finnCap Research Company Notes - 7 May 2020
May 07, 2020 / News
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Sector: Consumer & Other
Best of the Best (BOTB) : Corp
Positive trading update and profit upgrade
Key data
- Share price (p) 435.0
- Target price (p) 540.0
- Market cap (£m) 40.8
- Enterprise value (£m) 38.2
The group’s year-end trading update reveals a strong second-half and that the Board now expects full-year revenue and profit to exceed current market expectations. We upgrade our April 2020 PBT forecast by 27% and raise our target price to 540p, implying potential share price upside of 24%.
Mark Paddon
020 7220 0541
Sector: Energy
Independent Oil & Gas (IOG) : Corp
Keeping up a blistering pace
Key data
- Share price (p) 11.8
- Target price (p) 42.0
- Market cap (£m) 56.4
- Enterprise value (£m) 48.7
No sooner had the inked dried on IOG’s regulatory approval for its UK Southern North Sea gas project than it is making a major project award for the subsea elements of Phase 1 of the project. In fairness, this is a rubber stamping exercise as IOG has been working with Subsea 7 for several months under a pre-contractual arrangement. Nevertheless, it gives another example of how management has kept up a blistering pace on this project. Moreover, the contract is largely lump-sum in nature, which will help minimise the risk of cost overruns. Next up, look out in Q3 2020 for further low-cost portfolio additions via the latest UK licensing round and cost savings from the award of the Phase 1 drilling contract. IOG remains firmly on track to deliver on its ambition to become a material North Sea gas player.
Jonathan Wright
020 7220 0543
Sector: Technology & Telecoms
Crimson Tide (TIDE) : Corp
Improving client efficiency and compliance
Key data
- Share price (p) 2.1
- Target price (p) 3.1
- Market cap (£m) 9.8
- Enterprise value (£m) 9.8
Crimson Tide has reported FY 2019 sales growth of +22% and adj. PBT growth of 410% as the group’s development moves beyond the breakeven stage, despite continued investment for long-term growth. The group continues to develop its workflow management platform, mpro5, which guides mobile workforces via an app and can capture proof of presence and work. It replaces paper, spreadsheets and legacy systems. Efficiency and compliance are improved and evidenced and increasingly enhanced by the integration of IoT. To date, long-term contracts have been sold into the supermarket and infrastructure markets, and opportunities are opening up in the health, financial services and health & safety sectors. We initiate with a 3.1p target, representing 3.6x 2021E sales and reflecting the significant potential to create value in a very large and growing end market.
Guy Hewett
020 7220 0549
Sector: Life Sciences
genedrive (GDR) : Corp
£7m placing to fund COVID-19 tests
Key data
- Share price (p) 185.0
- Target price (p) U/R
- Market cap (£m) 83.0
- Enterprise value (£m) 84.1
genedrive, a commercial-stage molecular diagnostics company, has raised £7m to fund the development of two COVID-19 PCR tests and further portfolio development. The first test, developed in collaboration with Cytiva (GE Healthcare), will be an instrument-agnostic assay that can be run on various 3rd party platforms already installed in labs globally. The second will be adapted to run on the Genedrive platform to provide a rapid point-of-care test to enable testing outside of the main hospital environment. GDR’s tests will aid in the fight against COVID-19, in which testing is one of the main weapons, and global demand vastly exceeds supply. GDR’s technology has been validated by the US Department of Defence, with future purchasing intent for 500 systems established in March 2020. Our forecasts assume no contribution from a SARS-COV-2 test.
Mark Brewer
020 7220 0556
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