finnCap Research Company Notes - 29 June 2018

Jun 29, 2018 / Research Notes

Read our regular company notes featuring updates from the finnCap Research team's sector experts.

Sector: Energy

Anglo African Oil & Gas (AAOG): FY 2017 results

Key data                              

  • Share price (p): 9.4
  • Target price (p): 41.0
  • Market cap (£m): 15.2
  • Enterprise value (£m): 12.6

No surprises here and with year-end cash, alongside the recent $10m equity raise, AAOG is fully funded for its potentially transformational TLP-103 well. This remains on track to spud this summer, with the vessel transporting the drilling rig from Gabon to the Congo arriving next week. The majority of the necessary pre-works, contracts and long lead items for the drilling are completed / in place / in country. With the successful workovers of the existing Tilapia wells providing decent valuation support, AAOG offers investors an attractive risk/reward profile.

Jonathan Wright | jwright@finncap.com

Sector: Technology and Telecoms

Maintel (MAI): Acquisition

Key data                              

  • Share price (p): 805.0
  • Target price (p): 1000.0
  • Market cap (£m): 114.3
  • Enterprise value (£m): 141.7      

Maintel has announced a strategic partnership with Atos and the £5.1m acquisition of certain customer contracts. The acquired customer base will give Maintel access to several hundred customers, enabling Atos to focus on large customer accounts and initiating a channel partnership. The contracts will be transferred on 1 July, with acquisition consideration payable over the period to December 2022, using existing cash resources. We reiterate our 1000p target on Maintel, with an increased customer base and further diversification to its larger channel partners.

Altitude Group (ALT): AGM statement and directorate change

Key data                              

  • Share price (p): 90.5
  • Target price (p): 105.0
  • Market cap (£m): 48.3
  • Enterprise value (£m): 46.3

Altitude has provided an AGM statement indicating good progress in onboarding both AIM members and preferred suppliers in to the AIMpro Tech Suite platform. The group also announces that Martin Varley, Executive President and founder of Altitude, will move to Non Executive Director. We reiterate our 105p target price and look forward to interims in September after the very encouraging momentum evident at prelims earlier this month, and the new CEO and CFO in place on a broader strengthened board, still benefitting from Martin’s experience.

Andrew Darley | adarley@finncap.com