finnCap Research Company Notes - 11 February 2019

Feb 11, 2019 / News

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Sector: Support Services

Lok'nStore (LOK) : Corp

Strong H1

Key data                              

  • Share price (p)                  420.0
  • Target price (p)                613.0
  • Market cap (£m)                              123.0
  • Enterprise value (£m)                    155.2

Lok’nStore has detailed a strong trading performance in H1. Self Storage sales were up +9.2% on H1 2018 (the fastest rate of growth since 2015) with period end occupancy up +8.0% and prices up +1.4%. The new Dover store opened in December and Cardiff just after the period end, all of which puts the group at least on track to hit our full-year sales forecast (+8.3%). We reiterate our view that Lok’nStore has the balance sheet strength and proven management expertise to take advantage of the significant opportunities in the undersupplied self storage market.

Guy Hewett |


Sector: Mining

Savannah Resources (SAV) : Corp

Exploration update – Portugal

Key data                              

  • Share price (p)                  4.9
  • Target price (p)                20.0
  • Market cap (£m)                              40.7
  • Enterprise value (£m)                    27.7

Savannah Resources has reported on additional results from the current infill and extension drilling campaign at its Mina do Barroso lithium project in northern Portugal. The drilling programme continues to return significant intersections of lithium mineralisation as Savannah aims to increase the current Mineral Resource Estimate of 20.1Mt at 1.04% Li₂O containing 209,000t of Li₂O. This is the largest known spodumene deposit in Western Europe. We maintain our 20p price target.

Martin Potts |


Sector: Technology & Telecoms

Quixant (QXT) : Corp

ICE boxes

Key data                              

  • Share price (p)                  282.5
  • Target price (p)                530.0
  • Market cap (£m)                              186.4
  • Enterprise value (£m)                    178.8

Once again the company hosted investors at the annual ICE exhibition at Excel London. This year’s event was a useful follow up on last month’s trading update. At the event we noted that the global casino industry appeared in very good health, with more exhibitors than ever and the major electronic gaming machine (EGM) manufacturers again putting on impressive displays. It was also very clear that QXT remains a leading sub-systems provider with adoption of an outsourcing model continuing to grow across the industry. We believe the slight easing in FY 2018 guidance in the January trading update had more to do with a few specific and uncorrelated issues at customers, than any systemic industry or market concerns and that the future remains extremely encouraging.

Lorne Daniel |


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