The contract will commence on 1 April 2016 and includes options to extend it for a further two years. Under the contract SCS will provide a comprehensive support service for the design, development and delivery of joint force exercises.

Daejan Holdings Plc (DJAN.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its total rental & related income stood at £66.22 million, compared to £66.46 million in the preceding period. Profit after tax was £45.82 million compared to £110.46 million. The company’s basic and diluted earnings per share was 2.81p, compared to 6.77p.

Falcon Oil & Gas Ltd (FOG.L) Announced, in its interim results for the nine months ended 30 September 2015, that revenue stood at $2000, compared to $5000 in the same period last year. Loss for the period stood at $392000, compared to $1567000. Basic and diluted loss per share stood at 0.00c, compared to 0.002c. It also announced that, the firm continued focus on strict cost management and efficient operation of the portfolio as well as commencement of the Australian nine well exploration and appraisal programme, planned from 2015 to 2018, with the drilling of Kalala S-1, Amungee NW-1 and Amungee NW-1H with our partners Origin Resources Limited (“Origin”) (35%) and Sasol Petroleum Australia Limited (“Sasol”) (35%)

Finsbury Food Group (FIF.L) Announced, in its trading update, that strong trading has continued into the new financial year. Revenues grew to £102 million during the first four months, an increase of 78.1% on prior year, which includes organic growth of £5.8 million, an increase of 10.1% over prior year. The UK Bakery division grew by 8.7% and the Overseas division, the Group’s 50% owned European business, grew by 19.4%. In October 2015 the Group celebrated the first anniversary of the Fletchers acquisition, which is now fully integrated and performing strongly. The Group continues investing in the business which includes an increased focus on capital expenditure enabling the Directors’ to maximise sales, efficiency and productivity opportunities across all businesses. Whilst consumer confidence has improved, the economic and trading outlook remains uncertain and the company anticipates that the Fletchers and Johnstone’s acquisitions will drive the majority of the Group’s growth in this financial year.

Horizon Discovery Group Plc (HZD.L) Announced that it has signed development agreements with three major developers of companion diagnostic tests amounting up to $3.3 million. As per the agreement, the company will develop new and/or supplying existing reference standards for the development and validation of new companion diagnostic tests, and for the potential inclusion in on-market diagnostic kits under Original Equipment Manufacturer (OEM) agreements.

Igas Energy Plc (IGAS.L) Announced, in its half year results for six months ended 30 September 2015, that revenues fell to £17.6 million from £34.5 million posted in the same period preceding year. The company’s loss before tax stood at £30.4 million, compared to a profit of £1.5 million reported in the previous year. The basic loss per share stood at 6.61p compared to loss of 1.87p reported in the previous year. The company’s cash and cash equivalents stood at £34.5 million (2014: £29.1 million).

Jaywing Plc (JWNG.L) Announced, in its interim results for the six months ended 30 September 2015, that revenue stood at £17.05 million, compared to £17.26 million in the same period last year. Operating profit stood at £0.29 million, compared to an operation loss of £1.15 million. Profit after tax was £0.16 million, compared to a loss after tax of £1.29 million. Basic earnings per share stood at 0.03p, compared to a basic loss per share of 1.74p. Diluted earnings per share stood at 0.03p, compared to a basic loss per share of 1.70p. It added that trading in H2 2016 was in line with management expectations.

Meggitt Plc (MGGT.L) Announced the acquisition of the advanced composites businesses of Cobham plc (Cobham Advanced Composites Limited, Compass Composites Products Inc. and certain assets of Cobham Advanced Electronic Solutions Inc.) for $US 200 million in cash has now received all necessary approvals and the transaction has been completed. The acquired businesses will be integrated into Meggitt’s polymers and composites division.

Obtala Resources Limited (OBT.L) Announced that it has signed Heads of Terms, with a private, non-related Tanzanian entity to form a joint venture to develop a commercial farming operation over an additional 1,265 hectares in Tanzania. A formal shareholders agreement, land lease agreement and the incorporation of a new Tanzanian registered joint venture company will be concluded shortly.

Plant Impact Plc (PIM.L) Announced, in its trading update for quarter ended 31 October 2015, that revenues for the quarter grew to £3.7 million from £1.9 million in the same period previous year. Majority of the sales in the quarter was accounted by the soy crop enhancement product, Veritas®, as the group invoiced product to South America in advance of the 2015/16 growing season. Plant Impact made good progress during the period and currently is on track to deliver its objectives for the year. In Northern Europe, the group had advanced discussions with distributors and expects to see results during the northern hemisphere spring season. Balanced investment in R&D might increase a pipeline of new crop enhancement products in the coming year as new team members are settling in and trials are continuously producing encouraging results.

RPC Group Plc (RPC.L) Announced, in its unaudited interim results for the six months ended 30 September 2015, that its reported revenue stood at £799.8 million, compared to £588.9 million in the preceding period. Profit after tax was £28.3 million compared to £24.3 million. The company’s diluted earnings per share was 11.2p, compared to 9.7p.

SeaEnergy Plc (SEA.L) Announced that it has agreed a working capital funding package under which it can draw up to £1.0 million over the next 12 months. In addition, the company has now handed over operational responsibility for the ships previously under management and expects to have completed its exit from ship management by the end of the year. Moreover, the company announced that it has appointed WH Ireland Limited as its nominated adviser and broker with effect from 24 November 2015.

Thomas Cook Group Plc (TCG.L) Announced its audited results for the year ended 30 September 2015. Group revenue increased by £86 million, or 1.1%, on a like-for-like basis to £7,834 million (FY14: £7,748 million). Profit after tax increased by £177 million to a positive £19 million, the first positive profit after tax the Group has reported since 2010. Winter trading is encouraging overall with average selling prices up 3% and positive momentum continuing in the UK and Northern Europe. The Winter 15/16 season is 58% sold for the Group as a whole, 1% ahead of this time last year. Overall, bookings for the Group are 1% higher than last year, with average prices 3% stronger, reflecting an encouraging performance so far, particularly from our UK and Northern Europe businesses.

TR Property Investment Trust Plc (TRY.L) Announced financial report for the half year ended 30 September 2015. The NAV total return was +0.6% for the six months to the end of September. Whilst growth in the asset value was virtually flat it was ahead of the benchmark which fell 2.0%. The share price total return was -4.1% as the price moved from close to par to a discount of 7.0% to net asset value. Earnings per Ordinary share at 5.51p are behind the prior half year earnings of 6.05p. The Directors have announced an interim dividend of 3.15p per share, an increase of 6.8% over the prior year interim dividend of 2.95p. The outlook for UK property remains positive, with rental growth in most markets, particularly office and industrial, while new supply remains restricted.

United Utilities Group Plc (UU..L) Announced, in its interim results for the six months ended 30 September 2015, that its reported revenue stood at £857.0 million, compared to £859.4 million in the preceding period. Profit after tax was £171.9 million compared to £162.8 million. The company’s diluted earnings per share was 25.2p, compared to 23.8p.

Victoria Plc (VCP.L) Announced, in its half year results for 27 weeks ended 03 October 2015, that revenues jumped to £105.6 million from £39.9 million posted in the 26 weeks ended 27 September 2014. The company’s profit before tax stood at £3.3 million, compared to a loss of £5.6 million reported in the previous year. The basic earnings per share stood at 13.01p compared to loss of 65.21p reported in the previous year. The company’s cash at bank stood at £7.8 million (2014: £0.362 million).

Zambeef Products Plc (ZAM.L) Announced, in its final results for the year ended 30 September 2015, that revenues rose to $220.3 million from $211.6 million posted in the same period preceding year. The company’s loss before tax stood at $5.0 million, compared to a loss of $1.7 million reported in the previous year. The basic and diluted loss per share stood at 3.63c compared to loss of 1.69p reported in the previous year. The company’s cash and cash equivalents stood at $15.9 million (2014: $23.6 million).