finnCap Research Company Notes - 4 March 2019
Mar 04, 2019 / News
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Sector: Technology & Telecoms
Maintel (MAI) : Corp
Board changes
Key data
- Share price (p) 525.0
- Target price (p) 900.0
- Market cap (£m) 74.5
- Enterprise value (£m) 100.0
Maintel has announced that Mark Townsend has informed the Board of his intention to step down as CFO. Mark will remain in the role throughout a six-month notice period and orderly handover, while the board has commenced steps to identify and appoint a new CFO.
Andrew Darley adarley@finncap.com
Sector: Mining
Savannah Resources (SAV) : Corp
Significant new high-grade lithium discovery
Key data
- Share price (p) 5.3
- Target price (p) 20.0
- Market cap (£m) 44.0
- Enterprise value (£m) 31.0
Savannah Resources has reported on initial drilling results from the Aldeia pegmatite, about 2 km to the south east of the principal Grandao deposit at its Mina do Barroso lithium project in northern Portugal. The new drilling programme has returned some excellent results, with high grades encountered over significant widths. The Mina do Barroso lithium project is already by some way the largest and most significant spodumene lithium project in Western Europe and looks set to become larger. We maintain our 20p price target.
Martin Potts mpotts@finncap.com
Sector: Technology & Telecoms
Tracsis (TRCS) : Corp
Trading update
Key data
- Share price (p) 639.0
- Target price (p) 775.0
- Market cap (£m) 182.5
- Enterprise value (£m) 163.8
Tracsis reported a typical combination of its formula for growth, from a combination of success in existing operations as well as growth from self-funded acquisitions. EBITDA and adjusted PBT ahead of the prior year were derived from revenue of about £19m (1H18: £18.1m), leading to net cash at period end of £18.7m (after £22.3m FY18, given initial and (Ontrac) contingent consideration payments of £6.2m). Trading was busy, with a major TRACS Enterprise win announced in January; positive conditions in RCM; a multi-year Ontrac contract with Crossrail; and a multi-year contract for delay-repay. Acquisitions in the period (Compass and CTM) will benefit Traffic and Data Services, and we would not be surprised with a return to acquisitions in Rail Technology Services in 2H19. With positive momentum across existing operations and acquisitions benefiting both divisions, we lift our target price to 775p (725p).
Andrew Darley adarley@finncap.com
Sector: Industrials
Avingtrans (AVG) : Corp
New order for Peter Brotherhood – EPS upgrade
Key data
- Share price (p) 212.5
- Target price (p) 285.0
- Market cap (£m) 66.6
- Enterprise value (£m) 73.8
Hot on the heels of last week’s encouraging results, the group has announced that Peter Brotherhood has secured a new order for steam turbines as part of an overall contract value in excess £10m. This is a high-profile order in a specialist oil & gas market niche. We maintain this year’s forecasts, but upgrade 2020 EPS by 7.2% to 14.2p. We also raise our price target from 272p to 285p, based on a target 2020 EV/EBITDA of 9.4x or a P/E of 20x compared with the current value of 14.9x. The shares currently look attractive and should continue to outperform.
David Buxton dbuxton@finncap.com
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