front cover without sector focus (read-only) · 2017. 7. 27. · edison insight | 27 july 2017 1...

Edison Insight

July 2017

Published by Edison Investment Research

Strategic perspec ve | Company profiles

Edison Insight | 27 July 2017 1

Contents

Global perspectives 2

Company profiles 7

Edison dividend list 84

Stock coverage 86

Prices at 21 July 2017 Published 27 July 2017

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Welcome to the July edition of Edison Insight. We now have over 400 companies under coverage, of which 153 are profiled in this edition. Healthcare companies are now covered separately in Edison Healthcare Insight. Click here to view the latest edition. The book opens with a strategy piece from Alastair George, who believes that good times to invest are when there are a multitude of ways to win and limited downside. At present, however, the bull case for equities seems to be increasingly based on a single ‘Goldilocks’ scenario contingent on the persistence of high equity valuations, easy monetary policy and low volatility. The path for even adequate returns on equities therefore seems rather narrow at present. This absence of upside, rather than any specific downside trigger is, in his view, sufficient reason to run portfolios at below benchmark risk levels. This month we have added 7digital Group, Alabama Graphite, DEMIRE, Lepidico, Mondo TV, Picton Property Income, Renewi and Triton Minerals to the company profiles. Readers wishing for more detail should visit our website, where reports are freely available for download (www.edisongroup.com). All profit and earnings figures shown are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is a registered investment adviser regulated by the state of New York. We welcome any comments/suggestions our readers may have. Neil Shah Director of research

http://www.edisoninvestmentresearch.com/

http://www.edisongroup.com/

https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfYL6AAN

mailto:[email protected]


Global perspectives: A narrow path for equities

Good times to invest are when there are a multitude of ways to win and limited downside. At present, however, the bull case for equities seems to be increasingly based on a single ‘Goldilocks’ scenario. In other words, if equity valuations remain as high as they are; and the global economy continues to slowly expand; and profit margins remain at record levels; and monetary policy remains accommodative; and volatility remains low then investors will have no alternative but to drive equity prices higher.

The problem with “A and B” is that probabilities are multiplied. If the probability of each of the conditions listed above were even as high as 80%, then the probability of all the conditions being fulfilled would only be 32% (if for simplicity we assume independence). In contrast, in a volatile or uncertain market when valuations are low many securities can trade at levels which in effect just need the crisis to pass to move significantly higher. We think genuinely active investors should be willing to invest at such times of distress and take profits when markets are priced over-optimistically.

We continue to believe investors should maintain a cautious position. Low volatility has contributed to a lack of trading opportunities, also evident in US brokers’ recent results. Valuations for many developed market equities remain high. However, in-line with our previous views we do not expect central banks to tighten policy in a manner designed to engineer lower asset prices - but the absence of upside is reason enough to run portfolios at below benchmark risk levels.

Analyst

Alastair George +44 (0)20 3077 5700 [email protected]

mailto:[email protected]


A narrow path for equity markets

Acceptable returns on equity markets contingent on too many variables

Good times to invest are when there are a multitude of ways to win and limited downside. At present however, the bull case for equities seems to be increasingly based on a single ‘Goldilocks’ scenario. In other words, if equity valuations remain as high as they are; and the global economy continues to slowly expand; and profit margins remain at record levels; and monetary policy remains accommodative; and volatility remains low then investors will have no alternative but to drive equity prices higher.

The problem with arguments based on “A and B” is that the probabilities of each event are multiplied together. For example, even if the probability of each of the conditions listed above were as high as 80%, the probability of all the conditions being fulfilled would only be 32%, if for illustration we assume independence of the conditions.

In contrast, in a volatile or uncertain market when valuations are low, markets can trade at levels where there may be a number of ways in which to win. Since 2012 in Europe, following Draghi’s “whatever it takes” speech, the way to win was to assume that the ECB would commit to significant quantitative easing and just wait for the crisis in confidence to pass. In turn, there has been a collapse in sovereign bond spreads which contributed (ultimately) to the upswing in eurozone economic activity which we have seen over the last 12 months.

But more generally the situation back in 2012 could have been written rather differently to our first paragraph: In 2012, if equity valuations were to recover from depressed levels; or the economy merely limps on; or profit margins recover; or monetary policy becomes accommodative; or volatility declines, then equity prices should move significantly higher. Here, only one condition needed to be met to earn an attractive return.

Exhibit 1: Developed market sector price/book valuations

Source: Thomson Reuters Datastream

There is a further significant difference in the language between 2012 and today. It seems that in the current circumstances, for developed market equities to deliver even average returns a number of parameters will all need to remain at historically unusual levels. In 2012, all that was required to generate high returns was a return to an economic scenario closer to normality – hence a relatively much more probable outcome, which also offered greater upside. We remain cautious on the outlook for developed market equities.

Developed markets remain expensive in our view It is of course important to re-check where we are on the parameters. There is no doubt that 2017 corporate profits growth expectations have been robust in H1 and currently point to high single-digit

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growth for the full year, even if forecasts have ebbed somewhat recently. The recovery in profits growth means that return on equity has been strong, thus in turn facilitating book value accretion.

However, this appears to be fully priced in terms of developed market price/book valuations (see Exhibit 1). We do acknowledge that the phenomenon of sector valuations trading well above historical average price/book multiples (with the exception of those with arguably structural challenges) is not new in this cycle.

Exhibit 2: Correlation between starting price/book ratio and subsequent 3-year price return

Source: Thomson Reuters Datastream, Edison calculations. Note: Time period 1980-2014.

Nevertheless, we believe it remains important not to become habituated to extremely high equity valuations. Investors should be aware that the numerous companies in the industrial goods and services sector currently trade at a 40% premium to their long run average price/book multiple for example. Since 1985 and over a number of economic cycles, there has been a strong correlation between the starting level of the developed market price/book ratio and the next three years’ price returns, Exhibit 2.

For the technology sector, if judged by the currently very high price/book ratio (see Exhibit 1), the consensus view appears to be that record high returns on equity will be sustainable over the medium term. There is no doubt that US “Big Tech” has been extraordinarily successful in recent years, to the point antitrust regulators are starting to take an interest once again.

But while recent corporate performance has been strong, is the situation so different from the tail end of the 1990s when “everyone knew” that the future was mobile and belonged to Nokia, Ericsson and Motorola? A further parallel with the current enthusiasm for tech is the first Microsoft era (1990s) which ended with the faster growth of the internet over MSN – and a decade-long decline in the share price followed. Technology is not a new sector – and we note that return on equity has proved mean-reverting over the last 30 years, Exhibit 3.

Exhibit 3: Developed markets technology sector ROE – historically mean reverting

Source: Thomson Reuters Datastream, Edison calculations. Note: Dashed lines represent 1 standard deviation bands.

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There are likely to be many ways to innovate with and process digital data which have not yet been invented. Probability suggests that these innovations are more likely to occur in companies other than the current incumbents – perhaps in start-ups which have not yet even been formed.

The paradox is that Silicon Valley entrepreneurs preach rapid and continuous industry disruption, while stock market investors currently price in long periods of stable, if not oligopolistic profits. At current valuations it may be time for investors to consider taking some profits in mainstream tech and – if exposure is to be retained – consider rotating to companies with technologies at an earlier stage of adoption or development.

We are also cautious on sectors which have seen yield compression, such as personal care and household goods, as investors have pushed further out on the risk curve following the decline in long-term bond yields. Now, central banks have started the long walk back from ultra-loose monetary policy. Fed Chair Yellen has been clear that the neutral real rate of interest is likely to rise in coming years, implying that the Fed currently believes that gradually rising rates may not even be viewed as tighter policy.

Despite recent commentary indicating something of a softening of a previously hawkish stance, we believe US policymakers only need to see stability in the US economy to continue to tighten monetary policy. Furthermore, US policymakers are only likely to be encouraged with the ease with which their hawkish talk was absorbed by US equity and credit markets. Even if market interest rate expectations for 2018 have recently started to fall short of the Fed’s dot-plot forecasts, with reductions in the Fed’s balance sheet now on the table for September there is more than one option available to tighten policy.

Within a cautious overall equity outlook, we continue to believe the insurance sector is worth considering. A relatively highly regulated industry with a stable return on equity and defensive characteristics, yet it is still trading in line with historical averages. We do not anticipate exceptional returns but with a dividend yield of 4% and mid-single digit earnings growth, expected returns over the medium term appear likely to be significantly above long-term bonds, which is more attractive in our view than many other sectors.

For basic industries which are still trading below average multiples, we believe the year of recovery was 2016. Price momentum within the sector has eased significantly since then as commodity prices have stalled. For banks, the recent announcement of capital returns in the US are a reminder that low valuations persist, although latent risks still suggest the sector is to be approached on a region and stock specific basis.

Fed policy: Don’t forget your flip-flops

US inflation and growth numbers undershoot expectations It is just a few weeks since the US Fed raised interest rates and central bankers globally opined on a removal of monetary accommodation (albeit slowly) as the global recovery gathered momentum.

Unfortunately, some inconvenient facts are already casting their shadow. The Atlanta Fed US GDP nowcast for Q217 has fallen to 2.4% from 4% at the start of June, with disappointing US retail sales contributing to the downgrade. Furthermore, US core CPI has undershot expectations with the year-on-year figure now at 1.7% for June, compared to 2.3% at the start of the year. Fortunately for central banks, the holiday season has started and the focus may be elsewhere.

During 2017 the US Fed has steadily increased the volume in respect of its concerns over financial instability (ie the apparently low level of current risk premia in credit and equity markets) even as the dual mandate of the US Fed is to maintain maximum unemployment and stable real economy prices.


In theory at least, the primary policy lever in respect of financial instability risk is prudential regulation of the banking sector, rather than monetary policy. In this regard Fed policymakers believe significant progress has been made and a decline in asset prices would not necessarily have systemic implications – something which should on its own put investors on guard.

There is even currently something of a consensus amongst market commentators in respect of the possibility of the Fed tightening policy monotonically and as a result creating a crisis in equity markets in the second half of this year, in the event the US economy slows due to the lagged effect of interest rate increases to date.

As previously noted, we certainly share the view that equities are expensive on a global basis and particularly in defensive and technology sectors where investors have been starved of yield and growth stories respectively.

We also share the view that the US Fed would like to normalise policy while the US economy is growing and in part due to rising asset valuations. In other words there is currently a bias to tighten. Other central banks also appear to be moving in the same direction.

However, while we agree that this current bias to tighten represents something of a near-term ceiling on risk assets such as equities, fears of a dramatic fall in markets require central banks to commit a policy error. Based on the experience of the last 10 years an unforced error appears relatively unlikely; across developed markets policy has been systematically loosened at every downward turn in activity.

The risk in our view is therefore one of a constrained policy solution where rapidly rising inflation trumps growth concerns. Furthermore, even if econometrically valid, it is unlikely that the Fed would or could sustain such an unpopular policy stance on merely an inflation model or forecast.

There is at present very little sign (outside the special case of the UK) of inflation which would constrain monetary policy. Energy and other commodity prices have stumbled over the past year for example. In the US, core inflation has fallen to 1.7% year-on-year to June having been as high as 2.3% in January.

We expect in turn that the US Fed is likely to ease back on the hawkish rhetoric over the summer if US data continue to disappoint. Such a flip-flop would by no means be unprecedented nor should necessarily imply a criticism of policymakers; this is just what data dependent policy means.

In this respect the path of least resistance for the Fed may be to continue to prepare the market for balance sheet reduction, but to take the prospect of a near-term increase in interest rates off the table. This is certainly consistent with July’s FOMC statement which pointed to a September start for balance sheet reduction but did not raise interest rates further. In this way, the slope of the yield curve (and bank profitability) would be maintained even as monetary policy remained looser. Such a policy would also avoid a renewed dash into equities by yield-seeking investors as long-term rates are maintained or rise modestly.

Conclusion We still have difficulty becoming more constructive on developed equity markets as at current valuations the number of scenarios in which even an average return can be achieved seems relatively limited. Earnings momentum in the US and UK has also ebbed in recent weeks, adding a question mark over near-term index performance.

Our cautious view on equities is driven more by the absence of upside rather than fear of the downside. It remains unlikely in our view that central banks would deliberately seek to engineer declines in asset prices by tightening policy but the headwinds for equity markets in terms of valuations and monetary policy remain in place, offsetting the positive benefit of corporate profits growth during 2017.

Sector: Technology

Price: 3.2pMarket cap: £25mMarket AIM

Share price graph (p)

Company description1Spatial’s core technology validates,rectifies and enhances customers’geospatial data. The combination of itssoftware and advisory servicesreduces the need for costly manualchecking and correcting of data.

Price performance% 1m 3m 12mActual 0.0 (13.3) (25.7)Relative* (0.2) (16.9) (33.8)* % Relative to local indexAnalystDan Ridsdale

1Spatial (SPA)

INVESTMENT SUMMARY

1Spatial’s restructured management team has made brisk progress in reducing overheadsand realigning the business to deliver on the client-centric, solutions-based model. While theturnaround is still in its early stages, it can yield good results in a relatively short time frame.The market for GIS technology is large and growing at a double-digit rate, and we believethat 1Spatial has the customer base, technology and expertise to capitalise on this. Anencouraging Q1 supports this view. We maintain our view that there is substantial intrinsicvalue within the business, which, with a modicum of execution, should be unlocked.

INDUSTRY OUTLOOK

The GIS industry is large and growing – P&S Market Research estimates the global GISsoftware, services and hardware market at $9.0bn, forecasting a 10.1% CAGR to reach$17.5bn by 2023. Software is estimated to account for around half of this market at present,with growth forecast at circa 9% through 2023, whereas the revenue opportunity forservices is expected to grow more rapidly – at c 12% from around $3.5bn at present.

Y/E Jan Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 19.6 3.1 1.8 0.27 11.9 59.0

2016 20.7 3.7 2.0 0.29 11.0 N/A

2017e N/A N/A N/A N/A N/A N/A


Sector: Media & entertainment

Price: 1575.0pMarket cap: £442mMarket LSE


Company description4imprint is the leading direct marketerof promotional products in the US,Canada, the UK and Ireland. 97% of2016 revenues were generated in theUS and Canada.

Price performance% 1m 3m 12mActual (4.3) (9.9) 13.6Relative* (4.4) (13.5) 1.1* % Relative to local indexAnalystFiona Orford-Williams

4imprint Group (FOUR)

INVESTMENT SUMMARY

4imprint's interims are scheduled for 1 August; the AGM statement indicated trading in thefirst four months of FY17 were in line with full-year expectations. Revenues and order intakewere 9% ahead, with marketing spend more biased towards H217. FY16 revenue increasedwell ahead of the market growth of 2-3%, with a tick up in operating margin. H216 revenueswere up 8% and would have been higher but for market uncertainty around the USpresidential elections. December returned to normal trading patterns. The dividend was up35%, reflecting the de-risking of the pension position and marketing spend at appropriatelevels. With strong cash generation, a cash-positive balance sheet, and good earnings anddividend growth, the premium rating is clearly merited.

INDUSTRY OUTLOOK

The US promotional products market is very large, estimated at a value of c $25bn, with ahandful of larger distributors and a vast number of smaller, localised operators. The mainlonger-term trend is faster growth among the mid-sized and larger operators, benefiting fromtheir larger marketing muscle and the increasing prevalence of online browsing andordering. Market growth for the distributor segment was an estimated 2-3% for 2016. TheIMF is currently projecting US GDP to grow 2.3% in 2017 and 2.5% in 2018.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2015 497.2 35.5 33.5 87.5 23.3 18.6

2016 558.2 40.8 38.4 98.7 20.7 12.3

2017e 615.2 44.3 41.6 104.4 19.6 13.9

2018e 661.2 47.7 45.0 112.9 18.1 12.4

7Edison Insight | 27 July 2017




Company description7digital provides an end-to-end,white-label digital music platform andaccess to global music rights thatenable its clients (including musical.ly,Onkyo, Panasonic, MediaMarktSaturn,Cdiscount, Electric Jukebox, eMusicand i.am+) to offer music streamingand download services to their owncustomers.Price performance% 1m 3m 12mActual (22.2) (10.9) (17.6)Relative* (22.3) (14.6) (26.6)* % Relative to local indexAnalystBridie Barrett

7Digital Group (7DIG)

INVESTMENT SUMMARY

7digital has made considerable progress over the last year and now counts all three majormusic groups as partners, and has a number of strategically significant clients in the retail,hardware, social media and automotive segments. The acquisition of 24-7 cements itsleading position and will significantly increase earnings in FY18. We forecast revenuegrowth to accelerate significantly, underpinned by the near doubling of the value of newcontract wins during FY16 and the 24-7 acquisition. The FY18 EV/EBITDA rating of 3.1x isvery low for an operationally geared company in its first year of profitability. We believe theshares are worth at least 14p.

INDUSTRY OUTLOOK

Streaming has revived the music industry and with only 2% of the world’s adult populationpaying for such services the opportunity remains significant. The market is dominated by afew global platforms; 7digital’s success is predicated on its belief that there remains a vastuntapped market for music services that will be served by a range of business models. Byproviding the back-end technology and catalogue to companies that may want to act asalternatives to these major platforms, 7digital is aiming to become the world’s leadingend-to-end music services group.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 10.4 (2.1) (7.6) (7.1) N/A N/A

2016 11.9 (3.5) (4.7) (4.1) N/A N/A

2017e 19.1 (1.7) (2.9) (1.8) N/A N/A

2018e 24.9 3.0 2.1 1.2 5.1 N/A

Sector: Mining



Company descriptionAcacia Mining (previously AfricanBarrick Gold) was historically theTanzanian gold mining business ofBarrick and is one of Africa's fivelargest gold producers with output fromthree mines: Bulyanhulu, Buzwagi andNorth Mara.

Price performance% 1m 3m 12mActual (22.2) (43.7) (55.4)Relative* (22.3) (46.0) (60.3)* % Relative to local indexAnalystCharles Gibson

Acacia Mining (ACA)

INVESTMENT SUMMARY

In addition to the findings of two presidential committees (which Acacia strongly refutes), theTanzania Revenue Authority is now claiming that ACA owes the government a total ofUS$190bn in taxes and penalties for the period 2000-2017. Tanzania's directive to ceasemetal concentrate exports is costing Acacia c US$1m in revenue per day and a protracteddispute holds out the possibility of Bulyanhulu, in particular, being put on care andmaintenance. Note that local regulations also impose twin obligations on miners to listoperating assets locally and a 30% minimum local shareholding by 23 August.

INDUSTRY OUTLOOK

Contrary to official guidance (850-900koz at US$580-620/oz), Edison's updated financialforecasts assume that Bulyanhulu and Buzwagi will both be placed on care andmaintenance at the end of Q3. Hence, we expected FY17 production of 714koz and sales of531koz at an average cash cost of US$587/oz. Note that the post-Q217 EPS consensusappears to be US$0.17-0.39/sh. FY18 forecasts remain under review.


2015 868.1 166.6 22.0 (12.4) N/A 7.5

2016 1053.5 407.9 242.1 39.2 7.7 3.8

2017e 668.9 298.2 167.8 26.9 11.2 25.4



Sector: Technology



Company descriptionAcal is a leading international supplierof customised electronics to industry. Itdesigns, manufactures and distributescustomer-specific electronic productsand solutions to 25,000 industrialmanufacturers.

Price performance% 1m 3m 12mActual 2.9 20.0 29.7Relative* 2.8 15.1 15.5* % Relative to local indexAnalystKatherine Thompson

Acal (ACL)

INVESTMENT SUMMARY

The strong trading environment in Q417, which saw year-on-year revenue growth of 15% atconstant exchange rates (CER) and 11% organic growth, continued into Q118. Acal sawQ118 revenue growth of 14% CER and 9% organic; the organic growth rates by divisionwere broadly similar. Order intake was also strong, up 21% CER and 15% organic (similaracross both divisions), accelerating from 16% CER and 13% organic growth in Q417. TheVariohm business is performing well and cross-selling between the two divisions alsocontributed to growth. We maintain our forecasts but highlight that if growth continues at asimilar rate in Q2, there may be scope for upgrades.

INDUSTRY OUTLOOK

Acal is a supplier of customised electronics to industry with operations throughout Europeand increasingly outside Europe. The company is focused on growing the percentage ofhigher-margin specialist product through organic growth and acquisition. Its key markets (c50% of sales) are medical, renewables, transportation and industrial connectivity, all ofwhich are good growth markets.

Y/E Mar Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 287.7 19.8 15.2 17.8 16.9 13.0

2017 338.2 24.3 17.8 19.9 15.1 9.7

2018e 367.4 27.3 20.7 20.6 14.6 10.8

2019e 381.1 28.6 22.1 21.7 13.8 8.6

Sector: Mining

Price: C$0.14Market cap: C$20mMarket TSX-V

Share price graph (C$)

Company descriptionAlabama Graphite is positioning itselfas a major sourced-and-made-in-USnatural flake battery graphite producerfor the LiB supply chain. The companywill not sell any traditional graphiteconcentrate, which is the corebusiness model for all other graphitedevelopment companies presently.

Price performance% 1m 3m 12mActual 0.0 (12.5) 0.0Relative* (0.2) (10.0) (4.1)* % Relative to local indexAnalystTom Hayes

Alabama Graphite (CSPG)

INVESTMENT SUMMARY

Alabama Graphite is seeking to position itself as one of the preferred suppliers of natural,battery-ready graphite to the burgeoning electric vehicle and defence industries of the US.The company’s Coosa project is the only graphite project in the contiguous US and hasproven its coated spherical purified graphite product to be suitable for use in lithium-ionbattery (LiB) manufacturing. Coosa’s US location is also aligned with the Trumpadministration’s broad domestic policy to “Buy American”.

INDUSTRY OUTLOOK

Coosa’s PEA contemplates a two-phased development approach, allowing Alabama totailor its output to the requirements of prevailing CSPG graphite market growth rates. This iscritical when the size of the electric vehicle market is still relatively minuscule compared toits fossil fuel counterparts. Phase 1 of Coosa’s development (starting, pending capitalraisings, in FY19) produces 5ktpa, and valuing this cash flow stream results in a fully dilutedvalue of C$0.56/share. Valuing cash flows across the total life of mine of 27 years, withPhase 2 developed via internal cash flows, results in a value of C$1.01/share. Both valuesuse a CSPG price of US$9,000/t, a PMG price of US$2,000/t and a 10% discount rate toreflect general equity risk.

Y/E Aug Revenue EBITDA PBT EPS (fd) P/E P/CF(C$m) (C$m) (C$m) (c) (x) (x)

2015 0.0 0.0 (2.2) (1.8) N/A N/A

2016 0.0 0.0 (1.7) (1.5) N/A N/A

2017e 0.0 0.0 (3.3) (2.2) N/A N/A

2018e 0.0 0.0 (1.8) (0.6) N/A N/A


Sector: Mining

Price: A$0.30Market cap: A$152mMarket ASX

Share price graph (A$)

Company descriptionAlkane Resources is amulti-commodity explorer anddeveloper, with projects in the centralwest region of New South Wales inAustralia. Alkane owns the TomingleyGold Operation and DZP rare metaland rare earths projects (both 100%).

Price performance% 1m 3m 12mActual 30.4 20.0 36.4Relative* 31.7 21.3 30.6* % Relative to local indexAnalystTom Hayes

Alkane Resources (ALK)

INVESTMENT SUMMARY

Following a rain sodden H1 FY17, the second half saw a remarkable turnaround in goldproduction at the Tomingley Gold Operation (TGO), and brought down unit costs markedlyas a result. With a similar production and cost guidance to FY17 targeted for FY18 at theTGO, key catalysts for Alkane will come from matters relating to the Dubbo Project.Commentary by Alkane that key product markets (eg certain rare earths, zircon/zirconium)are recovering from their multi-year lows signals a potential return to fortune for thecompany’s flagship project.

INDUSTRY OUTLOOK

Alkane expects to produce 65-70koz of gold in FY18 at an AISC of between A$1,100/oz andA$1,200/oz. We expect to revise our base case valuation for the TGO, and Alkane’s shares,pending its release of formal revised underground mine plans for the TGO, sometimetowards the end of H118 (H2 CY17). This will follow the completion of current drillingactivities and a revised resource and reserve statement for the TGO.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2015 101.8 26.5 0.1 1.0 30.0 4.4

2016 109.6 40.9 11.0 2.2 13.6 3.4

2017e 117.8 47.9 17.8 2.2 13.6 4.8

2018e 102.6 25.9 (38.7) (3.5) N/A 17.3

Sector: Mining

Price: C$0.21Market cap: C$30mMarket CV


Company descriptionAlmonty Industries is an independenttungsten producer, with operatingmines in Spain, Australia and Portugal.It also has the large and low-costdevelopment-stage flagship Sangdong(South Korea) and earlier stageValtreixal (Spain) projects.

Price performance% 1m 3m 12mActual (6.5) (18.9) (38.6)Relative* (6.7) (16.6) (41.1)* % Relative to local indexAnalystTom Hayes

Almonty Industries (AII)

INVESTMENT SUMMARY

Almonty’s flagship development asset is the large high-grade Sang Dong tungsten project inSouth Korea. On 9 January, Almonty announced that it had received final constructionpermits, with the result that it is now fully permitted. In the meantime, it has also acquiredthe remaining 49% of the Valtreixal mine in Spain that it did not already own, via a series ofpayments to Siemcalsa for €1.5m (a €0.75m reduction cf the asking price).

INDUSTRY OUTLOOK

AImonty's interim results to the end of March 2017 show revenue down 7.1% y-o-y, costsdown a material 17.5%, with SGA slightly up by 12.5%. AImonty's CEO, Lewis Back,intends to get its large debt-pile down below C$32m by the end of FY18 and has alreadyconverted C$10m of its debt into AImonty equity at a 33% premium to the prevailing shareprice.

Y/E Sep Revenue EBITDA PBT EPS P/E P/CF(C$m) (C$m) (C$m) (c) (x) (x)

2015 36.1 (7.9) (19.2) (36.8) N/A 13.6

2016 37.3 (4.6) (15.2) (15.0) N/A N/A




Sector: Mining



Company descriptionAmur Minerals is an exploration anddevelopment company focused onbase metal projects in Russia’s fareast. The company’s principal asset isthe Kun-Manie nickel sulphide depositin the Amur Oblast, comprising almost1Mt of contained nickel equivalent in atleast five deposits.

Price performance% 1m 3m 12mActual (2.5) (22.5) 40.5Relative* (2.6) (25.6) 25.1* % Relative to local indexAnalystCharles Gibson

Amur Minerals (AMC)

INVESTMENT SUMMARY

The 2017 field season to further upgrade resources as well as to define a newly discoveredhigh-grade target is currently running ahead of schedule. Earlier this year, Amur announceda 214kt (or 41.7%) underlying increase in contained nickel tonnes at Kun-Manie, to 790ktNi, or 1.1Mt Ni equivalent. The upgrade follows the announcement of positive bulk samplemetallurgical test results by Gipronickel. In the meantime, RPM has found the cost ofdelivering concentrate to the Ulak rail station to be c 8% lower than Amur’s Q115 estimate.

INDUSTRY OUTLOOK

Based on the existing operational blueprint, we calculate fully diluted (at 9p/sh) values forconcentrate sales (toll smelting), low-grade matte, high-grade matte and refined metalproject options of 39 US cents, 51c, 41c and 50c, respectively. However, this is likely toincrease if the mine plan is reconfigured to advance and increase high-grade undergroundproduction. Updated estimates also imply a potential c US$150m capex saving re Amur'saccess road.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2014 0.0 (2.4) (2.5) (0.6) N/A N/A

2015 0.0 (4.1) (1.9) (0.4) N/A N/A

2016e 0.0 (4.1) (4.0) (0.8) N/A N/A

2017e 0.0 (4.1) (4.0) (0.3) N/A N/A

Sector: Industrial support services



Company descriptionAugean manages hazardous wastethrough five divisions: RadioactiveWaste Services (3% of grouprevenues), Energy & Construction(37%), Industry & Infrastructure (21%),Augean Integrated Services (11%) andAugean North Sea Services (27%).

Price performance% 1m 3m 12mActual 6.7 5.8 43.5Relative* 7.9 1.9 27.9* % Relative to local indexAnalystJamie Aitkenhead

Augean (AUG)

INVESTMENT SUMMARY

Augean’s half-year trading update has highlighted a challenging contract issue, which isreducing group profitability and weighing on the company’s outlook. Management is takingdecisive steps to offset the problem by instigating a £2m cost reduction programme. Despitethe risk of further negative newsflow as contract negotiations near completion in September,we take some comfort from the fact that, despite Augean’s challenges, both our forecastsand management guidance still imply a y-o-y increase in profit before tax.

INDUSTRY OUTLOOK

There is a growing trend towards treatment, recovery and recycling in the waste hierarchy,highlighted in the government's Strategy for Hazardous Waste Management. Thisincreasingly more stringent environmental regulation supports Augean's specialist industryknowledge model and provides a platform for growth, in our view.


2015 61.0 11.9 6.0 4.65 13.7 5.3

2016 76.0 13.8 7.0 4.42 14.4 5.1

2017e 87.5 14.8 7.3 5.23 12.1 4.7

2018e 92.2 16.3 8.3 6.09 10.4 4.1


Sector: Aerospace & defence



Company descriptionAvanti Communications is aLondon-based fixed satellite servicesprovider. It sells satellite datacommunications services to serviceproviders in its key markets ofenterprise, broadband, carrier servicesand government. It has Ka-bandcapacity on four satellites, with twolaunches due in 2017.Price performance% 1m 3m 12mActual (9.9) (22.2) (67.3)Relative* (10.0) (25.4) (70.9)* % Relative to local indexAnalystAndy Chambers

Avanti Communications Group (AVN)

INVESTMENT SUMMARY

Avanti's refinancing is complete with the bondholders and the $100m Super Senior Debtissue providing additional liquidity. It can now pursue its strategy and more than doublecapacity when HYLAS 4 is launched, which is necessary to attain the required revenue andcash flow development. Recent trading updates were less positive, lowering our near-termestimates, but order flow is improving. The fair value falls to 93p from 109p, with ourlong-term assumptions unaltered.

INDUSTRY OUTLOOK

Avanti is building a Ka-band satellite network to service broadband connectivity forunderserviced markets and remote locations in EMEA. In these markets it has been a firstmover and it currently owns and operates three satellites in geostationary orbit. Thecompany's increasing focus on Africa is a reflection of the expected rapid growth of demandfor data transmission in the region. The potential in the market appears to be validated bycompetitor announcements of future deployment of Ka-band capacity servicing Africa.

Y/E Jun Revenue EBITDA PBT EPS (fd) P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2015 85.2 12.5 (73.3) (61.4) N/A N/A

2016 82.8 4.6 (67.0) (49.3) N/A N/A

2017e 62.0 (11.1) (108.3) (70.2) N/A N/A

2018e 92.0 12.8 (130.1) (79.9) N/A 0.7




Company descriptionAvon Rubber designs, develops andmanufactures products in therespiratory protection, defence (71% of2016 sales) and dairy (29%) sectors.Its major contracts are with nationalsecurity and safety organisations suchas the DoD.

Price performance% 1m 3m 12mActual (1.3) (0.1) 13.4Relative* (0.2) (3.9) 1.1* % Relative to local indexAnalystRoger Johnston

Avon Rubber (AVON)

INVESTMENT SUMMARY

Avon Rubber’s strong H117 results allayed any concerns that the change in managementteam might have distracted this growth company from the task in hand. In fact, H117numbers proved quite the opposite. Revenue was up 7% organically, with flat marginsdespite slightly higher costs. EPS was flat year-on-year, but this is purely a function of ananomalously low tax charge in FY16 of 1%. The CEO has shown ruthless focus in ensuringthat R&D is concentrated on financially viable projects to stimulate further growth.

INDUSTRY OUTLOOK

The FY18 US Defence Budget looks promising for Avon as it increases army troop numbersby 4%. Sales to EMEA and North America have increased, as have sales of fire productsfollowing the acquisition of Argus. Avon is increasingly focused on higher price sophisticatedmask systems. Dairy has benefited from a rebound in the price of milk. The Farm Servicesmodel is progressing well and the roll-out of the tag exchange has been brought forward toH217.

Y/E Sep Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 134.3 26.6 19.8 56.1 18.0 14.9

2016 142.9 30.8 21.6 74.2 13.6 9.7

2017e 168.9 35.7 25.0 66.6 15.2 9.3

2018e 178.7 36.9 26.9 71.4 14.1 8.9


Sector: Financials

Price: €2.28Market cap: €183mMarket Borsa Italiana

Share price graph (€)

Company descriptionBanca Sistema is a speciality financeprovider with a primary focus onfactoring receivables from the Italianpublic sector (public administrations).The bank is also opportunistic, lookingto diversify and has developed salary-and pension-based lending.

Price performance% 1m 3m 12mActual (2.1) (8.4) 1.3Relative* (2.7) (14.5) (20.3)* % Relative to local indexAnalystAndrew Mitchell

Banca Sistema (BST)

INVESTMENT SUMMARY

Banca Sistema’s (BST) main activity is financing trade receivables from the Italian publicsector. It also purchases commercial receivables and has a growing salary- andpension-backed loan business. It aspires to be the leading independent speciality financeprovider in Italy. A modest valuation, capital headroom, potential for increased penetrationof public sector factoring in Italy, market share gains for BST and the development ofdiversifying businesses combine to make an appealing investment proposition. The sharestrade below the average P/E for a selected peer group and, assuming an ROE of 22% and12.4% cost of equity, we come to a valuation of c €3.15, significantly above the currentshare price. Q2 results are due to be announced on 27 July with a conference call at 16:00CET (+44 121 281 8003).

INDUSTRY OUTLOOK

The level of factoring outstanding in the Italian market (private and public sector) grew at acompound annual rate of 6% in the 10 years to 2016, and room for growth remains. Greaterfocus on and capital commitment to the pension-backed loans is likely to be the key growthdriver of that business.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(€m) (€m) (€m) (c) (x) (x)

2015 71.8 N/A 25.5 29.50 7.7 N/A

2016 81.5 N/A 35.7 32.85 6.9 N/A

2017e 87.2 N/A 41.0 35.34 6.5 N/A

2018e 97.2 N/A 47.6 40.85 5.6 N/A

Sector: Mining



Company descriptionBZT is developing a low-costdevelopment rationale for platinum inColombia, as well as working on itsgold-copper Mankayan project in thePhilippines.


Bezant Resources (BZT)

INVESTMENT SUMMARY

BZT has completed, on an all-share basis, the acquisition of Kellstown Investments – aPanamanian SPV containing assets (including mobile plant and processing equipment, IPrights and other geological information) for use by Exumax in performing its services underthe mining services agreement held with BZT. The ‘fully-equipped, purpose-built, modernalluvial processing plant’ acquired by BZT is already located in Colombia and ready formobilisation to site. This should support Exumax’s target for first production to occur atChoco sometime during Q217 or Q317. BZT’s independent scoping study indicates thatcash costs of US$768/oz should be achievable, and therefore should support decent marginfor its operations.

INDUSTRY OUTLOOK

BZT raised £0.585m before expenses, through a conditional placement via BeaufortSecurities & Peterhouse Corporate Finance as well as other certain individual existing andinstitutional investors. The placement was via 68.8m new shares at 0.85p each.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 0.0 (0.6) (0.6) (0.7) N/A N/A

2016 0.0 (0.7) (0.7) (0.7) N/A N/A




Sector: Technology



Company descriptionBlancco Technology Group developsand sells data erasure and mobilediagnostics software. It isheadquartered in the US and has salesoffices in 15 countries around theworld.

Price performance% 1m 3m 12mActual (32.1) (52.6) (54.1)Relative* (32.2) (54.5) (59.2)* % Relative to local indexAnalystKatherine Thompson

Blancco Technology Group (BLTG)

INVESTMENT SUMMARY

Blancco expects to report FY17 revenue growth of 40%, in line with our forecast. Afterproviding for a previously flagged late payer, adjusted operating profit is expected to be c£5.5m. We have revised our forecasts to reflect the bad debt provision and slightly higheroperating expenses, as well as reflecting the recent fund raise. We reduce our FY17enormalised EPS by 42%, and FY18e and FY19e by 12%. We forecast net cash of £1.5m atthe end of FY17.

INDUSTRY OUTLOOK

Blancco has developed patented technology to erase data on devices such as PCs, laptops,servers, mobiles and tablets. Drivers of demand for data erasure include the risk of dataloss (and the associated costs and reputational issues) and regulation. We estimate thatBlancco has only penetrated a small percentage of the addressable markets for end-of-lifeand active erasure. Through a combination of direct sales, channel partners and ongoingmarket education, management is aiming to accelerate the adoption of its software.


2015 15.0 4.2 2.8 2.84 36.1 N/A

2016 22.4 6.9 5.6 5.63 18.2 N/A

2017e 31.4 7.1 4.9 4.89 21.0 N/A

2018e 37.9 11.4 9.0 9.73 10.5 N/A

Sector: Travel & leisure

Price: €6.25Market cap: €575mMarket FRA


Company descriptionThe group operates BorussiaDortmund, a leading German footballclub, runners-up in the 2015/16Bundesliga and competing in thecoming season's UEFA ChampionsLeague (quarter-finalists in 2016/17).

Price performance% 1m 3m 12mActual (0.4) 14.7 57.8Relative* 3.9 12.9 30.9* % Relative to local indexAnalystRichard Finch

Borussia Dortmund (BVB)

INVESTMENT SUMMARY

Despite coach Tuchel’s end-of-season departure, Borussia Dortmund ended FY17 on astrong note with German Cup success (first trophy for five years) and entry to next season'sChampions League group stage. The arrival of a new coach (Peter Bosz from Ajax) bringsinevitable uncertainty, but early signs are positive (eg successful Asian tour and retention ofAubameyang). We maintain our forecast of continued profit growth in FY18. Apart from anew deal on Bundesliga media rights, we expect a significantly lower player cost base andbumper cash generation, which provides ample scope for profitable investment and returnsto shareholders. Meanwhile, slightly lower pre-transfer EBITDA in Q317, its quietest quarter,is a reminder that costs remain an issue.

INDUSTRY OUTLOOK

Unsustainable spend on wages and transfers is increasingly being penalised by new UEFAFinancial Fair Play requirements. Notwithstanding a phased implementation, a 'break-evenrequirement' applied initially to 2012 financial statements, obliges clubs to spend no morethan they generate over a rolling three-year period. Sanctions vary from a warning to a banfrom UEFA competition, fines and a cap on wages and squad size.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(€m) (€m) (€m) (c) (x) (x)

2015 263.6 48.0 44.2 42.7 14.6 22.4

2016 281.6 15.3 73.8 68.2 9.2 13.0

2017e 324.0 30.0 51.0 47.2 13.2 19.2

2018e 336.0 50.0 74.0 68.4 9.1 11.5


Sector: Oil & gas



Company descriptionBowleven is an AIM-listed,Africa-focused E&P with assets inCameroon. Its main asset is its 20%net interest in the Etinde development,which holds 290mmboe of 2Ccontingent resource.

Price performance% 1m 3m 12mActual (6.5) (26.8) 17.4Relative* (6.6) (29.8) 4.6* % Relative to local indexAnalystWill Forbes

Bowleven (BLVN)

INVESTMENT SUMMARY

Bowleven's board has seen a period of change with its chairman, CEO and CFO all leavingafter the General Meeting. The strategic review process has been terminated and thecompany continues to focus on maximising value for shareholders, including rationalisationof its cost base and "the preservation and enhancement of its existing assets". Thecompany expects monthly cash burn to fall from $0.6m to $0.35m.On an operational level, the farm-down of Bomono is progressing and the company ismeeting with the SNH to discuss outstanding approvals to allow the gas to flow throughVOG pipelines. The Etinde joint venture partners continue to work on finding an agreeabledevelopment solution for all stakeholders. Once the development concept has been agreedand costed, the company will make a determination on a possible cash return toshareholders.

INDUSTRY OUTLOOK

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2015 0.0 (11.5) (14.1) (4.3) N/A N/A

2016 0.0 (20.2) (7.0) (2.1) N/A N/A

2017e 0.0 (8.8) (9.0) (2.7) N/A N/A

2018e 2.5 (5.1) (5.4) (1.8) N/A N/A

Sector: Technology



Company descriptionBrady provides a range of transactionand risk management softwareapplications, which help producers,consumers, financial institutions andtrading companies manage theircommodity transactions in a single,integrated solution.

Price performance% 1m 3m 12mActual (7.1) (4.0) 4.4Relative* (6.1) (7.6) (7.0)* % Relative to local indexAnalystRichard Jeans

Brady (BRY)

INVESTMENT SUMMARY

In an inline AGM trading update, Brady said it "has made sound progress in the first fourmonths of the year". Management has completed the strategic review that executivechairman Ian Jenks initiated, following his appointment in June last year. The group hasswitched from operating on a divisional basis to global functions, and this change hasinvolved significant management focus. Development work has shifted from platforms to‘microservices’, so that new products can be leveraged across the group. Brady istransitioning to a recurring revenue model and two new licences have been signed on anannual recurring licence model. While commodity markets continue to be challenging, theE/CTRM market remains a highly attractive software vertical and Brady, as the largestEurope-based E/CTRM player, is well positioned to benefit. We are reviewing our forecasts.

INDUSTRY OUTLOOK

Brady provides trading, risk and connectivity software solutions to the global commodity,recycling and energy markets – mining and oil companies, fabricators, traders, banks, etc.Key operational drivers are that the target market is underinvested in IT, auditors andregulators are seeking increased reporting and accountability, and fundamental changessuch as electronic trading and the EEGI.


2015 27.4 1.5 1.0 1.0 71.5 25.0

2016 30.3 3.0 2.3 2.4 29.8 21.7







Company descriptionBraemar Shipping Services is aleading global shipping services groupwith interests ranging from shipbrokingto the supply of specialist technical andlogistics support to various partiesinvolved in the transport of goods bysea and in the energy sector.

Price performance% 1m 3m 12mActual 0.2 (5.0) (31.7)Relative* 0.0 (8.9) (39.2)* % Relative to local indexAnalystAndy Chambers

Braemar Shipping Services (BMS)

INVESTMENT SUMMARY

Acquisitions established a more balanced group of shipbroking and other services, wheredemand relates to the volume of seaborne trade and the oil & gas market. FY17 was verychallenging, although both Shipbroking and Logistics proved resilient. The issues inTechnical have been decisively addressed and it should return to profit in FY18. The Q1trading statement supported this view, with improving shipbroking returns. With mid-termpotential for markets to recover, Braemar appears reset and rebased, and the balancesheet enables M&A to augment growth.

INDUSTRY OUTLOOK

The growth of the shipping industry in the last decade reflected the shift in globalmanufacturing capacity and its supply chain. Global recession in 2008/09 upset thesupply/demand balance, leading to sharply reduced charter rates. Volume growth ofseaborne trade recovered, but only to around half of previous levels. The acceleratedscrapping of ageing vessels has yet to materialise, so overcapacity remains an issue inmany segments.

Y/E Feb Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 159.1 15.9 13.4 34.7 8.0 6.0

2017 139.8 5.1 3.2 8.7 31.8 12.4

2018e 137.9 9.4 7.8 21.2 13.0 14.8

2019e 142.5 9.9 8.5 23.2 11.9 9.1

Sector: Mining



Company descriptionBushveld Minerals is an AIM-listedjunior diversified commodity explorer inSouth Africa. Other than the Vametcodeal, projects include aniron-titanium-vanadium deposit on theBushveld complex’s northern limb aswell as tin and coal assets.

Price performance% 1m 3m 12mActual (13.0) 7.4 426.2Relative* (13.1) 3.0 368.6* % Relative to local indexAnalystTom Hayes

Bushveld Minerals (BMN)

INVESTMENT SUMMARY

Bushveld’s US$16.4m acquisition of the Vametco vanadium mine and processing plant hasnow been completed and will transform it from a junior explorer to a profitable producer, withinitial output of c 2,750tpa of its proprietary vanadium product, Nitrovan, over which it hassigned an exclusive global sales and marketing agreement with Wogan. Apart fromVametco, Bushveld has completed its acquisition of a 42.075% effective interest in the Uistin project in Namibia, while its coal division (Lemur) is working towards the development ofa 60MW independent coal power plant in Madagascar.

INDUSTRY OUTLOOK

Bushveld's Vametco acquisition will provide a fundamental underpinning to its share price,while we estimate that its other assets could be worth up to an aggregate c US$0.28/share.Hitherto, vanadium has been predominantly used as a steel hardening micro-alloy.However, Bushveld intends to reconfigure the plant towards the production of vanadiumelectrolyte for use in vanadium redox flow-batteries.


2015 0.0 (3.2) (3.2) (0.6) N/A N/A

2016 0.0 (1.5) (1.8) (0.4) N/A N/A




Sector: Basic industries



Company descriptionByotrol has developed and controlspatents for a unique technology tofacilitate the safe eradication ofharmful microbes. These includeseveral high-profile infections, such asMRSA and swine flu.

Price performance% 1m 3m 12mActual (5.0) 11.8 18.8Relative* (3.9) 7.6 5.9* % Relative to local indexAnalystAndy Chambers

Byotrol (BYOT)

INVESTMENT SUMMARY

The continued challenging global consumer climate and demanding regulatory regimes inthe US and the EU continue to hold up the introduction of new products employing Byotroltechnology. However, there is a growing momentum of opportunities, supported byupgraded formulations. Management has reiterated earlier indications that a £1.1m paymentrelated to the Solvay agreement will enable Byotrol to deliver its first underlying profit inH217 (figures due shortly); the battle will be to sustain the performance in FY18. Theappointment of a new and experienced non-executive chairman reinforces this optimism.The recent EPA approvals in the US lift the medium-term potential.

INDUSTRY OUTLOOK

The global market for specialist antimicrobial technology is vast and growing, as awarenessof the impact of infection and diseases increases. While many products can kill bacteriainstantly, the potential of a product that can be demonstrated to be "long-lasting and gentle"(chairman's statement, 18 August 2016) is potentially significant. The challenge is toconvince the major industry players of the efficacy of technology and seeing new productsto market.

Y/E Mar Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 3.3 (0.5) (0.6) (0.3) N/A N/A

2016 2.6 (0.4) (0.5) (0.2) N/A N/A

2017e 2.8 0.0 (0.1) 0.0 N/A N/A


Sector: Mining

Price: 495.0pMarket cap: £52mMarket AIM, TSE


Company descriptionCaledonia Mining mines gold at itsmain operating asset, the 49%-ownedBlanket gold mine in southernZimbabwe. It is also progressing itsunderstanding of a number ofpromising satellite projects close toBlanket.

Price performance% 1m 3m 12mActual (3.4) (7.5) 14.5Relative* (3.6) (11.3) 1.9* % Relative to local indexAnalystTom Hayes

Caledonia Mining (CMCL)

INVESTMENT SUMMARY

Caledonia’s Q217 production update was announced 20 July 2017. It revealed that12,522oz Au were produced during Q2, adding to the 12,794oz produced in Q1. CMCL hastherefore maintained its revised end-year target of 52,000oz to 57,000oz (down from60,000oz). This production will be achieved while the company maintains focus on sinkingits new Central Shaft at Blanket, which will materially expand production potential up to itslong-term target of 80,000oz Au by 2021. The downward revision to guidance has occurreddue to continuing haulage constraints at the 750m level. While projects have been broughton line to help ameliorate congestion, the scale of the Central Shaft sinking and associatedUG infrastructure has at times impacted ore haulage beyond what was previouslyenvisaged. Considering that the new Central Shaft when completed in H218 will effectivelyusher in a completely new era for Blanket in terms of production performance, temporaryand intermittent constraints on ore haulage should not be overplayed.

INDUSTRY OUTLOOK

CMCL will start trading its shares on the NYSE American exchange effective on 27 July2017. This is in addition to its shares trading on the Toronto (TSX-V) and London (AIM)bourses.


2015 49.0 9.0 5.1 40.0 16.0 8.2

2016 62.0 23.3 19.6 106.9 6.0 2.7

2017e 76.2 29.6 26.0 178.0 3.6 2.4

2018e 81.9 31.7 26.9 149.5 4.3 2.3


Sector: Oil & gas

Price: C$0.01Market cap: C$13mMarket LSE, Toronto


Company descriptionCanadian Overseas Petroleum (COPL)is an Africa-focused E&P withexploration assets in Liberia and plansto expand into Nigeria through itsShoreCan JV. COPL is carried througha US$120m gross explorationprogramme in Liberia by ExxonMobil.

Price performance% 1m 3m 12mActual 0.0 0.0 (88.9)Relative* (0.2) 2.8 (89.3)* % Relative to local indexAnalystSanjeev Bahl

Canadian Overseas Petroleum (XOP)

INVESTMENT SUMMARY

Canadian Overseas Petroleum’s (COPL) Mesurado-1 prospect in Liberia targeted multipleSantonian deepwater channel sands with pre-drill gross P50 unrisked resource estimated atc 400mmbbl. The well located reservoir-quality sands but no hydrocarbons; however, thecompany retains a sizeable proportion of its US$120m gross exploration carry from partnerand operator, ExxonMobil. This remains available in the event of further plannedexploration. In September 2016, COPL announced that its 50%-owned subsidiary,ShoreCan, had completed the acquisition of an 80% interest in OPL226 offshore Nigeria –containing the Noa West oil discovery. The transaction is subject to ministerial approval.

INDUSTRY OUTLOOK

COPL's Liberian acreage continues to attract significant industry interest after ExxonMobil'sLiza exploration success in Guyana. Despite current oil prices, 'giant' high-quality oil fieldssuch as Liza still offer attractive investment returns.


2014 0.0 (7.7) (6.6) (2.2) N/A N/A

2015 0.0 (6.5) (7.8) (1.7) N/A N/A

2016e 0.0 (6.5) (6.7) (1.1) N/A N/A

2017e 0.0 (5.5) (5.4) (0.8) N/A N/A

Sector: Alternative energy

Price: €7.76Market cap: €33mMarket Euronext Paris


Company descriptionCarbios develops enzyme-basedprocesses for biodegradation andbioproduction of plastics, with along-term aim of displacing currentrecycling and production practices.

Price performance% 1m 3m 12mActual (1.4) 22.2 (17.3)Relative* 1.5 19.9 (30.0)* % Relative to local indexAnalystCatharina Hillenbrand-Saponar

Carbios (ALCRB)

INVESTMENT SUMMARY

Carbios addresses the issue of plastics disposal in the face of growth in demand for plasticsdriven by major global trends, as well as environmental and sustainable solutions viabreakthrough technologies for a circular plastics economy. Our fair value range is €23-37per share, based on probability-weighted cash flows. Carbios needs to reach theindustrialisation and commercialisation stage in 2017. It recently completed the fourth keystage of its research project and expects a milestone payment for stage five in 2017. It alsorecently signed a contract with TechnipFMC to conduct the engineering work for theconstruction of a PET biorecycling pilot plant. On 19 July, the company sold €4.2m of equityand increased the equity base by over 10%; the funds will be used in the pilot of itsenzymatic biorecycling process for PET plastics.

INDUSTRY OUTLOOK

Growing volumes, environmental concerns and an increasing focus on sustainability arebecoming ever more important challenges to conventional plastic market participants.Biological plastic production and recycling is the single most important aim of the industry asa response. The target is a circular economy whereby plastic is constantly reused andrecycled.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(€m) (€m) (€m) (c) (x) (x)

2015 0.8 (3.9) (4.0) (81.3) N/A N/A

2016 8.9 3.8 3.6 131.9 5.9 6.5

2017e 1.2 (3.8) (4.0) (71.9) N/A N/A

2018e 2.0 (3.0) (3.2) (64.1) N/A N/A


Sector: Technology



Company descriptionCarclo is a specialist in high-precisionplastic moulding principally inhealthcare, optical and automotiveapplications. Its two main end-marketsare high-volume medical consumablesand low-volume, very high-valueautomotive lighting.

Price performance% 1m 3m 12mActual 0.9 24.5 19.5Relative* 0.7 19.4 6.4* % Relative to local indexAnalystAnne Margaret Crow

Carclo (CAR)

INVESTMENT SUMMARY

Carclo has refocused investment in its established businesses (Technical Plastics and LEDTechnologies), where a differentiated offer and long-term relationships with customersprovide good earnings visibility and higher probability of a sustainable return. This strategydelivered strong revenue and pre-exceptional PBT growth during FY17. This growthappears set to continue, driven by investment in capacity at Technical Plastics, which isunderpinned by customer contracts, and new programme wins at Wipac, which now hasthree mid-volume projects to work on.

INDUSTRY OUTLOOK

The two acquisitions that took place during FY17 have already started to show their worth.US-based Precision Tool and Die, acquired in October, has fulfilled its role of providingtool-making capability for existing Technical Plastics customers. Czech-based FLTC,acquired in March 2017, added over 30 designers to the Wipac team, enabling it to work onmultiple mid-volume programmes in parallel.


2016 119.0 13.8 8.8 10.1 17.1 8.2

2017 138.3 17.0 11.0 12.1 14.3 13.5

2018e 148.1 19.3 12.5 12.9 13.4 8.5

2019e 159.6 22.3 15.0 15.2 11.4 6.1

Sector: General industrials



Company descriptionCarr’s Agriculture division servesfarmers in the North of England, SouthWales, the Borders and Scotland, theUS, Germany and New Zealand. TheEngineering division offers remotehandling equipment and fabrications tothe global nuclear and oil and gasindustries.

Price performance% 1m 3m 12mActual 1.0 2.6 (1.0)Relative* 0.8 (1.6) (11.8)* % Relative to local indexAnalystAnne Margaret Crow

Carr's Group (CARR)

INVESTMENT SUMMARY

Carr’s Group notes that the continued recovery in UK agriculture, supported by improvingfarmer confidence, is offsetting weak demand in the US for feed blocks caused by a surplusof cattle following a period of restocking. Importantly, management is seeing the first signsof recovery in the US market. This, together with a strong order book for the remotehandling activity and improved prospects for the UK Manufacturing activity, underpin ourexpectations of profit recovery next year. We leave our estimates and valuation of158p/share unchanged.

INDUSTRY OUTLOOK

Management’s expectations at the interim stage that the UK Agriculture sector wouldremain positive have proved correct. As flagged, the UK manufacturing business wasimpacted by delays in commencing a major contract expected to utilise a significantproportion of FY17 production capacity. Capacity has been filled instead with lower marginbusiness for the oil and gas sector. The contract is now in, supporting divisional recoveryfrom FY18 onwards.

Y/E Aug Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 331.3 16.0 14.2 10.2 13.8 8.8

2016 314.9 16.5 14.0 10.2 13.8 10.9

2017e 332.2 14.1 11.8 8.6 16.4 7.4

2018e 336.0 17.4 14.7 10.8 13.1 7.0


Sector: Financials



Company descriptionCenkos is a specialist, UK institutionalstockbroker, focused on growthcompanies and investment funds. Itsprincipal activities are primary andsecondary fund raising, corporateadvisory, research, trade executionand market making activities.

Price performance% 1m 3m 12mActual 7.0 (5.3) (20.2)Relative* 6.9 (9.1) (28.9)* % Relative to local indexAnalystAndrew Mitchell

Cenkos Securities (CNKS)

INVESTMENT SUMMARY

CNKS FY16 revenues declined more than 40% from the high levels of 2014/15, reflectingquieter markets and the absence of the very large (£1bn plus) transactions thatcharacterised those years. In response to sharply lower revenues, costs were wellcontrolled with performance-related pay reducing and non-staff costs falling slightly. Thisflexibility in the business model mitigated the decline in profitability, resulting in a pre-taxprofit of £4.4m (2015: £19.9m) and ROE of 10%. Profits were again fully distributed (6pdividend). CNKS has announced that existing non-executive director, Anthony Hotson, willsucceed Jim Durkin as CEO on 1 August. He has substantial financial sector experienceand joined the board in May 2012, so has a good understanding of the culture of thebusiness.

INDUSTRY OUTLOOK

Economic and political uncertainties remain a feature although the FTSE All-Share Indexremains in modestly positive territory ytd. CNKS has described its pipeline as encouragingand recently acted as Nomad and sole broker on the April flotation of Eddie Stobart, raising£380m with a market valuation of £573m. Other recent transactions include fund-raisings forFlow Group, 1pm, Plastics Capital and UK Oil & Gas.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 76.5 20.0 19.9 27.2 3.6 3.6

2016 43.7 4.5 4.4 4.7 21.1 N/A

2017e 52.0 8.0 7.8 11.2 8.8 6.4


Sector: Food & drink

Price: €2.79Market cap: €39mMarketSTAR, Borsa Italiana STAR


Company descriptionCentrale del Latte d'Italia produces anddistributes fresh and long-life milk(UHT and ESL), and dairy productssuch as cream, yoghurt and cheese. Ithas a leading position in milk in thePiedmont region of northern Italy, andit has expanded to the Veneto, Liguriaand Tuscany regions.

Price performance% 1m 3m 12mActual (1.0) (1.6) (0.6)Relative* (1.5) (8.2) (21.8)* % Relative to local indexAnalystSara Welford

Centrale del Latte d'Italia (CLI)

INVESTMENT SUMMARY

The domestic market remains challenging, raw material prices have increased and Q1proved to be tough. The company increased its list prices as of 1 April, with full effect from 1June, which should help it offset the cost inflation. We expect the integration of CLF tocontinue to make progress.

INDUSTRY OUTLOOK

The Italian fresh milk and extended shelf-life market was worth €574m in 2015 (source: IRIInfoscan Hypermarkets + Supermarkets), but is very localised, with different players indifferent regions. The market has steadily declined over the last few years, mainly as aresult of volume declines caused by the economic crisis and also, more recently, a fashionfor vegan and dairy-free diets. CLI has been gaining share in the regions in which itoperates, and the Mukki brand acquired through CLF presents interesting opportunities forexpansion.


2015 98.3 4.9 0.5 0.30 930.0 N/A

2016 119.8 2.9 (2.1) (19.57) N/A N/A

2017e 177.5 8.5 0.5 3.95 70.6 N/A

2018e 178.4 8.9 1.0 7.48 37.3 N/A


Sector: Oil & gas



Company descriptionChallenger Energy is an ASX-listedE&P with a 95% interest in anapplication for an exploration permit inthe Karoo basin, South Africa, which isprospective for shale gas. It is awaitingaward of a permit to start drilling.

Price performance% 1m 3m 12mActual 0.0 4.2 (10.7)Relative* (1.2) 6.2 (13.5)* % Relative to local indexAnalystSanjeev Bahl

Challenger Energy (CEL)

INVESTMENT SUMMARY

Recommended changes to the Mineral and Petroleum Resources Development Act(MPRDA), relating mainly to fiscal terms, were presented to South Africa's Upper House bythe Department of Mineral Resources (DMR) in November 2016. Challenger Energyexpects all public consultations will be completed by the end of Q217. The DMR proposedthat the state's 20% free carried interest should be changed to a 20% carried interest with acost recovery during the production phase. The DMR also proposed reserving a lower 10%shareholding for Black Empowerment Participation. The MPRDA is widely anticipated as aprecursor of long-term shale gas exploration rights in the Karoo.

INDUSTRY OUTLOOK

Challenger's application area is proximate to major existing power transmissioninfrastructure. South Africa's National Development Plan argues the case for natural gashaving a significant role to play in South Africa's energy mix. Currently, c 90% of SouthAfrica's energy is generated from coal.


2015 0.1 (1.2) (1.3) (0.3) N/A N/A

2016 0.0 (1.1) (1.1) (0.5) N/A N/A




Price: 1.8pMarket cap: £1550mMarket Singapore Exchange


Company descriptionChina Aviation Oil (Singapore)Corporation (CAO) is the largestphysical jet fuel supplier and trader inAsia. It holds the sole import licencefor bonded jet fuel into China, and hasnascent businesses in the US andEurope. Of its five associates, the mostimportant is SPIA, which supplies alljet fuel to Shanghai Pudong Airport.Price performance% 1m 3m 12mActual 7.2 8.5 21.8Relative* 3.6 2.8 8.0* % Relative to local indexAnalystAndy Chambers

China Aviation Oil (Singapore) (G92)

INVESTMENT SUMMARY

CAO operates as a physical jet fuel supplier as well as trader, providing a degree of stabilityto earnings from its core activity. While a healthy dividend income from the fuel supply jointventure at Shanghai’s rapidly expanding Pudong Airport provides the bulk of earnings, thegrowing trading and supply of oil is supportive of our 14% EPS CAGR over the next twoyears. Q117 results confirmed progress and Q2 results are expected on 27 July. Our DCFand peer-based fair valuation of US$1.45 (S$2.04) suggests potential for investors.

INDUSTRY OUTLOOK

As the sole licensed importer and supplier of jet fuel to China’s civil aviation industry, CAOis a direct play on the rapidly rising demand for air travel in China, with growth augmentedby both international and product expansion. Air transport is widely acknowledged to be anindustry in a period of structural growth. International travel from China is increasing fourtimes faster than the global average, so CAO is exposed to a sweet spot in the market.


2015 8987.0 25.9 63.0 7.3 0.3 0.2

2016 11703.0 30.2 90.3 10.4 0.2 0.5

2017e 13232.0 35.2 103.3 11.9 0.2 0.3

2018e 14918.0 41.4 116.9 13.5 0.2 0.3



Price: HK$4.30Market cap: HK$6627mMarket HKSE

Share price graph (HK$)

Company descriptionChina Water Affairs Group owns andoperates regulated water supplyassets across 40 cities in mainlandChina, serving eight million customersin the residential, commercial andindustrial sectors.

Price performance% 1m 3m 12mActual (4.7) (16.2) (8.9)Relative* (8.3) (24.5) (25.0)* % Relative to local indexAnalystJamie Aitkenhead

China Water Affairs Group (855)

INVESTMENT SUMMARY

China Water Affairs Group (CWA) recently reported a strong set of FY17 financial figures.Revenues and EBITDA increased by 20.4% and 34.4%, respectively. Tap water capacity atyear end was 6.7m m3 per day is forecast to increase by one-third in the coming years. Thegroup also continued to dispose of non-core assets. We have confidence in our high,long-term growth forecasts for CWA (five-year reported EBITDA +20.5%).

INDUSTRY OUTLOOK

We forecast significant growth in Chinese water supply. Water supply lags behind wastewater treatment in terms of private operator penetration. CWA estimates that privateenterprises account for only 20% of the water supply industry, whereas the same figure forwaste water treatment is more like 60%. The fact that privatised water supply has so far tocatch up with water treatment offers another growth engine for CWA’s addressable market.

Y/E Mar Revenue EBITDA PBT EPS P/E P/CF(HK$m) (HK$m) (HK$m) (c) (x) (x)

2015 2859.0 1299.8 885.6 16.6 25.9 10.8

2016 4033.0 1820.2 1337.4 38.5 11.2 4.3

2017e 6255.0 2649.5 2031.0 55.5 7.7 4.5

2018e 7535.0 2796.1 2167.6 58.8 7.3 2.8




Company descriptionCoats Group is a leading producer ofindustrial thread and consumer crafttextiles with over 70 manufacturingsites internationally. Its divisions areIndustrial: Apparel & Footwear (c 67%)and Performance Materials (c 17%);and Crafts (16%), based on FY16revenue.

Price performance% 1m 3m 12mActual 0.1 27.2 191.5Relative* 0.0 22.0 159.6* % Relative to local indexAnalystToby Thorrington

Coats Group (COA)

INVESTMENT SUMMARY

Reported FY16 normalised PBT came in c U$5m above our estimate; this was attributableto higher divisional EBIT and lower than anticipated pension admin costs, and margins inboth divisions were up slightly versus our model and Coats returned to the dividend list ayear earlier than we had anticipated. Adjusting for U$290m agreed pension recovery cashoutstanding (giving pro forma group net debt of U$212m, or U$265m in the operatingbusinesses) we estimate that net debt/EBITDA for the continuing businesses was 1.3x forFY16. The AGM update (17 May) noted better than anticipated revenue growth in the firstfour months leading to revised guidance above previous levels and we modestly increasedour estimates. Coats entered the FTSE 250 Index on 19 June. Interim results are to beannounced on 31 July.

INDUSTRY OUTLOOK

Population growth is the ultimate trend driver for clothing and footwear demand. Increasingurbanisation, mobility and wealth are all features of this overall growth. Consumerconsumption will generally track GDP growth over time. Economic and demographicdifferences at a country level mean that the local characteristics of demand vary. Coats isthe world’s leading industrial thread and consumer textile crafts business.


2015 1489.5 183.0 126.8 5.0 20.0 16.0

2016 1457.3 198.6 140.7 5.8 17.3 18.3

2017e 1487.3 203.0 149.3 6.4 15.6 N/A

2018e 1547.4 207.6 155.4 6.6 15.2 8.0





Company descriptionCohort is an AIM-listed defence andsecurity company operating acrossfour divisions: MASS (30% of FY18esales); SEA (40%); MCL (15%); andthe 57%-owned Portuguese businessEID (15%) acquired in FY17.

Price performance% 1m 3m 12mActual (4.4) (3.7) 15.7Relative* (4.5) (7.7) 3.0* % Relative to local indexAnalystAndy Chambers

Cohort (CHRT)

INVESTMENT SUMMARY

Cohort’s earnings performance in FY17 once again exceeded our expectations. Higherprofits from EID and MCL more than outweighed the sharp contraction at SCS, where aswift response from management has already improved profitability by its integration intoMASS and SEA. The cash performance was better than expected and the dividend increaseto 7.1p was also ahead of our forecast. We expect further solid progress in the current year,although our FY18 estimate is lower largely as a result of the contraction at SCS. Our fairvalue estimate currently stands at 471p.

INDUSTRY OUTLOOK

Cohort is heavily influenced by activities in defence and security (90% of FY17 sales).These markets require highly differentiated technologies and services with high barriers toentry based on customer relationships, regulation and high-level security clearances. TheUK government's commitment to spend at least 2% of GDP on defence provides greaterconfidence, as does the parliamentary approval for the replacement of Trident.

Y/E Apr Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 112.6 13.0 12.0 26.7 15.5 19.8

2017 112.7 15.7 14.5 27.6 15.0 44.0

2018e 123.8 16.7 15.4 28.7 14.4 17.0

2019e 128.2 17.4 16.1 30.9 13.4 13.2


Price: NZ$5.98Market cap: NZ$271mMarket NZSX

Share price graph (NZ$)

Company descriptionComvita manufactures and marketsmanuka honey-based products andfresh olive leaf extract products. It sellshoney and olive leaf extract productsfor health, skin care and medical uses.

Price performance% 1m 3m 12mActual 10.1 (16.9) (45.8)Relative* 8.1 (21.6) (47.0)* % Relative to local indexAnalystPaul Hickman

Comvita (CVT)

INVESTMENT SUMMARY

Comvita reported NPAT of NZ$18.5m for the 15 months to June 2016. Restriction of traderoutes into China and abnormally adverse weather conditions have affected results in thefinancial year to June 2017. Reporting interim NPAT loss of NZ$7.1m (H115 profit:NZ$3.0m), management noted cost savings, new routes into China, product innovation anda strong balance sheet. In April 2017, Comvita announced an expected NPAT loss for theyear of c NZ$7m. Reported NPAT is now expected to be c NZ$9m, including the sale ofMedihoney IP and shares in Derma Sciences. A Chinese JV has been formed. Ourforecasts remain under review.

INDUSTRY OUTLOOK

Manuka honey has gained an international reputation for its medicinal qualities, both forwound care and general health. Comvita is the largest manuka manufacturer and exporter,and has leading market positions in a number of countries including the US, the UK,Australia and China. Investment in manuka honey continues apace in New Zealand to meetincreasing demand for raw manuka honey and manuka honey-derived products.

Y/E Mar / Jun Revenue EBITDA PBT EPS P/E P/CF(NZ$m) (NZ$m) (NZ$m) (c) (x) (x)

2015 152.7 22.8 16.3 29.9 20.0 10.7

2016 230.7 39.4 29.6 52.9 11.3 N/A







Company descriptionCooks Global Foods owns the globalrights to the Esquires Coffee Housebrand, with 98 stores currentlyoperating in the UK, Ireland, Canada,China, Indonesia and the Middle Eastvia master franchise arrangements.

Price performance% 1m 3m 12mActual 34.5 11.4 (2.5)Relative* 32.0 5.2 (4.6)* % Relative to local indexAnalystPaul Hickman

Cooks Global Foods (CGF)

INVESTMENT SUMMARY

Cooks Global Foods (CGF) continues to grow the Esquires network and align store formatswith its organic and fairtrade values. Net continuing losses for FY17 reduced 20.8% toNZ$3.5m y-o-y, on positive contributions from Ireland and the Middle East and reducedlosses in the UK. CGF has secured NZ$10m in new capital, split between Chinese investorsand an underwritten SSP, and has announced a strategic review, including a JV toaccelerate growth of the branded coffee business in Greater China. It has sold its primaryproduce subsidiary. Our forecasts remain under review.

INDUSTRY OUTLOOK

The global market for branded coffee chains is experiencing widespread growth, with anumber of leading companies such as Starbucks, Costa Coffee and Tim Hortons all lookingto developing markets for growth, while seeing continued strong growth in their respectivehome markets. The branded coffee chain sector is growing at c 10% pa in many countries,providing numerous opportunities for the company to expand.

Y/E Mar Revenue EBITDA PBT EPS (fd) P/E P/CF(NZ$m) (NZ$m) (NZ$m) (c) (x) (x)

2016 6.2 (3.9) (4.5) (1.55) N/A N/A

2017 5.3 (2.8) (3.5) (2.88) N/A N/A



Sector: Technology

Price: CHF119.00Market cap: CHF129mMarket Swiss Stock Exchange

Share price graph (CHF)

Company descriptionCREALOGIX Group provides digitalbanking technology solutions to banks,wealth managers and other financialservices companies. The company’ssuite of solutions includes online andmobile banking, digital payments,digital learning and security.

Price performance% 1m 3m 12mActual 0.4 2.8 8.2Relative* 0.9 (1.7) (1.0)* % Relative to local indexAnalystRichard Jeans

CREALOGIX Group (CLXN)

INVESTMENT SUMMARY

CREALOGIX saw strong H1 momentum on the back of its internationalisation strategy,supported by favourable digital banking industry dynamics. The numbers were boosted byseveral large deals that were booked earlier than anticipated and hence managementanticipates slower licence sales in H2. While customers’ decision-making in the UK remainsfrozen following the Brexit vote, management continues to see the UK as one of the mostattractive markets. The recent expansion in Germany is working out well. We moved up ourFY17 EBITDA forecasts from CHF4.0m to CHF6.0m. Given the attractive growth driversand strong balance sheet, we believe the shares are attractive on 18x our FY19e EPS.

INDUSTRY OUTLOOK

CREALOGIX develops and implements software that enables digital banking for “the digitalbank of tomorrow”. The solutions are most often used by traditional banks to enable theirjourney to digitalisation, through the provision of a sophisticated, modern omni-channeloffering to their clients. The group’s products are front-end solutions that integrate withcustomers’ back-end systems. The technology has been winning awards, including BestOnline Development at the Systems in the City Awards 2017 and Best of Show Award atFinovateEurope 2017 with its virtual banking app ‘The ARCs’.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(CHFm) (CHFm) (CHFm) (CHFc) (x) (x)

2015 49.3 (10.6) (12.6) (813.23) N/A N/A

2016 63.3 3.7 2.2 164.68 72.3 98.5

2017e 71.6 6.0 3.9 201.40 59.1 19.8

2018e 76.9 8.0 6.4 438.20 27.2 15.0


Sector: Property



Company descriptionCREI is a London Main Market listedREIT focused on commercial propertyin the UK outside London. It is incomefocused, with a commitment to pay ahigh but sustainable and covereddividend.

Price performance% 1m 3m 12mActual 1.1 4.0 13.8Relative* 0.9 (0.3) 1.3* % Relative to local indexAnalystMark Cartlich

Custodian REIT (CREI)

INVESTMENT SUMMARY

CREI is an income-orientated REIT focused on UK commercial property outside London. Itsportfolio is diversified by geography and sector, is valued at over £420m, has 98%occupancy and an LTV of 18%. The focus is on long-term secure income to producesustainable dividend growth. NAV growth also contributes to total return, despite a highpayout ratio and share issues to fund acquisitions. We believe the premium to FY17e NAVis justified by conservative gearing and one of the sector's highest dividend yields. Thismonth it has bought two properties for £13.9m and raised £2.7m.

INDUSTRY OUTLOOK

The yield spread between the regions and London remains historically wide at c 2%. At the2008 market peak it was just 0.5%. This seems likely to narrow, but is not a driver of CREI’sstrategy. New supply has been limited and occupier demand has been strong, due to therelative attractions of the regions, the strength of the economic recovery and businessrelocation away from London.


2016 19.0 0.0 11.2 5.49 21.5 34.7

2017 27.6 0.0 24.2 8.10 14.5 43.0

2018e 32.4 0.0 30.5 8.90 13.2 17.5

2019e 33.1 0.0 33.0 9.52 12.4 16.8

Sector: Financials



Company descriptionDeA Capital, a De Agostini groupcompany, is one of Italy’s leadingplayers in alternative investments andasset management. At 31 March 2017it had an investment portfolio of c€473m and assets under managementof c €11.4bn (including SPC).

Price performance% 1m 3m 12mActual (1.7) (15.6) 17.7Relative* (2.2) (21.2) (7.4)* % Relative to local indexAnalystAndrew Mitchell

DeA Capital (DEA)

INVESTMENT SUMMARY

Q117 NAV per share increased to €2.08 (end FY16: €2.03) and real estate AUM increasedfurther to €9.0bn, taking total AUM to €11.4bn. DeA continues to be active in its directinvestment portfolio, resuming investment in Q1 by taking a 5.8% stake in a newly createdand recently listed special purpose acquisition company (‘Crescita’, meaning growth) at acost of €7.8m, which was followed by partial divestment from Migros and the agreed sale ofits Sigla holding, expected to close by year end. The former raised an immediate €17.8mand Sigla proceeds of €11.8m are expected, slightly ahead of the Q1 book value. Despitethese positive developments, DeA trades at a significant discount to both NAV and our lastpublished sum-of-the-parts valuation of €1.88/sh (based on a Migros price of TRY26.2,lower than the current price). This seems conservative given the new momentum in assetmanagement and the diversity of the investment portfolio.

INDUSTRY OUTLOOK

Low interest rates support investor demand for alternative asset management, whileexpected maturities from private equity fund investments should support cash flows overcoming years for reinvestment in new fund launches, new investments or distributions toshareholders, even after meeting outstanding investment commitments.


2015 156.0 N/A 32.5 15.4 7.9 1.7

2016 80.5 N/A 12.4 4.6 26.5 16.8

2017e 72.4 N/A 21.3 5.6 21.8 19.0

2018e 64.2 N/A 12.0 2.2 55.5 9.1



Price: €2.14Market cap: €22mMarket Alternext Paris


Company descriptionDeinove is a biotech company thatdiscovers, develops and manufacturescompounds of industrial intereststemming from rare bacteria andintended for the health, nutrition andbeauty markets.

Price performance% 1m 3m 12mActual 4.4 5.4 (37.4)Relative* 7.5 3.4 (47.1)* % Relative to local indexAnalystGraeme Moyse

Deinove (DEINO)

INVESTMENT SUMMARY

Deinove believes that it has sufficient cash resources to last until Q118 without recourse tofurther tranches of the Kepler facility (€8m). Deinove continues to make progressimplementing its new strategy both scientifically and with appointments to the boarddesigned to strengthen its experience of the biopharmaceutical sector. Deinove hasconcluded in vitro tests on a number of wild strains of bacteria, announced the formation ofa partnership with Greentech in skin care, concluded the second phase of its COLOR2B(animal nutrition) project with Avril and filed its first patent in the field of animal nutrition.Deinove also recently concluded Phase I of the industrialisation process of the carotenoidsprogramme. The first commercial revenues are expected in 2018.

INDUSTRY OUTLOOK

Environmentalism will continue to underpin growth in green chemistry, and the growingantimicrobial resistance to current antibiotics will demand the discovery of new antibioticstructures.


2015 0.5 (7.3) (7.3) (66.8) N/A N/A

2016 0.8 (7.0) (6.9) (64.6) N/A N/A

2017e 0.5 (7.3) (7.9) (56.6) N/A N/A

2018e 1.2 (6.4) (7.2) (44.2) N/A N/A

Sector: Property



Company descriptionDEMIRE Deutsche Mittelstand RealEstate is an investor in Germancommercial real estate with a focus onproperties in secondary locations,attractive to medium-sized companies.The portfolio is well diversifiedgeographically and by tenant and isspread across office, retail andlogistics assets. Price performance% 1m 3m 12mActual (5.0) (0.4) 2.6Relative* (0.8) (1.9) (14.9)* % Relative to local indexAnalystJulian Roberts

Demire (DMRE)

INVESTMENT SUMMARY

DEMIRE Deutsche Mittelstand Real Estate is an investor in German commercial propertyfocused on secondary locations. It has grown significantly over the last two years and has aportfolio valued at €984m with annual contracted rental income of €71.7m (31 March 2017).Further efficiency gains as acquisitions are integrated are likely to increase profitability andprovide a stable platform for further growth. A diverse portfolio of income streams andpotential for capital growth may make this an attractive way to access the German propertymarket at a discount.

INDUSTRY OUTLOOK

The geographical diversity and strength of the German economy make for dynamic propertymarkets outside the seven biggest cities. Secondary cities are characterised by lowvacancy, low rent volatility and have attracted less investment in new stock in recent years,providing support for rents and opportunities for investors.


2015 43.3 12.3 33.0 71.38 5.2 N/A

2016 92.1 44.1 40.0 39.27 9.4 N/A

2017e 95.5 44.3 17.5 15.00 24.7 N/A

2018e 95.0 45.8 22.0 24.00 15.5 N/A





Company descriptionEbiquity is an independent marketingperformance specialist and a leadingprovider of a range of business-criticaldata, analysis and consultancyservices to advertisers and mediaowners on an international basis.

Price performance% 1m 3m 12mActual (6.3) (2.2) 9.8Relative* (5.2) (5.9) (2.2)* % Relative to local indexAnalystBridie Barrett

Ebiquity (EBQ)

INVESTMENT SUMMARY

Ebiquity’s FY17 focus is on executing its Growth Acceleration Plan, which involves thelaunch of additional services and a more active marketing strategy – which should drive apick-up in organic growth. In July, it launched its Media Transparency Score and a TotalAttribution Service, which enables marketers to measure ROI across channels and is beingrolled out across 14 markets. Management is targeting an acceleration in revenue growth toa CAGR of 10% over the next five years, with margins moving to a more sustainable12-13%. Although this transition means we are unlikely to see EPS growth over the next twoyears, it should improve the quality of the earnings base and the sustainability of a higherrevenue growth over the longer term.

INDUSTRY OUTLOOK

With a strong brand, a global footprint and relationships with 80% of the world’s largest 100advertisers, Ebiquity, one of the few independent agencies in the sector, stands to benefitfrom the increasing demand for accountability and transparency in a complex medialandscape.


2015 76.6 14.2 11.2 10.8 10.4 N/A

2016 83.6 14.6 11.8 11.3 10.0 N/A

2017e 92.0 15.6 12.3 10.3 10.9 N/A

2018e 99.3 14.7 11.5 9.5 11.8 N/A




Company descriptionEddie Stobart Logistics is a marketleader in end-to-end, multi-modaltransport and logistics. Operations areprimarily focused in the UK with someactivities in mainland Europe. Keycustomer segments include retail,consumer, industrials and,increasingly, e-commerce.

Price performance% 1m 3m 12mActual 1.6 N/A N/ARelative* 1.4 N/A N/A* % Relative to local indexAnalystJamie Aitkenhead

Eddie Stobart Logistics (ESL)

INVESTMENT SUMMARY

ESL’s pre-close update confirmed the company traded in-line with expectations in the firsthalf and continues to do so going into the second half. H117 sales grew 13% to £287m witha modest expansion in operating margins despite a challenging economic and politicalbackdrop. Integration of the iForce acquisition continues and management highlighted thepotential for cost and revenue synergies. In addition, ESL acquired 50% of Speedy Freight,a B2B express freight service provider. CEO Alex Laffey said he remains confident ofmeeting market expectations for the full year and once again highlighted E-commerce,Manufacturing, Industrial and Bulk as key end-markets for the group.

INDUSTRY OUTLOOK

Eddie Stobart Logistics is a market leader in end-to-end, multi-modal transport and logistics.Operations are primarily focused in the UK with some activities in mainland Europe. Keycustomer segments include retail, consumer, industrials and, increasingly, e-commerce.

Y/E Nov Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 496.5 44.5 21.0 5.4 29.8 17.6

2016 570.2 48.2 26.1 6.9 23.3 19.4

2017e 648.2 55.7 41.4 10.9 14.8 23.3

2018e 741.9 64.4 50.8 12.3 13.1 10.9


Sector: Oil & gas



Company descriptionEgdon Resources is an AIM-listedonshore oil and gas explorationcompany. The group has conventionaland unconventional assets in the UKand France.

Price performance% 1m 3m 12mActual 7.7 (6.7) (25.3)Relative* 7.5 (10.5) (33.4)* % Relative to local indexAnalystSanjeev Bahl

Egdon Resources (EDR)

INVESTMENT SUMMARY

Egdon Resources retains several value catalysts over the course of 2017/2018; theseencompass the company’s conventional as well as unconventional asset portfolio. Keycatalysts include exploration and appraisal at Springs Road, Holmwood, Resolution,Biscathorpe, and North Kelsey as well as Wressle development. Capital commitments arebeing kept to a minimum through existing cost-carry arrangements and planned farm-outs.Our Egdon valuation has increased slightly to 21.5p/share risked conventional value and26.0p/share for indicative unconventional upside potential.

INDUSTRY OUTLOOK

The UK government stance towards shale varies by party, however, current centralgovernment appears to be supportive of unconventional gas development, attracting sectorinvestment from the likes of Total, Centrica and Ineos.

Y/E Jul Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 2.1 (4.0) (4.5) (2.1) N/A N/A

2016 1.6 (0.7) (2.7) (1.2) N/A N/A

2017e 1.2 (0.9) (1.9) (0.8) N/A N/A

2018e 2.5 0.2 (1.3) (0.5) N/A 140.7

Sector: Oil & gas



Company descriptionElk Petroleum is an EOR companyfocused on low-cost tertiary recoveryof residual oil. Elk now has productionfrom its Madden/Lost Cabin gas andCO2 project interest. Elk’s Grieve CO2EOR oil project in the US is targetedfor first production in late CY17/earlyCY18.


Elk Petroleum (ELK)

INVESTMENT SUMMARY

ELK recently acquired a c 14% interest in the ConocoPhillips-operated Madden Gas Field,as well as the 310mmscf/d capacity Lost Cabin Gas Plant in Wyoming. This elevates ELK toproducer status, with cash flow being generated from Madden methane sales. The Maddenfield is also a significant CO2 producer, fulfilling ELK’s strategy of CO2 integration, securingsupply for future CO2 enhanced oil recovery (EOR) projects. Elk’s Grieve CO2 oildevelopment project is forecast to commence production by late CY17/early CY18 at initialproduction rates of 1,700 to 2,200bbl/d net to Elk. Our base case 2P NAV stands at A$0.11with significant upside in the event of oil/gas price recovery and/or incrementalreserve/resource recovery above audited 2P estimates.

INDUSTRY OUTLOOK

At current low oil prices, many fields suitable for EOR are uneconomic for conventional oil.EOR is a tertiary recovery method to target the substantial residual oil remaining in matureor life expired fields. The low oil price environment may assist ELK cost-effectively, securingadditional oil acreage.

Y/E Jun Revenue EBITDA PBT EPS (fd) P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2015 0.0 (3.1) (3.6) (1.9) N/A N/A

2016 0.0 (5.0) (5.7) (2.2) N/A N/A

2017e 15.6 2.1 (3.7) (0.5) N/A N/A

2018e 53.2 28.8 6.9 0.4 17.5 15.8



Price: US$8.80Market cap: US$94mMarket TASE

Share price graph (US$)

Company descriptionEllomay Capital owns an internationalportfolio of power generation assetscomprising solar plants in Italy andSpain and a gas-fired power plant inIsrael. It operates principally inregulated markets.

Price performance% 1m 3m 12mActual (2.8) 8.9 13.8Relative* (4.2) 3.5 (0.3)* % Relative to local indexAnalystJamie Aitkenhead

Ellomay Capital (ELLO)

INVESTMENT SUMMARY

Ellomay's Q117 results reflected an improvement in solar radiation levels and higher spotpower prices in Italy. Gross profit improved by 37% (Q117 vs Q116) and sequentially by44% (Q117 vs Q416), although G&A costs increased by 26% as new project costsincreased, so operating profit was down 12%. Ellomay continued to invest in thedevelopment of new projects in Israel, the Netherlands and Spain, with further newsflowexpected on their development over the course of the year.

INDUSTRY OUTLOOK

Ellomay operates solar PV assets in Spain and Italy, and has an equity stake in a gas-firedpower plant in Israel. All three markets have seen tariff reductions imposed by regulatoryauthorities and governments in recent years. Regulatory risk is the main potential negativedriver of Ellomay's earnings, given that a high percentage of its earnings are derived fromtariff subsidies. This aside, subsidised power generation provides attractive, steady cashflow for asset owners that will either be distributed or reinvested.


2015 13.8 9.7 1.9 35.39 24.9 9.4

2016 12.9 7.5 (1.3) (17.57) N/A 8.8

2017e 13.5 11.2 3.7 26.31 33.4 10.3

2018e 15.1 13.0 5.8 40.68 21.6 10.6

Sector: Technology



Company descriptionEMIS is a clinical software supplier tothe primary care market in the UK(supplying over 50% of UK GPpractices), a software supplier to UKpharmacies, and through severalacquisitions also supplies specialistand acute care software.

Price performance% 1m 3m 12mActual 1.4 5.2 (3.8)Relative* 1.3 0.9 (14.3)* % Relative to local indexAnalystKatherine Thompson

EMIS Group (EMIS)

INVESTMENT SUMMARY

In H117, EMIS traded in line with expectations. Primary Care, Community Care andCommunity Pharmacy are progressing well, whereas Acute is still seeing budgetarypressure. The development of the Patient business is underway and likely to cost less thanoriginally expected. Cash generation is on track and management expectations for the fullyear are unchanged. Other than increasing exceptional charges by £1m to reflect theexpanded reorganisation programme, we make no change to our forecasts; interim resultsare due on 1 September.

INDUSTRY OUTLOOK

EMIS is the dominant software supplier to the UK GP market, with a greater than 50%market share. It has a strong position in mental and community health, A&E, acute care,specialist care (including diabetic retinopathy screening services) and pharmacies. Theroll-out of EMIS Web is in line with the trend to move data to the cloud and will enable EMISto sell its products to a wider NHS audience. This fits well with the government's strategy topromote greater interoperability between NHS departments.


2015 155.9 52.0 36.6 46.0 20.6 13.9

2016 158.7 52.3 39.2 49.4 19.2 13.6

2017e 166.2 50.5 37.3 46.0 20.6 13.5

2018e 175.4 54.0 40.2 49.4 19.2 10.9





Company descriptionEntertainment One (eOne) is a leadinginternational entertainment companythat sources, selects and sells filmsand television content. Its librarycontains over 40,000 film and TV titles,4,500 half-hours of TV programmingand 45,000 music tracks.

Price performance% 1m 3m 12mActual 8.7 (2.8) 22.4Relative* 9.9 (6.5) 9.1* % Relative to local indexAnalystBridie Barrett

Entertainment One (ETO)

INVESTMENT SUMMARY

69% of EBITDA is now derived from the higher-growth, lower-risk Television and Familydivisions. The pipeline for FY18 is strong in Television, which has over two-thirds of itsbudget committed or green-lit. In Family, ‘Peppa Pig’ is now firmly established in the US andcontinues to build a following in China. With another 117 episodes commissioned, the brandshould remain fresh for some time. Encouragingly, ‘PJ Masks’ appears to be following suit.While Film is more mature, last year’s box office recovery puts this division on a more stablefooting and the group’s strategy to bring itself closer to the production process should alsohelp it to better manage the profile and risk of films being distributed. The 20% FY18eEV/EBITDA discount to peers (Lionsgate, DHX) is unjustified.

INDUSTRY OUTLOOK

OTT platforms are having a disruptive effect, helping to drive strong demand for content.Premium content companies like eOne, with a diversified portfolio of content acrossTelevision, Film and Family brands, are well placed to satisfy the strong global demand forentertainment content.


2016 802.7 129.1 104.1 19.4 12.4 2.9

2017 1082.7 160.2 129.9 20.0 12.0 2.4

2018e 1180.2 175.0 146.0 22.0 10.9 2.0

2019e 1280.1 199.9 167.4 24.7 9.7 1.6

Sector: Construction & blding mat



Company descriptionEpwin supplies functionallow-maintenance exterior buildingproducts (including windows, doors,roofline and rainwater goods) into anumber of UK market segments and isa modest exporter.

Price performance% 1m 3m 12mActual (11.9) (19.4) (1.3)Relative* (12.0) (22.7) (12.1)* % Relative to local indexAnalystToby Thorrington

Epwin Group (EPWN)

INVESTMENT SUMMARY

Trading in the first four months of FY17 has been in line with management expectations andour estimates are unchanged. In flat RMI markets, Epwin is focusing on operationalimprovements (eg in fabrication) and marketing initiatives (eg branding and rangedevelopment of window systems and canopy products, plus greater co-ordination acrossgroup companies). H117 will benefit from an extra five months of National Plastics tradingand we expect Fabrication & Distribution to show a more robust y-o-y performance. Marketcommentary is cautious, but as outlined in our recent note, Epwin has a number of internalinitiatives underway to further improve the business and mitigate near-term input costpressures.

INDUSTRY OUTLOOK

Epwin is exposed to both RMI (c 70% revenue) and newbuild (c 30%) in the UK housingmarket. Newbuild activity is clearly ahead y-o-y, while RMI demand has been more patchy.Referencing potential post-Brexit consumer confidence, industry commentators haveexpressed near-term caution.


2015 256.0 25.6 19.2 11.7 8.3 5.5

2016 293.2 33.3 24.3 14.7 6.6 4.4

2017e 306.3 34.1 24.4 14.0 6.9 4.2

2018e 311.6 35.2 25.4 14.3 6.8 4.0


Sector: Technology

Price: €52.88Market cap: €69mMarket Scale


Company descriptionEQS Group is a leading internationaltechnology provider for digital investorrelations. It has more than 8,000clients worldwide who use its productsand services to securely, efficientlyand simultaneously fulfil complexnational and international informationobligations to the global investmentcommunity.Price performance% 1m 3m 12mActual (5.9) 7.6 46.9Relative* (1.8) 5.9 21.9* % Relative to local indexAnalystFiona Orford-Williams

EQS Group (EQS)

INVESTMENT SUMMARY

EQS produced strong Q117 figures, with revenues up 49% on the prior year, boosted by theconsolidation of ARIVA, with organic growth at 13%. This performance is largely attributableto demand stimulated by regulatory changes, as built into our forecasts, which areunchanged on these results. The mid-2016 introduction of the European Market AbuseRegulation greatly added to the compliance burden, while the impending PRIIP regulationsfor packaged products provide a fertile backdrop for ARIVA. Good share price performance(and underperformance by peers) has narrowed the discount. Interims are scheduled for 14August.

INDUSTRY OUTLOOK

The incoming PRIIP regulation is stimulating sales at ARIVA (67.5%-owned) through FY17ahead of its introduction in January 2018, with the requirement for companies to providepre-contractual key information documents on financial products. The introduction of MiFIDII may also be positive, although not quite so directly. Its requirements on factors such ascorporate access and standards in financial market communications play well with the EQSworkflow management suite, COCKPIT.


2015 18.4 3.5 3.1 120.1 44.0 13.2

2016 26.1 4.2 2.4 96.1 55.0 13.1

2017e 32.3 4.7 3.6 145.3 36.4 13.5

2018e 36.8 5.6 4.5 185.6 28.5 12.4

Sector: Technology

Price: 6.9pMarket cap: £44mMarket AIM, ASX


Company descriptioneServGlobal develops mobile softwaresolutions to support mobile financialservices, with a focus on emergingmarkets. The company also has ashare in the HomeSend internationalremittances hub, alongside Mastercardand BICS.


eServGlobal (ESG)

INVESTMENT SUMMARY

Slower than expected trading combined with continued restructuring of the business inH117 has resulted in a reduction in our forecasts for FY17. Management is confident thatthe pipeline has strengthened and should support a pick-up in revenues in H217. TheHomeSend joint venture (JV) has extended its application to the cross-border bankpayments market, which should support its target to break even in CY17 and drive growth inthe value of the JV.

INDUSTRY OUTLOOK

eServGlobal's core business is focused on developing markets, where there is a higherprevalence of pre-paid contracts and unbanked citizens. Growth drivers include the shift tousing the mobile phone for financial services and the increasing popularity of mobilepeer-to-peer payments. The international remittances market was worth $575bn in 2016and is forecast to grow to $616bn by 2018 (source: World Bank). The HomeSend JV hasthe potential to reduce the cost of sending smaller sums of money cross-border.

Y/E Oct Revenue EBITDA PBT EPS P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2015 25.9 (10.4) (17.7) (5.41) N/A N/A

2016 21.6 (7.0) (17.5) (3.88) N/A N/A

2017e 18.2 (6.1) (15.8) (2.01) N/A N/A



Sector: Technology



Company descriptionEsker provides end-to-end documentautomation solutions, offeringon-premise and on-demand deliverymodels. The business generates 50%of revenues from Europe, 40% fromthe US and the remainder from Asiaand Australia.


Esker (ALESK)

INVESTMENT SUMMARY

Esker generated revenues of €19.1m in Q217, +13% y-o-y (+9% constant currency organicgrowth). H117 revenues of €37.8m were in line with our forecast, +14% y-o-y (+9%constant currency organic). The e-integration acquisition is performing well and thecompany has maintained its guidance for double-digit organic revenue growth for 2017.Esker’s strong cash position provides resources for further M&A. We leave our forecastsunchanged, pending full H117 results on 14 September.

INDUSTRY OUTLOOK

Esker's DPA software operates across four areas: document delivery, accounts payable,accounts receivable and sales order processing. Competitors are different for eachbusiness process and consist of business process outsourcers and specialist DPA softwarecompanies. Customers move to using DPA software to reduce paper-related costs anderrors in processing, to speed up the cash conversion cycle, to improve process visibilitywithin the enterprise and to improve customer service.


2015 58.5 13.4 9.3 131.0 38.2 17.5

2016 66.0 14.9 9.9 123.0 40.7 15.6

2017e 75.6 16.6 11.9 142.0 35.2 16.3

2018e 82.0 17.7 12.8 151.0 33.1 15.5

Sector: Mining

Price: C$0.42Market cap: C$51mMarket Toronto


Company descriptionEuromax Resources is a Canadianresource company focused on theacquisition and development ofmineral-bearing assets in south-eastEurope. Its flagship asset,Ilovica-Shtuka, in Macedonia, is thesubject of a recently completed DFS.


Euromax Resources (EOX)

INVESTMENT SUMMARY

EOX's 2016 DFS on Ilovica envisages a conventional 10Mtpa mining operation, followed bya consecutive flotation and cyanide leach process flow route. Since its publication, EOX hasannounced a contract mining tender process (versus the owner-operator model consideredin the DFS), which holds out the prospect of a c US$42.2m initial capex saving. In addition,Ausenco (EOX's preferred EPC contractor) is reported to have identified a further cUS$45m in potential capex savings as a result of building the plant on a tighter footprint.

INDUSTRY OUTLOOK

Final construction permits are expected in H217. Assuming commercial production fromFY20, our valuation of EOX is C$0.87-0.99/share (fully diluted at a C$0.46 share price). NBthis increases to C$0.95-1.07/share at a C$0.52 share price. In the meantime, we estimatethat Ilovica’s resource of 2.9Moz Au plus 1.2bn lbs Cu (c 5.5Moz AuE), mostly in theMeasured category, should have a value in the range US$135.0-178.3m cf EOX's marketcap of c US$40m, currently.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(C$m) (C$m) (C$m) (c) (x) (x)

2015 4.7 (7.7) (8.4) (7.2) N/A N/A

2016 5.5 (12.5) (14.3) (12.3) N/A N/A

2017e 0.0 (12.9) (14.0) (5.3) N/A N/A

2018e 0.0 (12.9) (8.2) (2.0) N/A N/A





Company descriptionEuromoney Institutional Investor is aninternational B2B information andevents group. Its portfolio of over 50specialist businesses spansmacroeconomic data, investmentresearch, news and market analysis,industry forums and institutes, financialtraining and excellence awards.

Price performance% 1m 3m 12mActual (2.9) (1.0) 9.6Relative* (3.0) (5.1) (2.4)* % Relative to local indexAnalystFiona Orford-Williams

Euromoney Institutional Investor (ERM)

INVESTMENT SUMMARY

Euromoney’s Q3 trading update showed overall performance continuing as expected, withpositives from events, subscriptions and content, partly offset by a jittery asset managementsector facing regulatory changes. RISI, acquired in early April, is performing well andcontributed £5.4m of subscription revenue to the quarter’s total of £118.4m, a figure 13%ahead of the comparative period. Underlying growth was 2% (currency adjusted) and ourforecasts are unchanged, putting the shares on a discount of c 9% to peers. Given theimproved share liquidity and the growth in forecast earnings and dividends, we regard therating as overly cautious. Finance director Colin Jones has announced his intention to retireby summer 2018, allowing time for the recruitment of a successor and a smooth handover.

INDUSTRY OUTLOOK

The asset management sector still carries a cautionary note with regard to the impacts ofthe impending MiFID II regulation and the ongoing shift towards passive rather than activemanagement. Our numbers are based on the assumption that there is no immediaterecovery in underlying customers’ markets. Banking, finance and commodity markets areshowing signs of potential improving confidence, while new opportunities may be openingup in areas such as telecoms and in new markets such as China.


2015 403.4 109.4 107.8 70.1 15.5 12.6

2016 403.1 104.2 102.5 66.5 16.4 13.5

2017e 438.6 114.2 103.7 74.6 14.6 11.5

2018e 466.0 123.7 111.2 82.3 13.2 10.0


Price: CHF0.47Market cap: CHF199mMarket Swiss Stock Exchange

Share price graph (CHF)

Company descriptionEvolva is a Swiss high-techfermentation company. It has aproprietary yeast technology platform,which it uses to create andmanufacture high-value specialitymolecules for nutritional and consumerproducts.

Price performance% 1m 3m 12mActual 4.4 (13.0) (39.0)Relative* 5.0 (16.7) (44.1)* % Relative to local indexAnalystSara Welford

Evolva (EVE)

INVESTMENT SUMMARY

Evolva has an innovative fermentation platform focused on developing new productionmethods for nutritional and consumer health products, which removes supply chain issuesfor existing natural ingredients. Evolva's key programme for stevia sweeteners is partneredwith Cargill and we continue to expect launch during 2018. Evolva also has projects forresveratrol, nootkatone, valencene (all on the market). Evolva expects to invest CHF60m innew fermentation and bioprocessing facilities. Management expects to secure additionalproject financing of c CHF30m by the end of 2017. Simon Waddington (previously COO)has recently taken over as CEO from Neil Goldsmith to lead Evolva into the next phase ofgrowth.

INDUSTRY OUTLOOK

Food and health ingredients continue to be in the sweet spot as consumers demandhealthier products with cleaner labels without compromising on taste or convenience.Evolva's fermentation platform aims to deliver these benefits while reducing productioncosts.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(CHFm) (CHFm) (CHFm) (CHFc) (x) (x)

2015 13.4 (30.3) (32.1) (8.0) N/A N/A

2016 9.6 (34.0) (35.9) (7.8) N/A N/A

2017e 15.3 (23.5) (24.6) (6.0) N/A N/A

2018e 23.3 (20.4) (21.0) (5.0) N/A N/A


Sector: Technology



Company descriptionExpert System combines the bestartificial intelligence algorithms forsimulating the human ability to readand understand language and deeplearning techniques to help companiesintegrate, discover and leverage theirdata and unstructured information.

Price performance% 1m 3m 12mActual (0.6) (3.8) (2.3)Relative* (1.1) (10.2) (23.1)* % Relative to local indexAnalystKatherine Thompson

Expert System (EXSY)

INVESTMENT SUMMARY

Expert System spent FY16 investing in its corporate structure post the TEMIS acquisition.While this led to a small loss in FY16, it leaves the company better positioned with a unifiedtechnology offering and offices established in the key growth markets. New business inH216 confirmed that these changes are starting to have a positive effect. In June, Expertstrengthened its relationship with Sopra Steria and also announced plans to raise €10mfrom the issue of equity and convertible bonds.

INDUSTRY OUTLOOK

Ever-increasing amounts of data are being produced, 80% of which are estimated to beunstructured. The need to derive useful insights from this growing body of data is driving thedemand for cognitive computing and smarter artificial intelligence solutions, such as thoseoffered by Expert System. Allied Market Research estimates that the global text analyticsmarket could be worth as much as $6.5bn by 2020, growing at a CAGR of 25.2% from2014, with North America expected to be the largest regional market.


2015 19.4 1.5 (1.0) (4.1) N/A 14.7

2016 25.1 (2.2) (6.1) (22.0) N/A 21.7

2017e 29.7 3.2 (1.3) (3.2) N/A 7.8

2018e 35.4 6.6 1.6 3.9 45.1 7.6

Sector: General retailers



Company descriptionFindel comprises market-leadingbusinesses in the UK online valueretailing and education suppliesmarkets. Findel’s objective is todevelop sustainable growth in amarketplace for value-consciouscustomers who are rapidly movingtheir purchases online.

Price performance% 1m 3m 12mActual (4.0) (4.0) 7.0Relative* (4.2) (7.9) (4.7)* % Relative to local indexAnalystPaul Hickman

Findel (FDL)

INVESTMENT SUMMARY

Express Gifts, the value retailer, now 63% online, contributed 98% of profit in FY17. Pre-taxprofit was down 10%, mainly on Education division headwinds and Express margins.Express revenue grew 16%, but new customer margins were lower and currency wasadverse. Exceptionals of £82m were mainly on updating the debt provisioning formula,provisions for financial product liabilities, and goodwill write-downs. Phil Maudsley, formerlyMD of Express Gifts, was appointed CEO and Ian Burke has stepped back to non-executivechairman. We reduced our FY18 EPS forecasts by 7% but have an increased 324p target,reflecting the strategy of moving inexorably to become a pure-play online retailer.

INDUSTRY OUTLOOK

UK retail sales (excluding fuel) increased 5.2% y-o-y in Q2 and volumes (excluding fuel)rose by 1.1% q-o-q, reflecting good weather. However, June online sales increased 15.9%y-o-y, representing a continuing tailwind for Express Gifts. Pressure on schools' budgetscontinues to restrain Education, which is why it is focusing on self-help measures.


2016 410.6 41.8 24.8 23.0 8.3 18.6

2017 457.0 40.8 22.2 20.4 9.4 13.5

2018e 485.2 46.5 26.0 24.9 7.7 23.3

2019e 507.6 50.9 28.5 27.3 7.0 5.5


Sector: Pcare & household prd



Company descriptionFocusrite is a global music and audioproducts group supplying hardwareand software products used byprofessional and amateur musicians,which enables the high-qualityproduction of music.

Price performance% 1m 3m 12mActual 1.3 47.4 129.7Relative* 1.1 41.4 104.6* % Relative to local indexAnalystPaul Hickman

Focusrite (TUNE)

INVESTMENT SUMMARY

Interim results were strong. Revenue was up by 23.7%, with constant currency growth of12% shared between both product groups. Adjusted pre-tax profit grew 55% and EPS by52%. All regions are in revenue growth, led by the US, which grew 25% on a constantcurrency basis. EBITDA margin rose by 50bp to 19.1% year-on-year. Cash has beenpositively managed with net inflow of £3.8m against an outflow of £2.2m a year ago andclosing net cash of £9.4m. We upgraded our FY17 earnings forecast by 5%.

INDUSTRY OUTLOOK

Focusrite’s products connect with a home-based leisure movement that is outpacing overallconsumer expenditure. The global music instrument and pro audio wholesale market was£2.7bn in 2013 (source MTM) but is highly fragmented. At IPO in 2014, managementestimated its addressable market at c £450m. Currently, it estimates a 40% share of themass interface market, 10% of the semi-professional Thunderbolt market and 2% of thecommercial market, with Novation also ranking highly in its markets.

Y/E Aug Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 48.0 9.3 7.2 10.5 30.2 N/A

2016 54.3 10.2 7.7 11.8 26.9 N/A

2017e 64.9 11.6 8.5 12.8 24.8 N/A

2018e 70.5 12.6 9.2 13.9 22.8 N/A

Sector: Technology

Price: NIS6.00Market cap: NIS615mMarket AIM Italia, TASE

Share price graph (NIS)

Company descriptionForesight Autonomous (FRSX) is adevelopment-stage technologycompany in Israel, developing ADASsystems based on technologydeveloped by its parent company andthe Israeli military. FRST also has astake in rail ADAS specialist, RailVision.

Price performance% 1m 3m 12mActual (17.2) 89.2 203.2Relative* (17.6) 81.8 197.7* % Relative to local indexAnalystAnna Bossong

Foresight Autonomous Holdings (FRSX)

INVESTMENT SUMMARY

FRSX develops software solutions for advanced driver-assistance systems (ADAS) and fullyautonomous (FA) driving applications using stereo camera vision algorithms developed overa decade with the Israeli military. The company aims to reach effective 100% daytime objectdetection probability in all-weather/light conditions. FRSX has signed a number of pilotproject agreements in China and is looking to achieve similar success in India. 26%-ownedRail Vision, a rail collision warning specialist, is also achieving positive results in producttests with Deutsche Bahn and other rail operators. FRSX's recent Nasdaq listing,publication of US GAAP accounts, $17m cash position (17 June) and release of its proof ofconcept for both night and day ADAS provide a strong basis for future growth.

INDUSTRY OUTLOOK

ADAS is one of the fastest-growing markets in the auto industry. ABI Research forecaststotal spending in the ADAS market to grow at a 29% CAGR over the next decade, withsales of vulnerable-user (cyclists/pedestrians) detection systems, which are principallyreliant on forward-camera systems, forecast to achieve a 49% CAGR during this period.From 2020, the growth of FA-vehicle production should further boost forward-camerademand.


2015 N/A N/A N/A N/A N/A N/A

2016 0.0 (3.3) (1.5) (4.894) N/A N/A

2017e 0.0 (3.5) (4.2) (4.444) N/A N/A

2018e 0.2 (4.2) (4.2) (4.211) N/A N/A





Company descriptionFuture is an international media groupand leading digital publisher. Itoperates two separately managedbrand-led divisions: Media andMagazine.

Price performance% 1m 3m 12mActual 31.3 71.2 126.9Relative* 31.0 64.2 102.1* % Relative to local indexAnalystFiona Orford-Williams

Future (FUTR)

INVESTMENT SUMMARY

Future is acquiring the Home Interest division of Centaur Media, part-funded by a placing of£22m at 250p, for a net cash consideration of £30.24m. This adds a strong new vertical withgood margins and attractive cash flow, with potential to drive additional value by addinge-commerce capabilities and internationalising the brands. Our numbers will be formallyupdated on completion (estimated end July), but provisionally we would expect to beshowing a small uplift in EPS in FY17e and around 10% in FY18e. The strategy to build aglobal media platform business around Future’s high-profile brands, backed with qualitycontent and across multiple revenue streams, is starting to deliver meaningful returns andgrowth well above the sector average, yet to be reflected in the valuation.

INDUSTRY OUTLOOK

Given the shift in business model, magazine circulation figures are a poor guide to Future'smarkets. Nevertheless, it is relevant that the latest ABC stats show digital circulationreaching 1m in H216 (compared to print totalling 39.5m). Magazine sector reach is beingmuch further boosted by its online/mobile presence, while e-commerce growth rates vary bycategory, but broadly fall into a range of 15-20% in both the UK and US. Future's qualitycontent is a driver.


2015 59.8 3.6 0.2 2.7 112.8 N/A

2016 59.0 4.7 1.6 5.7 53.4 N/A

2017e 76.5 9.5 7.2 16.4 18.6 N/A

2018e 77.5 12.6 10.5 22.0 13.8 N/A




Company descriptionFyber connects app developers andmedia companies with advertisersthrough the power of technology.Fyber is an advertising technologycompany delivering to globalaudiences at scale through a powerfulcross-platform monetisation andadvertising solution.

Price performance% 1m 3m 12mActual (28.2) (43.6) (55.4)Relative* (25.1) (44.5) (63.0)* % Relative to local indexAnalystBridie Barrett

Fyber (FBE)

INVESTMENT SUMMARY

Growth in Q217 picked up from 17% to 34%, with EBITDA turning positive in the quarter,putting the group on track to deliver its FY17 targets of revenues above €280m and EBITDAabove €3m. A significant share of demand is from video and programmatic, andmanagement believes this level of growth is sustainable targeting FY18 revenues of over€360m and continuing improvement in profitability. Credit lines have been secured, whichshould be sufficient to fund the business and the FY17 earn-out obligations. While additionalfinancing may be required during 2018, with the restructuring of the €150m convertible bondearlier in the year, this lifts a major overhang on the shares, which will also be convertedfrom registered to bearer form.

INDUSTRY OUTLOOK

Programmatic buying is becoming the dominant way of buying advertising in the fast-growthsegment of mobile advertising. e-Marketer forecasts a three-year CAGR of 122% to 2017 inprogrammatic buying of mobile advertising. By building out the client base for its mediationsolution and expanding the range of products available on its ad exchange, managementbelieves it will capture an increasing share of this growing market.


2015 81.1 (13.7) (18.6) (13.6) N/A N/A

2016 176.8 (10.9) (23.9) (22.0) N/A N/A

2017e 285.0 3.9 (4.2) (3.1) N/A N/A



Sector: Technology



Company descriptionGame Digital is the leadingomni-channel specialist retailer ofvideo games in the UK and Spain, with311 stores in the UK, 270 stores inSpain and over 30% market share.

Price performance% 1m 3m 12mActual (18.9) (41.5) (56.9)Relative* (19.1) (43.9) (61.6)* % Relative to local indexAnalystPaul Hickman

Game Digital (GMD)

INVESTMENT SUMMARY

Game Digital is a market leader in video gaming in the UK and Spain with 32% averageshare. It is executing a major change of strategy to retain its position as the number onedestination for gamers, while expanding live and online gaming services and developingnew markets. The strategy should bring reduced dependence on the cyclicality of thegames market over the next few years. In the short term, UK supply shortages for thesuccessful Nintendo Switch console will have an impact on H2 results. We downgraded ourFY18e revenue by 4% and EBITDA by 53%.

INDUSTRY OUTLOOK

The UK and Spanish console markets are worth c £0.8bn and €0.3bn respectively, and thecontent markets c £1.6m and €0.5m respectively. Console releases from Microsoft andSony drive demand that has peaked every six years since 2000 and drives content oversubsequent years. However, an apparent move to shorter release intervals could signalstructural changes to the traditional cycle, emulating the mobile and PC markets.

Y/E Jul Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 866.6 46.9 38.0 18.5 1.4 N/A

2016 822.5 28.0 16.4 8.8 3.0 1.0

2017e 780.3 8.4 (3.6) (1.6) N/A 7.5

2018e 789.9 13.4 0.8 0.4 67.0 4.2




Company descriptionGaming Realms creates and publishesinnovative real money and socialgames for mobile, with operations inthe UK and the US.

Price performance% 1m 3m 12mActual (2.9) (17.4) (35.9)Relative* (3.1) (20.7) (42.9)* % Relative to local indexAnalystVictoria Pease

Gaming Realms (GMR)

INVESTMENT SUMMARY

GMR is leveraging its 'Slingo' brand in real money gaming (RMG) as well as social, and viablue-chip licensing deals (Express Newspapers, 'Britain's Got Talent' website, Love IslandTV show). GMR reported an EBITDA loss of £0.9m in H117, but anticipates significantpositive EBITDA in H217. The August $4m earn-out payment to RealNetworks has beendelayed until December (for $4.5m) and the company is currently negotiating financingoptions. Our forecasts are under review.

INDUSTRY OUTLOOK

H2 Gambling Capital (March 2017) estimates that the global online casino marketgenerated c €10.5bn in GGR in 2016 and forecasts a 6% CAGR to 2021, with mobile as akey driver. The UK government review into stakes and prizes is expected to focus mainly onFOBT machines in betting shops, which will not affect GMR. Possible tighter restrictions ongambling advertising could affect GMR but would be more relevant for bingo-led TVadvertising before the 9pm watershed. The extension of POC gaming tax to 'free play' is stillexpected to commence in August 2017.

Y/E Sep / Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 21.2 (4.1) (5.0) (2.1) N/A N/A

2016 34.0 (1.0) (4.4) (1.6) N/A 14.8




Sector: Technology



Company descriptionGB Group has complementary identitydata intelligence offerings ofverification, capture, maintenance andanalysis, enabling companies toidentify and understand theircustomers.

Price performance% 1m 3m 12mActual (7.5) 11.0 26.2Relative* (6.4) 6.8 12.5* % Relative to local indexAnalystBridie Barrett

GB Group (GBG)

INVESTMENT SUMMARY

In FY17 (revenues +19% and EBITA +27%), all service lines (bar ID Engage) grew strongly,particularly the fraud and risk management products. Incoming CEO, Chris Clark, outlinedinitial views on strategy, which is unlikely to see a major change in direction, with the focusremaining on driving the globalised nature of both the data sets and customer base. EBITAmargins will be held at the 20% level as management steps up investment to integrate theproduct offerings and expand capabilities in the faster-growing segments; we increased ourFY18 and FY19 EPS forecasts by c 4% and c 2%, respectively. Organic opportunitiessupport the rating at these levels and, with an active acquisition strategy, there is room forfurther growth-driven share price upside.

INDUSTRY OUTLOOK

Growth in internet trading, regulatory pressure and the need for money laundering, age andanti-fraud checks are behind growing interest in increasingly complex and comprehensiveverification of personal data. The scope and financial impact of global fraud and cybercrimeis growing. The requirement of organisations and governments to invest in technologies andcompliance solutions to combat these issues should also increase to outpace this threat.


2016 73.4 14.8 13.2 8.2 42.6 N/A

2017 87.5 18.7 16.5 9.9 35.3 N/A

2018e 117.1 26.2 22.6 12.0 29.1 N/A

2019e 133.4 30.3 26.4 13.6 25.7 N/A




Company descriptionGear4music is the largest dedicated,UK-based online retailer of musicalinstruments and music equipment. Itsells branded instruments andequipment, alongside its own brandproducts, to customers ranging frombeginners to professionals, in the UKand into Europe and the rest of theworld.Price performance% 1m 3m 12mActual 13.4 49.2 568.0Relative* 13.2 43.1 494.9* % Relative to local indexAnalystPaul Hickman

Gear4music Holdings (G4M)

INVESTMENT SUMMARY

Gear4music (G4M) is a disruptive online retailer selling musical instruments and equipment.Traditional competition is fragmented. FY17 results were excellent, with 58% revenuegrowth resulting in 331% PBT growth and 272% EPS growth. G4M has opened twodistribution centres in Europe, is acquiring a £5.3m freehold office in York and is preparingfor the next phase of international expansion.

INDUSTRY OUTLOOK

The UK musical instrument and equipment market is worth c £750m at retail value,according to management estimates. The European market (including the UK) is estimatedat £4.3bn and the world market at US$17bn. In the UK, the market is highly fragmented andG4M is the biggest player. There is more organised competition in Europe, with three largerplayers. The musical instrument (only) market is forecast to grow by a compound 1.7% overthe next five years, according to ibisworld.co.uk.


2016 35.5 1.7 0.6 3.1 266.1 N/A

2017 56.1 3.7 2.7 11.6 71.1 N/A

2018e 79.7 4.1 2.4 10.0 82.5 N/A

2019e 102.1 5.1 3.3 13.3 62.0 N/A





Company descriptionGlobal Bioenergies is in the scale-upstage to convert renewable resourcesinto isobutene, the first of a number ofolefins. The process will beout-licensed to partners once it isproven in an industrial pilot.


Global Bioenergies (ALGBE)

INVESTMENT SUMMARY

Global Bioenergies (GBE) has delivered impressive progress on its alternative olefinsproduction technology. It is now entering the final phase of industrialisation and is on theverge of commercialisation. The company raised €10.25m on 30 June 2017 in order tocomplete the development and the industrialisation of the isobutene process, finance thedetailed engineering studies of the IBN-One plant, launch the commercial roll-out andfurther diversify the raw materials available to the process. Our core valuation range is€34-51 per share.

INDUSTRY OUTLOOK

GBE is developing bioprocesses to convert renewable resources into some of the mostwidely used petrochemical building blocks. GBE's most advanced programme targetsisobutene bioproduction. The company also targets the production of butadiene andpropylene, which are presently at R&D stage.

Y/E Jun / Dec Revenue EBITDA PBT EPS P/E P/CF(€m) (€m) (€m) (c) (x) (x)

2015 2.2 (11.0) (12.2) (395.61) N/A N/A

2016 3.3 (10.9) (12.4) (335.71) N/A N/A

2017e 3.7 (12.3) (15.7) (395.82) N/A N/A

2018e 3.7 (13.2) (16.7) (423.28) N/A N/A

Sector: Property

Price: €7.43Market cap: €673mMarket AIM


Company descriptionGlobalworth Real Estate Investmentsis incorporated in Guernsey. It is a realestate investment company focused onopportunities in south-east Europe andthe CEE, but primarily Romania, whichaccounts for the entire currentportfolio.

Price performance% 1m 3m 12mActual (2.9) (1.0) 35.0Relative* (3.1) (5.1) 20.2* % Relative to local indexAnalystAndrew Mitchell

Globalworth Real Estate Investments (GWI)

INVESTMENT SUMMARY

Globalworth continues to make progress as it transforms into an institutional-quality,dividend-paying real estate investor in central, eastern and south-eastern Europe. Since theannouncement of the €550m five-year Eurobond on 13 June, which will simplify the balancesheet and reduce the cost of debt, it has made two acquisition announcements. GreenCourt Building C (which will be bought from developer Skanska for €38m) is expected toclose in Q317 and provide c €3m of rent annually, and the development of Renault's newRomanian headquarters in Bucharest. The latter is on a 57,000 sqm plot in westernBucharest, is expected to be finished in Q119 and will then be let to Renault for a minimumterm of 11 years. The acquisition cost is expected to be c €55m and rent to be c €5.4m. Weare reviewing our estimates.

INDUSTRY OUTLOOK

Central and eastern European economies continue to perform well compared to otheremerging and developed markets, with Romania and Poland leading in terms of GDPgrowth, which should support occupier demand for office and industrial property.


2015 28.4 16.8 (4.0) (7.6) N/A 22.3

2016 43.6 36.7 5.5 7.4 100.4 10.9




Sector: Technology



Company descriptionGO internet provides internet andtelephone services using 4G wirelesstechnology. The service is currentlyoffered in the Emilia-Romagna andMarche regions of Italy, where GO hasan exclusive right of use for 42MHz inthe 3.5GHz frequency band (4G).

Price performance% 1m 3m 12mActual 0.3 1.6 50.7Relative* (0.2) (5.2) 18.6* % Relative to local indexAnalystBridie Barrett

GO internet (GO)

INVESTMENT SUMMARY

Following last October’s €4m funding round, GO is re-accelerating the rate at which itimplements its network and, after a period of softer growth in subscribers, we expectsubscriber momentum to pick up later this year. Customer numbers in June were 40.5k(+16% y-o-y), tracking our expectations with the FTTH segment in Perugia starting well. Theshares trade at a significant discount to our base case DCF (€2.8/share) and investorsshould also take into account potential valuation implications attached to GO’s spectrumownership in light of emerging 5G standards. With 3.5GHz now earmarked for 5G services,GO’s spectrum could be used for a wider service offering in the longer term and may put itin focus for operators looking to secure 5G capacity.

INDUSTRY OUTLOOK

The Italian broadband market is relatively underpenetrated and with no cable alternative toincumbent TI, opportunities exist for niche providers. GO internet, with its low-cost wirelessservice, is targeting the one million 'mobile-only' homes in the Emilia-Romagna and Marcheregions of Italy that are increasingly opting to relinquish their expensive fixed-line services.


2015 5.3 2.0 0.3 3.82 45.0 6.7

2016 6.4 2.5 0.5 3.66 47.0 3.2

2017e 7.7 3.2 0.5 3.21 53.6 4.2

2018e 9.6 4.5 1.3 8.23 20.9 3.6

Sector: Oil & gas



Company descriptionGreen Dragon Gas is one of thelargest independent companiesinvolved in the production and sale ofcoal bed methane (CBM) gas in China.


Green Dragon Gas (GDG)

INVESTMENT SUMMARY

Green Dragon Gas (GDG) has laid the foundations for what could be a world-class CBMdevelopment; however, the company’s ability to develop and monetise this resource beforePSC expiry in 2035 is contingent on funding. 2P reserves (net 549bcf) continue to rise asGDG proves gas deliverability from incremental coal seams. As it stands, GDG is fundingrather than resource constrained. Our base case valuation assumes that GDG uses RBLdebt capacity (contingent on overall development plan approval) to drill additional LiFaBriCwells on the GSS block, driving a group core valuation of 227p/share.

INDUSTRY OUTLOOK

GDG’s gas price is largely driven by domestic policy; however, we expect that in themedium term, domestic regulated pricing will trend towards LNG import price parity. Weassume that current realisations ($7.5/mcf as a blended average of CNG and PNG prices)will remain until 2018, beyond which it will track towards Chinese LNG import price parity.


2015 37.7 20.1 (0.1) 0.0 N/A 0.1

2016 29.1 10.5 (12.3) 0.0 N/A 0.3

2017e 31.9 16.1 (4.6) 0.0 N/A 0.7

2018e 51.3 35.1 7.3 0.0 N/A 0.4





Company descriptionWith over 1,790 shops, nine regionalbakeries and 19,500 employees,Greggs is the UK’s leading ‘bakeryfood-on-the-go’ retailer. It utilisesvertical integration to offerdifferentiated products at competitiveprices.

Price performance% 1m 3m 12mActual (1.7) (0.2) 8.4Relative* (1.9) (4.3) (3.5)* % Relative to local indexAnalystPaul Hickman

Greggs (GRG)

INVESTMENT SUMMARY

Greggs’ appeal lies in the combination of its relatively low-risk business model, history ofstrong cash generation and its return to strong earnings growth in the past two years. It ispursuing a strategic plan that has delivered impressive financial results and has the financialstrength to complete that programme. After 19 weeks to 13 May 2017, like-for-like managedstore sales grew 3.6%. Although some cost pressures are signalled for the first half,including investment in a new store forecasting and replenishment system, guidance for thefull year is unchanged.

INDUSTRY OUTLOOK

Greggs enjoys an expanding market. The Project Café2016 UK report (Allegra World CoffeePortal) valued the UK coffee shop market in 2015 at £7.9bn, +10% vs 2014. Brandedoutlets (including Greggs) accounted for £3.3bn. Allegra estimates it could reach £15bn by2025. Growth of inflation against wages is a potential concern, although arguably Greggs iswell placed for the value switch following widespread refurbishments.


2015 835.7 113.3 73.0 57.3 19.2 9.2

2016 894.2 125.9 80.3 62.0 17.7 8.2

2017e 944.2 131.4 80.8 63.4 17.3 8.7

2018e 1000.9 138.3 83.9 66.6 16.5 8.1




Company descriptionGVC Holdings is a leading e-gamingoperator in both B2C and B2Bmarkets. It has four main productverticals (sports, casino, poker andbingo) with a number of brands. Itacquired bwin.party digitalentertainment (bwin) on 1 February2016 for €1.51bn.

Price performance% 1m 3m 12mActual (2.7) 5.0 22.8Relative* (2.8) 0.7 9.4* % Relative to local indexAnalystVictoria Pease

GVC Holdings (GVC)

INVESTMENT SUMMARY

GVC is consolidating its position as a leading online gaming operator, as showcased duringits capital markets day on 25 May. The integration of bwin.party has surpassedmanagement’s initial expectations, with positive KPIs across all divisions. Growth has beenachieved through leveraging the powerful proprietary platform and reinvigorating leadingbrands. Customer migrations should be complete by year end and €125m of cost synergiesare on track. GVC has strong organic growth prospects, as well as an excellent track recordwith integration, which may continue to be augmented by M&A at some stage. GVCreported an 8% growth in NGR in Q217, despite tough comps (Euro 16).

INDUSTRY OUTLOOK

The global online gambling market is forecast to grow at 8.7% CAGR to 2020, driven bygrowth on mobile. The UK government triennial review into gaming machines is unlikely tomaterially impact GVC (the focus is FOBT machines in betting shops and possible tighterrestrictions on TV gambling advertising before 9pm). Elsewhere, more countries areintroducing licensing, with new taxes but better medium-term marketing and growthopportunities.


2015 247.7 54.1 50.0 76.4 11.4 8.6

2016 894.6 205.7 121.2 41.5 21.0 69.7

2017e 945.3 254.1 205.1 59.2 14.7 13.1

2018e 996.4 292.6 245.6 69.1 12.6 9.9


Sector: Oil & gas



Company descriptionHurricane Energy is an E&P focusedon UKCS fractured basementexploration. It owns 100% of the523mmbbl (RPS 2P reserves plus 2Cresources) Lancaster oil discovery,West of Shetland.

Price performance% 1m 3m 12mActual (5.6) (47.8) 75.3Relative* (5.7) (49.9) 56.1* % Relative to local indexAnalystSanjeev Bahl

Hurricane Energy (HUR)

INVESTMENT SUMMARY

Hurricane has raised up to $535m through a $300m equity placing (plus $5m follow-onoffer) and a concurrent $220m (with $10m over-allotment) convertible bond offer. Equity isbeing placed at a price of 32p/share while the convertible offers investors a 7.5% couponand conversion price of 40p/share – a 25% premium. Confirmation of funding shouldprovide increased confidence in Hurricane’s ability to keep to a H119 first oil target. The fallin Hurricane’s share price over the last two months has led to greater dilution than we hadpreviously anticipated with Edison’s Lancaster NAV falling from 102p/share to 81p/share (c21%) assuming convertible dilution.

INDUSTRY OUTLOOK

Fractured basement is seen as an 'unconventional' play in the UK, although basementreservoirs have been producing for decades. Hurricane has successfully de-riskedLancaster through a multi-well appraisal programme.


2015 0.0 (5.4) (5.5) (0.9) N/A N/A

2016 0.0 (6.5) (4.7) 0.1 298.0 N/A

2017e 0.0 (7.2) (5.7) (0.4) N/A N/A

2018e 0.0 (7.2) (18.1) (0.9) N/A N/A




Company descriptionIG Design Group is one of the world'sleading designers, innovators andmanufacturers of gift packaging andgreetings, social expression giftware,stationery and creative play products.

Price performance% 1m 3m 12mActual 12.9 12.4 98.2Relative* 12.8 7.8 76.5* % Relative to local indexAnalystFiona Orford-Williams

IG Design Group (IGR)

INVESTMENT SUMMARY

Another strong set of results from IG Design Group show the positive impact of its strategyof investment and innovation in design and delivery. Last year’s acquisition of Lang in theUS has added product and customers, while the European operations are gaining additionalbenefit from the growth of their clients. A particularly strong cash performance moved thebalance sheet cash positive at the year-end, well ahead of schedule. The dividend has beenraised from 2.5p in FY16 to a proposed 4.5p, with further rises on the cards underpinned byour raised FY18 and new FY19 estimates. CFO Anthony Lawrinson has announced that heintends to step down for family reasons and the process has begun to recruit a successor.

INDUSTRY OUTLOOK

IG Design Group's core products are in the global gift packaging market, which it estimatesat £10bn at retail value, equivalent to a trade value of c £3.2bn, giving it a market share justbelow 10% and making it the third-largest participant after American Greetings andHallmark. In some sectors, overall volumes show limited growth and the low unit cost,high-volume nature of the products makes maximising manufacturing efficiency key tobuilding both margins and market share, along with outstanding design capabilities.


2016 237.0 16.5 11.1 13.5 27.8 10.7

2017 311.0 20.7 17.1 18.8 20.0 7.3

2018e 325.0 26.0 20.0 20.5 18.3 10.0

2019e 335.0 28.5 22.5 22.9 16.4 9.9





Company descriptionIntelligent Energy delivers cleanenergy solutions for the distributedenergy, diesel replacement,automotive and aerial drone markets. Itworks with international companies toembed its fuel cell stack technologyinto applications across target markets.

Price performance% 1m 3m 12mActual 9.1 17.7 (11.0)Relative* 8.9 12.8 (20.7)* % Relative to local indexAnalystAnne Margaret Crow

Intelligent Energy Holdings (IEH)

INVESTMENT SUMMARY

Intelligent Energy’s interims were in line with the guidance given at the AGM in March. Theresults demonstrate that management has succeeded in reducing cash burn to its statedtarget of c £1.6m/month. It intends to bring the group to a cash break-even position withinthe next two years through volume roll-out of standard air-cooled products. Project winsduring the period indicate there is appetite for Intelligent Energy’s fuel cell stacks in thetarget markets, although we note that additional funding will be required to support thisprocess. We leave our estimates unchanged.

INDUSTRY OUTLOOK

Stripping out revenues from the power management activity, which was discontinued inNovember (£16.7m H117, £40.9m H116), revenues dropped from £3.0m to £2.0m. Totaladjusted EBITDA losses more than halved from £21.6m to £9.1m, reflecting thecost-reduction programme implemented during H216. Cash consumption during thehalf-year period totalled £7.7m, of which £2.0m was interest on the convertible loan notes,leaving £13.0m at the end of March.

Y/E Sep Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 78.2 (46.2) (51.8) (21.4) N/A N/A

2016 91.8 (33.4) (42.8) (13.5) N/A N/A

2017e 24.6 (13.2) (21.7) (2.5) N/A N/A


Sector: Technology



Company descriptionIQE is the leading supplier of epitaxialcompound semiconductor wafersglobally. The principal applicationsinclude radio frequencysemiconductors, CPV solar cells andvertical cavity lasers.

Price performance% 1m 3m 12mActual (2.0) 51.1 378.9Relative* (0.9) 45.4 326.9* % Relative to local indexAnalystAnne Margaret Crow

IQE (IQE)

INVESTMENT SUMMARY

IQE’s pre-close trading update notes a 16% year-on-year increase in wafer revenues inH117, driven by strong double-digit growth in photonics and currency tailwinds. Thephotonics growth heralds the start of a mass-market ramp up in VCSEL wafers forconsumer applications, encouraging management to proceed with plans to substantiallyexpand capacity ahead of anticipated demand in H218. We have made modest upwardsrevisions to our estimates, noting the potential for further upgrades as there is greater clarityon photonics volumes.

INDUSTRY OUTLOOK

While part of the photonics growth is attributable to the onset of deliveries of VCSEL wafersfor contracts addressing mass-market consumer applications, IQE continues to work on arange of programmes that also have potential to become volume contracts in future. Theseinclude VCSEL wafer for other consumer applications and industrial applications; InP wafersfor high-speed data networks and GaN wafers for radio frequency and power applications.


2015 114.0 29.0 17.6 2.60 40.2 33.0

2016 132.7 31.7 20.6 3.00 34.8 31.2

2017e 145.3 35.5 23.5 3.27 32.0 24.6

2018e 160.3 39.7 25.9 3.58 29.2 22.3


Sector: Financials

Price: TRY1.52Market cap: TRY540mMarket BIST

Share price graph (TRY)

Company descriptionIs Yatirim Menkul Degerler (alsoknown as Is Investment) offersbrokerage, corporate finance,investment advisory services andportfolio management services. It alsohas investments in four subsidiarieswhose results it consolidates.

Price performance% 1m 3m 12mActual 0.0 23.6 56.7Relative* (7.0) 6.9 5.0* % Relative to local indexAnalystAndrew Mitchell

Is Yatirim (ISMEN)

INVESTMENT SUMMARY

Is Yatirim’s (ISY) Q117 results released on 3 May showed a strong performance by theinvestment banking business, driven by robust equity, debt and derivatives markets, slightincreases to some commission margins as well as continued growth in AUM, particularlyfrom higher-fee pension fund assets. Is Investment (the investment bank) posted net profitsmore than 50% up on Q116, which was the strongest quarter in that year. With theexception of the NPL business, all the consolidated segments beat our expectations. Wehave increased our FY17 net profit forecast 18% to TRY78.5m, or 22.1 kurus per share.The cessation of Russian sanctions on 22 May 2017 has improved the outlook for several ofISY's businesses and subsidiaries of IS Private Equity.

INDUSTRY OUTLOOK

The geopolitical background in Turkey appears to be more stable since the constitutionalreferendum. The president's meeting with the US president has helped to cement hisauthority and the final lifting of all Russian sanctions on 22 May 2017 has improved theoutlook for the economy, lifting the BIST 100 Index.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(TRYm) (TRYm) (TRYm) (Kr) (x) (x)

2015 377.5 N/A 33.7 11.4 13.3 N/A

2016 438.9 N/A 41.6 15.2 10.0 N/A

2017e 508.2 N/A 119.8 22.1 6.9 N/A

2018e 535.0 N/A 134.9 24.7 6.2 N/A




Company descriptionJackpotjoy plc (JPJ) (formerly TheIntertain Group) is a leading onlinegaming operator mainly focused onbingo-led gaming targeted towardsfemale audiences. About 77% ofrevenues are generated in regulatedmarkets. It moved its listing from theTSX (IT:TSX) to the LSE in January2017.Price performance% 1m 3m 12mActual 7.3 19.5 N/ARelative* 7.1 14.6 N/A* % Relative to local indexAnalystVictoria Pease

Jackpotjoy plc (JPJ)

INVESTMENT SUMMARY

Jackpotjoy plc (JPJ) has market-leading brands in female-oriented gaming, including'Jackpotjoy', which has a 22% share of the UK online bingo-led market. Q117 gamingrevenues grew 11% to £71.4m, with an underlying cash conversion of c 100%. Althoughadjusted net debt/EBITDA of 4.0x is high, JPJ has now paid its most significant earn-out toGamesys (£94.2m) and all remaining earn-out obligations should be comfortably met withinternal cash. We expect significant deleverage from 2018. The stock continues to trademeaningfully below its peers, as the market appears to be pricing in a high degree ofexecution risk. Despite regulatory headwinds, we forecast continued strong underlyinggrowth and we would expect a re-rating as debt repayments begin to drive value to equity.

INDUSTRY OUTLOOK

JPJ operates in growing markets with positive structural drivers. Internationally, onlinegambling still only accounts for 13% of the market; it is 33% in the UK and new ways togamble (mobile) have proved to be incremental rather than cannibalistic. The extension ofthe UK 15% gaming tax from net to gross revenues is still expected to be enforced fromAugust 2017. M&A is a feature of the sector, driven by economies of scale andtax/compliance costs in regulating markets.


2015 194.6 70.4 46.1 73.0 9.2 N/A

2016 269.0 102.2 65.6 88.4 7.6 N/A

2017e 294.8 105.7 70.9 93.8 7.2 N/A

2018e 322.3 113.8 84.4 109.2 6.2 N/A





Company descriptionJersey Electricity is the monopolysupplier of electricity to the island ofJersey. It also operates businesses inretail, property and business serviceson the island.

Price performance% 1m 3m 12mActual 1.3 7.7 5.2Relative* 1.2 3.3 (6.3)* % Relative to local indexAnalystGraeme Moyse

Jersey Electricity (JEL)

INVESTMENT SUMMARY

JEL's H1 results demonstrated that it is delivering attractive and stable returns to itsshareholders and secure, affordable, low-carbon energy to its customers. In H1, JEL keptprices to customers flat while increasing the interim DPS by 5.5% to 5.8p. Due toinvestment in interconnectors, JEL was also able to import 93% of its electricity fromlow-carbon sources in France. The core energy business performed strongly, with operatingprofits +11.1% to £7.7m, helped by increased unit sales and reduced electricity purchasecosts, which more than offset higher depreciation and pension charges. Net debt remainedbroadly stable (vs FY16) at £29.4m and the balance sheet remains prudently managed. Webelieve that JEL is on track to meet our FY17 forecasts and, at current levels, continues totrade at a discount to our sum-of-the-parts valuation of 520p/share.

INDUSTRY OUTLOOK

We expect the current regulatory regime to continue, enabling JEL to earn a return of 6-7%on the asset base of the electricity business.


2015 100.5 23.8 12.4 32.5 13.9 5.6

2016 103.4 24.6 13.2 32.4 14.0 5.2

2017e 104.5 25.7 13.4 34.3 13.2 5.4

2018e 106.8 26.4 13.8 35.2 12.9 5.1

Sector: Investment companies



Company descriptionJohn Laing is an originator, activeinvestor in, and manager of greenfieldinfrastructure projects. John Laingoperates internationally and itsbusiness is focused on the transport,energy, social and environmentalsectors.

Price performance% 1m 3m 12mActual 0.9 6.3 37.6Relative* 0.7 1.9 22.5* % Relative to local indexAnalystGraeme Moyse

John Laing Group (JLG)

INVESTMENT SUMMARY

JLG’s pre-close update was in line with our expectations. So far in 2017, JLG has madeinvestment commitments of £111m and reiterated that it expects the total for FY17 to be c£200m. Realisations to date have totalled £151m and JLG retains its guidance of £200m forFY17. JLG achieved commercial acceptance for the New Royal Adelaide Hospital in June,and talks with the Greater Manchester Waste Disposal Authority regarding the future of theManchester Waste project, where JLG has two separate but contractually linked projects,are continuing. JLG also remains positive on the outlook for new investment. Its shares nowtrade at a small premium to its last reported NAV of 277p (FY16) but at a discount to otherinfrastructure funds. We would expect this valuation gap to close as JLG continues itsstrong growth trajectory.

INDUSTRY OUTLOOK

Predicted population growth and a drive for increased renewable energy generation createa favourable outlook for investment in infrastructure projects.


2015 167.6 113.4 100.9 27.6 11.0 N/A

2016 260.8 203.2 192.1 51.9 5.8 8.9

2017e 210.2 161.4 149.9 40.8 7.4 N/A

2018e 232.8 183.0 170.5 46.5 6.5 N/A


Sector: Mining



Company descriptionKEFI Minerals is an exploration &development company focused ongold and copper deposits in the highlyprospective Arabian-Nubian Shield,principally the 95%-owned Tulu Kapiproject, Ethiopia and also the40%-owned Jibal Qutman project,Saudi Arabia.


KEFI Minerals (KEFI)

INVESTMENT SUMMARY

In late July, KEFI announced that it had signed an agreement with Oryx for US$135m oflease funding for its Tulu Kapi project in Ethiopia. As a result, Oryx will provide c 70% ofKEFI's total funding required to develop Tulu Kapi in a form of a build, own, operate andtransfer arrangement. In the wake of the Oryx deal, we are now assuming a future equityraise by KEFI of US$13m (£9.9m at current forex rates), compared to £15.85m previously.However, it could be as low as US$4m.

INDUSTRY OUTLOOK

Fully diluted at a share price of 5.4p, we estimate a value for KEFI of 10.4p/share(9.64p/share previously), rising to 18.83p in 2024, based on the net present value of(maximum potential) future dividends, discounted at 10%. However, this increases to 25p inthe event that KEFI is able to successfully leverage its cash flow from Tulu Kapi into otherdevelopment assets in the region. In the meantime, it is trading on a resource multiple ofjust US$11.12/oz, compared to an estimated global average cost of discovery ofUS$10.16/oz.


2015 0.0 (1.6) (2.0) (3.0) N/A N/A

2016 0.0 (2.3) (2.5) (1.6) N/A N/A

2017e 0.0 (2.1) (2.2) (0.8) N/A 26.0

2018e 0.0 (2.1) (10.4) (1.7) N/A N/A

Sector: Technology



Company descriptionKeywords Studios provideslocalisation, testing, artwork,community support and nowengineering services exclusively to thevideo games industry. It providesservices to 20 of the top 25 gamesdevelopers and is leadingconsolidation of this fragmentedindustry.Price performance% 1m 3m 12mActual 8.0 (0.6) 160.2Relative* 7.8 (4.7) 131.7* % Relative to local indexAnalystDan Ridsdale

Keywords Studios (KWS)

INVESTMENT SUMMARY

Keyword's H1 trading update flagged strong trading nearly across the board, with revenuegrowing by 50%, PBT by 60% and like-for-like growth of 17%. We believe that this reflectsthe strength of Keywords’ position in the market, the trend to increased outsourcing and thecompany’s ability to generate revenue synergies from its acquired businesses. Keywords’expansion into higher value-added service lines through Art Services and now Engineering,with the acquisition of GameSim, could strengthen this position further. Delivery of theseservices occur earlier in a game’s creation than more ancillary service lines and requiremuch closer relationships with the client, which should further support cross-selling throughstrengthening relationships and gaining better insights into the games development pipeline.Our estimates will be updated shortly.

INDUSTRY OUTLOOK

Growth is supported by a generally buoyant environment in the global games developmentindustry; market analyst Newzoo estimates the industry grew 8.5% in 2016 and will expandat an annual rate of 6.6% through to 2019. Industry consolidation is ongoing and there is acontinued trend to technical outsourcing as publishers seek to improve flexibility andefficiency. Both trends should benefit Keywords.


2015 58.0 9.5 8.0 12.6 71.9 91.5

2016 96.6 16.9 14.9 20.3 44.6 29.5

2017e 123.1 21.2 18.6 26.0 34.8 23.1

2018e 136.5 23.7 21.0 29.1 31.1 21.9





Company descriptionLa Doria is the leading manufacturer ofprivate-label preserved vegetables andfruit for the Italian (20% revenues) andinternational (80% revenues) market. Itenjoys leading market share positionsacross its product ranges in the UK,Italy, Germany and Australia.

Price performance% 1m 3m 12mActual (2.6) (2.0) (10.2)Relative* (3.1) (8.5) (29.4)* % Relative to local indexAnalystSara Welford

La Doria (LD)

INVESTMENT SUMMARY

La Doria's overarching objective is to reduce the volatility of the business and improvevisibility. The UK is La Doria's biggest market by some margin (c 50% of sales) and sterlingweakness has affected results. The 2016 tomato processing campaign proved to be tough.In addition, the cost of dried pulses and fruit rose as a result of the 2016 summer harvest.Management expects the challenges to persist through H117 and then recovery tocommence in H217, as fundamentals for the 2017 campaign seem positive, with ongoingsector destocking and lower forecast tomato production.

INDUSTRY OUTLOOK

La Doria's strategic objectives, published as part of the updated three-year plan, remainbroadly unchanged: the main priority is to expand the higher margin and less volatile partsof the business to reduce the dependence on the more unpredictable ‘red line’. Theeconomic backdrop remains challenging, sterling devaluation is not helpful and the 2016tomato campaign was tough.


2015 748.3 77.6 57.4 144.6 7.3 5.6

2016 653.1 56.3 37.3 108.8 9.7 5.0

2017e 643.3 47.7 32.7 78.1 13.5 9.0

2018e 681.9 58.1 42.1 99.1 10.6 8.3




Company descriptionThe Glycell process, developed andowned by Leaf Resources, is anintermediate-stage process in theconversion of biomass to bio-basedchemicals, plastics and fuel.

Price performance% 1m 3m 12mActual 10.5 (26.9) (26.9)Relative* 9.2 (25.5) (29.2)* % Relative to local indexAnalystJamie Aitkenhead

Leaf Resources (LER)

INVESTMENT SUMMARY

Leaf Resources (LER) announced on 26 April that it is one step closer to deploying its firstcommercial facility in Malaysia. Following the Malaysian government's decision to locate abiomass processing hub in the state of Sarawak, LER and its JV partner, Claeris, haveidentified a specific site and commenced the application process. Additionally, Leaf is intalks with potential EPC contractors about undertaking a full 'FEL3' engineering study on thefeasibility of the plant, following a successful independent engineering review of the Glycelltechnology and a positive 'FEL2' report on the front-end loading system.

INDUSTRY OUTLOOK

Legislative changes and public and consumer goods manufacturer support are opening uprenewable chemical markets. LER's Glycell breakthrough technology allows cellulosicsugars to be produced at <US$50/t compared to competing alternatives of >US$200/t. Inthe fermentation stages to renewable chemicals, production costs can be lower than frompetroleum-based feedstocks, even at low oil prices.


2015 0.0 (2.2) (2.2) (1.6) N/A N/A

2016 0.1 (3.1) (3.1) (2.0) N/A N/A




Sector: Oil & gas



Company descriptionLeigh Creek Energy has a certifiedPRMS gas resource of 2,964PJ (2C) atthe Leigh Creek Energy Project inSouth Australia. Monetisation of thisgas through ISG is expected to bede-risked by a demonstrationprogramme in 2017.

Price performance% 1m 3m 12mActual (19.2) (35.3) (51.5)Relative* (20.1) (34.1) (53.0)* % Relative to local indexAnalystSanjeev Bahl

Leigh Creek Energy (LCK)

INVESTMENT SUMMARY

Leigh Creek Energy (LCK) offers an option over the in-situ gasification (ISG) of anunderground coal resource in South Australia (SA). Recent power blackouts in SA havehighlighted the need for more baseload power generation capacity, while high electricityprices incentivise the monetisation of 2,964PJ of 2C ISG gas resource. On 31 March 2017,LCK announced that it had raised A$21.85m of new equity; net proceeds are to be used tofund the company’s pre-commercial ISG demonstration project. A new cornerstone investorhas also been added to LCK’s shareholder register, China New Energy. Our RENAV of$0.26/share reflects this new source of funding.

INDUSTRY OUTLOOK

South Australian power prices have been volatile due to concentrated generator ownership,coal plant closures, limited import capability and higher than national average dominance ofrenewables. South Australia was the hardest hit state when energy retailers increasedpricing by up to 20% in June 2017.


2015 N/A N/A N/A N/A N/A N/A

2016 0.0 (5.4) (5.4) (2.0) N/A N/A

2017e 0.0 (3.0) (2.9) (0.7) N/A N/A

2018e 0.0 (3.0) (2.9) (0.7) N/A N/A

Sector: Mining



Company descriptionLepidico provides exposure to aportfolio of lithium assets via its whollyowned properties, JVs and IP inAustralia, Canada and Europe.Uniquely, it has successfully producedlithium carbonate from non-traditionalhard rock lithium bearing mineralsusing its registered L-Max® processtechnology.Price performance% 1m 3m 12mActual (7.1) 0.0 (21.4)Relative* (8.2) 2.0 (23.9)* % Relative to local indexAnalystTom Hayes

Lepidico (LPD)

INVESTMENT SUMMARY

Central to Lepidico is its disruptive (patent-pending) L-Max® metallurgical technology thatrecovers lithium from micas (eg lepidolite), and therefore holds out the prospect of profitablyexploiting an overlooked and undervalued mineral. The process uses readily availablemainstream chemicals and large-scale laboratory tests have shown it to operatecontinuously and stably over a protracted period of time. A recent PFS estimated C1 cashcosts of lithium carbonate production at close to zero net of by-products for a 3,000tpaoperation (Phase 1).

INDUSTRY OUTLOOK

Having completed the PFS, Lepidico’s strategic imperative is now the development of thePhase 1 plant as well as the completion of a feasibility study on an industrial-scaleoperation. Based solely on the PFS and the Phase 1 plant, we estimate a value for Lepidicoof A$0.0202/sh. However, conceptual estimates for a Phase 2 plant envisage producing c7x as much lithium carbonate, for 3.4x as much capex to generate 8x as much NPV.


2015 0.0 (0.4) (1.0) N/A N/A N/A

2016 0.1 (0.5) (2.3) N/A N/A N/A

2017e 0.0 (0.6) (1.1) N/A N/A N/A

2018e 0.0 (0.6) (2.9) N/A N/A N/A


Sector: Oil & gas

Price: A$0.59Market cap: A$305mMarket ASX, OTC Pink


Company descriptionLiquefied Natural Gas Ltd is anASX-listed company devoted to thedevelopment of LNG export terminalsin the US, Canada and other potentiallocations. It has traded ADRs.

Price performance% 1m 3m 12mActual 5.3 (11.9) (3.3)Relative* 4.1 (10.1) (6.3)* % Relative to local indexAnalystWill Forbes

Liquefied Natural Gas Limited (LNGL)

INVESTMENT SUMMARY

Stonepeak has committed to fund the full equity component of financing the Magnoliaproject, totalling US$1.5bn. The terms of the agreement have changed, and Stonepeak willbe taking a preferred interest in the project, leaving Liquefied Natural Gas Limited with a100% equity ownership. This is a vote of confidence for the project. The key remainingevent for Magnolia will be the completion of binding tolling agreements covering enoughvolumes to enable project sanction. All necessary regulatory milestones have beenreached, leaving the company entirely focused on negotiations with potential partners toenable sanction of the 8mtpa project. Within its peer group, Magnolia is well placed to beable to deliver LNG cargoes in the 2021-2022 period, in time with projected demand needs.We have adjusted our valuation, increasing it to A$1.37/share (US$4.19/ADR).

INDUSTRY OUTLOOK


2015 7.9 (72.0) (86.3) (0.2) N/A N/A

2016 7.3 (101.1) (115.1) (0.2) N/A N/A

2017e 2.1 (25.9) (35.9) (0.1) N/A N/A

2018e 58.0 23.2 13.1 0.0 N/A 13.1

Sector: Financials



Company descriptionLSE is Europe’s leading exchangegroup in cash equities. MTS isEurope’s largest electronic governmentbond market, LCH and CC&G offerpost-trade services and FTSE Russellprovides benchmark indices andrelated data services.

Price performance% 1m 3m 12mActual 0.7 17.9 38.5Relative* 0.5 13.0 23.3* % Relative to local indexAnalystAndrew Mitchell

London Stock Exchange Group (LSE)

INVESTMENT SUMMARY

LSE held an investor update event on 12 June that set out the group’s strategy following theending of the merger project with Deutsche Börse. The group will continue to develop itsdiversified portfolio of businesses comprising: indices, data and technology; primary andsecondary markets; and clearing, settlement and central securities depository. The groupunderlined its commitment to an open access model, which it believes positions it well forregulatory developments including MiFID II and is in tune with client preferences.

INDUSTRY OUTLOOK

Looking ahead, LSE sees good potential for further strong growth and has set out specifictargets. These include continued double-digit revenue growth for 2017-19 with sustainablemargins at FTSE Russell, similar growth in OTC clearing revenue at LCH with margins forthis business set to approach 50% by 2019 (35.6% 2016) while, for the group, expensegrowth should be held at 4% pa 2017-19, with cost savings of £50m by the end of the periodcontributing to an EBITDA margin of 55% by 2019 (46.5% 2016). H117 figures are due tobe announced on 3 August.


2015 1419.0 644.0 516.0 103.4 36.6 N/A

2016 1657.0 771.0 623.0 124.7 30.4 N/A







Company descriptionLookers is a leading UK motor vehicleand specialist parts distributor. Itoperates 160 franchises, representing33 marques spread across the UK.

Price performance% 1m 3m 12mActual (11.2) (12.1) 3.2Relative* (10.2) (15.4) (8.0)* % Relative to local indexAnalystAndy Chambers

Lookers (LOOK)

INVESTMENT SUMMARY

Lookers has a growth strategy based on organic growth supplemented by M&A. It hasgrown consistently, delivering record profits in each of the past eight years. Management'smore focused brand strategy and related investment increases should continue to besupported by continued reinvestment of proceeds from the parts business sale last year.While uncertainty in the UK car market remains, interim results on 16 August should confirmprogress.

INDUSTRY OUTLOOK

Market dynamics favour larger motor dealership groups against smaller independentgroups, which still command c 60% of the franchise market. Global manufacturingovercapacity still points to OEM support, although stockmarket confidence is undermined bythe inflationary impact of weak sterling on new car prices and interest rates. A 35% ratingdiscount relative to the FTSE All-Share General Retailers Index fails to recognise thedefensive qualities across a sector where used vehicle and aftersales activities account forthe majority of profits.


2015 3649.0 99.6 72.1 14.88 7.6 7.7

2016 4282.0 113.2 77.1 15.55 7.2 3.4

2017e 4700.0 112.0 76.0 15.42 7.3 4.5

2018e 4900.0 114.6 78.5 15.92 7.1 4.8




Company descriptionLow & Bonar produces specialistperformance materials for a variety ofend-markets by combining polymerswith specialty additives and pigments.It now reports as four global businessunits.

Price performance% 1m 3m 12mActual (7.2) (7.2) 28.2Relative* (7.3) (11.0) 14.2* % Relative to local indexAnalystToby Thorrington

Low & Bonar (LWB)

INVESTMENT SUMMARY

First half results showed a good increase compared to the prior period with reportednormalised PBT and normalised EPS both up by more than 20% (10%+ on a constantcurrency basis). Strong volume growth in Building & Industrial and improved operatingefficiencies in Coated Technical Textiles were the primary drivers of underlyingperformance. Civil Engineering sector prospects appear to be improving, although H1 wasadversely affected by project timing delays. This also had an impact on net debt, amplifyingthe seasonal working capital outflow, leaving period end net borrowings at £149m. The 5%interim dividend increase was as expected.

INDUSTRY OUTLOOK

Key strategic medium-term financial targets are currently for 10% operating margins and12%+ return on capital employed. Organic group revenue growth may be supplemented byM&A. The onus is clearly on territories outside Europe to provide the growth engine.

Y/E Nov Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 362.1 46.0 27.4 5.8 13.9 7.8

2016 402.2 52.8 29.2 6.0 13.5 5.2

2017e 440.0 59.4 35.4 7.2 11.2 4.2

2018e 440.9 64.2 39.2 8.0 10.1 N/A





Company descriptionMarshall Motor is the seventh largestUK motor retailer, operating 103franchises spread across 24 brands at89 locations. It is one of six UKdealership groups that represent eachof the top five volume and premiumbrands. The group has a strongpresence in eastern and southernEngland.Price performance% 1m 3m 12mActual (0.4) (16.7) (7.2)Relative* (0.5) (20.1) (17.3)* % Relative to local indexAnalystAndy Chambers

Marshall Motor Holding (MMH)

INVESTMENT SUMMARY

Since its listing on AIM in 2014, MMH can reflect positively on its continued transformationand strong growth record, which has driven it to rank seventh among UK automotiveretailing groups. The strong brand coverage and excellent relationships with majormanufacturers should continue to deliver growth. Despite tougher market conditions, H1trading has been strong and we have raised our estimates, with an unchanged fair value of214p per share.

INDUSTRY OUTLOOK

Market dynamics favour larger motor dealership groups against smaller independentgroups, which still command c 60% of the franchise market. Global manufacturingovercapacity still points to OEM support, although stockmarket confidence is undermined bythe inflationary impact of weak sterling on new car prices and interest rates. Large ratingdiscounts relative to the FTSE All-Share General Retailers Index fail to recognise thedefensive qualities across a sector where used vehicle and aftersales activities account forthe majority of profits.


2015 1232.8 22.8 15.8 15.8 9.0 2.9

2016 1899.4 38.6 25.4 26.2 5.4 1.1

2017e 2271.1 44.7 28.3 28.6 5.0 1.7

2018e 2296.5 44.9 28.9 29.2 4.9 1.5

Sector: Property



Company descriptionMedicX Fund is a specialist investor inprimary care infrastructure. Propertiesare let mainly to government-funded(NHS or HSE) tenants (c 89%) andpharmacies (c 8%) on GP surgerysites. It has one completed property inthe Republic of Ireland and three underdevelopment.

Price performance% 1m 3m 12mActual (1.4) 2.8 4.0Relative* (0.3) (1.0) (7.3)* % Relative to local indexAnalystAndrew Mitchell

MedicX Fund (MXF)

INVESTMENT SUMMARY

MedicX Fund’s (MXF) H117 results released on 26 May show a higher level of investmentthan we had assumed, with Irish acquisitions funded from equity issuance at a substantialpremium to NAV. This, together with continued yield compression, has increased EPRANAV to 74.4p per share, above our forecasts, while slightly diluting EPRA EPS, andtherefore reducing dividend cover to 59% from 63%. The dividend has been increased andMXF expects to pay 6p in respect of 2017, equating to a yield of 6.7% on the current shareprice, supported by highly secure, long-term income derived mainly from governmentsources. The recent uptick in inflation has been of benefit to RPI-linked rents and progresshas been made towards the execution of NHS plans to upgrade primary care infrastructure.The latter should support rent increases through open market review by providing modernand therefore higher rent comparisons for existing stock.

INDUSTRY OUTLOOK

All UK political parties have pledged continued support for the NHS, so the general electionresult should not affect existing plans for reforming primary care there. A constructionprogramme of new primary care centres in the Republic of Ireland is ongoing and similarlyunlikely to be affected by the appointment of a new Taoiseach.


2015 33.7 27.3 13.5 3.7 24.5 14.0

2016 35.5 28.6 14.2 3.8 23.8 13.1

2017e 38.5 31.4 14.9 3.6 25.1 11.8

2018e 42.9 36.9 16.5 3.9 23.2 10.2



Price: €1.27Market cap: €69mMarket Maltese Stock Exchange


Company descriptionMedserv is a Malta-based provider ofintegrated offshore logistics andservices in support of drillingoperations in the Mediterranean. Theacquisition of the METS companies inFebruary 2016 diversified the companyinto onshore steel.

Price performance% 1m 3m 12mActual 4.5 (15.8) (29.2)Relative* 2.7 (16.1) (33.6)* % Relative to local indexAnalystAndy Chambers

Medserv (MDS)

INVESTMENT SUMMARY

Medserv is an ambitious, Malta-listed, oilfield support services provider seeking to expandgeographically and diversify its markets and product offering. 2016 was a challenging yearfor Medserv and project delays compounded the cost-saving actions of major customers ina depressed market. The delays are also likely to adversely affect H117, resulting in a sharpreduction in near-term estimates. Cash values hold up well, assuming current marketconditions pertain, and our revised DCF value is now €1.83 compared to €2.03 previously.

INDUSTRY OUTLOOK

Medserv operates in the upstream oil & gas segment, providing onshore bases in theMediterranean and Middle East for onshore and offshore exploration and productioncustomers. The acquisition of METS in February adds onshore OCTG services to thehistorical integrated offshore services offered in Malta and Cyprus. Despite the weaker oilprice, activity in its main geographies remains broadly strong as extraction costs are at thelower end of the curve.


2015 42.7 10.3 6.1 9.7 13.1 5.6

2016 32.8 5.0 (1.3) (2.1) N/A 11.2

2017e 35.2 7.0 0.5 0.6 211.7 9.5

2018e 42.3 12.4 5.9 9.6 13.2 10.0

Sector: Consumer support services

Price: €3.99Market cap: €118mMarket Milan Stock Exchange


Company descriptionMondo TV is a global media group witha focus on the production, acquisitionand exploitation of animated children’stelevision series. It owns the rights toover 1,500 TV episodes and films,which it distributes across 75 markets.80% of revenues are generated inAsia, 10% in Italy, 7% in Europe and3% in America.Price performance% 1m 3m 12mActual 0.0 (1.2) (16.1)Relative* (1.9) (8.5) (35.3)* % Relative to local indexAnalystBridie Barrett

Mondo TV (MTV)

INVESTMENT SUMMARY

Mondo TV has radically improved its financial profile over the last three years and targets atripling of EBITDA over the next five. Funding is in place and the new strategy isunderpinned by a number of shows with high-margin licensing and merchandising potential:three series of 'Sissi the Young Empress'; 'Invention Story', a new show in partnership withChinese partner Henan York; the development of 'YooHoo and Friends' with Korean toygroup Aurora; as well as Mondo’s first live teen series, 'Heidi, Bienvenida a Casa'. All ofthese shows have received strong licensing interest and we estimate c 70% of the currentyear budget is committed. Announcements of additional licensing deals or significant newpartners should help build confidence in the deliverability of its ambitious targets and closethe 20% FY18 EV/EBIT discount to peers.

INDUSTRY OUTLOOK

The market for children’s entertainment has been reinvigorated with the growth of VODplatforms looking for multi-territory content. Animations travel well and, as seen from thesuccess of eOne’s 'Peppa Pig', brands that travel have the potential to yield significantreturns. Smaller brands can also be very profitable; Mondo, with its flexible cost base andhigh share of revenues from licensing and merchandising sales, enjoys 46% EBIT margins.


2015 16.8 8.9 5.4 11.69 34.1 N/A

2016 27.4 18.1 12.7 32.37 12.3 N/A

2017e 37.6 25.9 17.6 41.12 9.7 N/A

2018e 49.7 35.0 17.4 37.30 10.7 N/A


Sector: Technology

Price: NIS4.13Market cap: NIS255mMarket NASDAQ, TASE

Share price graph (NIS)

Company descriptionNano Dimension develops advanced3D printed electronics systems andadvanced additive manufacturing. Itsinitial products include a 3D printer forrapid prototyping of multi-layer PCBsand associated nanotechnologyconductive and dielectric inks.

Price performance% 1m 3m 12mActual (3.9) (8.8) (22.8)Relative* (4.3) (12.3) (24.2)* % Relative to local indexAnalystAnne Margaret Crow

Nano Dimension (NNDM)

INVESTMENT SUMMARY

Nano Dimension rounded off Q217 with the delivery of four printers to its final batch of betasite customers, bringing the total to 16. It has met its stated goal of completing the beta testphase in mid-2017 and is scheduled to commence early commercial sales in Q317. Thiskeeps it on track to deliver a total of 50 printers during the year, around 35 to commercialcustomers.

INDUSTRY OUTLOOK

The feedback from the beta programme so far has enabled Nano Dimension to upgradeand refine the technology, printing capabilities and work processes of the DragonFly 20203D printer. It has confirmed that DragonFly printer deployment helps accelerate productdevelopment cycles, support additional product design iterations and keep IP secure.Management notes that it now has sufficient beta phase partners and intends to move toearly commercial sales of printers and related proprietary inks during Q317.


2015 0.0 (2.4) (2.1) (39.49) N/A N/A

2016 0.0 (6.5) (6.8) (83.30) N/A N/A

2017e 5.2 (7.7) (8.8) (78.90) N/A N/A

2018e 35.7 12.2 11.0 58.76 0.0 0.0

Sector: Technology



Company descriptionNanoco Group is the leadingcommercial supplier of cadmium-freequantum dots (CFQD) and IP. Thenear-term focus is on the displaymarket, where CFQDs are used toenhance picture quality.

Price performance% 1m 3m 12mActual 8.4 14.0 (39.9)Relative* 8.2 9.3 (46.5)* % Relative to local indexAnalystDan Ridsdale

Nanoco (NANO1)

INVESTMENT SUMMARY

The receipt of first orders from Wah Hong was an important step forward. Just asimportantly, the CFQD product is now being evaluated by 13 major OEMs for 16programmes, giving confidence that revenues are now set to ramp up, as moreprogrammes progress through the pipeline and shipment volumes increase. We also notethat the exit of 3M, one of (Nanoco competitor) Nanosys’s film partners should be helpful. A£485k grant for Nanoco from Innovate UK to develop quantum dots for the detection ofpancreatic cancer reminds us that there is more to the company than just display – othernon-display applications include lighting and solar power generation. Nevertheless, in thenear term the investment case will hinge around progress in display.

INDUSTRY OUTLOOK

Market analysts are forecasting strong uptake of QD TVs and cadmium-free is expected todominate volumes. Market analysts’ forecasts for QD adoption in display vary, but at themid-point, QD TV shipments are forecast to grow from c 5m in 2017 to nearly 50m by 2020,which we estimate equates to a market opportunity for QD materials of $550m by 2020.


2015 2.0 (8.1) (9.3) (4.2) N/A N/A

2016 0.5 (11.2) (12.3) (5.2) N/A N/A

2017e 1.6 (9.1) (10.2) (4.3) N/A N/A

2018e 16.3 1.7 0.8 0.3 129.3 N/A



Price: 954.0pMarket cap: £32709mMarket LSE, NYSE


Company descriptionNational Grid owns and operatesregulated electricity and gas networkassets in both the UK and the US. Itsunregulated assets consist of the GrainLNG import terminal, interconnectors,a metering business and a propertybusiness.


National Grid (NG)

INVESTMENT SUMMARY

National Grid's FY17 results on 18 May were in line with expectations. The sale of 61% ofthe UK Gas Distribution was completed with £4bn of proceeds due to be returned toshareholders. In the US, rate filings in New York gas and electric businesses have begun totranslate into enhanced returns. The slight reduction in overall group RoE from 12.3% inFY16 to 11.7% was partly due to an exceptionally strong prior period in Grid’s OtherBusinesses.

INDUSTRY OUTLOOK

With visibility on the allowed rate of returns by Ofgem in the UK until 2021 and potentialcapex upside from the UK government's Electricity Market Reform, National Grid is wellpositioned to play a key part to ensure security of supply and support the development ofnew renewable generation.


2016 13212.0 5710.0 2417.0 50.2 19.0 6.4

2017 15035.0 6352.0 2807.0 47.9 19.9 5.7

2018e 15279.0 4929.0 2894.0 64.4 14.8 6.6





Company descriptionNorcros is a leading supplier ofshowers, tiles, taps and related fittingsand accessories for bathrooms,washrooms and other commercialenvironments. It has operations in theUK and South Africa, with some exportactivity from both countries.

Price performance% 1m 3m 12mActual (3.7) 0.2 7.7Relative* (3.9) (3.9) (4.1)* % Relative to local indexAnalystToby Thorrington

Norcros (NXR)

INVESTMENT SUMMARY

All in all, FY17 was a satisfying year for Norcros. Against the prior year, underlying PBTincreased by c 12%, EPS was flat (due to a normalised tax charge) and DPS rose by c 9%.A strong H2 in the UK and solid positive contributions from acquisitions and South Africacontributed to this outturn. Good cash generation resulted in year-end net debt of £23.2m,representing 0.7x FY17 EBITDA. Notwithstanding some market caveats, managementremains confident of achieving further progress in FY18. Our estimates are under review.

INDUSTRY OUTLOOK

In the UK, the residential new-build sector has rebounded well and there is impetus for thisto continue. RMI spending has not recovered at the same rate. Sustained progress in realaverage incomes and confidence in asset prices would be supportive for RMI recovery also.The South African economy is currently facing a number of challenges; wider distribution ofwealth and an emerging middle class should benefit consumer spending over time.


2015 222.1 24.3 14.0 18.0 9.6 6.3

2016 235.9 28.0 18.5 24.7 7.0 5.6

2017e 266.3 31.4 20.2 24.0 7.2 4.5

2018e 274.4 32.9 21.8 25.7 6.7 3.8


Sector: Financials



Company descriptionNumis has grown to become one ofthe UK's leading institutionalstockbrokers and corporate advisers. Itemploys over 200 staff in offices inLondon and New York, and has 199corporate clients.


Numis Corporation (NUM)

INVESTMENT SUMMARY

The drag on revenues from scarce market-wide primary equity issuance in the first half yearto 31 March was substantially mitigated by progress elsewhere. The rise in the UK equitymarket supported growth in institutional commissions and trading income, and althoughNumis was involved in fewer IPOs in H117 (two vs 10 in H116), the size and breadth of theclient base supported a stronger level of non-primary transactions and corporate retainers.Core revenues declined 8%, although a higher contribution from the strategic investmentportfolio limited the total income decline to 5%. Costs were similar to H216 but higher thanH116, taking the cost/income ratio up 10pp to 81%. Some of the cost pressure is likely toprove structural as MiFID II implementation approaches. Pre-tax profits were £10.5m (H116:£16.8m) with fully diluted EPS of 7.6p (11.6p). DPS was unchanged at 5.5p but sharerepurchases substantially increased.

INDUSTRY OUTLOOK

The political background in the UK continues to generate uncertainty but with transactionscompleted in the current half year (including the recent Alfa Financial Software, NexusInfrastructure and Sherborne Investors IPOs and secondary raises for Draper Esprit, IPGroup and INPP) and a strong pipeline, Numis remains confident on the full year.


2015 98.0 28.9 26.1 18.3 13.2 N/A

2016 112.3 30.0 32.5 22.4 10.8 N/A

2017e 116.9 28.3 30.1 20.6 11.7 N/A

2018e 119.5 31.3 30.8 21.0 11.5 N/A

Sector: Mining

Price: 13.0pMarket cap: £13mMarket AIM, Toronto


Company descriptionOrosur Mining owns (100%) andoperates its San Gregorio gold mine inUruguay. It explores for gold close toSan Gregorio and in Chile at the Anillogold property. It owns 100% of thehighly prospective, high-grade Anzágold property in Colombia.


Orosur Mining (OMI)

INVESTMENT SUMMARY

OMI’s flagship San Gregorio (SG) mine has met production and cost guidance for FY17.This is made all the more notable as H2 production ran alongside increased infrastructurespending to secure future gold mining activities at SG. These infrastructure works willunderpin FY18 production at the mine. The company’s continued tight cost control is evidentthrough its maintenance of a decent average gross margin of c 30% since the start of 2014.Tight cost control has also allowed OMI to continue to expand its gold resources at SG, aswell as markedly increasing exploration activities at its highly attractive APTA asset inColombia.

INDUSTRY OUTLOOK

OMI met the lower end of its 35koz to 40koz target for FY17, producing 35,751oz Au. OMIstates that this was achieved in line with its C1 cash cost guidance of US$800/oz toUS$900/oz, which will be confirmed on release of its full-year results in mid-August.

Y/E May Revenue EBITDA PBT EPS (fd) P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2015 65.9 10.7 (6.2) (56.3) N/A 1.4

2016 42.9 9.1 3.2 (1.2) N/A 2.5

2017e 48.4 12.9 5.8 4.4 3.8 1.3

2018e 51.9 21.0 13.9 10.5 1.6 1.2


Sector: Financials

Price: US$24.51Market cap: US$280mMarket OTC QX


Company descriptionOTC Markets Group operates theOTCQX, OTCQB and Pink financialmarkets for c 10,000 US and globalsecurities. Its trading system, OTCLink ATS, is operated by OTC LinkLLC, a member of FINRA and is anSEC regulated Alternative TradingSystem.

Price performance% 1m 3m 12mActual 4.3 14.0 45.0Relative* 2.7 8.3 27.0* % Relative to local indexAnalystAndrew Mitchell

OTC Markets Group (OTCM)

INVESTMENT SUMMARY

OTC Markets Group (OTCM) provides regulated marketplaces offering a cost-effectivesolution for targeting US investors. Q117 results showed progress with revenues up 5% andpre-tax profits 12% ahead of Q116. OTCM continues to refine the rules for its premiummarkets to enhance their reputation while minimising the burden on corporates. The recentpurchase of theOTC.today, a website that monitors stock promotion campaigns, furthers thestrategy of increasing the quality of information available to investors. The drive to increasethe number of states that grant OTCM markets Blue Sky recognition continues as a furthermeans to increase their appeal to corporates. OTCM is also taking a measured approach inits response to the competitive threat from the Global OTC ATS.

INDUSTRY OUTLOOK

The pick-up in new company sign-ups at the start of the current year is encouraging whilesustained higher market levels should also be helpful for OTCM. There are generalgeopolitical, regulatory and market risks to the outlook, but OTCM's well-establishednetwork and cost-effective offering are positive features for the longer term. Q2 results aredue to be released on 9 August.


2015 49.9 18.6 16.9 88.32 27.8 N/A

2016 50.9 18.5 16.9 95.47 25.7 N/A

2017e 53.8 19.1 17.6 96.41 25.4 N/A

2018e 55.9 19.8 18.1 97.50 25.1 N/A

Sector: Property



Company descriptionPalace Capital is an AIM-quotedproperty investment company focusedon commercial real estate in the UKoutside London. The portfolio isdiverse, with the largest weighting inoffices. Management aims to increasecapital value and provide a sustainableand growing income stream.

Price performance% 1m 3m 12mActual (1.3) 4.2 16.5Relative* (1.5) 0.0 3.8* % Relative to local indexAnalystJulian Roberts

Palace Capital (PCA)

INVESTMENT SUMMARY

Palace Capital published strong FY17 results, showing the success of its strategy togenerate income and capital growth through regional property investment. Rental income of£14.3m fed through to adjusted EPRA earnings of 22.2p per share (FY16: 18.9p). EPRANAV of 443p per share was 7% higher than at 31 March 2016 (414p), driven by assetmanagement initiatives, selective disposals at above book value and modest yieldcontraction. We expect Palace to complete an announced potential acquisition of an assetfor c £20m in the near term, more than replacing rental income from recent disposals, andthat the announced increase in the half year dividend from 9p to 9.5p will be sustained andfully covered in FY18. The final dividend will be paid on 28 July.

INDUSTRY OUTLOOK

The regional occupier market is reported to be healthy and we continue to expect Palace’sgeographical and sector focus, as well as the relatively high yields on the portfolio, toprovide some protection from macroeconomic headwinds, including the effects of Brexit,when compared with property in London. Regional rents may benefit from supply constraintas well as robust occupier demand.


2016 14.6 N/A 8.1 29.2 12.7 N/A

2017 14.3 N/A 9.5 24.4 15.2 N/A

2018e 14.0 N/A 6.2 20.6 18.0 N/A

2019e 14.7 N/A 7.6 25.8 14.3 N/A


Sector: Mining



Company descriptionPan African has six major assets inSouth Africa: Barberton, the BarbertonTailings Retreatment Project, Evander,the Evander Tailings RetreatmentProject, Elikhulu and PhoenixPlatinum.


Pan African Resources (PAF)

INVESTMENT SUMMARY

H117 results were in line with guidance after operations were disrupted by a series of DMRSection 54 notices. H217 results will be restrained by the underground mining hiatus atEvander to accommodate necessary infrastructure refurbishment before recovering stronglyin FY18. So far in CY17, PAF has announced the disposal of Uitkomst for ZAR275m(£16.3m, or US$20.9m) as well as a placing to raise ZAR705m (£41m, or US$51m), whichwill go a long way to financing the Elikhulu project to add c 52koz (or 25%) to PAF’sproduction profile and which we value at US$69.9m (at a 10% discount rate).

INDUSTRY OUTLOOK

In the wake of its equity placing, we value PAF at 20.2p/share (although this is within thecontext of materially reduced financial risk). Financial forecasts are under review after PAF'sJuly operational update revealing 173koz of production in FY17 and forecasting >190koz Auin FY18 (vs our 197koz). Even so, PAF continues to have the sector's third-highest forecastdividend yield globally.


2015 140.4 28.4 16.0 0.64 22.2 9.8

2016 168.4 57.4 45.9 2.08 6.8 5.5

2017e 203.4 42.5 26.0 1.19 11.9 4.7

2018e 204.8 68.3 57.7 2.16 6.6 4.0


Price: €60.23Market cap: €273mMarket Xetra


Company descriptionparagon designs and manufacturesadvanced automotive electronicssolutions as a direct supplier to theautomotive industry. Products include:sensors, acoustics, cockpit,electromobility and body kinematics.

Price performance% 1m 3m 12mActual (2.5) 16.8 77.2Relative* 1.8 15.0 47.1* % Relative to local indexAnalystRoger Johnston

paragon (PGN)

INVESTMENT SUMMARY

paragon successfully completed a new bond issue of €50m, ahead of the €40m target, inaccelerated time due to substantial demand, which also allowed the final interest rate to beset at 4.5% the lower end of the range reported at the start of the bond issue. The issue willbe used to refinance the existing bond and provide additional growth financing and financialflexibility. This followed the Q117 results, which demonstrated a continuation of stronggrowth and the construction of the new automated production line for Voltabox, which willsubstantially increase capacity and efficiency in the electromobility segment. The group alsoconverted Voltabox Deutschland into a stock corporation to further focus growth options,which also exist in each segment driven by megatrends and technology development (R&Dc 15% of sales in 2016).

INDUSTRY OUTLOOK

paragon’s core business has been built on a strategy of identifying emerging trends anddeveloping systems ahead of, as opposed to in response to, requests from OEMs.Following the company's rapid expansion in electromobility, we forecast that 27% ofrevenue will come from non-automotive markets by 2017.


2014 79.0 10.5 4.3 67.0 89.9 24.0

2015 95.0 14.1 5.0 83.0 72.6 15.1

2016e 103.0 15.8 6.4 102.0 59.0 27.2

2017e 123.7 19.4 9.4 139.0 43.3 18.8


Sector: Financials



Company descriptionPark Group is a financial servicesbusiness. It is one of the UK’s leadingmulti-retailer gift voucher and prepaidgift card businesses, focused on thecorporate gift and consumer markets.Sales are generated via e-commerce,a direct salesforce and agents.


Park Group (PKG)

INVESTMENT SUMMARY

Steady progress in the last financial year (to 31 March 2017) saw billings (+5% overall) andcustomer numbers grow in both divisions. Operating profits grew at a similar rate as billingsdespite Mastercard issuer start-up costs. At the PBT level, growth was limited to 4% bylower interest earnings on the back of post-EU referendum pressure on deposit rates,despite a c 11% increase in average cash balances. The dividend increased to 2.90p(2.75p). Management reported that the current year had started well with order levels aheadof their position at the same time last year. Among new strategic initiatives, Park has begunto roll out its new Christmas savings mobile app as well as the global extension of its‘Evolve’ digital corporate rewards and incentivisation platform. The new service is first beingoffered to existing UK clients with oversees employees or customers, before being extendedto new territories.

INDUSTRY OUTLOOK

Constant innovation supports steady growth in Christmas savings and strong trend growthinto a large target market for corporate incentivisation and rewards.


2016 385.0 12.4 11.9 5.2 15.2 12.1

2017 404.5 13.0 12.4 5.3 14.9 14.9

2018e 432.8 13.5 13.2 5.6 14.1 13.4

2019e 462.9 14.4 14.3 6.1 13.0 11.0

Sector: Financials



Company descriptionPicton Property Income is an internallymanaged investment company thatinvests in commercial property acrossthe UK. The investment objective is toprovide investors with an attractivelevel of income and the potential forcapital growth.

Price performance% 1m 3m 12mActual 0.9 (0.9) 24.6Relative* 0.7 (4.9) 11.0* % Relative to local indexAnalystMark Cartlich

Picton Property Income (PCTN)

INVESTMENT SUMMARY

Picton issued an NAV update on 25 July showing an increase over the quarter to 30 Junefrom £441.9m to £452.5m, or from 81.8p to 83.8p per share. Net gearing (LTV) remainsconservative at 27.0% from 27.4% at 31 March and a quarterly dividend of 0.85p per sharewill be paid on 31 August. Asset management activity in the quarter to June included thecontracted disposals of two non-income-producing assets for £9.9m, 37% above their 31March valuation, five new lettings adding £0.9m pa to the rent roll (2% above the end-MarchERV) and four lease renewals/regears on average 5% ahead of end-March ERV (+£0.3mpa). Following the completion of the disposals, occupancy increased from 94% to 96%.

INDUSTRY OUTLOOK

The yield spread between the regions and London remains historically wide at c 2%. At the2008 market peak it was just 0.5%. This seems likely to narrow, but is not a driver ofPicton’s strategy. New supply has been limited and occupier demand has been strong, dueto the relative attractions of the regions, the strength of the economic recovery and businessrelocation away from London.


2016 40.8 N/A 65.1 3.7 22.9 13.8

2017 47.9 N/A 43.2 3.8 22.3 12.6

2018e 41.8 N/A 21.5 3.9 21.7 14.2

2019e 42.8 N/A 22.3 4.0 21.2 14.6


Sector: Technology

Price: €5.32Market cap: €96mMarket AIM Italia


Company descriptionPiteco is Italy’s leading company indesigning, developing and theimplementation of software fortreasury, finance and financial planningmanagement.

Price performance% 1m 3m 12mActual 0.0 6.2 36.2Relative* (0.5) (0.9) 7.1* % Relative to local indexAnalystRichard Jeans

Piteco (PITE)

INVESTMENT SUMMARY

In early June, Podini family interests sold 1,663,500 Piteco shares (c 9.18% of the sharecapital) to institutional investors. Piteco aims to list on the MTA by the end of the year andthe share sale increases the company's free float to 27.41%, satisfying the 25% thresholdfor the main market (MTA). In April, Piteco said it was buying the principal assets ofLendingTools, a small US payments software provider, for up to $14.5m in cash. The dealprovides Piteco with an attractive route into the lucrative US market. Given the growthopportunities, strong cash generation and healthy balance sheet, we continue to believe theshares are attractive on c 15x our FY18e earnings.

INDUSTRY OUTLOOK

Piteco is the leading player in the Italian treasury management systems (TMS) market. TMSare software solutions used by corporate treasuries and finance departments to managetransactions and support their decision-making. The application software market in Italy isvalued at €3.8bn (Assinform/NetConsulting 2014). A small slice of this (Piteco suggests5-10%) represents the market for treasury and financial planning software. IDC estimatesthe worldwide revenue for the risk and treasury applications market was $2.1bn in 2013, up4.3% y-o-y.


2015 12.8 5.7 5.0 21.5 24.7 19.0

2016 13.5 5.6 5.1 25.1 21.2 17.4

2017e 18.0 8.0 7.4 32.0 16.6 12.0

2018e 20.9 9.1 8.5 34.9 15.2 10.3

Sector: Technology

Price: US$13.80Market cap: US$111mMarket NASDAQ, TASE


Company descriptionPointer Telocation is a leading providerof MRM services and products to theautomotive and insurance industries.Key services are asset tracking, fleetmanagement and monitoring goods intransit/IoT. Its main markets are Israel,Brazil, Argentina, Mexico and Europe.

Price performance% 1m 3m 12mActual 16.0 50.0 135.5Relative* 14.2 42.5 106.2* % Relative to local indexAnalystAnna Bossong

Pointer Telocation (PNTR)

INVESTMENT SUMMARY

Pointer Telocation generates high recurring revenues from mobile resource managementservices, with a focus on less developed markets. Following on from its recent contract winfor telematics services to ride-hail firms in New York, the group has also signed a promisingpilot programme with Latam firm Coca-Cola FEMSA, the largest global independentCoca-Cola bottler. After very strong Q117 results, which underscored the margin benefit ofthe group's fast-growing subscriber base and strong operating leverage, Pointer Telocationlooks well positioned to achieve management guidance of 20% EBITDA growth in 2017. Wederive share valuations on multiple and DCF valuations of $13.6 (NIS48.9) and $14.9(NIS53.6), respectively.

INDUSTRY OUTLOOK

The global telematics market (services and products) is forecast to grow at an 18.9% CAGRbetween 2015 and 2020 according to Driscoll & Associates, reflecting the growingsophistication and integration of telematics devices into business frameworks andincreasing legislation requiring the use of telematics. Less developed markets such as LatinAmerica and Africa are forecast to achieve higher CAGRs of 15.6% and 17.3% respectivelyduring this period.


2015 60.6 8.8 6.4 66.8 20.7 N/A

2016 64.4 9.8 6.6 61.8 22.3 N/A

2017e 71.9 12.1 8.4 78.4 17.6 N/A

2018e 78.1 14.5 10.6 97.6 14.1 N/A





Company descriptionPolypipe is a leading Europeansupplier of plastic building productsand ventilation systems. UK operationsaddress a broad range of sectorsincluding residential, commercial andcivil building demand and a number ofsubsectors within them.


Polypipe (PLP)

INVESTMENT SUMMARY

AGM comments confirmed that the first four months of the year were ahead of the previousyear (revenue +4.6% l-f-l, +6.0% actual) with underlying progress from both UK andoverseas operations. New housebuilding continues to be the dominant driver here anddemand for below-ground products is a good lead indicator for other lines used later in thebuild. Management’s full year expectations and our estimates are unchanged. Current CFOMartin Payne is to become CEO in October following the intended retirement of David Hall,who has led the company since 2005; the search for a new CFO is underway. H117 resultsare scheduled for 8 August.

INDUSTRY OUTLOOK

The Construction Products Association’s February quarterly report contained growthforecasts across all UK construction sectors of +0.8% in 2017, +0.7% in 2018 and +2.2% for2019. Within this, private housebuilding starts are projected to rise at a steady +2% paacross this timeframe while infrastructure spending – not all in Polypipe’s sectors – is abovethis in 2017 and accelerating further to 2019. Partly offsetting this, activity in thecommercial, industrial and retail subsectors is forecast to decline in each of the next twoyears.


2015 352.9 69.3 48.0 19.4 20.5 10.9

2016 436.9 86.4 61.8 25.0 15.9 9.1

2017e 459.5 90.8 66.0 26.4 15.0 8.9

2018e 475.5 96.0 70.8 28.7 13.8 8.5




Company descriptionPPHE Hotel Group (formerly ParkPlaza Hotels) is an integrated ownerand operator of four-star, boutique anddeluxe hotels in gateway cities,regional centres and select resortdestinations, predominantly in Europe.

Price performance% 1m 3m 12mActual 4.4 10.5 12.0Relative* 4.2 6.0 (0.3)* % Relative to local indexAnalystRichard Finch

PPHE Hotel Group (PPH)

INVESTMENT SUMMARY

The newly completed sale and leaseback of Park Plaza Waterloo, the largest London hotelopening in 2017, is impressive testimony to the success of the PPHE business model. Itsendorsement as developer and asset owner is evident not only in an effective c 100% returnin just four years but in its reinforcement of 2016 market valuations of other key assets.Moreover, a long-term lease on attractive terms (low yield of 3.5%) retains interest in thispositive complement to its unmatched South Bank presence (c 2,500 rooms). While ourforecasts are unchanged, we highlight the release of c £80m for reinvestment and anadditional c 300p/share (£126m), of which c 85p realised, to the company’s latest ‘fair value’adjustment of c 1,000p/share to the end December 2016 NAV of 782p/share.

INDUSTRY OUTLOOK

The London market, PPHE's largest profit source, showed typically impressive resilience inJune (RevPAR +5%, per STR) after the London Bridge attack. While cautious about theeffect of repeated upset, there is justifiable confidence from the boost to internationaltourism from pound devaluation and a strong summer events schedule.


2015 218.7 80.1 31.8 76.1 11.0 4.2

2016 272.5 94.1 34.2 73.9 11.4 4.5

2017e 315.0 102.0 36.0 73.9 11.4 3.5

2018e 334.0 110.0 44.0 90.8 9.3 3.2


Sector: Property



Company descriptionPrimary Health Properties is along-term investor in primaryhealthcare property in the UK and,recently, Ireland. Assets are mainlylong-let to GPs and the NHS or theHSE, organisations backed by the UKand Irish governments respectively.

Price performance% 1m 3m 12mActual (0.7) 1.3 4.4Relative* (0.8) (2.8) (7.1)* % Relative to local indexAnalystAndrew Mitchell

Primary Health Properties (PHP)

INVESTMENT SUMMARY

PHP's interim results to 30 June 2017 were announced on 27 July, along with theacquisition of three standing let properties in the UK for £35.5m. The interim results showcontinued growth in rental income, from £32.2m in H116 to £34.8m in H117, largely drivenby acquisitions, but with a contribution from rent rises in the existing portfolio, where openmarket rent reviews are showing signs of long-awaited growth. Following the threepost-period-end acquisitions, the portfolio is valued at over £1.3bn with a contracted rent rollof £71m. Investor appetite for income remains high and yields continued to contract inH117, from 5.17% to 5.04% on average across the portfolio, contributing to a £29.9mrevaluation gain. 91% of rents are directly or indirectly paid by the UK and Irishgovernments, supporting an estimated dividend of 5.25p for FY17, its 21st consecutive yearof growth.

INDUSTRY OUTLOOK

Rental growth may accelerate as NHS Sustainability and Transformation Plans progress,reflecting underlying demand for new premises and land, and build cost inflation. Inflationwill also lift RPI-linked rents. Similar opportunities in the smaller Irish market offer asignificantly higher rental yield.


2015 63.1 55.5 21.7 4.9 23.3 8.9

2016 67.4 59.2 26.7 4.8 23.8 11.2

2017e 72.6 64.0 32.2 5.4 21.1 10.6

2018e 78.5 69.5 33.7 5.6 20.4 9.7




Company descriptionQinetiQ provides technical supportservices to customers in the globalaerospace, defence and securitymarkets. The group operates throughtwo divisions: EMEA Services (78% ofFY17 sales) and Global Products(22%).

Price performance% 1m 3m 12mActual (17.2) (17.0) 2.9Relative* (17.4) (20.4) (8.4)* % Relative to local indexAnalystRoger Johnston

QinetiQ Group (QQ)

INVESTMENT SUMMARY

QinetiQ’s AGM statement reconfirmed the outlook even in an environment that remainsuncertain post the UK election. While some order deferrals in EMEA Services haveundoubtedly occurred, this was to be expected and management maintains the modestrevenue growth expectation for the full year. This suggests confidence that such delays arelikely be recovered, leading to a more heavily weighted H2. Global Products’ results aremore lumpy and dependent on timing of deliveries but further growth is forecast fromimproved year-on-year order backlog and pipeline, enhanced by the Target Systemsacquisition. With LTPA investment on track and customer-focused change embedded,QinetiQ remains focused on driving medium-term organic growth and returns.

INDUSTRY OUTLOOK

The UK business is underpinned by some good long-term contracts such as the LTPA andNCSISS. Indications are that following several years of decline due to decreases inconflict-related revenues, the Global Products division has now stabilised.


2016 755.7 134.7 108.6 16.3 14.6 7.6

2017 783.1 145.3 116.1 18.1 13.1 11.6

2018e 831.4 143.1 110.3 16.9 14.0 10.6

2019e 850.6 150.1 118.4 18.1 13.1 9.7





Company descriptionQuadrise Fuels International is thelicensor of an oil-in-water emulsion fueltechnology enabling refiners tomanufacture and market MSAR for useas a low-cost substitute for heavy fueloil in the marine bunker and powergeneration sectors.

Price performance% 1m 3m 12mActual (11.1) (46.5) (72.5)Relative* (11.2) (48.7) (75.5)* % Relative to local indexAnalystAnne Margaret Crow

Quadrise Fuels Int. (QFI)

INVESTMENT SUMMARY

Quadrise has received an interim letter of no objection from Wärtsilä. This confirms thatMSAR has satisfactorily completed 1,370 hours of a 4,000-hour validation test on board avessel equipped with a Wärtsilä engine, including a period of continuous operation of 139hours. The results of engine inspections and cylinder condition monitoring show that theinnovative fuel has had no detrimental effect on the engine and is safe to use.

INDUSTRY OUTLOOK

Quadrise is using this positive endorsement to enhance its business development activitiesin the marine market. This targets those marine operators that have begun to install exhaustgas cleaning systems in order to meet the International Maritime Organisation's 2020sulphur limit environmental legislation. The adoption of Marine MSAR will enable theseoperators to obtain additional economic and environmental advantages compared to usingheavy fuel oil.

Y/E Jun Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 0.1 (2.6) (2.7) (0.3) N/A N/A

2016 0.0 (4.0) (4.1) (0.5) N/A N/A






Company descriptionRank is a gaming-based leisure andentertainment company. Its Grosvenorand Mecca brands are market leadersin UK multi-channel gaming and it alsohas operations in Spain and Belgium.86% of FY16 revenues came fromvenues and 14% from digitaloperations.

Price performance% 1m 3m 12mActual (4.0) 4.7 (4.5)Relative* (4.2) 0.4 (15.0)* % Relative to local indexAnalystVictoria Pease

Rank Group (RNK)

INVESTMENT SUMMARY

Rank Group aims to be the UK’s leading omni-channel gaming operator and, as outlined atits capital markets day, the strategies for its Venues and Digital verticals are clearlyinterlinked. With an open architecture platform, Digital is well positioned to leverage theexisting retail customer base and a single wallet (piloting in autumn 2017) could be a gamechanger for Grosvenor digital. Meanwhile, the core Venues businesses are beingreinvigorated and remain highly cash-generative. FY results are due on 17 August.

INDUSTRY OUTLOOK

The timing of the UK government triennial review into gaming machines remains uncertain(possibly now moving from August to October). The review is expected to mainly focus onFOBT machines in betting shops, but possible tighter restrictions on TV gamblingadvertising before the 9pm watershed could impact Mecca online along with other bingooperators. Cost pressures include the National Living Wage and the extension of the UK15% POC tax to gaming 'free play' (still expected in August 2017).


2015 738.3 126.3 74.1 14.6 15.3 5.9

2016 753.0 128.2 77.4 15.4 14.5 7.9

2017e 764.0 127.0 76.0 15.3 14.6 7.6

2018e 785.0 133.0 81.5 16.4 13.6 6.7


Sector: Property



Company descriptionGuernsey-based Raven Russia islisted on the main market of the LSEand invests, for the long term, inmodern, high-quality warehouseproperties in Russia, with the aim ofdelivering progressive distributions toshareholders.

Price performance% 1m 3m 12mActual 4.3 (0.5) 30.0Relative* 4.1 (4.6) 15.8* % Relative to local indexAnalystAndrew Mitchell

Raven Russia Ltd (RUS)

INVESTMENT SUMMARY

Since the placing of convertible preference shares on 13 June, Raven has announced theresults of its AGM and tender offer where all resolutions were passed and 14.3m shareswere tendered, which the company will buy at 52p each and cancel. The new conversionfactor for the convertible preference shares is 1.779 (1.818 previously). Funds raised by theplacing have been converted to roubles and placed on account in Russia, taking advantageof favourable interest rates there. As a result, the company has over $200m of fundsavailable to invest. The MoU between Raven and the Russian Co-op to develop anationwide wholesale distribution network announced in May could offer opportunities todeploy those funds and expand its portfolio of c 1.5m sqm of Class A warehouses in Russia.

INDUSTRY OUTLOOK

Agents expect increasing take-up of warehouse space in Russia: rents are stable and newsupply therefore remains muted (and often built to order), whereas the economic recoverymay increase occupier demand.


2015 219.7 N/A 64.9 7.94 8.0 3.1

2016 195.3 N/A 74.8 6.81 9.3 3.4

2017e 196.2 N/A 50.6 5.80 10.9 3.6

2018e 199.8 N/A 54.4 6.17 10.3 3.6

Sector: Financials



Company descriptionRecord is a specialist currencymanager, providing currency hedgingand return-seeking mandates toinstitutional clients. Services includepassive and dynamic hedging andreturn-seeking currency strategies viafunds or segregated accounts.

Price performance% 1m 3m 12mActual (6.3) 4.3 66.8Relative* (6.5) 0.0 48.6* % Relative to local indexAnalystAndrew Mitchell

Record (REC)

INVESTMENT SUMMARY

Record reported an AUME increase of 2.9% in Q118 to 30 June 2017, reaching $59.9m (31March: $58.2bn). Inflows offset the previously announced cancellation of a $1.2bn passivehedging mandate and a dynamic hedging client notified Record of its intention to switch to apassive mandate. Exchange rate movements increased AUME measured in US dollars by$2.4bn, while market movements reduced AUME by $0.7bn. Fee rates remained steadythrough the quarter and no performance fees were earned. Despite rerating in the last year,the shares still trade below average multiples for UK asset managers and we forecast aprospective yield of 5%.

INDUSTRY OUTLOOK

Sources of uncertainty over the economic and political outlook remain a feature of the globalscene, creating an environment in which interest in Record's currency managementservices is sustained. Prospectively, the tender offer (which was oversubscribed) willcontribute to the increase in earnings per share, while the commitment to a progressivedividend policy and ongoing special dividend payments to distribute substantially allearnings means income returns should continue to be attractive.


2016 21.1 7.2 7.0 2.54 16.9 N/A

2017 23.9 8.1 7.9 2.90 14.8 N/A

2018e 25.1 9.1 8.8 3.39 12.6 N/A

2019e 25.6 9.2 9.0 3.59 11.9 N/A


Sector: Property



Company descriptionRegional REIT owns a commercialproperty portfolio, predominantlyoffices and industrial units located inthe regional centres of the UK. It isactively managed and targets a totalshareholder return of 10-15% pa with astrong focus on income.

Price performance% 1m 3m 12mActual (2.1) (1.4) 2.0Relative* (2.3) (5.5) (9.2)* % Relative to local indexAnalystJulian Roberts

Regional REIT (RGL)

INVESTMENT SUMMARY

As detailed in the May trading update, management has continued to reduce tenantconcentration and has further rebalanced the portfolio towards offices and away fromScotland, in line with the intentions stated when it listed in November 2015. Assetmanagement activity in the year to date has included signing some 27 new leases for£1.36m of rent, and a number of regears achieving an average rental uplift of 2.8% onheadline rent. Regional economies remain robust, supporting occupier demand, whileinvestment in new buildings is still subdued, constraining supply. RGL offers an attractivedividend supported by a growing portfolio of high-yielding assets in markets that may bemore resilient to macroeconomic headwinds than London real estate. On 7 July, it wasannounced that Martin McKay has stepped down as a non-executive director and that TimBee has been appointed in his place.

INDUSTRY OUTLOOK

Tenant demand for regional office and industrial space remains robust, with little discernibleimpact from Brexit yet. Typical incentive periods on new leases are reducing while rentlevels are expected to remain firm.


2015 4.6 3.3 2.4 0.9 115.0 N/A

2016 38.1 30.2 21.0 7.7 13.4 9.0

2017e 45.8 37.0 24.2 8.2 12.6 6.9

2018e 51.7 42.2 28.2 9.4 11.0 7.1




Company descriptionRenewi is a waste-to-product companywith operations primarily in the UK, theNetherlands and Belgium, andactivities spanning the collection,processing and resale of industrial,hazardous and municipal waste.

Price performance% 1m 3m 12mActual 7.5 (2.6) 5.4Relative* 7.4 (6.6) (6.1)* % Relative to local indexAnalystJamie Aitkenhead

Renewi (RWI)

INVESTMENT SUMMARY

Renewi was formed upon the completion of the merger between Shanks and VanGansewinkel in February 2017. The new company is well placed strategically with its‘waste-to-products’ strategy capitalising on the trend towards a circular economy and, in theshort term, its shareholders should benefit from a recovery in its core Dutch waste marketand from the €40m in expected cost synergies. We forecast underlying three-year EBITDACAGR of 10.9%, the bulk of which is driven by merger synergies, and note the attraction ofthe 3.9% dividend yield. Our fair value per share of 102p offers 27.5% upside to currentlevels.

INDUSTRY OUTLOOK

After an extended period of contraction the Dutch waste market, accounting for the largestsingle business within Renewi, has returned to growth as the economy has recovered,boosted in particular by stronger construction activity.


2016 614.8 69.2 23.7 4.9 18.9 5.8

2017 779.2 81.6 29.0 5.5 16.9 17.8

2018e 1483.7 150.5 39.7 3.9 23.8 8.0

2019e 1519.0 189.9 70.3 6.8 13.6 4.8





Company descriptionReworld Media is a digital media groupthat combines well-recognised mediabrands (with on- and offline presence)and ad tech digital performancemarketing.

Price performance% 1m 3m 12mActual (2.5) 13.7 116.3Relative* 0.4 11.6 82.9* % Relative to local indexAnalystFiona Orford-Williams

Reworld Media (ALREW)

INVESTMENT SUMMARY

Reworld Media posted FY16 preliminary figures showing strong growth, with EBITDA of€4.4m – well ahead of earlier guidance of around €3.3m. This demonstrates the positiveimpact of the strategy to grow the digital aspects of the media brands, which are achievingfast-growing reach. TradeDoubler's Q117 update showed revenues declining as expecteddue to the withdrawal from low-value contracts, while underlying trading improved. Lowercosts delivered a good uplift in EBITDA, moving it into positive territory. Across the group,digital now accounts for 71% of revenues, and overseas revenues are 56% of total. OurFY17e and FY18e forecasts were broadly unchanged and show a continuing positivetrajectory as the brands gain traction. The group has announced the consolidation ofSporever, adding digital sports-based content and video capability. Reworld's marketvaluation remains on a sizeable discount to peers.

INDUSTRY OUTLOOK

While the magazine market continues to suffer from lower physical sales and fallingadvertising revenues, the underlying demand for entertaining and informative content isundiminished. The outlook for online/mobile ad spend remains robust, benefiting bothReworld's media brands and the TD business model.


2015 60.2 1.1 0.0 0.0 N/A N/A

2016 174.0 4.4 0.9 0.4 497.5 54.7

2017e 186.3 8.5 3.1 5.7 34.9 14.7

2018e 196.5 13.8 8.1 13.8 14.4 14.7

Sector: Oil & gas



Company descriptionRockhopper is a London-listed E&Pwith fully funded development of SeaLion, a 500+mmbbl field in theFalklands as well as the potential of asimilar size discovery to the south. Italso holds assets in theMediterranean.

Price performance% 1m 3m 12mActual 2.5 (1.2) (36.6)Relative* 2.3 (5.2) (43.6)* % Relative to local indexAnalystWill Forbes

Rockhopper Exploration (RKH)

INVESTMENT SUMMARY

Rockhopper (RKH) holds a material stake in the major discoveries in the Falklands. TheSea Lion complex holds 517mmboe of 2C contingent resource (900mmboe 3C), while theIsobel Elaine complex could be of a similar magnitude (according to managementestimates). This resource base is significant and commercially attractive given the costreductions achieved through the FEED process so far – NPV10 break-even at $45/bbl.Although the timing of project sanction is uncertain, the partners are engaging with theexport credit agency and contractors to secure requisite funding to allow a project sanctionin 2018. RKH also holds E&P assets in Egypt and Italy, with combined volumes of over 1.3mboe/d(including limited production from Civita, which RKH recently sold, subject to closing). Theresulting net cash flows should largely offset the company G&A, helping to conserve thematerial (adjusted) December 2016 cash balance of $60-65m. Our core NAV is 73p/share.

INDUSTRY OUTLOOK


2015 4.0 (32.8) (44.7) 12.0 2.2 N/A

2016 7.4 (15.2) 98.0 (1.3) N/A N/A

2017e 9.6 (2.4) (11.9) (2.8) N/A N/A

2018e 9.1 (3.7) (20.8) (4.5) N/A N/A


Sector: Financials



Company descriptionS&U’s Advantage motor financebusiness lends on a simple hirepurchase basis to lower- andmiddle-income groups that may haveimpaired credit records which restricttheir access to mainstream products. Ithas over 40,000 customers currently.

Price performance% 1m 3m 12mActual 0.5 (6.4) (17.9)Relative* 0.4 (10.2) (26.9)* % Relative to local indexAnalystAndrew Mitchell

S&U (SUS)

INVESTMENT SUMMARY

S&U's AGM trading update in May confirmed that the Advantage motor finance businesscontinued to trade well, with a record number of applications in Q117 and transactions 20%up on Q116. Customer numbers are now over 46,000, another record, and receivables areup 30% on Q116 at £210m. Competition has put some upward pressure on commissionspaid to brokers who originate business, while modest adjustments to underwriting criteria toaddress customers with lower credit scores have helped support the revenue yield onreceivables but resulted in an increase in impairments, as expected – but overall debtquality remains good and collections are now over £9m per month. The Aspen Bridgingfinance pilot may provide another avenue for growth, while it is reassuring that managementis taking a prudent approach in this new area. S&U has sufficient facilities to fund growth atAdvantage and Aspen.

INDUSTRY OUTLOOK

Demand remains robust in the non-prime auto market and motor finance is expected toremain the main driver of growth for S&U for the foreseeable future. Bridging finance willpotentially provide a measure of diversification if the pilot proves successful. S&U is due toissue a Q2 trading update on 4 August.

Y/E Jan Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 45.2 21.5 19.5 132.4 14.6 N/A

2017 60.5 27.1 25.2 169.1 11.4 N/A

2018e 75.2 33.2 30.1 199.1 9.7 N/A

2019e 89.8 40.0 35.4 234.2 8.2 N/A

Sector: Technology



Company descriptionSCISYS provides a range ofprofessional services in support of theplanning, development and use ofcomputer systems in the space,media/broadcast and defence sectors,as well as to other public and privatesector enterprises.

Price performance% 1m 3m 12mActual (0.5) 1.0 40.1Relative* (0.7) (3.1) 24.8* % Relative to local indexAnalystRichard Jeans

SCISYS (SSY)

INVESTMENT SUMMARY

In an in line AGM trading update, SCISYS said that its order book grew by 4% over Q1,while net debt fell by £2.4m as at end-April. Cash flow was boosted by the receipt ofoverdue payments from the MOD and a tax credit from HMRC that were deferred from2016. All business units have been performing well and we note that this year is likely to bemore H2 weighted than is typical due to the acquired ANNOVA. ANNOVA, which suppliessoftware-based editorial solutions to the television, radio and online markets is “progressingsteadily”. Noting management’s goal to achieve £60m in revenues and double-digitoperating margins within three to five years, we believe the stock looks attractive on c 8xour maintained FY18e EPS.

INDUSTRY OUTLOOK

SCISYS is a specialist provider of high-value IT solutions, focusing on specialist markets ofspace, media and broadcast, and defence sectors, along with other public and privatesector enterprises. In recent years, weakness across the group's significant public sectorcustomer base has been offset by strong performances from space and defence. Therecent acquisition of ANNOVA Systems adds critical mass to the Media & Broadcastactivities while extending the previous radio-focused offering into television and online.


2015 36.1 1.5 0.6 1.3 76.5 18.4

2016 45.7 4.0 3.0 9.2 10.8 8.4

2017e 53.4 5.6 4.0 11.2 8.9 4.1

2018e 55.1 6.0 4.4 11.8 8.4 5.2


Sector: Oil & gas

Price: 45.2pMarket cap: £85mMarket AIM, TSX-V


Company descriptionSDX Energy is a North African onshoreplayer listed in Toronto and London. Ithas oil and gas production in Egypt,and Moroccan gas production. A largegas discovery was recently made atSouth Disouq.

Price performance% 1m 3m 12mActual (19.2) (32.8) 123.5Relative* (19.3) (35.6) 99.0* % Relative to local indexAnalystWill Forbes

SDX Energy (SDX)

INVESTMENT SUMMARY

SDX has a very busy 12 months ahead of it. H217 will see well work at NW Gemsa to keepproduction steady at 5mb/d, and the completion of operations at Meseda to potentiallydouble production. Following the success of the South Disouq SD-1X well, we expect thecompany to work towards getting it on production by early 2018, therefore seeing first cashflows from the discovery less than nine months after the completion of testing. We expectfurther appraisal wells at the field (estimated by Gaffney, Cline & Associates to contain47bcf and 2.29mmbbl condensate 2C) and a number of exploration wells at its fouridentified prospects (together containing 165bcf and 8mmbbl condensate). In Morocco, aprogramme of two exploration and five development wells target increases in reserves andproduction to feed a supply-constrained market. We have revised our valuation, arriving atan increased core NAV of 55p/share, but a slightly reduced RENAV of 67p/share.

INDUSTRY OUTLOOK


2015 11.4 2.6 11.1 19.5 3.0 N/A

2016 12.9 (19.2) (26.7) (39.4) N/A N/A

2017e 40.3 24.7 6.3 3.2 18.3 4.1

2018e 67.1 49.9 31.8 16.4 3.6 2.2

Sector: Financials



Company descriptionSecure Trust Bank is awell-established specialist bank,addressing niche markets withinconsumer and commercial banking. Ithas recently launched a non-standardmortgage business.

Price performance% 1m 3m 12mActual (3.0) (16.1) (8.8)Relative* (3.2) (19.5) (18.7)* % Relative to local indexAnalystAndrew Mitchell

Secure Trust Bank (STB)

INVESTMENT SUMMARY

Secure Trust Bank's (STB) 2016 results showed loan growth of 38%, operating income up28% and underlying net income 21% ahead. The 3 May AGM trading update reported thatQ117 had seen trading in line with management expectations. STB continues to adopt amore cautious approach to consumer lending, including the cessation of new subprimemotor lending, and SME lending activities are progressing well, with a number of higher LTVdevelopment loans repaid early at STB's request, reducing related risk and having ashort-term impact on income. The debt collection business has doubled operating profity-o-y and further investment is being made here. Also, STB's 23.5m shares inNon-Standard Finance plc, issued in connection with the Everyday Loans sale, have beensold at a profit.

INDUSTRY OUTLOOK

STB has withdrawn from new, unsecured personal lending, focused on lower margin, lowerrisk motor finance and tempered its appetite for lending in Central London real estate andasset finance. However, the economic background in the UK remains resilient so far, whichshould be helpful for growth elsewhere and for partial disposals from larger banks that couldpresent inorganic opportunities.


2015 92.1 N/A 26.7 114.3 16.9 N/A

2016 118.2 N/A 32.9 137.7 14.0 N/A

2017e 141.0 N/A 33.0 140.8 13.7 N/A

2018e 168.3 N/A 50.2 213.1 9.1 N/A


Sector: Engineering



Company descriptionSeverfield is a leading UK structuralsteelwork fabricator operating across abroad range of market sectors. AnIndian facility currently undertakesstructural steelwork projects for thelocal market and is fully operational.


Severfield (SFR)

INVESTMENT SUMMARY

A c 50%+ uplift in full year earnings and dividends and further growth in group cashbalances were the headline financial highlights of FY17. Underlying EBIT and a maiden FYprofit contribution from the Indian JV were both ahead of our expectations, partly offset byhigher interest and share-based payments leaving group PBT slightly better than anticipatedoverall. Solid operational performance in the UK – with the highest H2 activity levels forseven years – and in India, which saw both revenue and margin gains y-o-y. At the sametime, there is clear evidence of investment in equipment, processes, systems and peopleacross the business, which indicates that this progress and future prospects arewell-founded.

INDUSTRY OUTLOOK

The primary strategic aim is to maintain Severfield’s position as the leading UK structuralsteelwork supplier. An Indian JV (established in 2010) is fully operational and targetingsimilar sectors to those served in the UK. Management has valued the Indian constructionmarket at c £100bn pa, with a very low penetration of steel structures currently.

Y/E Dec / Mar Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 239.4 18.9 13.7 3.84 18.2 8.4

2017 262.2 25.7 20.3 5.70 12.3 7.6

2018e 263.2 27.3 22.2 6.26 11.2 9.5

2019e 267.8 29.6 24.4 6.87 10.2 7.5

Sector: Financials



Company descriptionShare plc owns The Share Centre andSharefunds. The Share Centre is aself-select retail stockbroker that alsooffers share services for corporatesand employees. A high proportion ofincome is from stable fee and interestincome.

Price performance% 1m 3m 12mActual 13.7 3.9 (6.9)Relative* 13.5 (0.4) (17.1)* % Relative to local indexAnalystAndrew Mitchell

Share plc (SHRE)

INVESTMENT SUMMARY

In its pre-close update (issued 27 June), Share confirmed that trading has remained strongfollowing a record first quarter during which revenue of £4.1m was achieved. The boardexpects first-half revenue and profits to be ahead of its own expectations (results due to beannounced on 9 August). The performance has been augmented by the contribution fromservices to Computershare (certificated and corporate sponsored nominee dealing), whichbegan in the second quarter. The migration of investment accounts from Invesco to TheShare Centre has also been successful with c 95% of accounts being retained.

INDUSTRY OUTLOOK

After a weak first half in 2016, ahead of the Brexit referendum, activity levels picked up andthis has been sustained into the first half of the current year. It remains to be seen whetherrecent political developments dampen investor confidence, but Share stands to benefitfurther from the Computershare and other partnership agreements, while work onenhancing its customer proposition and servicing through IT investment should enhance thelonger-term outlook and underpin a return to profitability.


2015 14.1 (0.8) 0.6 0.40 67.5 N/A

2016 14.6 (1.1) 0.0 0.0 N/A N/A

2017e 16.5 (0.1) 0.3 0.12 225.0 N/A

2018e 17.5 0.2 0.7 0.36 75.0 N/A


Sector: Financials



Company descriptionShore Capital Group is an independentinvestment group with three mainareas of business: Capital Markets,Asset Management and PrincipalFinance (on-balance sheetinvestments). It has offices inGuernsey, London, Liverpool,Edinburgh and Berlin.

Price performance% 1m 3m 12mActual 0.0 2.0 1.0Relative* (0.2) (2.2) (10.1)* % Relative to local indexAnalystAndrew Mitchell

Shore Capital Group (SGR)

INVESTMENT SUMMARY

SGR's FY16 figures, reported in March, showed revenues up 21% to £39.4m and profitbefore tax and impairments of £5.1m compared with £4.3m (adjusted FY15 numbersexcluding the benefit of the radio spectrum sale). EPS on the same basis were 13.4p vs12.1p. Profits in Capital Markets were up 45% to £6.8m reflecting client gains, transactionactivity and a strong market making contribution. Asset Management AUM saw growth of7%, while investment in people to support further growth held profits to £2m versus £2.7m.There was a £2.7m write-down on various investments within the Principle Finance area.Chairman and founder Howard Shore has stepped back from operational responsibilitieswhile remaining as executive chairman. Long-standing managers, Simon Fine and DavidKaye, have been appointed as joint CEOs and have joined the board.

INDUSTRY OUTLOOK

The outcome of the UK election and the likely fluctuation of sentiment around Brexitnegotiations will heighten uncertainty, but the continuing resilience of the economy, togetherwith SGR’s own successful development of its franchise are positive factors prospectively.


2015 42.0 12.9 11.7 26.1 9.7 77.6

2016 39.4 3.6 2.4 5.8 43.5 6.6

2017e 41.8 6.6 5.5 13.1 19.3 12.2


Sector: Technology



Company descriptionSLI Systems' core products aree-commerce site search andnavigation tools that learn fromcustomer behaviours to improve therelevance of search results andtherefore increase sales conversion.

Price performance% 1m 3m 12mActual (3.3) (14.7) (63.8)Relative* (5.1) (19.5) (64.5)* % Relative to local indexAnalystDan Ridsdale

SLI Systems (SLIZ)

INVESTMENT SUMMARY

SLI’s financial performance in H1 reflected its current transitional phase with ARR remainingflat as the business is realigned to focus on value over volume through a number ofinitiatives. The key customer retention rate is reverting to historical levels and with anoperationally geared model, we believe that only a modest recovery in new businessmomentum should support robust upside. Net cash stands at NZ$6m. At 0.5x EV/Sales, SLIis trading at an acute recovery rating and a substantial discount to search/SaaS peers(typically 2x+). However, any recovery momentum should drive operationally geared growthin profitability and a re-rating upwards. Our DCF scenario analysis suggests that sustaining5% growth in the mid-term should generate upside, while 7.5% mid-term growth and 20%EBITDA margins result in a DCF valuation of NZ$0.77, twice the current share price.

INDUSTRY OUTLOOK

The global retail e-commerce market is estimated to be $3.6tn by 2019, growing at c 16%CAGR from $1.7tn in 2017, indicating increasing demand for SLI’s product suite. SLIestimates its global market opportunity at $1.7bn. The competitive landscape is crowded,however, with direct competition, e-commerce platforms and in-house solutions in thecompetitive mix.

Y/E Jun Revenue EBITDA PBT EPS P/E P/CF(NZ$m) (NZ$m) (NZ$m) (c) (x) (x)

2015 28.6 (6.7) (7.0) (11.1) N/A N/A

2016 35.7 1.1 0.7 1.1 26.4 23.9

2017e 32.3 (0.5) (0.8) (1.3) N/A N/A

2018e 34.7 0.9 0.5 1.0 29.0 N/A


Sector: Technology



Company descriptionSNP Schneider-Neureither & Partner isa software and consulting businessfocused on supporting customers inimplementing change, and rapidly andeconomically tailoring IT landscapes tonew situations.

Price performance% 1m 3m 12mActual (16.9) (20.8) 5.6Relative* (13.3) (22.0) (12.4)* % Relative to local indexAnalystRichard Jeans

SNP AG (SHF)

INVESTMENT SUMMARY

SNP plans to acquire an initial 60% of ADEPCON, which has subsidiaries in Argentina,Chile and Colombia, for an undisclosed price. SNP is broadening its customer base for itssoftware-based transformation approach via acquisitions in selected global markets (whichit has already made in the US, Asia, the UK and Poland). SNP will finance the deal fromexisting liquid resources (boosted by the recent 10% capital increase) along with newequity. We will review our forecasts following the Q2 results. Given SNP’s strong marketposition in software-based transformation projects and assuming a sustained high level ofactivity, we believe the shares look attractive on c 15x our (pre-deals) FY19e EPS.

INDUSTRY OUTLOOK

SNP helps businesses tailor and improve their ERP landscapes. Its proprietary softwareincludes the only off-the-shelf transformation product in SNP Transformation Backbone withSAP Landscape Transformation Software (T-B), which automates the process of combining,upgrading or carving out data from ERP systems. Activity remains brisk at SNP, withutilisation rates very high, as the company continues to benefit from favourable structuralgrowth drivers, a partnership with SAP, along with its elevated profile in the wake of thelandmark Hewlett-Packard deal of 2015.


2015 56.2 5.5 3.4 58.8 55.3 64.0

2016 80.7 8.5 5.7 94.4 34.4 139.1

2017e 110.0 10.1 7.2 96.3 33.8 17.1

2018e 135.1 16.8 13.6 185.6 17.5 10.1

Sector: Technology



Company descriptionStatPro Group provides cloud-basedportfolio analytics solutions to theglobal investment community.

Price performance% 1m 3m 12mActual 3.0 (5.1) 29.0Relative* 2.8 (9.0) 14.9* % Relative to local indexAnalystRichard Jeans

StatPro Group (SOG)

INVESTMENT SUMMARY

In an in-line H1 trading update, StatPro said that its group annualised recurring revenue(ARR) rose by 47% to c £53.2m (H116: £36.2m). ARR has been boosted by the acquisitionof UBS Delta. StatPro said that 82% of ARR for software comes from SaaS solutions (H116:74%) and that the integration of UBS Delta was progressing well. We will review ourforecasts following the H1 results on 2 August. In April, StatPro said that it was acquiringUBS Delta, a portfolio analysis and risk management system, at a valuation of less than0.8x revenues. The valuation compared with the c 7.3x sales that FactSet recently paid forBISAM, a key competitor of StatPro. We continue to see strong upside potential in theshares, if StatPro can successfully integrate UBS Delta, given the significant valuationdisparity between StatPro and its US-listed financial software peers.

INDUSTRY OUTLOOK

StatPro's products are targeted at the global wealth management industry. The outlook forfund managers has been showing modest improvements with assets under managementrising by 1% to $71.4trn in 2015, according to Boston Consulting Group. In addition,competitive, cost and regulatory pressures all require asset managers to maintain andupgrade their reporting and risk management systems.


2015 30.2 4.0 2.6 2.6 46.2 12.4

2016 37.5 5.1 2.7 3.5 34.3 10.5

2017e 48.9 7.0 4.2 5.0 24.0 6.7

2018e 57.3 8.9 6.1 7.2 16.7 5.4


Sector: Support services



Company descriptionStobart consists of two divisions:Infrastructure and Support Servicesoperating across Aviation, Energy, Railand Investments.

Price performance% 1m 3m 12mActual (2.8) 27.5 84.6Relative* (2.9) 22.3 64.4* % Relative to local indexAnalystJamie Aitkenhead

Stobart Group (STOB)

INVESTMENT SUMMARY

Through a combination of forecast high growth from its core Aviation, Energy and Railbusinesses, and cash realisations from its legacy Infrastructure and Investments divisions,Stobart Group offers an attractive equity proposition. We forecast three-year group EBITDACAGR of 24% as management executes its growth plans. Further asset disposals will likelyreturn more than enough capital to cover the annual cash dividend payout of over £60m andfurther strengthen the group balance sheet. Over the long term, we believe the group couldunlock significant value from its core assets, especially Southend Airport, which is set to bea major beneficiary of airport capacity constraints in the South East.

INDUSTRY OUTLOOK

Stobart is exposed to the property, transport, aviation, energy and rail industries. Propertyvaluation drives a high percentage of its book value. Stobart has exposure to transport,which is driven by GDP. Its Rail business is driven by allowed rail capex spend, Energydepends on government incentives and Aviation relies on the interplay between capacityand GDP.


2016 126.7 30.0 20.6 5.9 48.4 275.7

2017 129.4 35.0 27.3 5.5 51.9 66.1

2018e 207.5 42.9 33.1 8.1 35.3 37.0

2019e 257.3 58.8 48.0 11.7 24.4 22.7




Company descriptionStride Gaming is an online gamingoperator in the bingo-led and globalsocial gaming markets. It uses itsproprietary and purchased software toprovide online bingo and slot gamingand a social gaming mobile app.

Price performance% 1m 3m 12mActual (1.4) (11.3) (21.3)Relative* (1.5) (14.9) (29.9)* % Relative to local indexAnalystVictoria Pease

Stride Gaming (STR)

INVESTMENT SUMMARY

Stride Gaming’s H117 pro forma net gaming revenues grew 21% to £44.0m, driven bystrong organic growth in the real money gaming (RMG) vertical. In a continuation ofprevious trends, the social gaming vertical has weakened, with a 24% decline in revenuesto £4.7m, and Stride has recognised a £10.2m impairment on its InfiApps assets. However,the core RMG business is gaining market share, trading has been robust in Q317 andmanagement has reiterated its FY17 outlook. Our headline FY17 revenue and EBITDAfigures remain unchanged.

INDUSTRY OUTLOOK

The UK bingo-led market is growing at c 8% pa, with slots outpacing pure bingo, driven bymobile. The UK government review into gaming machines is expected to focus mainly onFOBT machines in betting shops; possible tighter restrictions on TV gambling advertisingbefore the 9pm watershed would have little impact on Stride, as it mainly advertises online.The extension of the UK 15% POC tax from net to gross RMG revenue is in our forecastsfrom August 2017.

Y/E Aug Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2015 27.8 7.3 7.2 14.0 15.2 20.3

2016 47.8 12.3 11.3 20.3 10.5 7.6

2017e 88.8 19.5 17.5 21.4 10.0 12.5

2018e 100.7 18.5 16.3 19.7 10.8 8.4


Sector: Property



Company descriptionTarget Healthcare REIT invests inmodern, purpose-built residential carehomes in the UK let on long leases tohigh-quality care providers. It selectsassets according to localdemographics and intends to payincreasing dividends underpinned bystructural growth in demand for care.

Price performance% 1m 3m 12mActual 0.9 0.9 4.7Relative* 0.7 (3.3) (6.8)* % Relative to local indexAnalystJulian Roberts

Target Healthcare REIT (THRL)

INVESTMENT SUMMARY

Target provided a corporate update on 27 July and also announced its fourth quarterlydividend of 1.57p per share, taking the annual distribution to 6.28p, or a 5.3% yield on the26 July share price of 118p. As of 30 June 2017, EPRA NAV was £256.9m or 101.9p pershare, up from 101.5p at 31 March 2017. The increase over the quarter came mainly frommovement in the revenue reserve (1.5p per share) and a revaluation gain on the investmentproperty portfolio of 0.5p per share, partially offset by the payment of the 1.57p thirdquarterly dividend. The portfolio was valued at £282m at 30 June, with passing rent of£20.3m for a net initial yield of 6.75%. Since then a forward funding agreement on a homein Birkdale, Merseyside (to be completed in March 2019) and the acquisition of a home inMelton Mowbray have been announced, for a total consideration of £16.6m. We arereviewing our estimates.

INDUSTRY OUTLOOK

The UK population over the age of 85 is expected to increase by 140% from 2014 to 2039.There is a lack of high-quality care homes of the sort Target invests in, providing ampleopportunity to grow the portfolio.


2015 13.7 N/A 9.6 6.1 19.3 18.7

2016 16.9 N/A 11.7 5.1 23.1 25.1

2017e 23.4 N/A 16.6 5.0 23.6 30.7

2018e 27.9 N/A 20.1 6.7 17.6 15.3

Sector: Technology

Price: SEK29.80Market cap: SEK298mMarket NASDAQ OMX First North

Share price graph (SEK)

Company descriptionTerraNet is an earlycommercialisation-stage softwarecompany with expertise in peer-to-peercommunications. Its productsencompass chip integration software,IoT, including connected cars andheadsets, multimedia streaming, andGriDD, an innovative data capacitytrading product.Price performance% 1m 3m 12mActual 33.6 N/A N/ARelative* 39.0 N/A N/A* % Relative to local indexAnalystAnna Bossong

TerraNet (TERRNT)

INVESTMENT SUMMARY

TerraNet is a proximity networking software company with initiatives across a number of keyapplications including software for contextual awareness in mobile phones, connected cartechnology, audio headsets, internet of things (IoT), offline V2V communication, multimediavideo streaming, mHealth and trading surplus mobile data capacity (GriDD). The companyhas attracted a number of leading global firms to its propositions including Qualcomm,Autoliv, 3M Peltor, Saab, IBM and most recently Orange, which is to field-test GriDD.Successful execution across any one of these applications should drive strong growth, butas the company’s products are still very early stage, investment is high risk.

INDUSTRY OUTLOOK

In recent years, new TerraNet management has created a number of imaginative andunique use cases for its technologies. We see the company as positioned to benefit fromexpected strong growth in demand for proximal connectivity services in China. TerraNet'sWi-Fi Aware and other wireless solutions tap into fast growing demand for IoT and V2Vcommunication solutions, as well as the rapidly developing area of mHealth. Other uniquepropositions such as GriDD are backed by market research and present mobile operatorswith product differentiation potential for budget-oriented customers.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(SEKm) (SEKm) (SEKm) (öre) (x) (x)

2015 0.4 (17.2) (18.0) (2.40) N/A N/A

2016 2.7 (25.0) (37.6) (3.22) N/A N/A

2017e 16.1 (52.3) (59.4) (3.15) N/A N/A

2018e 55.2 (55.2) (63.0) (2.63) N/A N/A


Sector: Technology

Price: NOK3.90Market cap: NOK3186mMarket Oslo

Share price graph (NOK)

Company descriptionThin Film Electronics (Thinfilm) is aglobal leader in NFC marketing andsmart-packaging solutions usingprinted electronics. It creates printedtags, labels, and systems that includememory, sensors, displays, andwireless communications at low costpoints vs conventional electronics.

Price performance% 1m 3m 12mActual (2.7) 4.0 (8.0)Relative* (6.4) (0.4) (16.4)* % Relative to local indexAnalystAnna Bossong

Thin Film Electronics (THIN)

INVESTMENT SUMMARY

In Q217, Thinfilm started production of EAS (electronic article surveillance) and NFC tags atits new production facility in San Jose, commenced sales of temperature sensor smartlabels and launched its CNECT cloud-based software portal for its NFC-based solutions.Recent deals include a supply contract for Californian medical marijuana supplier, Caliva,and a co-operation deal to incorporate Thinfilm’s labels into Cratus Technology's mobilesensor-based security platform. Upcoming revenues should reflect high brand interest inThinfilm's NFC solutions, the group's high EAS order backlog and smart-label launch. Wesee Thinfilm as fully funded until 2018 with a DCF value of NOK8.19 per share.

INDUSTRY OUTLOOK

Thinfilm is the global leader in printed electronics, which is a low-cost and highly scalablemethod of creating smart labels for the Internet of Things. The company is currently focusedon three areas: NFC labels, most notably NFC SpeedTap, which is on pilot trial with anumber of brands; memory labels, which are in production; and temperature sensor smartlabels, where it has shipped product to go-to-market partners. The ability of printedelectronics to add intelligence to low-cost, high-volume products opens a wide range ofpotential applications.


2015 4.4 (29.2) (28.3) (5.3) N/A N/A

2016 3.8 (37.1) (43.0) (6.6) N/A N/A

2017e 10.8 (38.3) (42.5) (5.2) N/A N/A

2018e 48.3 (23.4) (29.9) (3.7) N/A N/A


Price: RUB3000.00Market cap: RUB42bnMarket LSE, MCIX

Share price graph (RUB)

Company descriptionTransContainer owns and operates railfreight assets across Russia. Its assetscomprise rail flatcars, handlingterminals and trucks, through which itprovides integrated end-to-end freightforwarding services to its customers.

Price performance% 1m 3m 12mActual 0.0 (6.5) (7.6)Relative* (3.9) (5.6) (7.4)* % Relative to local indexAnalystJamie Aitkenhead

TransContainer (TRCN)

INVESTMENT SUMMARY

TransContainer’s strong operating performance has continued into 2017, with a 22.4%year-on-year volume increase seen in the three months to 31 March. This was split betweena 12.0% increase in domestic transportation, a 33.4% increase in internationaltransportation and a near doubling of transit volumes. Adjusted EBITDA was up 63.9% toRUB2,142m in Q117.

INDUSTRY OUTLOOK

The Russian rail-freight market has good long-term fundamentals, as an increasing portionof goods are transported by rail containers at the expense of box cars. Current'containerisation' levels of 5% are well below Europe and the US at 14% and 18%,respectively. In recent years, however, transport and logistics in Russia have suffered dueto the decline in the oil price and economic sanctions.

Y/E Dec Revenue EBITDA PBT EPS (fd) P/E P/CF(RUBm) (RUBm) (RUBm) (RUB) (x) (x)

2015 20311.0 5744.0 3530.0 138.7 21.6 7.6

2016 21988.0 6377.0 4302.0 202.4 14.8 5.6

2017e 23761.0 7426.0 5469.0 314.7 9.5 5.7

2018e 25256.0 8083.0 5650.0 325.1 9.2 5.2





Company descriptionTreatt provides innovative ingredientsolutions from its manufacturing basesin Europe, North America and Africa,principally for the flavours andfragrance industries and multinationalconsumer goods companies,particularly in the beverage sector.

Price performance% 1m 3m 12mActual (6.6) 22.8 177.4Relative* (6.7) 17.8 147.0* % Relative to local indexAnalystSara Welford

Treatt (TET)

INVESTMENT SUMMARY

Treatt's strategy to improve the quality of earnings is coming through and the move fromcommoditised sales to more value-added products is playing out. The company yet againbeat expectations by delivering an exceptionally strong H117, despite Q1 typically being aseasonally weak quarter, and momentum continued to build throughout Q2. There will be afull site relocation for the UK business over the next three years or so, and expansion of theUS site. We continue to view Treatt as a good-value opportunity in the highly rated andhigh-growth ingredients space.

INDUSTRY OUTLOOK

Annual growth rates for the global flavours, fragrance and ingredients sector are expectedto be low single digits in 2013-18 (source: IAL Consultants). Treatt is migrating its businessfrom that of a pure supplier to the food and beverage industries to being a valued partner inthe development of new ingredients. Citrus flavours and sugar reduction are core areas offocus, with the latter undergoing a structural growth trend.


2015 85.9 10.3 8.3 12.7 38.1 28.8

2016 88.0 11.6 9.6 14.3 33.8 23.3

2017e 102.1 15.8 13.6 19.9 24.3 17.1

2018e 109.3 17.6 14.8 21.6 22.4 15.2




Company descriptionTrifast is a leading global designer,manufacturer and distributor ofindustrial fasteners. Principaloperations are in the UK, South-EastAsia and continental Europe, whilethere is a modest, but growing,presence in North America.


Trifast (TRI)

INVESTMENT SUMMARY

The impressive record since management restructuring nine years ago restored confidenceboth internally and across the supplier and customer base. Organic progress is beingdelivered, while M&A extends the product, geographical and customer spread, providingcross-selling opportunities. FY17 results exceeded expectations with a strong cashperformance. Momentum continues in FY18 despite margin pressures arising from FXmovements. The AGM trading update on 27 July should provide early indications ofprogress.

INDUSTRY OUTLOOK

The global specialist industrial fasteners market is valued at around £25bn. Successfulmanufacturers and distributors responded to the shift in manufacturing to lower-cost regionsby developing their own local facilities and/or supply routes. They have also createdeffective logistical services and shifted the emphasis towards more complex products toincrease value added. A recent increase in M&A activity in the sector looks set to continuein the immediate future.


2016 161.4 18.2 16.0 9.99 22.1 16.2

2017 186.5 22.9 20.5 12.82 17.2 11.4

2018e 192.0 23.0 20.7 12.56 17.6 14.9

2019e 197.9 24.0 21.7 13.15 16.8 13.5


Sector: Mining



Company descriptionTriton Minerals is an exploration anddevelopment company with assets inAustralia and Africa. Its main focus isthe development of its graphiteexploration licences in Mozambique,initially the Ancuabe graphite project,which is being investigated specificallyto feed into the nascent, buthigh-growth lithium-ion battery sector.Price performance% 1m 3m 12mActual 9.1 (20.0) (21.1)Relative* 7.8 (18.4) (23.5)* % Relative to local indexAnalystTom Hayes

Triton Minerals (TON)

INVESTMENT SUMMARY

Triton Minerals plans to develop its Ancuabe graphite project in Mozambique to feed theestablished and high-growth expandable graphite market. In our view, this is a prudent wayforward in a sector dominated by graphite companies tussling with the vagaries ofbattery-ready graphite production and an end-market yet to mature. An important market isChina, where some producers are aiming to outsource raw graphite to clean up old,inefficient graphite mines as well as secure expandable graphite for the recently revised(2015) fire-retardant cladding regulations.

INDUSTRY OUTLOOK

Our SOTP base case valuation is 22c per share, based on the Ancuabe scoping study (13c)with a further 9c added based on a discounted valuation of the company’s very largeadditional resources at Balama and Nicanda Hill/West. Our base case valuation uses anotional 75/25 debt/equity structure to fund Ancuabe’s development, assuming equity at thecurrent share price (5c). Our valuation is sensitive share price assumptions of the equitycomponent: at a 10.0c share price, our base case valuation becomes 26c; at 15c itbecomes 28c. Our Ancuabe valuation uses a weighted graphite concentrate basket price ofUS$1,369/t and a 10% discount rate to reflect general equity risk.

Y/E Dec Revenue EBITDA PBT EPS P/E P/CF(A$m) (A$m) (A$m) (c) (x) (x)

2015 0.0 (5.2) (5.2) (3.6) N/A N/A

2016 1.8 (2.1) (2.1) (0.5) N/A N/A

2017e 0.0 (2.5) (2.5) (0.4) N/A N/A

2018e 0.0 (4.6) (4.6) (0.5) N/A N/A

Sector: Financials



Company descriptionTungsten Corporation operates aglobal e-invoicing network. It alsoprovides value-added services such asspend analytics to help buyers on itsnetwork save money and invoicefinancing to enable suppliers to receiveearly payment on their invoices.

Price performance% 1m 3m 12mActual (3.3) 10.6 50.0Relative* (3.5) 6.1 33.6* % Relative to local indexAnalystAndrew Mitchell

Tungsten Corporation (TUNG)

INVESTMENT SUMMARY

Tungsten Corporation’s FY17 results announced on 24 July confirmed that it is making goodprogress in implementing its more focused strategy and reengineering its internal processesto create greater operational leverage as demand for its e-invoicing and related servicesgrows. Revenue was +12% on a constant currency basis and the EBITDA loss reduced by27% to £11.8m. The sale of Tungsten Bank last year and the start made on internal repairmeasures were key steps in improving the business and management can now focus ondelivering profit and exploiting the attractive growth opportunities it is addressing.

INDUSTRY OUTLOOK

The substantial potential savings available to companies adopting e-invoicing in place ofpaper- or email-based processes remain a key underlying driver of growth for Tungsten.The level of price increases agreed in contract renewals during FY17 (49%) are a tangiblemeasure of the value the Tungsten Network delivers. Tungsten has reiterated that it targetsrun-rate EBITDA profit in calendar 2017 and also looks for constant currency revenuegrowth of over 15%, gross margin of at least 90% and adjusted operating expenses of lessthan £40m.

Y/E Apr Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 25.9 (16.2) (18.5) (22.0) N/A N/A

2017 31.3 (11.8) (12.7) (9.9) N/A N/A

2018e 36.7 (6.0) (11.7) (9.3) N/A N/A



Sector: Technology

Price: €11.61Market cap: €151mMarket Borsa Italiana STAR


Company descriptionTXT e-solutions has two divisions: TXTRetail provides software solutions forsupply chain management in theinternational retail andconsumer-driven industrial sectors;and TXT Next provides IT, consultingand R&D services to Italian customers.

Price performance% 1m 3m 12mActual (1.9) 17.6 55.8Relative* (2.5) 9.7 22.6* % Relative to local indexAnalystKatherine Thompson

TXT e-solutions (TXT)

INVESTMENT SUMMARY

TXT has agreed to sell its retail business for €85m in cash to Aptos, a North American retailsoftware company. There is no earn-out factored into the deal; TXT will have the option toparticipate in any future Aptos IPO up to a stake of 10% at the IPO price. The deal shouldclose by the end of October. Management expects to pay an extraordinary dividend inH118; we would expect a proportion of the proceeds to be retained to support the growth ofTXT Next and the newly created TXT Sense business. We leave our estimates unchangedpending H117 results on 3 August.

INDUSTRY OUTLOOK

The supply chain management software market is growing at c 10% pa and splits into twobroad areas: supply chain planning (SCP) and supply chain execution software. TXTPerform specialises in SCP software, a market that was worth c $3.8bn in 2015 (source:Gartner). TXT Next is a beneficiary of the trend to outsource IT, which gives the customergreater flexibility on cost and better access to specialist skills.


2015 61.5 6.7 5.7 40.0 29.0 56.3

2016 69.2 8.7 8.1 55.0 21.1 12.7

2017e 75.2 8.6 8.0 53.0 21.9 17.2

2018e 78.5 9.5 8.8 59.0 19.7 13.3

Sector: Construction & blding mat



Company descriptionTyman’s product portfolio substantiallyaddresses the residential RMI andbuilding markets with increasingcommercial sector exposure followingacquisitions. It manufactures andsources window and door hardwareand seals, reporting in three divisions.

Price performance% 1m 3m 12mActual (4.4) 5.6 32.3Relative* (4.5) 1.3 17.8* % Relative to local indexAnalystToby Thorrington

Tyman (TYMN)

INVESTMENT SUMMARY

H117 results showed underlying progress compared to the prior year (LFL revenue +2%,EBIT +3.9%) with Schlegel International in particular delivering good gains. On the samebasis, AmesburyTruth was slightly ahead of H116 and ERA experienced cost headwinds.Overseas operations also benefited from favourable translation following sterling weaknessand all regions contained positive y-o-y acquisition effects, leaving reported revenue andEBIT both well up c 30% versus the prior year. Seasonal cash outflow was within the normalrange. Management expects the working capital component to substantially reverse in H2and for market conditions to remain broadly the same for each of the three divisions. Ourestimates are under review.

INDUSTRY OUTLOOK

Leading markets are expected to grow modestly and the new-build sector has generallycontinued to be firmer than RMI spend, which has been more patchy.


2015 353.4 60.4 44.9 19.2 18.0 11.9

2016 457.6 82.5 62.1 25.3 13.6 7.5

2017e 537.1 92.3 68.8 26.9 12.8 7.8

2018e 550.4 96.1 72.1 28.2 12.2 7.0





Company descriptionUltra Electronics is a global aerospaceand defence electronics company, withoperations across three divisions:Aerospace & Infrastructure (26% of2016 sales); Communications &Security (33%); and Maritime & Land(41%).


Ultra Electronics (ULE)

INVESTMENT SUMMARY

The outlook for FY17 is for slightly improved organic growth, marginally offset by dilutionfrom the ID disposal. The pre-close interim statement supported the existing outlook. The$235m offer for Sparton Corporation appears a logical and focused expansion of Ultra’score business aimed at leveraging the improving defence spending environment, whichshould accelerate in H2 of FY18. The offer also looks financially compelling with $9m of costsavings delivering value creation in FY19. Completion should be in early 2018. Our fairvalue is currently at 2,239p.

INDUSTRY OUTLOOK

With defence drivers moving towards greater demand for electronic equipment andinformation management, Ultra is well positioned to benefit from more frequent upgradecycles. In addition, it appears that defence spending may have turned a corner in thewestern world. Also, with civil airport infrastructure booming in emerging economies and anincreasing civil aircraft build rate, Ultra stands to benefit from its diversified end-markets.


2015 726.3 134.8 112.4 123.9 16.3 16.6

2016 785.8 148.0 120.1 134.6 15.0 12.1

2017e 812.8 149.8 121.9 129.3 15.6 13.7

2018e 852.8 157.2 132.0 132.5 15.3 11.2

Sector: Technology

Price: €1.26Market cap: €22mMarket FRA, Xetra


Company descriptionUMT is the operator of a proprietarymobile payments and loyalty platform.It has created an mPay platform inGermany for the loyalty schemePayback and has preferred partnerstatus for roll-out to other countries.UMT is also expanding into big data.

Price performance% 1m 3m 12mActual 7.9 9.6 5.2Relative* 12.6 7.9 (12.7)* % Relative to local indexAnalystAnna Bossong

UMT United Mobility Technology (UMD)

INVESTMENT SUMMARY

UMT is mobile payments specialist and provides these services to outlets in the Paybackscheme, Germany's largest retail loyalty programme. With the recent addition of REWE,TeeGschwendner and Thalia, eight of its retail chains now offer mobile payment servicesusing its technology. In May, UMT announced the acquisition of a controlling stake inprelado, a German internet portal for digital pre-paid mobile and gift vouchers. With €3.2msales, 230,000 customers and a complementary product range, UMT is looking to achievecross-selling and cost-saving synergies. UMT released consolidated results under GermanGAAP for 2016, with a net profit of €208,000, equating to 1.3 cents per share.

INDUSTRY OUTLOOK

UMT is a white-label operator of mobile payments and loyalty platform services with plans togrow a big data business. The mobile payments market is set to grow strongly in comingyears as more consumers shop with smartphones and tablets, and retailers expand theirpayments options. Business Insider forecasts a 116% CAGR in the US mPay market to2019 and we expect similar trends in European markets. This growth should lead to risingdemand for UMT’s white-label solutions, from retailers, loyalty schemes and companies inthe B2B sphere.


2015 2.3 (0.8) (0.9) (11.7) N/A N/A

2016 3.3 0.6 0.2 1.3 96.9 N/A







Company descriptionUtilitywise is an independent costmanagement consultancy offeringenergy procurement and managementproducts to the business market in theUK.

Price performance% 1m 3m 12mActual (37.1) (50.0) (49.7)Relative* (37.2) (52.1) (55.2)* % Relative to local indexAnalystGraeme Moyse

Utilitywise (UTW)

INVESTMENT SUMMARY

UTW recently announced that it had been made aware of material levels ofunder-consumption in certain ‘nominated’ contracts placed with one of the major energycompanies. Nominated contracts, due to an absence of historical consumption data, requirea greater degree of estimation of future energy consumption patterns than the bulk ofcontracts (90%). UTW is in discussions with the relevant energy company and has agreedto make repayments of commissions, totalling £7.6m, between June 2017 and December2020. UTW has also decided to reflect the full potential impact over the remaining life of thecontracts (most ending in 2020 and 2021), estimated at £11.2m, in its accounts for FY17.UTW is expected to recognise an exceptional charge of £7.7m in FY17, with the remaining£3.5m reducing the underlying profit before tax of the group in the same period. Ourforecasts are currently under review.

INDUSTRY OUTLOOK

We believe a fragmented UK TPI market provides an opportunity for Utilitywise to continueto grow.


2015 69.1 17.8 16.7 17.9 3.9 N/A

2016 84.4 18.3 17.7 19.3 3.6 3.9






Company descriptionVertu is the sixth-largest UK motorvehicle retailer. Established in 2006, itis expanding through the completionand subsequent development of aseries of acquisitions, initially involume cars, but now including thepremium segment of the market.

Price performance% 1m 3m 12mActual (1.1) (10.6) (5.3)Relative* (1.3) (14.2) (15.7)* % Relative to local indexAnalystAndy Chambers

Vertu Motors (VTU)

INVESTMENT SUMMARY

The AGM statement indicates that Vertu expects to meet market expectations in FY18 andthat it is to launch a share buyback of up to £3m, reflecting the strength of the balancesheet. This is despite challenging market conditions due to the change in VED in April thatdistorted monthly new car demand and a recent drop in consumer confidence that hasreduced used car margins. We have modestly lowered our forecast to reflect these factors,which is now aligned with market consensus.

INDUSTRY OUTLOOK

Market dynamics favour larger motor dealership groups at the expense of smallerindependents, which command some 60% of the franchise market. Global manufacturingovercapacity still points to support from OEMs, although stockmarket confidence isundermined by the inflationary impact of weak sterling on new car prices and interest rates.A 35% discount rating relative to the FTSE All-Share General Retailers Index fails torecognise the defensive qualities across a sector where used vehicle and aftersalesactivities account for the majority of profits.

Y/E Feb Revenue EBITDA PBT EPS (fd) P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 2423.3 35.5 27.4 6.31 7.1 2.3

2017 2822.6 42.4 31.5 6.43 6.9 3.0

2018e 2850.0 43.5 32.5 6.49 6.9 4.0

2019e 2950.0 46.1 35.0 6.98 6.4 3.7


Sector: Mining



Company descriptionVolt Resources is a graphitedevelopment company. Its main assetis the currently 100%-ownedNamangale graphite project located inTanzania. Volt is currently debt free.


Volt Resources (VRC)

INVESTMENT SUMMARY

Volt’s small A$1m convertible loan issue should get the company through its currentfeasibility work programmes as it finalises development funding for Stage 1 at Namangale.Volt so far has four agreements covering all its planned Phase 1 output of 20ktpa, andpotentially up to 51kt if all agreements convert to commercial offtakes. Recently, and afterTanzanian mining code changes hit the media, Volt signed an offtake term-sheet with aChinese company for an initial 10kt per annum of flake graphite product. This agreementcould be seen as supportive of Namangale’s development despite the current uncertainty inTanzania.

INDUSTRY OUTLOOK

Our previous Namangale PFS valuation of A$0.27/share is on hold while Volt completes arevised project scope and phasing for Namangale. This will involve a staged modular designto allow a ramp-up in production as the graphite market moves away from demand tied totraditional uses such as foundry products and towards growth in the markets for expandablegraphite and battery anode material.


2015 0.0 (0.7) (0.7) (0.2) N/A N/A

2016 0.0 (3.4) (3.3) (0.4) N/A N/A

2017e 0.0 (2.3) (2.4) (0.2) N/A N/A

2018e 0.0 (2.2) (12.9) (1.1) N/A N/A




Company descriptionWalker Greenbank is a luxury interiorfurnishings group combining specialistdesign skills with high-quality upstreammanufacturing facilities. Leadingbrands include Harlequin, Sanderson,Morris & Co, Scion, Anthology, Zoffanyand Clarke & Clarke.

Price performance% 1m 3m 12mActual 17.4 7.6 32.1Relative* 17.2 3.2 17.6* % Relative to local indexAnalystToby Thorrington

Walker Greenbank (WGB)

INVESTMENT SUMMARY

AGM comments were very much in line with those at the beginning of the year and ourestimates are unchanged. Walker Greenbank is on track for a good profit uplift in FY18derived from organic progress in both divisions and a full year contribution from Clarke &Clarke. Moreover, the business retains significant financial flexibility for further investment.The company’s insurance claim relating to the Lancaster (ie Standfast & Barracks) factoryflood has now reached the full settlement. A £2.4m final cash payment is expected to bereceived by the end of H118, which brings total claim proceeds to £19.3m and is in line withexisting guidance.

INDUSTRY OUTLOOK

The UK interior furnishings industry has experienced uncertainty for many years under theinfluence of economic shifts and fashion changes. Many brands have failed to grow, whilesignificant production capacity has been closed down, with manufacture for the volumesegment largely moved overseas. Success continues to be delivered by those businessesthat are able to differentiate themselves from competition by consistently offering innovativeand high-quality design and products.

Y/E Jan Revenue EBITDA PBT EPS P/E P/CF(£m) (£m) (£m) (p) (x) (x)

2016 87.8 11.8 8.9 11.6 20.0 19.6

2017 92.4 12.7 10.4 12.9 18.0 11.8

2018e 114.7 17.4 14.3 16.1 14.4 11.5

2019e 119.7 18.4 15.2 17.0 13.7 10.3


Sector: Technology



Company descriptionWANdisco is a distributed computingcompany. It has developed a suite ofsolutions based around proprietaryreplication technology, which solvescritical data management challengesprevalent across the big datainfrastructure and ALM softwaremarkets.

Price performance% 1m 3m 12mActual 16.5 63.0 292.2Relative* 16.4 56.3 249.3* % Relative to local indexAnalystDan Ridsdale

WANdisco (WAND)

INVESTMENT SUMMARY

WANdisco’s trading update confirms the positive start to the year, with bookings ($10.2m, +73% y-o-y) and cash burn ($0.6m) significantly better than the run rate implied by our FYestimates. We believe that positive momentum should continue into H2 both financially andfrom a strategic perspective, with the addition of other tier one strategic partners being a keymilestone to look for. The EV/sales rating of 19.1x sales dropping to 13.9x for FY18 factorsin a more significant acceleration than we currently forecast and the momentum shown inH1 justifies this expectation. More mature, growing big data peers are trading in the 4-6xrange. WANdisco’s strategic attractiveness should also factor in the valuation equation.

INDUSTRY OUTLOOK

The rate at which data and computing are moving to cloud platforms continues to gatherpace. It is also the technology cycle upon which the development of many others such asbig data analytics and AI depend, which strengthens the case for enterprises to move datato the cloud.


2015 11.0 (16.0) (26.4) (87.7) N/A N/A

2016 11.4 (7.5) (16.4) (46.9) N/A N/A

2017e 15.7 (4.2) (13.4) (34.0) N/A 97.5

2018e 21.6 (0.6) (10.2) (25.1) N/A 27.2

Sector: Mining

Price: C$25.09Market cap: C$11090mMarket NYSE, TSX


Company descriptionWheaton Precious Metals is thepre-eminent pure precious metalsstreaming company, with c 30 highquality, precious metals streaming andearly deposit agreements relating toassets in Mexico, Peru, Canada,Brazil, Chile, Argentina, Sweden,Greece, Portugal, the US and Guyana.


Wheaton Precious Metals (WPM)

INVESTMENT SUMMARY

WPM's Q117 net earnings were within 0.4% of our prior expectations. Gold sales onceagain exceeded silver sales and shareholders subsequently voted to change the name ofthe company from Silver Wheaton to Wheaton Precious Metals, which came into effect on16 May. Assuming no material purchases of additional streams (which is unlikely), weforecast a value per share for WPM of US$37.52, or C$51.32, in FY20 (at average preciousmetal prices of US$23.98/oz Ag and US$1,362/oz Au).

INDUSTRY OUTLOOK

In relative terms, WPM’s shares are trading on near-term financial measures that arecheaper than those of its royalty/streaming ‘peers’ in c 92% of instances considered, andthe miners themselves in c 44%, despite being associated with materially less risk. Upsidefrom existing streams includes the potential expansion of Salobo and the development ofPascu-Lama, among others. Q217 results are scheduled for release after the market closein Toronto on 10 August.


2015 648.7 426.2 223.6 53.0 36.9 17.8

2016 891.6 602.7 269.8 62.0 31.6 13.8

2017e 859.6 576.3 278.1 63.0 31.1 14.8

2018e 951.8 669.0 396.7 90.0 21.7 12.9





Company descriptionWindar Photonics is a UK-registered,Copenhagen-based developer andmanufacturer of an innovative low-costlight detection and ranging (LIDAR)system.

Price performance% 1m 3m 12mActual 21.9 (9.7) 4.4Relative* 21.7 (13.4) (7.1)* % Relative to local indexAnalystAnne Margaret Crow

Windar Photonics (WPHO)

INVESTMENT SUMMARY

Windar has recently completed a subscription raising £1.25m (gross) at 82p/share. Thefunds from the placing will be used to support growth during H217. Our estimates andvaluation remain suspended until the interims, when there should be more clarity on testprogrammes with independent power providers (IPPs) and wind turbine OEMs converting tovolume sales.

INDUSTRY OUTLOOK

The recent trading update noted revenue growth of 62% year-on-year to €1.3m, which ishigher than the €1.2m revenue reported for the whole of FY16. This revenue growth hasbeen driven by demand from IPPs, including operators in Canada, China, France, India andMexico. The cost savings made during H216 have helped the company approach EBITDAbreak-even. EBITDA losses during H117 were cut from €1.4m in H116 to only €0.4m inH117. Assuming minimal working capital and capital expenditure during H117, we estimatethat the group now has c €1.6m cash following the subscription.


2015 0.9 (2.8) (3.3) (8.4) N/A N/A

2016 1.2 (2.4) (3.0) (7.3) N/A N/A






Company descriptionWYG is a multidiscipline, projectmanagement and management serviceconsultancy. Over half of revenues aregenerated in the UK, with theremainder in a spread of internationalmarkets.

Price performance% 1m 3m 12mActual (3.1) (1.0) (6.4)Relative* (3.2) (5.1) (16.6)* % Relative to local indexAnalystToby Thorrington

WYG (WYG)

INVESTMENT SUMMARY

Overall, WYG delivered a c 14% revenue uplift and a c 21% increase in EBIT in FY17,which represented good progress, though below best expectations earlier in the year. Themajor themes were covered in the year-end update, with a very strong trading performancein the MENA region and further progress in the Western Balkans (part of EAA) being partlydiluted by slower development of UK project work in Q4 and a restructuring in Poland. WYGended FY17 with modest gearing (c 0.2x EBITDA), substantially reflecting deferredconsideration payments on prior year acquisitions. Organisational change under an updatedstrategy should improve the quality of earnings and, following Paul Hamer’s departure, anew management team is in place to execute this.

INDUSTRY OUTLOOK

Management is clearly focused on margin improvement predicated on the efficient deliveryof high-quality consultancy services and rigorous operational and financial control.Extending the multi-discipline service offering, along seven identified sector lines,particularly in international markets, is a key component of this process. Market diversityoffers both challenges and opportunities, requiring proactive and reactive approaches tobusiness development.


2016 133.5 9.0 7.0 10.6 9.0 N/A

2017 151.8 10.6 8.2 11.9 8.0 20.0

2018e 162.5 13.3 10.6 13.2 7.2 8.7

2019e 172.0 14.4 11.6 14.4 6.6 5.8


Sector: Electronics & elec eqpt



Company descriptionXP Power is a developer and designerof power control solutions withproduction facilities in China, Vietnamand the US, and design, service andsales teams across Europe, the USand Asia.

Price performance% 1m 3m 12mActual 1.6 1.0 61.9Relative* 1.4 (3.1) 44.1* % Relative to local indexAnalystKatherine Thompson

XP Power (XPP)

INVESTMENT SUMMARY

XP generated revenues of £39.6m in Q117, +40% y-o-y and +23% on a constant currencybasis (Q416: +33% y-o-y reported). After a strong H216, XP saw further acceleration inorder intake in Q117, up 55% y-o-y and 27% q-o-q as customers pulled in orders fromfuture quarters. XP is seeing strong demand across all sectors and geographies, withparticular strength from the semiconductor sector. Revenue and bookings strengthcombined with sterling weakness lead us to upgrade our forecasts. We lift our revenueforecasts by 4% and normalised EPS forecasts by 2% for FY17 and FY18.

INDUSTRY OUTLOOK

XP supplies three end-markets: Healthcare, Industrial and Technology, across Europe,North America and Asia. The Industrial segment is relatively fragmented, but the companysees demand across various applications. The Healthcare business continues to gainmarket share, with corporate approvals from the major suppliers in place. The Technologysegment is the most cyclical, although semi fab suppliers have returned to growth.


2015 109.7 29.7 25.7 104.32 24.2 22.8

2016 129.8 33.0 28.6 115.33 21.9 17.2

2017e 150.0 36.9 31.5 123.62 20.4 20.0

2018e 156.9 39.3 33.5 131.29 19.2 16.6




Company descriptionYouGov is an international marketresearch and data and analytics groupoffering a data-led suite of productsand services including YouGovBrandIndex, YouGov Profiles andYouGov Omnibus and customresearch.

Price performance% 1m 3m 12mActual (6.6) (8.1) 49.3Relative* (6.8) (11.9) 33.0* % Relative to local indexAnalystFiona Orford-Williams

YouGov (YOU)

INVESTMENT SUMMARY

YouGov continues to deliver growth well ahead of the market as investment in its scalableData Products and Services pays back in profits and in cash. Profiles is gaining tractionboth standalone and in combination with BrandIndex, and is being launched across moregeographies. The MRP model process, which draws on big data stored within the Cubecombined with regular survey data, worked well in the recent UK election and adds to thegroup's market credibility. We edged our FY17e and FY18e numbers ahead post theinterims and there may be more scope in FY18e if current momentum is maintained. Thisunderpins the premium on which YouGov trades to other quoted market research stocks.

INDUSTRY OUTLOOK

The global MR industry continues to go through an extended period of change, prompted bytechnological advances that facilitate the production of vast quantities of data. This has ledto a proliferation of tools to manipulate it and generate usable value for the client marketsand the rise of influential new players. Some of these have come from the technology angle,but also from the global consultancy and technology sector majors, and from in-houseteams at client companies.


2015 76.1 9.3 9.1 6.7 38.9 26.1

2016 88.2 11.6 13.3 8.5 30.6 19.1

2017e 104.5 14.3 14.9 10.5 24.8 18.8

2018e 115.2 16.2 16.8 11.5 22.7 16.0



Price: US$2.44Market cap: US$53mMarket ASX, NYSE


Company descriptionYowie Group is engaged in branddevelopment of the Yowie chocolateconfectionery product, digital platform,and licensed consumer products. Itsbrand vision includes distribution inNorth America, Australia and Canada,with further expansion planned.

Price performance% 1m 3m 12mActual (1.6) (31.0) (66.1)Relative* (2.8) (29.7) (67.2)* % Relative to local indexAnalystBeth Senko

Yowie Group (YOW)

INVESTMENT SUMMARY

After a modest slowdown in the December quarter, the company appears to be back ontrack. With a deep bench of experienced confectionery executives, we maintain confidencein Yowie's long-term growth and profitability prospects. However, the company is taking amore modest approach to sales guidance to ensure it can fulfil customer (and investor)expectations. In May, we kept our revenue forecasts, but cut profitability estimates forFY17-19 due to higher than expected stock compensation costs in H117.

INDUSTRY OUTLOOK

Chocolate is a benchmark consumer product, with over half of US consumers eating it atleast once a week. US consumer confidence is holding steady with a 97.3 score for July2016 (Thomson Reuters). The major manufacturers benefit from brand loyalty, strong shelfpositioning and large marketing budgets provide a competitive edge. However, there ispotential for smaller brands to take share if they can establish individual appeal andprominent store placement.

Y/E Jun Revenue EBITDA PBT EPS (fd) P/E P/CF(US$m) (US$m) (US$m) (c) (x) (x)

2015 2.4 (2.7) (2.7) (21.6) N/A N/A

2016 13.1 (6.6) (6.7) (40.5) N/A N/A

2017e 22.1 (3.5) (3.9) (17.7) N/A N/A

2018e 37.1 6.1 5.8 26.4 9.2 N/A



Edison dividend list

Company name FY0 period end Currency DPSFY0 DPSFY1 DPSFY2

4imprint Group 2016/12 USD 52.5 57.5 62.5 Acacia Mining 2016/12 USD 10.4 1.4 Acal 2017/03 GBP 8.5 8.9 9.3 Augean 2016/12 GBP 1.0 1.2 1.4 Avon Rubber 2016/09 GBP 9.5 11.0 13.0 Bezant Resources 2016/06 GBP 1.0 Blancco Technology Group 2016/06 GBP 2.0 2.1 2.2 Borussia Dortmund 2016/06 EUR 6.0 6.0 7.0 Braemar Shipping Services 2017/02 GBP 14.0 15.0 15.8 Caledonia Mining 2016/12 USD 5.5 5.5 5.5 Carclo 2017/03 GBP 0.0 0.0 3.9 Carr's Group 2016/08 GBP 3.8 3.9 4.0 Cenkos Securities 2016/12 GBP 6.0 11.0 Centrale del Latte d'Italia 2016/12 EUR 6.0 6.0 6.0 China Aviation Oil (Singapore) 2016/12 USD 3.2 3.6 4.0 China Water Affairs Group 2016/03 HKD 8.0 10.0 12.5 Coats Group 2016/12 USD 0.8 1.5 1.7 Cohort 2017/04 GBP 7.1 8.2 9.0 Comvita 2016/06 NZD 18.0 Custodian REIT 2017/03 GBP 6.4 6.5 6.5 Ebiquity 2016/12 GBP 0.7 0.7 0.8 Eddie Stobart Logistics 2016/11 GBP 0.0 5.5 6.2 EMIS Group 2016/12 GBP 23.4 24.4 25.4 Entertainment One 2017/03 GBP 1.3 1.4 1.5 Epwin Group 2016/12 GBP 6.6 6.7 7.0 EQS Group 2016/12 EUR 75.0 80.0 85.0 Euromoney Institutional Investor 2016/09 GBP 23.4 30.0 34.0 Focusrite 2016/08 GBP 2.0 2.3 2.4 Game Digital 2016/07 GBP 3.4 1.0 0.0 GB Group 2017/03 GBP 2.2 2.5 2.8 Greggs 2016/12 GBP 31.0 32.2 34.2 GVC Holdings 2016/12 EUR 30.0 33.0 38.0 IG Design Group 2017/03 GBP 4.5 5.5 6.5 Is Yatirim Menkul Degerler 2016/12 TRY 12.7 12.7 12.7 Jersey Electricity 2016/09 GBP 13.5 14.2 14.9 John Laing Group 2016/12 GBP 8.2 9.7 9.9 La Doria 2016/12 EUR 18.0 17.0 24.0 London Stock Exchange Group 2016/12 GBP 43.2 Lookers 2016/12 GBP 3.6 3.8 4.0 Low & Bonar 2016/11 GBP 3.0 3.2 3.3 Marshall Motor Holding 2016/12 GBP 5.5 5.8 6.0 MedicX Fund 2016/09 GBP 6.0 6.0 6.1 Medserv 2016/12 EUR 0.0 0.0 3.8 National Grid 2017/03 GBP 43.5 129.3 Norcros 2016/03 GBP 6.6 7.2 7.5 Numis Corporation 2016/09 GBP 12.0 12.0 12.5 OTC Markets Group 2016/12 USD 116.0 120.0 122.0 Palace Capital 2017/03 GBP 18.5 19.0 19.0


Pan African Resources 2016/06 GBP 0.9 0.6 1.1 Picton Property Income 2017/03 GBP 3.3 3.4 3.5 Piteco 2016/12 EUR 15.0 17.5 20.0 Polypipe 2016/12 GBP 10.1 10.6 11.1 PPHE Hotel Group 2016/12 GBP 21.0 22.0 23.0 Primary Health Properties 2016/12 GBP 5.1 5.3 5.4 QinetiQ Group 2017/03 GBP 6.0 6.4 6.7 Rank Group 2016/06 GBP 6.5 7.1 8.2 Raven Russia Ltd 2016/12 USD 2.5 1.0 1.0 Record 2017/03 GBP 2.0 2.1 2.2 Regional REIT 2016/12 GBP 7.7 7.9 8.8 Renewi 2017/03 GBP 3.1 3.1 3.1 SCISYS 2016/12 GBP 2.0 2.2 2.4 Secure Trust Bank 2016/12 GBP 75.0 78.0 82.0 Severfield 2017/03 GBP 2.3 2.5 2.8 Share plc 2016/12 GBP 0.3 0.3 0.5 Shore Capital Group 2016/12 GBP 5.0 10.0 SNP Schneider-Neureither & Partner 2016/12 EUR 39.0 45.0 52.0 StatPro Group 2016/12 GBP 2.9 2.9 2.9 Stobart Group 2017/02 GBP 13.5 12.0 12.0 Stride Gaming 2016/08 GBP 2.5 2.8 3.0 Treatt 2016/09 GBP 4.4 6.0 6.5 Trifast 2017/03 GBP 3.5 3.7 3.8 TXT e-solutions 2016/12 EUR 30.0 32.0 33.0 Tyman 2016/12 GBP 10.5 11.5 13.8 Ultra Electronics Holdings 2016/12 GBP 47.8 49.5 52.0 Utilitywise 2016/07 GBP 6.5 Vertu Motors 2017/02 GBP 1.4 1.5 1.6 Walker Greenbank 2017/01 GBP 3.6 4.4 5.1 Wheaton Precious Metals 2016/12 USD 21.0 27.0 28.0 WYG 2017/03 GBP 1.8 2.0 2.2 YouGov 2016/07 GBP 1.4 1.6 1.8


Company Sector Most recent note Date published

1Spatial Software & comp services Update 09/03/17 32Red Travel & leisure Update 13/03/17 7digital Group Media INITIATION 10/07/17 4imprint Group Media Update 10/03/17 Aberdeen New Dawn Investment Trust Investment trusts Investment company review 23/07/15 Aberdeen New Thai Investment Trust Investment companies Investment company review 30/06/17 Aberdeen Private Equity Fund Investment companies Investment company review 16/11/15 Aberdeen UK Tracker Trust Investment companies Investment company review 31/07/15 Acal Technology Update 26/07/17 Acorn Income Fund Investment companies Investment company review 09/01/17 AFH Financial Group Financials Update 26/01/16 African Petroleum Corporation Oil & gas Update 18/03/16 Alabama Graphite Metals & mining Initiation 10/07/17 Alkane Resources Metals & mining Update 27/07/17 Almonty Industries Metals & mining Outlook 16/08/16 Amur Minerals Metals & mining Update 07/03/16 Arbuthnot Banking Group Financials Update 16/08/16 Ariana Resources Metals & mining Update 02/03/16 Atlantis Japan Growth Fund Investment companies Initiation 21/07/15 Augean Industrial support services Update 27/07/17 Avanti Communications Group Fixed satellite services Update 18/07/17 Avesco Group Media Update 03/10/16 Avon Rubber Aerospace & defence Update 24/05/17 Banca Sistema Financials Initiation 08/05/17 BB Biotech Investment companies Investment company review 27/02/17 Biotech Growth Trust (The) Investment companies Investment company review 25/07/17 BlackRock Greater Europe Inv. Trust Investment companies Investment company review 10/11/16 BlackRock Latin American Inv. Trust Investment companies Investment company review 16/01/17 Blancco Technology Group Software & comp services Update 10/07/17 Borussia Dortmund Travel & leisure Update 16/03/17 Bowleven Oil & gas Flash 15/03/17 Braemar Shipping Services Industrial support services Outlook 10/05/17 Brady Technology Update 17/01/17 Brunner Investment Trust Investment companies Investment company review 03/04/17 Bushveld Minerals Metals & mining Update 18/05/16 Caledonia Mining Metals & mining Update 12/04/17 Canadian General Investments Investment companies Investment company review 27/04/17 Canadian Overseas Petroleum Limited Oil & gas Flash 19/12/16 Carbios Alternative energy Update 11/04/17 Carclo Technology Update 15/06/17 Carr’s Group Food & drink Update 20/07/17 Cenkos Securities Financials Update 03/04/17 Centrale del Latte d’Italia Food & drink Outlook 22/06/17 Challenger Energy Oil & gas Update 28/04/15 China Aviation Oil (Singapore) Industrial support services Initiation 27/02/17 China Water Affairs Group Utilities Update 04/05/17 City Natural Resources Investment companies Investment company review 22/01/15 Coats Group General industrials Outlook 13/06/17 Cohort Aerospace & Defence Update 05/07/17 Comvita Consumer Update 16/05/16 Cooks Global Foods Food & drink Flash 14/12/16 CREALOGIX Software & comp services Update 29/03/17 Custodian REIT Property Update 11/07/17 CVC Credit Partners European Opps Investment companies Initiation 14/07/17 DeA Capital Investment companies Outlook 12/06/17 Deinove Alternative energy Update 06/04/17



Deutsche Beteiligungs Investment companies Investment company review 31/01/17 Diverse Income Trust (The) Investment companies Investment company review 15/02/17 Dunedin Enterprise Investment Trust Investment companies Investment company review 05/10/15 Ebiquity Media Update 29/03/17 Eckoh Technology Flash 21/01/16 Eddie Stobart Logistics Industrial support services Update 13/07/17 Edinburgh Worldwide Investment Trust Investment companies Initiation 13/10/14 Egdon Resources Oil & gas Outlook 17/07/17 Elk Petroleum Oil & gas Update 20/04/17 Ellomay Capital Alternative energy Update 03/07/17 EMIS Group Software & comp services Update 19/07/17 Entertainment One Media Update 23/05/17 Epwin Group Industrials Update 26/05/17 EQS Group Media Update 23/05/17 eServGlobal Technology Update 05/07/17 Esker Technology Update 20/07/17 Euromax Resources Metals & mining Update 28/03/17 Euromoney Institutional Investor Media Update 21/07/17 European Assets Trust Investment companies Investment company review 10/07/17 European Investment Trust (The) Investment companies Investment company review 06/06/17 Evolva Food & beverages Outlook 09/05/17 Expert System Technology Update 27/04/17 F&C Managed Portfolio Trust Investment companies Initiation 22/03/17 Fair Value REIT Property Update 16/05/16 Fidelity China Special Situations Investment companies Investment company review 04/04/17 Fidelity European Values Investment companies Investment company review 09/01/17 Findel Retail Outlook 18/07/17 Finsbury Growth & Income Trust Investment companies Investment company review 09/05/17 Focusrite Consumer support services Update 03/05/17 Foreign & Colonial Investment Trust Investment companies Investment company review 07/12/16 Foresight Autonomous Holdings Technology Update 29/06/17 Fusionex International Technology Update 04/04/17 Future Media Update 07/07/17 G3 Group Industrial support services Update 08/05/17 Game Digital Retail Update 04/07/17 Gaming Realms Gaming Update 03/11/16 GB Group Technology Update 08/06/17 Gear4music Holdings Consumer support services Update 05/06/17 GFT Group Technology Flash 11/07/17 Global Bioenergies Alternative energy Flash 22/05/17 Globalworth Real Estate Investments Property Update 06/12/16 Green Dragon Gas Oil & gas Update 21/11/14 GO internet Technology Update 04/04/17 Green Dragon Gas Oil & gas Update 28/04/17 Greggs Food & drink Update 22/05/17 GVC Holdings Travel & leisure Update 06/07/17 Hansa Trust Investment companies Investment company review 25/07/17 HarbourVest Global Private Equity Investment companies Investment company review 13/06/16 HBM Healthcare Investments Investment companies Investment company review 18/07/17 Heliad Equity Partners Investment companies Initiation 12/06/17 Henderson Alternative Strategies Trust Investment trusts Investment company review 27/01/17 Henderson Far East Income Investment companies Investment company review 15/05/17 Henderson Global Trust Investment companies Investment company review 31/03/16 Henderson International Income Trust Investment trusts Investment company review 10/05/17 Hogg Robinson Group Consumer support services Update 30/05/17 HSBC Financials Update 13/08/15



Hurricane Energy Oil & gas Update 04/07/17 IG Design Group Consumer support services Outlook 27/06/17 Imperial Innovations Financials Update 27/09/16 Intelligent Energy Holdings Alternative energy Update 17/07/17 International Biotechnology Trust Investment companies Investment company review 10/05/16 Invesco Asia Trust Investment companies Investment company review 09/12/16 IQE Tech hardware & equipment Update 26/07/17 Is Private Equity Investment companies Outlook 17/03/17 IS Solutions Technology Outlook 09/03/16 Is Yatirim Menkul Degerler General financial Update 11/05/17 Jackpotjoy plc Travel & leisure Update 22/06/17 Jersey Electricity Industrials Outlook 03/03/17 John Laing Group Investment companies Update 04/07/17 JPMorgan European Smaller Comps Trust Investment trusts Investment company review 22/06/17 JPMorgan Global Convertibles Inc Fund Investment companies Investment company review 22/11/16 JPMorgan Global Growth & Income Investment companies Investment company review 21/06/17 JPMorgan Private Equity Investment companies Investment company review 28/04/15 Jupiter Green Investment Trust Investment trusts Initiation 02/02/17 Jupiter Primadona Growth Trust Investment companies Initiation 03/06/15 Jupiter UK Growth Investment Trust Investment trusts Investment company review 06/03/17 Jupiter US Smaller Companies Investment trusts Investment company review 23/03/17 K3 Business Technology Group Technology Update 10/01/17 KEFI Minerals Mining Update 20/07/17 Keywords Studios Software & comp services Update 22/05/17 La Doria Food & drink Outlook 07/06/17 Lazard World Trust Fund Investment companies Investment company review 02/08/16 Leaf Resources Alternative energy Update 20/07/16 Leigh Creek Energy Oil & gas Update 22/05/17 Lepidico Metals & mining Initiation 04/07/17 Liquefied Natural Gas Ltd Oil & gas Update 10/07/17 Lookers General retailers Update 16/03/17 London Stock Exchange Group Financials Update 19/10/15 Low & Bonar Basic industries Update 20/07/17 Lowland Investment Company Investment companies Investment company review 03/05/17 LSL Property Services Property Update 01/09/16 Marlborough Wine Estates Group Food & drink Update 08/05/17 Marshall Motor Holdings Automotive retailers Update 04/07/17 Martin Currie Asia Unconstrained Trust Investment companies Investment company review 03/05/17 Martin Currie Global Portfolio Trust Investment companies Investment company review 26/06/17 MedicX Fund Property Update 31/05/17 Medserv Industrial support services Flash 25/05/17 Merchants Trust (The) Investment companies Investment company review 12/06/17 Middlefield Canadian Income Investment companies Initiation 04/10/16 migme Software & comp services Update 07/09/16 Mineral Commodities Mining Update 24/06/16 Miton Global Opportunities Investment companies Investment company review 14/07/16 Mitula Group Media Update 13/02/17 Mondo TV Media Initiation 19/07/17 Nanoco Tech hardware & equipment Update 30/06/17 Nano Dimension Technology Flash 13/07/17 National Grid Industrials Outlook 28/04/17 NetDimensions Technology Update 11/11/16 Norcros Construction & materials Update 18/04/17 Numis Corporation Financial services Outlook 22/05/17 Ocean Wilsons Holdings Investment companies Outlook 13/06/17 Oceania Natural Consumer support services Update 02/06/17



Orosur Mining Metals & mining Update 30/01/17 OTC Markets Group Financial services Outlook 26/05/17 Pacific Assets Trust Investment companies Investment company review 30/07/15 Palace Capital Real estate Update 07/06/17 Pan African Resources Metals & mining Update 17/05/17 paragon General industrials Update 26/10/16 Park Group Financial services Update 23/06/17 Paysafe Group Technology Update 25/07/17 Picton Property Income Property Initiation 26/06/17 Piteco Software & comp services Update 26/04/17 Pointer Telocation Tech hardware & equipment Update 05/06/17 Polypipe Construction & materials Update 26/05/17 Powerflute Basic industries Update 08/04/16 PPHE Hotel Group Travel & leisure Flash 03/07/17 Primary Health Properties Property Update 16/05/17 Prodware Technology Update 26/05/16 PSI Technology Update 10/11/16 Qatar Investment Fund Investment companies Investment company review 23/02/17 QinetiQ Group Aerospace & defence Flash 19/07/17 Quadrise Fuels International Oil & gas Outlook 01/11/16 Rank Group Travel & leisure Update 14/06/17 Raven Russia Property Outlook 27/03/17 Record Financials Update 26/06/17 Regional REIT Real estate Update 05/06/17 Renewi Industrial support services Initiation 13/07/17 Reworld Media Media Update 30/03/17 Rex Bionics Technology Update 06/01/16 RNTS Media Media Update 02/06/17 Rockhopper Exploration Oil & gas Update 08/06/17 Rubicon Construction & materials Update 09/04/15 S&U Financials Outlook 07/04/17 Schroder AsiaPacific Fund Investment companies Investment company review 05/01/17 Schroder Global Real Estate Securities Investment trusts Initiation 22/06/15 SCISYS Technology Update 08/06/17 Scottish Oriental Smaller Cos Trust Investment companies Investment company review 02/06/17 SDX Energy Oil & gas Outlook 19/07/17 Secure Income REIT Financials Initiation 19/09/16 Secure Trust Bank Financials Outlook 31/03/17 Securities Trust of Scotland Investment companies Investment company review 24/02/17 Seneca Global Income & Growth Trust Investment companies Investment company review 27/06/17 Severfield Industrial engineering Update 19/06/17 Share plc Financials Update 15/03/17 Shore Capital Group Financials Update 11/04/17 SinnerSchrader Technology Outlook 02/02/17 SLI Systems Technology Outlook 14/03/17 Snakk Media Media Update 02/06/17 SNP Schneider-Neureither & Partner Technology Update 11/07/17 Standard Life Equity Income Trust Investment companies Investment company review 30/01/17 Standard Life Private Equity Trust Investment companies Investment company review 02/05/17 Standard Life Inv. Property Income Trust Investment companies Review 23/05/17 Standard Life UK Smaller Cos Trust Investment companies Review 12/01/17 StatPro Group Technology Update 22/05/17 Stobart Group Support services Update 10/11/16 Stride Gaming Travel & leisure Update 30/05/17 STV Group Media Update 26/08/16 Target Healthcare REIT Property Update 28/04/17



Templeton Emerging Markets Investment T t

Investment companies Investment company review 03/04/17 Tenon Building materials Outlook 03/12/15 Tetragon Financial Group Investment companies Investment company review 15/06/17 The Bankers Investment Trust Investment trusts Investment company review 14/03/17 The Law Debenture Corporation Investment trusts Initiation 20/12/16 The North American Income Trust Investment trusts Investment company review 11/10/16 The Scottish Investment trust Investment trusts Investment company review 26/07/17 Thin Film Electronics Technology Flash 12/06/17 Touchstone Exploration Oil & gas Update 23/01/15 Tourism Holdings Travel & leisure Update 05/09/16 TR European Growth Trust Investment trusts Investment company review 17/05/17 TransContainer General industrials Update 26/04/17 Treatt Basic industries Update 09/05/17 Trifast Engineering Update 20/06/17 Triton Minerals Metals & mining Initiation 18/07/17 Tungsten Corporation e-invoicer & invoice financier Update 24/07/17 TXT e-solutions Technology Flash 24/07/17 Tyman Construction & materials Outlook 24/05/17 UK Commercial Property Trust Investment trusts Initiation 24/03/17 Ultra Electronics Aerospace & defence Update 25/07/17 UMT United Mobile Technology Software & comp services Update 02/12/16 Utilico Emerging Markets Investment companies Investment company review 06/07/17 Utilitywise Industrial support services Outlook 21/04/17 Vertu Motors Automotive retailers Update 15/05/17 Victoria Gold Metals & mining Update 20/09/16 Vietnam Enterprise Investments Investment companies Initiation 25/07/17 VinaCapital Vietnam Opportunity Fund Investment companies Investment company review 08/08/16 Vislink Tech hardware & equipment Flash 19/01/17 Volt Resources Metals & mining Initiation 15/03/17 Walker Greenbank General industrials Update 21/06/17 WANdisco Technology Update 25/07/17 Wheaton Precious Metals Metals & mining Update 18/05/17 Windar Photonics Alternative Energy Flash 14/07/17 Witan Investment Trust Investment companies Investment company review 05/04/16 Witan Pacific Investment Trust Investment companies Investment company review 30/05/17 Worldwide Healthcare Trust Investment companies Investment company review 25/05/17 WYG Industrial support services Update 28/06/17 XP Power Electronic & electrical equipment Update 11/04/17 YouGov Media Update 30/03/17 Yowie Group Food & beverages Update 17/05/17 YPB Group Industrial support services Update 10/06/16

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