UK Broker Upgrades / Downgrades
|Code||Company||Broker||Recomm. From||Recomm. To||Price From||Price To|
|DLN||Derwent London Plc||UBS||Neutral||Buy|
|MCRO||Micro Focus International Plc||Jefferies International||Underperform||Underperform||635||1230|
|PAYS||Paysafe Group Plc||Deutsche Bank||Buy||Buy||410||500|
|PMO||Premier Oil Plc||Nomura||Neutral||Buy|
|SGE||Sage Group Plc/The||Jefferies International||Buy||Buy||710||735|
|AVV||Aveva Group Plc||Jefferies International||Buy||Buy||2580||1830|
|BG.||BG Group Plc||Deutsche Bank||Buy||Buy||1355||1290|
|BP.||BP Plc||Deutsche Bank||Buy||Buy||450||445|
|LLOY||Lloyds Banking Group Plc||Jefferies International||Buy||Buy||104||101|
|MONI||Monitise Plc||Jefferies International||Hold||Hold||15||5|
|RDSA||Royal Dutch Shell ‘A’||Deutsche Bank||Buy||Buy||2200||2035|
|RDSB||Royal Dutch Shell ‘B’||Deutsche Bank||Buy||Buy||2200||2035|
|SDL||SDL Plc||Jefferies International||Buy||Hold||510||430|
|VED||Vedanta Resources Plc||Deutsche Bank||Sell||Sell||200||185|
|BT.A||BT Group Plc||Deutsche Bank||Sell||Sell|
|FDSA||Fidessa Group Plc||Jefferies International||Buy||Buy||2580||2580|
|JE.||Just Eat Plc||UBS||Sell||330|
|KOOV||Koovs Plc||Peel Hunt||Hold||Hold|
|SEY||Sterling Energy Plc||Peel Hunt||Buy||Buy||20||20|
|SHG||Shanta Gold Ltd||Peel Hunt||Buy||Buy||9||9|
US Broker Upgrades / Downgrades
|Code||Company||Broker||Recomm. From||Recomm. To||Price From||Price To|
|TEAM||Atlassian||JMP Securities||Market Perform||Market Outperform|
|BAC||Bank of America||Credit Agricole||Sell||Outperform|
|BKH||Black Hills Corp||BMO Capital Markets||Market Perform||Outperform||$49||$54|
|CX||Cemex SAB de CV||Jefferies||Hold||Buy|
|CHFC||Chemical Financial||FIG Partners||Market Perform||Outperform|
|CPSI||Computer Programs & Systems||Topeka Capital Markets||Hold||Buy||$53||$61|
|DO||Diamond Offshore Drilling||Citigroup||Sell||Neutral|
|DST||DST Systems||Robert W. Baird||Neutral||Outperform||$120||$120|
|FLEX||Flextronics International||Raymond James||Market Perform||Strong Buy|
|ICPT||Intercept Pharmaceuticals||Morgan Stanley||Underweight||Equal weight|
|JCP||JC Penney||Credit Suisse||Underperform||Neutral|
|JNPR||Juniper Networks||Bernstein||Market Perform||Outperform|
|LOB||Live Oak Bancshares||Sun Trust Rbsn Humphrey||Neutral||Buy|
|MSCC||Microsemi||Wells Fargo||Market Perform||Outperform|
|NEE||NextEra Energy||Robert W. Baird||Neutral||Outperform||$110||$120|
|OSK||Oshkosh||Sun Trust Rbsn Humphrey||Neutral||Buy|
|PCRX||Pacira Pharmaceuticals||BofA Merrill Lynch||Neutral||Buy|
|PCCC||PC Connection||Raymond James||Underperform||Market Perform|
|RYN||Rayonier||BMO Capital Markets||Market Perform||Outperform||$27||$26|
|VLY||Valley National Bancorp||Sandler O’Neill||Hold||Buy|
|ACHN||Achillion Pharmaceuticals||Leerink Partners||Outperform||Market Perform|
|AXLL||Axiall||Wells Fargo||Outperform||Market Perform|
|CHUY||Chuy’s Holdings||Raymond James||Outperform||Market Perform|
|CY||Cypress Semiconductor||Sterne Agee CRT||Buy||Neutral|
|DRI||Darden Restaurants||Raymond James||Market Perform||Underperform|
|FFIN||First Financial Bankshares||Sandler O’Neill||Hold||Sell|
|SPR||Spirit AeroSystems Holdings||Goldman Sachs||Neutral||Sell|
|TEX||Terex||Avondale||Market Outperform||Market Perform|
|AEL||American Equity Investment Life Holding||RBC Capital Markets||Outperform||$24|
|JUNO||Juno Therapeutics||Sun Trust Rbsn Humphrey||Buy||$50|
|KITE||Kite Pharma||Sun Trust Rbsn Humphrey||Buy||$70|
|PSEC||Prospect Capital||National Securities||Neutral|
|TMHC||Taylor Morrison Home||Citigroup||Neutral|
|TYN||Tortoise North American Energy||Guggenheim||Neutral|
Key UK Corporate Snapshots Today
Allied Minds Plc (ALM.L) Announced that its subsidiary Federated Wireless raised $82 million (including new invested capital), up from $10 million. Allied Minds now owns 73% of Federated Wireless, valuing its stake at $60 million, up from $9 million. The proceeds of the raise will be used to complete Federal Communications Commission (FCC) certification required for Federated Wireless to operate, conclude the development of Federated Wireless’ real-time spectrum management platform (CINQ); and Advance commercialization through product field trials in H2 2016 with technology partners.
Ariana Resources Plc (AAU.L) Announced, in its results from its final phase of drilling at Kiziltepe in 2015, that the potential for Arzu Central to contain mineralisation of the same calibre as the rest of the Arzu vein system. 3 new exploration holes into Arzu Central, between the Arzu North and Arzu South production areas, confirms the potential of a 600m extension to the known mineralised strike length of the Arzu vein system. Near surface pre-production drilling over Arzu South provides for advanced scheduling before open-pit mining commences. In 2015, Ariana successfully completed a total of 1,208 metres of RC drilling within the Kiziltepe Mine area. The results for phase one (594m) were announced on the 1 December 2015, with phase two (614m) released here. Both phases of drilling demonstrate the potential to significantly grow the Kiziltepe resource; current JORC reserves – 1.1M tonnes @ 3.1 g/t gold and 39.8 g/t silver for 115,000 oz gold and 1,470,00 oz silver.
Bankers Investment Trust Plc (BNKR.L) Announced that it has reached agreement in principle with Henderson Global Trust plc that, in the event of a possible combination of HGL and Henderson International Income Trust plc, the company will be offered as an alternative roll-over option for those HGL investors that wish to retain a global growth mandate.
Belvoir Lettings Plc (BLV.L) Announced, in its trading update ahead of its final results for the year to 31 December 2015, that trading in the second half of the year was in line with the Board’s expectations. The Group delivered growth through enhanced network performance, franchise acquisitions and increased property sales. The acquisitions of Newton Fallowell in July and Goodchilds in October were the first steps in its new multi-brand strategy. Recruitment of Belvoir franchisees was stronger in the second half of the year, finishing with a total of 11 new franchises, of which 7 were new territories and 4 were resales of existing Belvoir offices. The Group ended the year with a strong balance sheet with bank balances totaling £2.7 million (2014: £1.5 million). As a result, the underlying profit before tax for the year is expected to be in line with market expectations. Belvoir will announce its preliminary results for the year ending 31 December 2015 on 4 April 2016.
Bowleven Plc (BLVN.L) Announced further to the announcement of 19 November 2015, it has decided not to pursue its interest in the proposed acquisition from Aminex PLC of a 25% interest in the Kiliwani North Development Licence and a 50% interest in the Ruvuma PSA, in Tanzania, following the completion of due diligence.
BT Group Plc (BT.A.L) Announced, in its third quarter results for the quarter ended 31 December 2015, that its reported revenue stood at £4,637 million, compared to £4,475 million in the preceding period. Operating profit stood at £1,011.0 million, compared to £901.0 million. The company’s reported earnings per share was 9.5p, compared to 6.9p. Additionally, it announced a new organisational structure that will take effect from April. This follows its acquisition of EE, the UK’s leading mobile network operator. Under this structure, there will be six lines of business. Two will serve consumers, two will focus on businesses and the public sector – one in the UK and Ireland and one globally – and two will provide wholesale services to other industry players. The six divisions will be supported by Technology, Service and Operations which is currently responsible for BT’s ‘core’ networks in the UK and overseas, its IT platforms and its global Research and Development arm. Howard Watson takes over as its CEO today, replacing Clive Selley. A new IT and Mobile business unit within TSO will be led by EE’s Fotis Karonis. Fotis will join Howard’s leadership team as well as support Marc Allera as EE’s CIO.
Cable & Wireless Communications Plc (CWC.L) Announced, in its offer update, that if the Exchange Ratio Calculation Time were 1 February 2016, under the terms of the Transaction, the Exchange Ratio and the Alternative Exchange Ratio would be calculated as per the new terms. Under the Recommended Offer, its shareholders would be entitled to receive, for each Share, 0.008301 New Liberty Global Class A Ordinary Shares and 0.020321 New Liberty Global Class C Ordinary Shares, as well as the Special Dividend. Under the First Dual Share Alternative, its Shareholders would be entitled to receive, for each Share, 0.005593 New Liberty Global Class A Ordinary Shares, 0.013693 New Liberty Global Class C Ordinary Shares, 0.002343 New LiLAC Class A Ordinary Shares and 0.005739 New LiLAC Class C Ordinary Shares, as well as the Special Dividend.Also, under the Second Dual Share Alternative, its Shareholders would be entitled to receive, for each Share 0.004601 New Liberty Global Class A Ordinary Shares, 0.011265 New Liberty Global Class C Ordinary Shares, 0.002343 New LiLAC Class A Ordinary Shares and 0.005739 New LiLAC Class C Ordinary Shares, as well as the Special Dividend.
Castleton Technology Plc (CTP.L) Announced that on 29th January 2016, it acquired Kypera Holdings Limited (“Kypera”) for a net cash consideration of £3.5 million (the “Acquisition”).
CEPS Plc (CEPS.L) Announced that it has acquired 55% of the issued share capital of a newly incorporated company, RAM (1003) Limited (RAM) for an investment of £670,000. RAM Limited was formed to acquire 100% of Hickton Consultants Limited, for which the acquisition of which was completed on 29 January 2016. Hickton has been acquired by RAM for a total consideration of £2.0 million, comprising initial consideration of £1.35 million and deferred consideration of £0.65 million payable over four years from completion in quarterly instalments. The company will subscribe £670,000 into RAM Limited for 54,973 Ordinary Shares for £54,973, and £615,027 Shareholder Loan Notes, with an 8% interest rate.
Conviviality Plc (CVR.L) Announced, in its half year results for 27 weeks ended 01 November 2015, that revenues rose to £252.0 million from £182.9 million posted in the same period preceding year. The company’s loss before tax stood at £4.0 million, compared to a profit of £2.7 million reported in the previous year. The basic loss per share stood at 5.9p compared to earnings of 3.2p reported in the previous year. The company further stated that the board has declared an interim dividend of 2.1p per share and will be paid on 11 March 2016.
Crossrider Plc (CROS.L) Announced, in its annual trading update, that the trading was in line with the market expectations. It expects revenues for the full year to be around $85 million and adjusted EBITDA to be in the range of $10 million. Revenues from the targeted high volume lower margin Mobile marketplace increased by 130% from H1 2015 to H2 2015, representing 26% of the company’s overall revenues. Revenues from the higher margin lower growth Web business declined by 1% YoY and by 17% from H1 2015 to H2 2015, reflecting the decrease in volume of average daily new installations of Web applications which fell from 1.4 billion in June 2015 to 0.4 billion in December 2015. The Board expects FY2016 revenues and earnings to be ahead of FY2015. The company also announced that Koby Menachemi, Chief Executive Officer, has resigned from the Board and will leave in March 2016.
Ergomed Plc (ERGO.L) Announced, in its business update for the 12 months period ending 31 December 2015, that the company had a successful year of trading and unaudited, revenues for 2015 are approximately £29.0 million – up 25% from a pro forma total of £24.0 million in 2014. Approximately £28.0 million of contracts were won in 2015, up from £26.8 million in 2014, which reflects strong demand across all divisions and that the company and PrimeVigilance continue to lever its well-established market position. Moreover, the company will provide further details on the year-end performance at its 2015 Preliminary Results at the end of March.
Fishing Republic Plc (FISH.L) Announced, in its update on trading for its financial year ended 31 December 2015, that turnover for the year ended 31 December 2015 is approximately 21% ahead of the same period last year at c. £4.1 million in line with market expectations. The increase reflects the benefit of the deployment of IPO funds raised in June, which were used to improve stock levels and enhance the company’s marketing activities, especially though its own websites. Moreover, the Board remains confident about prospects for the new financial year as it pursues its strategy to grow both organically and via acquisition.
Grafton Group Plc (GFTU.L) Announced that it has completed the acquisition of Allsand Supplies Limited (Allsands), a single branch general builders merchanting business located in Larkfield, Kent. The acquisition will enhance the company’s market coverage and will complement the existing branch network in the South East of England.
Grainger Plc (GRI.L) Announced that it has exchanged contracts to acquire Clippers Quay, an approximately £98.7 million build to rent, PRS development scheme in Salford Quays, which will deliver over 600 new private rented homes, along with commercial and amenity space. This transaction follows on from Grainger’s Strategy Update on 28 January 2016, in which Grainger set out its ambition to become the UK’s leading private landlord and its plan to invest over £850 million in the UK private rented sector (PRS) over the next 3-5 years. As one of the largest PRS operators in the UK, with approximately 3,600 PRS homes under management, this scheme further builds on Grainger’s existing platform.
IS Solutions Plc (ISL.L) Announced, in its trading update, that since its half yearly result in November 2015, it has continued to build on its current market position within the data solutions arena, both in its domestic market and internationally, as it used its extensive technical ‘know-how’ and skills base. In 2016, it has continued to witness stronger demand resulting in sales well ahead of management budget. The company also stated that it secured a further two major projects with new and existing customers operating within the retail and financial services sectors. It anticipates that the projects will add contracted revenue of up to £2 million in the current financial year and in excess of £250,000 per annum of recurring revenue in subsequent years.
James Halstead Plc (JHD.L) Announced, in its trading update ahead of its interim results for the half-year to 31st December 2015, that Mr. Geoffrey Halstead noted that he had every expectation of progress in terms of profit despite the adverse effects of exchange rates. Turnover has increased in each of the company’s major markets on a constant currency basis though the translation of exports to sterling is against an adverse effect of 10-15%. Nevertheless, the profit for the first 6 months trading is ahead of last year and in line with the board’s expectations.
Jersey Oil and Gas Plc (JOG.L) Announced, in its corporate update, that the company has implemented further cost savings and salary reductions that should enable it to continue operating with its existing cash resources into 2017. Further oil price declines since its previous Corporate Update in early December 2015 continue to create exciting opportunities for the compnay, which has no existing debt, a clean balance sheet, access to debt capital and significant tax losses available to execute on its stated objective of acquiring interests in lower cost tie back fields capable of generating positive cash flow at an oil price of US$30 per barrel. The Company has experienced an increase in the available opportunities presented to it which it is actively pursuing, increasingly turning from asset-related to more probable corporate opportunities. The Company thus aims to enter the market at an opportune time in the cycle. Meanwhile, the company and its co-venturer, CIECO Exploration and Production (UK) Limited are currently seeking farm-in partners for their Cortina blocks awarded in the 28th Licencing Round, having fulfilled the licence obligations and completed planned technical studies. Two large medium risk oil prospects have been identified with most likely unaudited in place volumes of 300 and 212 million stock-tank barrels (“Mmstb”) respectively, analogous to the adjacent Tweedsmuir fields. Prospectivity has been confirmed following extensive geological and geophysical analysis undertaken by Jersey Oil & Gas utilising the latest and best quality seismic data available, including a stratigraphic re-interpretation of 12 key wells and a petroleum charge study. The Cortina blocks are located in the UK Central North Sea and straddle the western end of the North Buchan Graben in a water depth of between 100-128m. The acreage lies in a prolific, proven, light oil fairway close to the Buchan and Tweedsmuir oilfields with ease of access to surrounding infrastructure. Also, a farm-out process is underway with initial interest expressed by several parties.
Johnson Service Group Plc (JSG.L) Announced, that it has acquired the entire share capital of Zip Textiles (Services) Limited (“Zip”), for a cash consideration of £15.0 million on a debt-free, cash-free basis, together with additional debt of £2.7 million in relation to the financing of recently installed processing equipment. The main focus of this acquisition is to improve operational capacity and extend the company’s reach of existing hotel customers.
Keywords Studios Plc (KWS.L) Announced, in its trading update, that it expects to report revenues and adjusted PBT* comfortably ahead of consensus market expectations, when it announces its final results for the year ended 31 December 2015 on 5 April 2016. The Group has made good progress in line with its stated strategy of growing both organically and by acquisition to extend the Group’s client base, market penetration and service lines. During the year, organic growth has been complemented by the acquisitions of Reverb and Kite Team. The Group continues to review a healthy pipeline of acquisition opportunities with a view to selectively acquiring attractive businesses to strengthen its range of services and extend its global reach.
Learning Technologies Group Plc (LTG.L) Announced that, following the completion of all outstanding conditions, it completed the acquisition of the entire issued share capital of Rustici Software LLC (“Rustici”) and a 30% equity stake in Watershed Systems Inc. (“Watershed”) on the afternoon of 29 January 2016. Admission of the new shares is expected to take place at 8.00am on 5 February 2016. Following the anticipated admission of these shares, the total number of ordinary shares of 0.375p each in the capital of the company in issue will be 416,246,899 with each share carrying the right to one vote.
LiteBulb Plc (LBB.L) Announced, in its update further to its announcement of 18 January 2016, that the Board continues to pursue a refinancing of all the Company’s existing convertible loan notes and based on its discussions with various parties now believes that this is likely to take the form of a proportion of the liability being converted in to equity and the remaining balance being rolled into a newly constituted loan note. Shareholders should note that the current liability of the principal of the Loan Notes amounts to £6.6 million, which is significantly greater than the current value of the Company’s equity. The Board has identified a need for additional financing amounting to approximately £2.0 million and are exploring means of financing this alongside the refinancing of the Loan Notes. The Board currently believes that this financing is most likely to be in the form of new equity.
Michelmersh Brick Holdings Plc (MBH.L) Announced, in its trading update ahead of its final results for the year ended 31 December 2015, that the Board is pleased to announce that the company is expecting to report a profit for the year ended 31 December 2015 that is slightly ahead of market expectations. The positive financial performance of the Group reflects stronger selling prices than expected towards the end of the year and consequent improvements in margin. The Group also benefitted from a strong production performance placing it in a position from which it can quickly satisfy market demand. Improvement in profits and strong working capital management has also resulted in a significant improvement in the net cash position over that which was previously expected. Net cash at year end was approximately £2.9 million. The Group’s forward order book continues to be robust and well balanced at this point.
Micro Focus International Plc (MCRO.L) Announced that Stephen Murdoch and Nils Brauckmann would join the Board as CEO of Micro Focus and CEO of SUSE respectively. Both will report to Kevin Loosemore, Executive Chairman. Stephen Murdoch rejoins the Board having been a Director from April 2014 to November 2014. Also, the company announced that Steve Schuckenbrock would join the Board as an independent Non-Executive Director.
Murgitroyd Group Plc (MUR.L) Announced, in its unaudited interim results for the six months ended 30 November 2015, that its reported revenue stood at £20.37 million, compared to £19.28 million in the preceding period. Operating profit stood at £2.11 million, compared to £1.99 million. Profit after tax was £1.56 million compared to £1.44 million. The company’s diluted earnings per share was 17.35p, compared to 16.01p
Nektan Plc (NKTN.L) Announced, in its trading statement that in its European operations, the company has seen at least 32% compound monthly growth in overall Net Gaming Revenue (“NGR”) between July 2015 and January 2016, with NGR in January 2016 of £827k, driven by Nektan’s digital / mobile NGR partners. However, a delay in the acceleration of one large contract, anticipated to be worth approximately £7 million in current year NGR, would have a significant impact on Group revenues and EBITDA with the accelerated launch now expected towards the end of the current financial year. The company now expects to reach an EBITDA break-even monthly run-rate in late H2 of the current financial year. The company continues to look to raise additional capital to strengthen its balance sheet and provide working capital to support the company through to break even.
Real Good Food Plc (RGD.L) Announced, in its update on trading, that the current financial year has been one of significant transition for the Group as it implements its operational strategy and investment programme across the business and reorganises its reporting structures into three pillar markets of cake decoration, food ingredients and premium bakery. However, the Board now expects that within the continuing business EBITDA will remain flat year on year, as this investment, when combined with other one-off events within the various business divisions, has led to a short term impact on margins. During the year to date the Group has made financial progress, completing the sale of Napier Brown for a total consideration of £44.4 million, which delivered an exceptional profit in the period of £9.4 million
Renew Holdings Plc (RNWH.L) Announced the acquisition of Nuclear Decontamination Services Limited (“NDSL”), a small specialist nuclear services business operating at Sellafield and at other UK nuclear installations. Following the acquisition these specialist services will be provided through Shepley Engineers Ltd (“Shepley”).
Rolls-Royce Holdings Plc (RR..L) Announced that it has won a $2.7 billion order from Norwegian for Trent 1000 engines and TotalCare long-term service support for 19 new Boeing 787 Dreamliner aircraft. The order also includes TotalCare for Trent 1000 engines that will power 11 previously-announced leased Boeing 787s yet to enter service. The company will provide TotalCare with a fully comprehensive Availability Service Solution for all 30 aircraft and this will now also cover eight Norwegian 787s already in service.
Serabi Gold Plc (SRB.L) Announced, in its fourth quarter update on gold operations at Palito and Sao Chico, that the final quarter of 2015 recorded 7,924 ounces of gold production, giving a year-end total of 32,629 ounces. Combined mill throughput for the fourth quarter, for both Palito and Sao Chico ore, totalled 34,848 tonnes, with 130,300 tonnes being milled for the year. Quarterly mine production totalled 33,959 tonnes, 26,953 tonnes at a grade of 8.84 grammes per tonne (g/t) from Palito and 7,006 tonnes at 9.76 g/t of gold from Sao Chico. Quarterly horizontal mine development totalled 2,968 metres, 1,960 metres completed at Palito and 729 metres at Sao Chico. A total of 9,599 metres of horizontal development was achieved for the year. The Company has declared commercial production at Sao Chico effective from 1 January 2016. Sao Chico is now being developed on the 186mRL and 156mRL levels, with production on the 199mRL and 186mRL levels. The ramp is now being deepened to the 126mRL, the next planned development level, and will continue this year to the 96mRL to accommodate underground drilling of the Sao Chico deposit extension at depth. At the end of the fourth quarter, surface stockpiles at Palito and Sao Chico totalled 16,000 tonnes at a grade of 4.7 g/t of gold. November saw the commissioning of the Gekko intensive leach reactor (“ILR”), which works in tandem with the Falcon gravity centrifugal concentrator. This equipment is working exclusively on the Sao Chico feed to recover gravity gold. Installation of the third ball mill is well underway and this along with the flotation circuit and carbon in pulp (“CIP”) process circuit are on schedule to be completed early in the second quarter of 2016. A carbon regeneration kiln is also being acquired which will assist in enhancing gold recoveries once the kiln is operational in the second half of the year.
Smith & Nephew Plc (SN..L) Announced that Olivier Bohuon, Chief Executive Officer, has been diagnosed with a highly treatable form of cancer. Olivier will remain Chief Executive Officer and be actively involved in running the Company through much of his treatment period, which will begin later this month. The treatment will include chemotherapy, and is expected to be completed by late autumn. The Board has approved provisional governance procedures to ensure the effective operation of Smith & Nephew during the treatment period, including Chairman Roberto Quarta providing executive oversight if required.
Solo Oil Plc (SOLO.L) Announced, in its operational update, that the Kiliwani North-1 well is currently undergoing final well integrity testing prior to first production, after it signed a Gas Sales Agreement (GSA) in January. The gas price agreed in the GSA is $3.00 per million BTU (approximately $3.07 per thousand cubic feet) which is indexed-linked to the US consumer price index and therefore not reliant on global oil prices. The company will be paid in US Dollars for all produced gas including commissioning and testing gas. The company separately announced that it has been advised by Aminex PLC (Aminex) that they are not proceeding with their proposed agreement with Bowleven PLC (Bowleven) to farmout acreage in Tanzania, which was originally announced to shareholders on 19 November 2015. A mutually agreeable work programme between the parties and the Tanzania Petroleum Development Corporation was not agreed and hence the parties will not now close the transaction announced in December 2015.
SpaceandPeople Plc (SAL.L) Announced, in its trading update, that trading in the second half of 2015 was in line with management expectations. Management expects profit before tax attributable to shareholders for the year to be approximately £1.0 million. Whilst this is slightly below current market expectations, the principal reason for this is due to a timing difference following a decision to recognise an element of promotional revenue that is now derived from Mobile Promotions Kiosks (“MPKs”) on the same basis as its recognises revenue from Retail Merchandising Units. This change has resulted in the deferral of £150k of net promotional revenues from 2015 to 2016. The decision to account for revenue in this manner gives management better sight of future revenue and will be the standard accounting treatment applied to this type of revenue going forward. During 2015 the new MPK concept was rolled out as planned with 46 units operational by the end of the year. A decision was also taken to accelerate our investment in France during the final quarter of 2015, in advance of the Immochan contract start date of 1 January 2016, which is expected to help drive revenue more effectively. Despite these decisions, basic EPS is expected to be in line with market expectations at 4.3p and as a result, the Board intends to propose a final dividend of 2.2p per share at the forthcoming Annual General Meeting. This is a 10% increase on the 2.0p dividend paid in April 2015. After the investment of £650k in MPKs during 2015, net cash as at 31 December was £0.75 million plus an additional £400k held in escrow (2014: £1.6 million). Additionally, it has signed a multi-year contract, which commenced on 1st January 2016, to manage promotional space at British Land’s Drake Circus Shopping Centre in Plymouth. The company expects to extend this contract across 40 other assets, covering the majority of British Land’s multi-let retail portfolio in due course.
Strategic Minerals Plc (SML.L) Announced that it has executed an agreement to acquire up to a 50% interest in Central Australian Rare Earths Pty Ltd (‘CARE’), a subsidiary of Australian private company Rarus Limited (‘Rarus’), which holds or has an agreement to acquire tenements with nickel sulphide and rare earth element (‘REE’) exploration potential in Western Australia and the Northern Territory of Australia. Strategic Minerals has the right to acquire up to 50% of CARE for AUD 380,000 (approximately USD 270,000 or £190,000) with an initial subscription of 25.5% acquired for AUD 130,000, which will be used to repay third party loans made to CARE to fund tenement fees. Strategic Minerals has the right to acquire up to an additional 24.5% over a 12 month period for AUD 250,000 (the “Second Subscription”) with each subscription for shares to be a minimum of AUD 50,000. After Strategic Minerals has subscribed for AUD 380,000 worth of shares in CARE it will own 50% and Rarus will own 50%. Each party will fund its 50% of costs for future work or either party can be diluted. The AUD 250,000 from the Second Subscription will be used to fund a nickel sulphide exploration drilling programme at the highly prospective Hanns Camp Prospect located within CARE’s Laverton Project. In addition, CARE holds 100% of a number of tenements in the Northern Territory and Western Australia that are prospective for rare earths including properties adjoining Lynas Corporation’s Mount Weld REE Mine.
Zoopla Property Group Plc (ZPLA.L) Announced the appointment of Andy Botha as Chief Financial Officer (CFO) and a Director of the Company with effect from 18 April 2016. Andy would join from notonthehighstreet.com, where he has been Chief Commercial & Financial Officer for the last three years. He will join ZPG’s recently strengthened senior leadership team, which includes Paul Whitehead as the newly appointed Group Strategy Director.