Front cover without sector focus · 2018. 5. 31. · summer. The knee- jerk reduction in...

Edison Insight

May 2018

Published by Edison Investment Research

Strategic perspec ve | Company profiles

Edison Insight | 31 May 2018 1

Contents

Global perspectives 2

Company profiles 9

Edison dividend list 76

Stock coverage 78

Prices at 25 May 2018 Published 31 May 2018

US$/£ exchange rate: 0.7412

€/£ exchange rate: 0.8778

C$/£ exchange rate: 0.5760

A$/£ exchange rate: 0.5578

NZ$/£ exchange rate: 0.5152

TRY/£ exchange rate: 0.1683

MYR/£ exchange rate: 0.1868

RUB/£ exchange rate: 0.0119

NIS/£ exchange rate: 0.2063

NOK/£ exchange rate: 0.0916

HKD/£ exchange rate: 0.0944

CHF/£ exchange rate: 0.7430

SGD/£ exchange rate: 0.5536

EGP/£ exchange rate: 0.0416

Welcome to the May edition of Edison Insight. We now have over 400 companies under coverage, of which 135 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 observes underperforming emerging markets, a strong dollar, rising volatility and a repricing of fundamental credit risk in Italian bond markets. He views these not as disparate narratives but suggestive that global risk premia are rising as US monetary policy is tightened. Political developments in Italy have reignited concerns over the sustainability of the euro project as the long march of populism in Italy has finally knocked on the door of government, only to be turned away. Italian political risk is likely to remain elevated for some months. Although there has been a notable weakening of economic momentum in Europe, consensus profits growth estimates remain stable. He believes that provided this remains the case, there is still the prospect of a benign de-rating of currently expensive equity markets as profits grow, with markets moving sideways in a volatile trading range. US foreign policy is inconsistent and remains a wildcard and the uncertainty remains at risk of affecting global business confidence. There is no change to his cautious outlook for equities. This month we have added Umweltbank 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: Return of the risk premium

In 2018, we observe underperforming emerging markets, a strong dollar, rising volatility and a repricing of fundamental credit risk in Italian bond markets. These may appear to be disparate narratives but suggest to us that global risk premia are rising as US monetary policy is tightened. We believe the Fed may be reaching the point where questions are raised on just how fast rates can be increased without putting excess pressure on the dollar or inverting the US yield curve.

Political developments in Italy have reignited concerns over the sustainability of the euro project. The long march of populism in Italy has finally knocked on the door of government, only to be turned away. Credit risk premia have surged in Italy and also in other eurozone nations. As market stress has ebbed in recent days, the ECB may have neatly avoided having to reassure investors that euro redenomination risk remains at zero. However, new elections mean that Italian political risk will remain elevated for some months. On the positive side the volatility has led to sharply lower market-implied interest rate expectations on both sides of the Atlantic.

Although there has been a notable weakening of economic momentum in Europe, consensus profits growth estimates remain stable. We believe that, provided this remains the case, there is the prospect of a benign de-rating of currently expensive equity markets as profits grow, while markets move sideways in a volatile trading range. However, the period of outperformance of the energy sector may be drawing to a close following the recent meeting between Russia and Saudi Arabia, which suggests that production increases are on the agenda.

US foreign policy is inconsistent and remains a wildcard. Trade war on, trade war off – then 25% tariffs announced on $50bn of Chinese technology products. North Korea summit on – then off – then possibly back on. While this may yet prove to be genius at work, the appearance for now is of a poorly coordinated administration lacking a unified strategic direction. US foreign policy uncertainty remains at risk of affecting global business confidence.

There is no change to our cautious outlook. We continue to believe equity markets are in a period of consolidation as valuations move closer towards long-run averages as monetary policy is normalised.

Analyst

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

mailto:[email protected]


Return of the risk premium

Profits growth supports equities as bond yields and political tensions rise Taken purely from a fundamental perspective, 2018 continues to deliver a strong GDP and profits growth performance in both developed and emerging markets. Yet from a markets perspective, equities have made little headway this year, especially given the positive momentum in corporate profits (Exhibit 1).

Exhibit 1: Global equity markets tread water in 2018

Source: Thomson Reuters. Note: Index level shown in US$

Emerging markets have also underperformed, especially where political risk is evident. Market volatility has risen and the US dollar has also been rising relatively sharply in recent weeks as the trajectory of US monetary policy increasingly diverges from other regions. The very sudden repricing of country risk in Italy is a further example of a situation where the risks were well known, but investors were prepared to ignore them while monetary conditions were loose.

We believe the common factor is the continuing normalisation of US monetary policy. The US Fed may have flagged the trajectory of rate increases and emphasised gradualism but US short-term rates have risen by 1% over the last six months, and just as rapidly as the prior tightening cycle of 2002–06. There appears to be little US policymaker concern at present on the possible risks to the global economy and, in particular, emerging markets, from this normalisation.

Exhibit 2: Market-implied US interest rates diverge from Fed dot plot after 2018

Source: Thomson Reuters

However, looking forward, having already lifted US rates well away from the lower bound without troubling the US economy, we expect international developments such as the rising exchange rate, turbulence in emerging markets and events in Italy to weigh more heavily on Fed thinking over the summer. The knee-jerk reduction in market-implied US interest rates for 2019 following events in Italy may overstate the case in the short term, but at least some policymakers are fearful of

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inverting the US yield curve or placing excess pressure on the US dollar by an overly large interest rate differential with other regions such as the eurozone. While for the remainder of 2018 interest rate futures are close to the Fed’s dot plot projections (Exhibit 2), markets currently have little confidence in US rates significantly above 2.25% in later years. The probability of a pause in US interest rate normalisation, or at least an easing of rhetoric, is rising, in our view, and would facilitate a continued benign derating of equity markets as profits grow.

Long, hot Italian summer

New elections may be a referendum on euro and EU membership Italy’s failure over the weekend to form a government was driven by the refusal of the Italian President Mattarella to appoint the hardline Eurosceptic, Paolo Savona, to the position of economy minister. From the perspective of President Mattarella, the recent election was not a referendum on the euro. However, for the Five Star/League coalition the refusal to accept Savona was interference in the democratic process. An incoming caretaker government may have to be put in place but is not the issue; elections either in July or September would in effect be the referendum on the euro. For investors, this creates significant uncertainty over the summer months and into the autumn.

The ECB has been notably silent on developments in Italy, leaving it to Italian central bank head Visco to suggest that only emotional reasons can explain the violent market moves in Italian bond markets this week. It is difficult to understand why he would say this with Italian 10-year bonds showing their worst daily performance in 25 years and short-term interest rates up 50bp since last week (Exhibit 3), unless he had little else to offer.

Exhibit 3: Surge in spread between Italian and German two-year government bonds


We do not expect the situation to die down rapidly but at the same time would also be surprised if ECB policymakers failed to intervene, should the situation risk getting out of hand. Preventing the break-up of the eurozone has been at the heart of the ECB’s and EU’s policies for most of this decade. However, these institutions may also privately have an incentive to show the electorate what it feels like to be out in the cold over the summer months. It may have been tactically astute for EU officials to quickly publically distance themselves from comments to this effect by EU budget commissioner Oettinger.

While theoretically the proper transmission of monetary policy is well within the mandate of the ECB, it could yet be seen as advantageous for the ECB to demonstrate the negative effects of an anti-EU vote in Italy, while preventing contagion to other markets. Preventing contagion is a task for the present as credit default swap spreads for peripheral eurozone sovereigns and French banks have surged during the recent turmoil.

There is an inherent conflict in doing whatever it takes to save the euro when the same liquidity support could potentially be viewed in northern European states as enabling free-loading populist

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politicians. The risk is that conditional support, if necessary, may not soothe markets, which sense a stand-off. Outgoing ECB vice-president Constancio said in an interview this week that any ECB intervention would have to “serve the fulfillment of our mandate” and “meet certain conditions” for any liquidity support.

In our view, the Italian fixed income markets were previously priced on the assumption that the ECB would continue to support the market, making credit fundamentals less relevant, and any Italian government would not ultimately lurch in an anti-euro direction, even if populism was growing at the fringes. Both those assumptions have been challenged. The indebtedness of the Italian government is clearly at the upper end of the eurozone average (Exhibit 4), even if the current account has in recent years moved into surplus.

Exhibit 4: Italian government debt to GDP among highest in eurozone


For investors who were cautiously positioned coming into this volatility, we would highlight that the ECB has still not shown its hand. With redenomination risk rising across the eurozone, careful ECB communication will be necessary to calm markets now that risk aversion has risen to levels which can no longer be ignored and we would not be surprised to see such a communication in the near future.

Eurozone money markets have already moved ahead to discount only one ECB rate increase in 2019, compared to three earlier in the year. Ultimately, we believe an Italexit scenario remains unlikely even if the market-implied probability may have risen in recent days. However, the immediate question is the risk of another run on eurozone financial institutions, derailing the economic recovery. ECB President Draghi will have to consider whether he can and will do whatever it takes – all over again.

Energy drives 2018 estimates higher but oil now under pressure

Risks rising as Russia and Saudi Arabia debate whether to turn the taps back on in H2 While it may seem that global investor sentiment has broadly improved over the past three months given the rapid recovery in equity markets, returns have been dominated by the energy sector (Exhibit 5). With Russia and Saudi Arabia now discussing production increases to head off a loss in market share to US shale, momentum in the oil price now appears poised to ease.

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Exhibit 5: Global energy sector has dominated three-month market performance

Source: Thomson Reuters Datastream to 27 May 2018. Note: Shown in US$.

Cutbacks in supply and an improving demand picture have led to a remarkable rally in the oil price over the past 12 months. It is by no means clear, however, that the restraint in Russian and OPEC supply is sustainable or even strategically rational in the medium term.

A $20/bbl increase in oil prices since February was, in our view, sufficient to create a dampening of demand and drag on the economic performance of net oil consumers such as Europe. In addition, the Vienna-agreed OPEC supply cutbacks were due to expire after 2018. Press reports indicate that an increase in supply is already under discussion, even before the June OPEC meeting.

With the US staging a considerable production recovery, OPEC members will be concerned not to lose market share. Notwithstanding the upcoming $1.5trn IPO of Saudi state oil producer Aramco, which may suggest a strong incentive for Saudi Arabia to maintain a high oil price, with supply increases under discussion energy equities are unlikely, in our view, to sustain the strong outperformance of the past three months.

Exhibit 6: Median 2018 earnings forecast rising modestly in US, stable in UK and eurozone

Source: Thomson Reuters, Edison calculations

Outside the energy sector, the median earnings forecast has remained stable in Europe and the UK over the past month and increased modestly in the US. Profits growth forecasts of near 10% for Europe and the UK, and 17% for the US, remain intact even if market volatility has increased in recent days.

For emerging markets, our aggregates show that while there have been very modest declines (1%) since the peak reached in January, consensus forecasts are still indicating 15% earnings growth for the median emerging market equity during 2018, towards the upper end of the range this decade.

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Exhibit 7: Emerging market earnings revisions index also stable

Source: Thomson Reuters, Edison calculations

Yet there is clearly concern in the market for the traditional correlation between tighter US dollar funding conditions and emerging market performance. Given the robustness of estimates, recent declines in emerging market assets appear to be a correction from over-exuberance earlier in the year and possibly rising expected returns worldwide as US monetary policy is normalised, rather than any meaningful deterioration in fundamental profits performance.

US foreign trade and foreign policy risks appear haphazard

There may be a method – but it is difficult to discern The current US administration has delivered a number of mini-shocks to markets during 2018. These include a verbal confrontation with North Korea, threats of trade tariffs on China and pulling out of the international agreement on Iran. Tariffs on European products, most recently autos, are also an unwelcome novelty for traditional allies within the EU.

While this strategy of rattling the tree is highly visible, it remains to be seen whether the long-term strategic interests of the US are being fully served. According to a recent report in the FT, at a recent meeting of influential Chinese officials, academics and businesspeople, the western model of democracy and free-market capitalism was discredited both by the failure to invest in physical and human assets, and the relatively poor quality of elected leaders. On trade, from China’s perspective, there was said to be puzzlement by what the US sought to achieve by a trade confrontation. For example, restricting technology-based exports while being unable to produce basic commodities competitively appeared at odds with the aim of reducing the US/China trade deficit.

We expect the Chinese elite will be further confused by the recent suspension of the threat of a trade war without a detailed agreement on trade between the two nations – and then the imposition of 25% trade tariffs on a range of Chinese technology goods one week later. The high-profile US trade delegation, which arrived in Beijing only three weeks ago, delivered a strongly worded list of demands to China, only to return home empty-handed.

The first sign of a change in the US position came in Trump’s surprise reprieve for China telecom equipment supplier ZTE following violations of US trade sanctions on Iran and North Korea in April. The US/China statement released the following weekend contained no firm commitments on trade, nor on intellectual property protection or market access. Nevertheless, US Treasury Secretary Mnuchin declared the trade war over.

Disquiet grew rapidly within the US business community about whether the long-term strategic interests of the US were being protected. The surprise imposition of trade tariffs this week shows that public statements from this US administration have to be treated with caution. We are

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struggling to piece together a coherent strategic position from these events. Even if this may be the intention, we see few signs that the US administration will stop contributing to market volatility through trade and foreign policy.

Conclusion The fingerprints of tighter monetary policy can be found in rising market volatility, a stronger dollar, underperforming emerging markets and newfound respect for fundamental risks such as those evident in Italy. However, given that at least some US Fed policymakers such as James Bullard have expressed a desire not to invert the US yield curve, the probability of an easing of Fed rhetoric is in our view increasing, thus facilitating a continuation of the benign de-rating scenario for equities.

Although profits growth has to date remained robust, we believe events in Italy should serve as a reminder that fundamental risks remain, even if for a time investors have been more focused on central bank support for asset prices. There is no change to our cautious positioning. In a sideways-moving equity market, investors should remain focused on company- or event-specific ideas to drive portfolio returns.

Sector: Technology

Price: 3.4pMarket 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 15.5 (5.6) (0.7)Relative* 10.2 (11.5) (4.0)* % Relative to local indexAnalystDan Ridsdale

1Spatial (SPA)

INVESTMENT SUMMARY

1Spatial’s return to growth and cash break-even in FY18 reflect the initial success ofmanagement’s turnaround plan. Supportive market dynamics and a strong pipeline give usconfidence that the business can return to sustainable growth and profitability. We believethe renewed focus on its solution strategy and goals to grow its offerings that master, defineand maintain accurate geospatial information from multiple data sets in key target verticalscould provide the potential for an acceleration of growth. We maintain our view that avaluation of 2x FY19e revenues should be readily achievable, implying 5p/share.

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 c 9% through 2023, whereas the revenue opportunity for services isexpected 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)

2017 15.1 (0.9) (12.8) (1.75) N/A N/A

2018 16.9 0.4 (1.5) (0.19) N/A 103.8

2019e 17.8 1.0 (1.0) (0.13) N/A 27.3

2020e 18.8 1.6 0.3 0.04 85.0 14.0

Sector: Media

Price: 1800.0pMarket cap: £506mMarket LSE


Company description4imprint is the leading direct marketerof promotional products in the US,Canada, the UK and Ireland. 97% of2017 revenues were generated in theUS and Canada.

Price performance% 1m 3m 12mActual 6.2 (4.8) 2.9Relative* 2.2 (11.8) 2.3* % Relative to local indexAnalystFiona Orford-Williams

4imprint Group (FOUR)

INVESTMENT SUMMARY

An upbeat AGM statement indicated that good momentum had continued through the earlyweeks of the new financial year. We edged up our forecasts to reflect revenues to daterunning ahead of budget at +16% year-on-year. It is still too early to assess the impact ofthe additional marketing spend on brand awareness that was factored in at the time of thefinals. Even without any benefit from this initiative, earnings are set to increase by a CAGRof over 12% for FY18-19e. Strong cash generation is funding the brand and marketinginvestment, as well as paying out a progressive dividend, on top of the supplementarypayment made for FY17.

INDUSTRY OUTLOOK

The US promotional products market is substantial; estimated at $23.3bn and with theindustry body ASI indicating growth of around 3.5% in FY17, with the growth driven primarilyby the larger distributors. It nevertheless remains highly fragmented. The brand awarenessprogramme is designed to help extend reach within the target customer profile, rather thanbroadening into new demographics. The core audience remains business owners with morethan 25 employees, ie those with a sufficiently large business to benefit from a quality rangeof promotional products, but not so large as to want to commission items in house.

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

2016 558.2 40.8 38.4 98.7 24.6 14.6

2017 627.5 45.1 42.5 107.7 22.5 15.3

2018e 707.5 47.1 44.0 122.0 19.9 15.1

2019e 778.3 54.3 51.2 140.1 17.3 12.7

9Edison Insight | 31 May 2018

Sector: Oil & gas

Price: A$0.31Market cap: A$233mMarket ASX

Share price graph (A$)

Company descriptionAJ Lucas has investments in theexploration and commercialisation ofshale gas in the UK through licenceequity interests and a stake inCuadrilla. AJL also has twoAustralia-based operating businessunits: Drilling Services (LDS) andEngineering & Construction (LEC).

Price performance% 1m 3m 12mActual (8.8) (11.4) 17.1Relative* (9.9) (11.4) 10.9* % Relative to local indexAnalystSanjeev Bahl

AJ Lucas Group (AJL)

INVESTMENT SUMMARY

AJ Lucas offers investors exposure to the most advanced UK shale appraisal programme.Current activity is focused on drilling at Preston New Road where AJL has approval to drilland test up to four horizontal wells. To date one horizontal well has been drilled and asecond is currently being drilled. An application for hydraulic fracturing of the first of thesewells has been submitted to the government. Given uncertainties, we currently utilise aprobabilistic approach to valuation estimating a 67% chance of commercial success for UKshale (NPV15>0). At a group level, incorporating AJL’s operating business units and netdebt, we derive a P50 (mid-case) valuation of A$0.86/share.

INDUSTRY OUTLOOK

AJ Lucas has investments in the exploration and commercialisation of shale gas in the UKthrough licence equity interests and a stake in Cuadrilla. Central government supports theexploitation of shale gas resource in order to increase domestic energy security and tosupport intermittent renewable energy sources.

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

2016 126.0 (2.4) (12.7) (4.93) N/A N/A

2017 122.6 (8.7) (36.3) (6.67) N/A N/A

2018e 122.1 (5.4) (23.7) (3.46) N/A N/A

2019e 97.3 1.1 (12.0) (1.89) N/A N/A

Sector: Mining



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 0.0 0.0 20.8Relative* (1.2) 0.1 14.5* % Relative to local indexAnalystTom Hayes

Alkane Resources (ALK)

INVESTMENT SUMMARY

A strong Q3 saw the Tomingley Gold Operation (TGO) mine generate operating cash flowsof A$21.2m, driving Alkane’s (ALK) cash pile to A$60.6m with a further A$8.4m held asbullion-on-hand. Two critical path catalysts are due in Q418, the final modular costing planfor the Dubbo Project (DP) and the way forward for extending the TGO’s mine life. Whilefinancing the DP continues, we see ALK using its cash pile to extend the life of the TGOprocessing facility via either underground mining or potentially, exploration anddevelopment.

INDUSTRY OUTLOOK

Zirconium products have been aided by zircon supply shortages driving prices to levels lastseen in 2011. Although supply is largely controlled by CBMM, FeNb price support is beingdriven by the c 257% vanadium pentoxide price increase (October 2016 to December2017). As for magnet REEs, prices have fallen since the highs of August to October 2017,although in our opinion their importance has not yet been properly accounted for in thefuture of electric vehicles (EV), especially as China will likely drive for its own REE magnetresources to be used for its domestic EV industry. Hafnium remains subdued by a stagnantnuclear industry, which is the traditional supplier of the metal.

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

2016 109.6 40.9 11.0 2.2 13.2 3.3

2017 117.8 61.3 18.0 4.5 6.4 2.8

2018e 128.4 41.5 (1.3) (0.7) N/A 7.5

2019e N/A N/A N/A N/A N/A N/A


Sector: Mining



Company descriptionAmur Minerals is an exploration anddevelopment company focused onbase metal projects in Russia’s fareast. Its principal asset is theKun-Manie nickel sulphide deposit,comprising over 1.5Mt of containednickel equivalent in at least fivedeposits.

Price performance% 1m 3m 12mActual 11.5 18.2 (7.9)Relative* (1.5) 2.0 (11.3)* % Relative to local indexAnalystCharles Gibson

Amur Minerals (AMC)

INVESTMENT SUMMARY

So far in 2018 Amur has increased its resource at Kun-Manie by 50%, to 1.58Mt NiE at agrade of 1.02% NiE. Significantly, the increase was achieved at a cost of US$30.87/tcontained nickel cf Amur's resource multiple immediately prior to the upgrade ofUS$51.36/t. The increase means that Kun-Manie now ranks third among the world'sgreenfield nickel sulphide deposits. It will also form an important input into an updated PFS.

INDUSTRY OUTLOOK

Based on new assumptions incorporating a higher percentage of underground mining forlonger, we calculate fully diluted (at 4.4p/share) values for concentrate sales (toll smelting),low-grade matte, high-grade matte and refined metal project options of 15 US cents, 27c,26c and 46c, respectively, at a nickel price of US$7.50/lb. Developing the projectincrementally over five years, we value it at 26c per share. Internal estimates also projectthat Kun-Manie will be one of the ten lowest cost producers in the world, with C1 cash costsin the range US$2.61-2.77/lb Ni.


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

2016 0.0 (3.8) (3.8) (0.7) N/A N/A

2017e 0.0 (1.9) (1.8) (0.3) N/A N/A

2018e 0.0 (3.8) (3.7) (0.2) N/A N/A

Sector: Financials



Company descriptionAPQ is a global emerging marketscompany targeting a sustainable andgrowing dividend as well as capitalgrowth, by focusing on investmentopportunities with the potential togenerate significant income andlong-term growth.

Price performance% 1m 3m 12mActual (1.6) (5.6) (10.5)Relative* (6.1) (11.4) (13.5)* % Relative to local indexAnalystMartyn King

APQ Global (APQ)

INVESTMENT SUMMARY

APQ is a global emerging markets company targeting a sustainable and growing dividendas well as capital growth, by focusing on investment opportunities with the potential togenerate significant income and long-term growth. The £10.2m of 3.5% convertible loanstock issued in January (total now c £30.2m) has been fully deployed other than for cashheld for working capital and collateral purposes. The end-April unaudited book value pershare was $1.2194 (c 88.54p), including an accrual for the 1.5p quarterly DPS covering thethree months to 31 March that was subsequently paid on 25 May. The company says itremains confident of meeting its 6% yield target with DPS well covered by economicearnings.

INDUSTRY OUTLOOK

APQ seeks to benefit from secular long-term growth in emerging markets and a focus onincome returns.

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

2016 N/A N/A 0.6 0.71 131.7 N/A

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




Sector: Industrial support services



Company descriptionAugean manages hazardous wastethrough five divisions: RadioactiveWaste Services (3% of grouprevenues), Energy & Construction(33%), Industry & Infrastructure (30%),Augean Integrated Services (13%) andAugean North Sea Services (21%).

Price performance% 1m 3m 12mActual 4.4 31.5 (43.7)Relative* (3.2) 28.1 (45.5)* % Relative to local indexAnalystGraeme Moyse

Augean (AUG)

INVESTMENT SUMMARY

Revenue was +11% in FY17 but operating profit fell to £6.4m (FY16 £7.8m), the result ofincreased costs, issues with a legacy contract and lower volumes in the soil market.Year-end net debt was £10.8m and the recent disposal of AIS and absence of dividendpayments will have a beneficial impact on cash flow in FY18. Augean's focus is to improvethe underlying performance of the business and it recently announced that it was consultingon the proposed restructuring and disposal of Colt. Augean also recently announced that ithad been advised by HMRC (in relation to its dispute regarding landfill taxes) that it intendsto issue assessments of £37.6m for the period August 2013-August 2017 and is consideringreducing the amount of the previous five assessments issued, from £12m to £7.5m. Augeandoes not expect a rapid conclusion to the dispute with HMRC.

INDUSTRY OUTLOOK

A growing trend towards treatment, recovery and recycling in the waste hierarchy supportsAugean's specialist industry knowledge model.

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

2016 76.0 14.3 7.2 6.47 5.5 2.8

2017 84.7 12.9 6.0 5.59 6.4 3.5

2018e 79.5 14.0 8.1 6.27 5.7 2.4

2019e 79.2 15.0 8.8 7.07 5.0 2.5

Sector: Mining

Price: SEK2.39Market cap: SEK236mMarket NASDAQ OMX First North

Share price graph (SEK)

Company descriptionAuriant is a Swedish junior gold miningcompany, focused on gold explorationand production in Russia. Thecompany has two producing mines(Tardan in Tyva and Solcocon inZabaikalsky), one advancedexploration property (Kara-Beldyr inTyva) and one early stage explorationproperty (Uzhunzhul in Khakassia).Price performance% 1m 3m 12mActual (0.4) 25.8 (35.4)Relative* (0.7) 24.3 (34.6)* % Relative to local indexAnalystCharles Gibson

Auriant Mining (AUR)

INVESTMENT SUMMARY

After five years of gold production via both gravitational and heap leach recovery methods,Auriant’s Tardan plant is now being remodelled to a single carbon-in-leach (CIL) processflow route, which is expected to improve metallurgical recoveries by c 31% and halve totalcash costs to c US$523/oz. At the same time, Auriant is also completing a DFS onKara-Beldyr. Combined, the two are expected to achieve management’s goal of 3t (or96,453oz) of gold output per year from FY22 (vs 809.5kg or 26,049oz in FY17 and 500kg or16,076oz in FY18).

INDUSTRY OUTLOOK

Auriant raised US$7.1m via the exercise of warrants in March. On the basis thatmanagement raises an additional US$10.1m in cash via equity in the next 12 months at thecurrent share price of SEK2.47, we estimate that Auriant is capable of generating averagecash flows of US$38.6m pa, average earnings of US$31.5m and average EPS of 18.1 UScents in the period FY22-33. Discounted at 10% pa, we value the resulting stream ofdividends at US$0.82/share.


2016 43.4 22.0 7.8 36.4 0.8 0.3

2017 33.5 8.8 (3.1) (5.8) N/A 1.0

2018e 20.3 2.9 (7.3) (5.6) N/A 3.0

2019e 40.4 20.0 11.1 6.6 4.1 2.9


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 2018.Price performance% 1m 3m 12mActual (26.1) (63.0) (50.1)Relative* (15.7) (54.3) (51.9)* % Relative to local indexAnalystAndy Chambers

Avanti Communications Group (AVN)

INVESTMENT SUMMARY

The company's financial restructuring should clear the way to resume more normaloperations. The debt for equity swap reduces interest savings and provides a solidfoundation for Avanti to execute its strategy, with an improved prospect for equity holders.The successfully launched HYLAS 4 is now in pre-planned orbit acceptance tests ahead ofcommencement of customer services. This satellite should double capacity and mark anend to the investment phase.

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)

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

2017 56.6 (34.5) (172.9) (104.5) N/A 0.1






Company descriptionAvon Rubber designs, develops andmanufactures products in theprotection (70% FY17 sales) and dairy(30%) sectors. Its major contracts arewith national security and safetyorganisations such as the DoD. Salesare 75% from the US and 25% fromEurope.

Price performance% 1m 3m 12mActual 3.3 18.6 25.3Relative* (2.1) 9.4 24.4* % Relative to local indexAnalystAnnabel Hewson

Avon Rubber (AVON)

INVESTMENT SUMMARY

Avon started the year with a new growth strategy and the H118 report showed that it isbearing fruit. The enhanced product portfolio is driving order growth in both divisions. Cashperformance has also been solid, which underpins selective future acquisitions, while thedisposal of AEF adds c £6m to cash. FX headwinds were visible in H118 given USexposure, however management maintained guidance for the full year. Overall, theapproach is to grow the core, add selective product development and makevalue-enhancing acquisitions to accelerate growth.

INDUSTRY OUTLOOK

The US defence budget environment looks promising for Avon as it increases army troopnumbers, while order activity has picked up closer to home. Avon is increasingly focused onhigher price sophisticated mask systems. Meanwhile, growth has been encouraging in FarmServices, building greater visibility into the business. We maintain our view that Avon hasthe market position, product portfolio and strategic ambition to further accelerate its growththrough organic and inorganic means.

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

2016 142.9 29.9 20.7 70.5 19.9 13.9

2017 159.2 36.3 25.9 83.3 16.8 14.3

2018e 159.3 36.3 26.5 74.3 18.8 11.9

2019e 165.1 38.4 28.5 75.3 18.6 12.1


Sector: Financials

Price: €1.90Market cap: €153mMarket 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 (17.0) (15.6) (18.1)Relative* (9.7) (12.9) (20.2)* % Relative to local indexAnalystAndrew Mitchell

Banca Sistema (BST)

INVESTMENT SUMMARY

BST published its Q118 results in May. Factoring receivables and pension and salarybacked loans continued to show good y-o-y growth at 35% and 68%, respectively. Asexpected, the shift in loan mix towards lower-risk/lower-yield assets, including VATreceivables and pension and salary backed (CQ) loans, results in a reduction in the interestincome margin, but this is coupled with low impairment levels (22bp) and longer duration.Interest cost was amplified by a one-off €0.8m provision related to the TLTRO funding rateand, while Q1 net earnings growth was limited to 7% y-o-y (to €4.7m), adding back theprovision would result in growth of 18% (to €5.2m).

INDUSTRY OUTLOOK

BST only recently announced its three-year strategic plan and the first quarter results do notsuggest any modification to the outlook. The bank’s focus is on its two core areas infactoring, and CQ lending and the plan targets 28% and 25% CAGR in lending to 2020respectively. The political background in Italy is uncertain, but neither business areaappears particularly sensitive to this.

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

2016 81.5 N/A 35.7 32.85 5.8 N/A

2017 82.5 N/A 38.9 33.33 5.7 N/A

2018e 90.2 N/A 39.2 33.68 5.6 N/A

2019e 116.5 N/A 52.1 44.74 4.2 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 0.6 22.6 (54.8)Relative* (1.7) 15.9 (56.3)* % Relative to local indexAnalystKatherine Thompson

Blancco Technology Group (BLTG)

INVESTMENT SUMMARY

Blancco’s H118 results reflect the non-recurrence of one-off licence deals signed in H117 aswell as a period of restructuring, including the disposal of its Mexican subsidiary. Despitethe weak H1, management has a sufficiently strong sales pipeline that it expects to meetprevious guidance for FY18. The company is now in better shape for the newly appointedCEO Matt Jones to drive sustainable, cash-generative revenue growth.

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.

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

2016 21.2 5.4 4.1 4.16 20.2 N/A

2017 26.9 5.0 2.9 2.60 32.3 N/A

2018e 28.4 4.8 2.0 1.94 43.3 N/A

2019e 31.4 6.3 2.7 2.73 30.8 N/A


Sector: Technology



Company descriptionBoku is the largest independent directcarrier billing (DCB) company. Itoperates a billing platform thatconnects merchants with mobilenetwork operators (MNOs) in morethan 50 countries. Its main offices arein the US, UK, Germany and India.

Price performance% 1m 3m 12mActual (5.0) 21.5 N/ARelative* (7.9) 13.7 N/A* % Relative to local indexAnalystKatherine Thompson

Boku (BOKU)

INVESTMENT SUMMARY

Boku’s FY17 results confirmed growth in all metrics, as new merchant connections helpeddrive a more than doubling of monthly active users and a tripling of payment volumes. Withunderlying costs actually falling year-on-year, the company significantly reduced losses andis on course to generate positive operating profit and EPS in FY18. FY18 outlook isunchanged and our forecasts are substantially unchanged. With net cash of $16m, thecompany is in a strong position to fund future growth, with products under development touse carrier data to optimise e-commerce.

INDUSTRY OUTLOOK

Direct carrier billing is an alternative payment method that uses a consumer’s mobile bill(pre-paid credit or post-paid monthly bill) as the means to pay for digital content or servicessuch as games, music or apps. Growth in the underlying digital content markets as well asthe increasing penetration of smartphones is expected to drive growth in DCB transactions.

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

2016 17.2 (12.3) (15.0) (8.0) N/A N/A

2017 24.4 (2.3) (6.4) (3.2) N/A N/A

2018e 32.7 4.9 2.7 0.9 150.2 N/A

2019e 40.1 11.6 9.8 3.2 42.2 N/A

Sector: Travel & leisure

Price: €5.89Market cap: €542mMarket FRA


Company descriptionThe group operates BorussiaDortmund, a leading German footballclub, DFB Cup winners in 2016/17 andcompeting in this season’s UEFAChampions and Europa Leagues(Champions League quarter-finalists in2016/17).

Price performance% 1m 3m 12mActual 8.4 (1.1) (6.2)Relative* 6.0 (4.4) (8.1)* % Relative to local indexAnalystRichard Finch

Borussia Dortmund (BVB)

INVESTMENT SUMMARY

After a troubled season the appointment of a permanent coach (Lucien Favre) andChampions League qualification address immediate uncertainties. Potentially morechallenging for Borussia Dortmund (BVB) is the conflict between sporting and financialaims, given an apparent increased reliance on transfer gains (investor concern at the sale ofexceptional goal-scorer Aubameyang is telling). However, there is undeniable reassurancein the scale of the surplus of market value to net player assets (broadly, c €190m perwww.transfermarkt.de), further lively transfer inflation and BVB’s prized development record.Q318 results show that finances remain robust (net cash €42m at March 2018), even if anapparent EBITDA shortfall may put pressure on our full-year forecast.

INDUSTRY OUTLOOK

Unsustainable spend on wages and transfers is increasingly being penalised by UEFAFinancial Fair Play requirements. A 'break-even requirement' obliges clubs to spend nomore than they generate over a rolling three-year period. Sanctions vary from a warning to aban from 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)

2016 376.3 86.7 73.8 68.2 8.6 12.2

2017 405.7 74.1 61.1 56.4 10.4 44.4

2018e 541.0 135.0 120.0 110.9 5.3 541.9

2019e 450.0 85.0 71.0 65.7 9.0 18.1


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 4.9 11.3 (16.9)Relative* 2.6 2.2 (19.6)* % Relative to local indexAnalystRichard Jeans

Brady (BRY)

INVESTMENT SUMMARY

The key FY17 numbers were in line with the January update. Brady has completed thereorganisation that followed the 2016 business review. The focus now is on there-architecture of its products and the cash boost from the Recycling disposal will help tothat effect. The group spent 33% of sales on R&D in FY17, largely to catch up on clientobligations. In May, Brady launched a new cloud-deployed version of its physical tradingand risk management solution for metals (Fintrade) that employs out of the boxpre-configured settings that make it usable from day one. Brady plans to roll out furtherquick start solutions for other commodities over the course of 2018. Meanwhile, the sharesare underpinned by the c 70% recurring revenues and the very high-quality customer base.

INDUSTRY OUTLOOK

Brady provides trading, risk and connectivity software solutions to the global commodity andenergy markets – mining and oil companies, fabricators, traders, banks etc. The globalE/CTRM market was worth c $1.65bn in 2016 (Comtech) and is forecast to grow at c 6%CAGR 2016-20. Brady has a strong position in niche areas including commodity logistics,credit risk, metals (number one globally) and European energy, yet has a relatively modestmarket penetration overall (we estimate 1.5%).


2016 25.4 1.9 1.3 2.4 26.7 19.4

2017 22.9 (2.1) (2.4) (5.0) N/A N/A

2018e 23.7 1.2 0.9 0.9 71.1 19.6

2019e 24.9 1.8 1.5 1.4 45.7 13.9

Sector: Mining

Price: 690.0pMarket cap: £73mMarket 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 0.4 30.2 42.3Relative* (3.2) 15.6 37.6* % Relative to local indexAnalystTom Hayes

Caledonia Mining (CMCL)

INVESTMENT SUMMARY

FY17 saw Caledonia Mining (CMCL) marginally beat its 54-56koz gold production guidance,drive down AISC costs, its head grade increase (which had a corresponding positive effecton gold recoveries) and add significantly to its code-compliant resource base. In relation toits investment plan to lift production to 80koz by 2021, we see capex peaking this financialyear (FY18), which will then allow significantly improved free cash flow generation. Coupledwith an improved political environment and regulatory changes seemingly favouring goldminers (with a key objective of improving Zimbabwe’s domestic US$ currency supply),Caledonia is very well placed to capitalise on the long-overdue opening up of one of Africa’sprime geological and mining gems.

INDUSTRY OUTLOOK

In its Q118 production update (unaudited numbers which may change, presented on a100% basis), the Blanket mine produced 12,924oz Au, which when annualised equates to52koz. However, Blanket's production tends to be back-weighted to H2 and we assume thecompany's stated FY18 gold production guidance of between 55koz and 59koz still holds.


2016 62.0 23.3 19.6 106.9 8.7 3.8

2017 69.8 26.2 22.4 79.0 11.8 3.4

2018e 74.7 29.8 24.9 170.4 5.5 3.1

2019e 80.8 40.1 33.9 223.1 4.2 2.8


Sector: Oil & gas

Price: C$0.02Market cap: C$23mMarket LSE, Toronto

Share price graph (C$)

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 50.0 50.0 0.0Relative* 46.8 44.6 (3.7)* % Relative to local indexAnalystSanjeev Bahl

Canadian Overseas Petroleum (XOP)

INVESTMENT SUMMARY

Following the unsuccessful drilling of the Mesurado-1 prospect in Liberia for which COPLand operating partner ExxonMobil have now surrendered their licence rights, the company’sfocus has largely been on its Nigeria activities. COPL’s 50%-owned subsidiary, ShoreCan,acquired an 80% interest in OPL 226 offshore Nigeria – containing the Noa West oildiscovery. The transaction is subject to ministerial approval and funding is required in orderto progress with appraisal and EPS development. COPL highlighted in its recent Q118results that significant progress has been made in securing a financing package for OPL226 project.

INDUSTRY OUTLOOK

COPL is actively pursuing opportunities in Nigeria and sub-Saharan Africa, its strategybeing to generate stable cash flow from secure onshore and offshore assets. In addition toOPL 226, the company has been awarded the PT-5b exploration licence onshoreMozambique, adjacent to the gas producing Pande-Temane complex.


2016 0.0 (8.6) (8.9) (1.5) N/A N/A

2017 0.0 (20.9) (20.4) (2.0) N/A N/A



Sector: Alternative energy

Price: €7.47Market cap: €34mMarket 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 (2.9) (3.6) (2.0)Relative* (3.5) (6.9) (5.5)* % Relative to local indexAnalystGraeme Moyse

Carbios (ALCRB)

INVESTMENT SUMMARY

FY17 marked an important stage in the development of Carbios as it completed theThanaplast research project (receiving a €1m payment). Carbios also continued to makesignificant scientific progress and recently announced that, having previously discovered anenzyme well-suited to degrading PET plastics into their original monomers, it has now beenable to significantly reduce the time of hydrolysis and thereby increase the potential flows ofPET waste that can be treated enzymatically. Preliminary figures for FY17 also showed thebenefits of the year’s capital raising measures – an equity issue of €3.6m and €1.5m inequity line financing – which took net cash to €7.2m at year end (vs €4.7m at end June).The reported operating loss was €4.65m compared to an underlying loss of €4.45m inFY16. Our forecasts are under review.

INDUSTRY OUTLOOK

Growing focus on sustainability provides an attractive market opportunity for Carbios'stechnology.

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

2016 8.9 3.8 3.7 131.9 5.7 6.3

2017 1.0 (4.4) (4.6) (94.4) 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 (10.4) 8.0 (37.7)Relative* (12.8) (0.9) (39.8)* % Relative to local indexAnalystAnne Margaret Crow

Carclo (CAR)

INVESTMENT SUMMARY

Carclo's pre-close trading update notes that the FY18 performance and the level ofyear-end net debt are in line with the expectations set in the January trading update. Thisupdate cited contract delays affecting both the Technical Plastics (CTP) and LEDTechnologies (LED) divisions as well as a delay to the anticipated ramp-up in a non-medicalproject for CTP. We leave our FY18 and FY19 estimates and indicative valuation of145-154p/share unchanged.

INDUSTRY OUTLOOK

Sarah Matthews-DeMers will join Carclo as Group Finance Director in July. She is currentlyDirector of Strategy and Investor Relations at Rotork where she recently led awide-reaching strategic review of all aspects of the business. Prior to this she was AssociateGroup Finance Director at Avon Rubber and was part of the senior management team thattransformed Avon from a £60m to a £350m market capitalisation company.

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

2016 119.0 13.8 8.8 10.1 8.9 4.3

2017 138.3 17.0 11.0 12.1 7.4 7.0

2018e 140.6 15.8 8.9 9.2 9.7 7.2

2019e 147.7 18.5 11.0 11.2 8.0 3.6

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 0.0 6.1 2.0Relative* (4.1) (3.0) (2.4)* % Relative to local indexAnalystAnne Margaret Crow

Carr's Group (CARR)

INVESTMENT SUMMARY

The positive trends noted at the AGM in January continued for the remainder of H118.Group revenues rose by 13.2% year-on-year to £200.1m. This reflected a recovery in theUS feed block activity linked to an improvement in cattle prices and in the UK manufacturingbusinesses, as work progressed on the major contract that had been delayed right until theend of FY17. In addition, sentiment in the UK farming sector continued to be positive andthe remote handling businesses benefited from strong order books relating to the globalnuclear industry. Pre-exceptional PBT grew by 22.0% to £10.9m.

INDUSTRY OUTLOOK

H118 operating profit was slightly ahead of management expectations because of the levelof demand for agricultural inputs in the UK. In addition, the strengthened management atthe UK precision machining business enabled it to take advantage of the improvedsentiment in the oil and gas industry. H218 has started well. Prices currently paid to UKfarmers for livestock and milk are supporting demand for feed, feed blocks, machinery andother agricultural inputs. Engineering performance is underpinned by long-term contractsfrom the global nuclear industry. We have raised our estimates slightly to reflect thesepositive developments and adjusted our indicative valuation from 167p/share to 169p/share.

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

2016 314.9 16.5 14.2 10.8 13.3 11.0

2017 346.2 13.9 11.9 9.4 15.2 8.7

2018e 375.1 19.0 16.2 12.8 11.2 8.6

2019e 382.5 19.8 16.9 12.9 11.1 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 0.5 (7.3) 8.0Relative* (4.2) (13.0) 1.4* % Relative to local indexAnalystAndrew Mitchell

Cenkos Securities (CNKS)

INVESTMENT SUMMARY

After very strong FY17 results Cenkos experienced a disappointing first quarter with marketvolatility affecting investor sentiment. Since then fee income has improved and Cenkosreported in its AGM statement in May that its pipeline of prospective transactions hadimproved. As a consequence the company is now more optimistic for the remainder of theyear. Cenkos notes that its capital position has been strengthened following assetrealisations.

INDUSTRY OUTLOOK

Cenkos saw a number of board changes last year including the appointment of AnthonyHotson as CEO and Philip Anderson as FD. In the accounts Cenkos set out its strategicgoals as being to: grow revenues by retaining existing clients and gaining new ones; createa strong team culture; a disciplined approach to operational efficiency; use the strongbalance sheet to grow the business; and increase shareholder distributions. The CEO alsounderlines the importance of continuing work to strengthen the compliance function andensure a strong ethical culture.


2016 43.7 5.2 5.1 4.6 23.5 N/A

2017 59.5 10.2 10.0 13.2 8.2 8.5



Sector: Food & drink

Price: €2.90Market cap: €41mMarketSTAR, Borsa Italiana STAR


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

Price performance% 1m 3m 12mActual (11.6) (12.1) 2.8Relative* (3.8) (9.4) 0.2* % Relative to local indexAnalystSara Welford

Centrale del Latte d'Italia (CLI)

INVESTMENT SUMMARY

Price increases implemented during Q217 continue to drive revenue growth. We should seethe effect of this subside during Q218 as we start to cycle a full year of price increases.Newer initiatives, such as vegetable-based drinks and the export business continue towitness excellent growth, albeit from a low base. Management is continuing to invest in thebusiness to keep it competitive and the Turin plant is currently undergoing an upgrade.

INDUSTRY OUTLOOK

The Italian fresh milk and extended shelf-life market was worth €543m in 2017 (source: IRIInfoscan Hypermarkets + Supermarkets), but is localised, with different players in differentregions. The market has stabilised following a few years of contraction as a result of volumedeclines caused by the economic crisis and a fashion for dairy-free diets. CLI has beengaining share in the regions in which it operates and the Mukki brand acquired through CLFpresents interesting opportunities for expansion.


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

2017 187.5 7.2 (0.1) (2.21) N/A N/A

2018e 184.4 7.8 0.4 1.64 176.8 N/A

2019e 186.2 8.3 1.4 6.43 45.1 N/A



Price: S$1.58Market cap: S$1369mMarket Singapore Exchange

Share price graph (S$)

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 (1.3) 0.0 (6.0)Relative* 0.4 0.0 (13.9)* % Relative to local indexAnalystAndy Chambers

China Aviation Oil (Singapore) (G92)

INVESTMENT SUMMARY

CAO operates as a physical jet fuel supplier as well as trader, while a healthy dividendincome from the fuel supply JV at Shanghai’s rapidly expanding Pudong Airport providesthe bulk of earnings. Q118 topline performance reflected the higher oil price and increasedtrading volume, while profitability was boosted by the strong contribution from associates.The improved associates’ contribution and backdrop of strong air transport growth in Chinasupport encouraging FY18 prospects. In addition, the healthy balance sheet positions thegroup to pursue development of its supply chain infrastructure globally, especially growthopportunities aligned with China’s One Belt, One Road trade route to Europe initiative.

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.


2016 11703.0 30.2 89.9 10.4 11.3 26.9

2017 16268.0 24.1 88.0 9.9 11.9 45.1

2018e 18406.0 26.8 96.0 10.8 10.9 14.9

2019e 20750.0 31.2 105.0 11.8 10.0 12.9


Price: HK$7.56Market cap: HK$12163mMarket HKSE

Share price graph (HK$)

Company descriptionChina Water Affairs Group owns andoperates regulated water supplyassets across 50 cities in mainlandChina, serving 10 million customers inthe residential, commercial andindustrial sectors.

Price performance% 1m 3m 12mActual (0.1) 9.4 48.5Relative* (1.8) 9.6 23.7* % Relative to local indexAnalystGraeme Moyse

China Water Affairs Group (855)

INVESTMENT SUMMARY

Interim figures and the recent announcements of a framework agreement in Shishou, theacquisition of the water supply companies in Wuzhu County, Xiayi and Xinzhan, and a jv inGongan, indicate continued growth at CWA. The results themselves showed revenueincreasing by 16.3%, while basic EPS rose by 22.9%. Driving overall growth was the rise inrevenue (+10.4%) and segmental profits (+22.8%) at the key water supply business. Aturnaround in the performance of the associate line and tight control of costs also helpedboost profitability. Following the results, we increased our valuation to HK$8/share. AtHK$8/share, CWA would trade on a P/E of 12.3x. We believe such a rating is sustainablefor a company that we expect to grow EPS by c 14% CAGR in 2017-20e (PEG ratio ofunder 1.0x).

INDUSTRY OUTLOOK

Water supply in China remains fragmented. The central government encourages localgovernments to deleverage their own balance sheets with private–public partnerships. Thistrend remains positive for CWA.

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

2016 4740.0 1951.0 1505.0 40.1 18.9 N/A

2017 5708.0 2647.0 1963.0 55.4 13.6 N/A

2018e 7069.0 2968.0 2279.0 64.9 11.6 N/A

2019e 8075.0 3404.0 2641.0 72.1 10.5 N/A


Sector: Financials



Company descriptionCircle Property is an AIM-quotedproperty investment company focusedon UK office buildings outside London.It seeks to increase capital value byrefurbishing and re-leasing assets inareas with high demand, and has aprogressive dividend policy.

Price performance% 1m 3m 12mActual 12.7 12.7 15.6Relative* 8.6 5.7 11.8* % Relative to local indexAnalystMartyn King

Circle Property (CRC)

INVESTMENT SUMMARY

Recent trading updates show further strong momentum, with asset management initiativescontinuing to drive operational progress, delivering strong growth in rental income and cashearnings, and lifting investment portfolio valuations. The c £114.0m external valuation of theinvestment portfolio as at 31 March 2018 lifts our forecast NAV by more than 12p per share.Contracted rents have also shown a strong organic uplift in H2 and since, reflectingsignificant letting progress at refurbished assets and lease renewals in the core portfolio. A£4.2m acquisition in Bristol at a 7.9% net initial yield further lifts contracted rents to c £7.6m(end-FY17 c £5.6m), close to the end-FY19 level on which our forecasts are based. Thissuggests upside to our recurring earnings forecasts for FY18, but particularly so for FY19.We will review this in detail when the results are published in full in June.

INDUSTRY OUTLOOK

Regional occupier demand is generally firm, driven by continuing economic growth andbusiness relocation away from London, while new supply remains limited. Meanwhile, theyield spread between the regions and London remains historically wide, representing a clearpotential for narrowing.

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

2016 1.1 N/A 1.1 2.30 77.2 82800.6

2017 4.4 N/A 10.0 3.14 56.5 N/A

2018e 5.2 N/A 13.7 7.03 25.2 22463.8

2019e 6.2 N/A 6.8 9.28 19.1 11113.1




Company descriptionCohort is an AIM-listed defence andsecurity company operating acrossfour divisions: MASS (30% of FY18esales); SEA (40%); MCL (15%); andthe 80%-owned Portuguese businessEID (15%) acquired in FY17.

Price performance% 1m 3m 12mActual 0.4 (2.8) (22.2)Relative* (4.3) (8.8) (24.8)* % Relative to local indexAnalystAndy Chambers

Cohort (CHRT)

INVESTMENT SUMMARY

Cohort is agile in nature, executing contracts that are often fixed price. As the companyholds risk and builds contingency, this can be unwound typically at the year-end, essentiallyskewing H1/H2 performance. Once again, we expect to see a stronger H2, with the H218outlook supported by order cover and recent order wins. Management has reiterated FYguidance. While the company is not immune to UK MoD budgetary delays, it continues toexploit export opportunities and remains positioned for further M&A opportunities, shouldthey arise.

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 27.2 12.9 16.7

2017 112.7 15.7 14.5 27.9 12.5 37.2

2018e 119.0 16.6 15.4 29.1 12.0 10.1

2019e 128.2 17.4 16.1 31.2 11.2 9.5


Sector: Technology

Price: CHF155.00Market cap: CHF214mMarket 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 (7.7) (9.9) 29.2Relative* (7.0) (8.5) 33.1* % Relative to local indexAnalystRichard Jeans

CREALOGIX Group (CLXN)

INVESTMENT SUMMARY

In January, CREALOGIX announced the acquisition of Innofis, a Barcelona-based digitalbanking business, to expand its core digital banking business into the Middle East. Giventhe size of the deal, CREALOGIX has produced a prospectus, which reveals all the relevantinformation. The value of the deal is c CHF39m, which translates to c 3.6x trailing revenuesor 9.3x EBITDA. On our updated forecasts, the deal is 11% earnings enhancing (undilutedbasis) in FY19. The acquisition creates a range of opportunities for management toaccelerate revenue growth and boost margins. Our baseline discounted cash flow analysissuggests a valuation of CHF259, c 66% above the current share price.

INDUSTRY OUTLOOK

CLXN develops and implements software that enables digital banking for “the digital bank oftomorrow”. The solutions are most often used by traditional banks to enable their journey todigitalisation, through the provision of a sophisticated, modern omni-channel offering to theirclients. The group’s products are front-end solutions that integrate with customers’ back-endsystems. The technology has won awards, including Best Online Development (Systems inthe City Awards 2017) and Best of Show Award (FinovateEurope 2017) with its virtualbanking app ‘The ARCs’.

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

2016 63.3 3.7 2.2 164.68 94.1 128.3

2017 74.9 7.3 5.0 266.74 58.1 17.0

2018e 88.1 11.8 10.0 572.42 27.1 15.5

2019e 102.4 16.4 14.7 762.38 20.3 12.6

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 1.5 4.4 5.0Relative* (3.9) (2.8) 2.9* % Relative to local indexAnalystMartyn King

Custodian REIT (CREI)

INVESTMENT SUMMARY

CREI will report its full year results to 31 March 2018 in early June. Already reportedyear-end EPRA NAV was 107.3p (end-December 106p), taking NAV total return, includingdividends paid, to 9.6% for the year. A DPS of 1.6125p in respect of Q4 will be paid on 31May, meeting the 6.45p target for the year and fully covered by 6.9p of EPRA earnings,while the DPS target for FY19 has been lifted to 6.55p. Acquisitions and positive netrevaluation movements took the portfolio to £528.9m at 31 March, comprising 147 assetswith a rent roll of £37.1m, and a net initial yield of 6.6%. Occupancy on an EPRA basis is96.5%. With a committed pipeline of acquisitions of £9.3m, the manager remains focusedon maintaining high levels of occupancy (96.5% on an EPRA basis at 31 March) andgrowing income through rental growth and further accretive acquisitions, part funded bycontinuing share issuance to maintain a low LTV (21% at end-March).

INDUSTRY OUTLOOK



2016 19.0 N/A 11.2 6.80 17.5 17.5

2017 27.6 N/A 24.2 6.59 18.1 15.4

2018e 34.6 N/A 28.8 6.90 17.3 18.2

2019e 38.7 N/A 38.8 7.29 16.4 13.8


Sector: Financials



Company descriptionDeA Capital, a De Agostini groupcompany, is one of Italy’s leadingplayers in alternative investments andasset management. At 31 March 2018,it had an investment portfolio of c€376m and alternative assets undermanagement of more than €11.6bn.


DeA Capital (DEA)

INVESTMENT SUMMARY

DeA consolidated its alternative assets under management in Q118, at more than €11.6bn,and up 6.4% over the year. This includes the launch of a second corporate credit recoveryfund in late 2017 and several new real estate funds including, in January 2018, a new funddirected at real estate NPLs. The group continues to target a broadening of its productrange and investor base, and is exploring potential opportunities in Europe. NAV per sharewas €1.90 at end-Q118 (FY17: re-stated €1.92), primarily reflecting weakness in the Migrosstake, and to a lesser extent share repurchases, offsetting otherwise net positivemovements. The net financial position increased strongly, to €105.8m (FY17: €92.3m),equivalent to €0.42 per share or 22% of NAV, primarily due to strong net distributions fromfunds held. A DPS of €0.12 has since been paid and we expect a similar distribution for thecurrent year. Our forecasts are under review.

INDUSTRY OUTLOOK

Low interest rates support demand for alternative assets, while fund maturities and otherdivestments are supporting cash flow for reinvestment in new fund launches, newinvestments or distributions to shareholders, even after meeting outstanding investmentcommitments.


2016 80.5 N/A 12.4 4.6 28.5 N/A

2017 72.7 N/A (26.0) (15.7) N/A N/A




Price: €3.47Market cap: €43mMarket Euronext Growth


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 (5.7) (14.4) 62.9Relative* (6.3) (17.4) 57.1* % Relative to local indexAnalystGraeme Moyse

Deinove (ALDEI)

INVESTMENT SUMMARY

A net loss of €7.3m for FY17 was slightly above our forecast figure of €6.9m, due principallyto lower revenue than we had assumed. Beyond the financials Deinove made furtherprogress during FY17. Deinbiotics was acquired and Deinove secured funding from the‘Investments for the Future’ programme (€10.4m over five years). FY18 is shaping up to bea pivotal year. Deinove has announced the commercial launch of two products in itscosmetic division, whilst it has also signed partnership agreements with RedX Pharma andNaicons to develop new antibiotics. Most significantly, Deinove has announced theproposed acquisition of Morphochem's clinical stage antibiotic compound, MCB3837(Biovertis), and is considering raising additional finance (in part equity), to finance thebusiness. Our forecasts are under review.

INDUSTRY OUTLOOK

Environmentalism will underpin growth in green chemistry, and the growing antimicrobialresistance to current antibiotics will demand the discovery of new antibiotic structures.


2016 0.8 (6.4) (7.7) (72.6) N/A N/A

2017 0.2 (8.5) (9.7) (67.7) N/A N/A




Sector: Electronics & elec eqpt



Company descriptiondiscoverIE Group (formerly AcalGroup) is a leading internationaldesigner, manufacturer and supplier ofcustomer-specific electronic productsand solutions to 25,000 industrialmanufacturers.

Price performance% 1m 3m 12mActual 5.7 14.8 62.1Relative* 2.5 7.4 57.3* % Relative to local indexAnalystKatherine Thompson

discoverIE Group (DSCV)

INVESTMENT SUMMARY

discoverIE saw continued strong trading in Q418 and expects to report revenue growth of15% for FY18 and earnings in line with management expectations. Design & Manufacturing(D&M) delivered further strong organic growth in the final quarter, and the group has astrong order book entering FY19, bolstered by the recent Stanton acquisition. The companyis making good progress in its strategy to build the D&M side of the business and wecontinue to expect further acquisitions in this space.

INDUSTRY OUTLOOK

discoverIE Group is a designer, manufacturer and supplier of customised electronics toindustry with operations throughout Europe and increasingly outside Europe. The companyis focused on growing the percentage of higher-margin specialist product through organicgrowth and acquisition. Its key markets (c 50% of sales) are medical, renewables,transportation and industrial connectivity, all of which are good growth markets.


2016 287.7 19.8 15.2 17.8 24.8 19.2

2017 338.2 24.3 17.8 19.9 22.2 14.2

2018e 391.0 29.0 21.6 21.6 20.5 16.3

2019e 427.6 34.4 25.0 24.6 18.0 11.6

Sector: Media



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 (2.2) (22.0) (44.4)Relative* (6.0) (26.0) (46.3)* % Relative to local indexAnalystBridie Barrett

Ebiquity (EBQ)

INVESTMENT SUMMARY

As previously flagged, disappointing growth from the US Media and MCA practices affectedoverall performance in FY17 with like-for-like revenue growth of 0.8% and EBIT marginsdown to 13.8%. However, remedial action has been taken with new leadership teams in theUS, activity in H2 within MCA picked up and we continue to forecast an acceleration inlike-for-like revenue growth in FY18. The proposed divestment of the AdIntel practice wouldfurther enhance the group's growth profile and release resources enabling it to focus on itstech-enabled media consulting businesses where there is a larger market opportunity. Thisdivestment could pave the way for an unwinding of its discount to the peer group. An in-lineEV/EBIT rating would point to a value of around 90p.

INDUSTRY OUTLOOK

With a strong brand, 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. The group's growth acceleration plan aims to capitalise on its position toincrease top-line growth on a more sustainable margin.


2016 83.6 14.6 11.8 11.3 6.0 N/A

2017 87.4 14.0 11.0 9.4 7.2 N/A

2018e 91.2 13.6 10.2 8.9 7.6 N/A

2019e 96.5 14.5 11.3 9.7 7.0 N/A


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 49.4 93.3 33.3Relative* 50.3 76.8 28.9* % Relative to local indexAnalystSanjeev Bahl

Egdon Resources (EDR)

INVESTMENT SUMMARY

Egdon Resources retains several value catalysts over the course of 2018, whichencompass both its conventional and unconventional asset portfolio. Key catalysts includeexploration and appraisal at Springs Road, Holmwood, Resolution, Biscathorpe and NorthKelsey, as well as the Wressle development (which remains subject to planning consent).Capital commitments are being kept to a minimum through existing cost-carry arrangementsand planned farm-outs. Our conventional valuation stands at 12.8p/share including riskedexploration. The valuation of shale resource remains uncertain but in our view has thepotential to be worth in excess of a risked 100p/share based on current expectations of wellcost, type curves and forward gas prices.

INDUSTRY OUTLOOK

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

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

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

2017 1.0 (1.2) (1.7) (0.7) N/A N/A

2018e 1.1 (1.1) (2.0) (0.8) N/A N/A

2019e 2.1 (1.1) (1.3) (0.5) N/A N/A

Sector: Oil & gas



Company descriptionElk Petroleum is focused on low-costtertiary recovery of residual oil. It hasproduction from its Madden/Lost Cabingas and CO2 project and the Aneth oilfield. The Grieve CO2 EOR oil projectin the US achieved first oil in April2018.


Elk Petroleum (ELK)

INVESTMENT SUMMARY

Elk Petroleum’s (ELK) acquisition of a 63.7% operated interest in the Aneth Rocky MountainCO2 EOR project from Resolute Energy has transformed it into one of the largest producerson the ASX. Management forecasts 2018 net production of 11mboe/d. At US$160m, theAneth deal was priced at a discount to our 1P estimate of proven developed reserve valueof US$178m (excluding US$23m, which ELK retains in escrow to cover abandonmentcosts). ELK completed a A$13.5m capital raising to fund part of the development of Aneth,in which the company estimates a net capital expenditure of c US$16.4m during 2018.Following this capital raise we are reviewing our forecasts.

INDUSTRY OUTLOOK

Alongside field operators Denbury and ConocoPhillips, ELK management has identifiednumerous field optimisation opportunities at Grieve and Madden with high risk-adjustedreturns (many in the 50-100% IRR range). ELK continues to consolidate Rocky MountainCO2 EOR projects.


2016 0.0 (4.7) (5.2) (2.0) N/A N/A

2017 5.0 (5.2) (8.1) (0.9) N/A N/A





Price: US$7.87Market cap: US$84mMarket TASE

Share price graph (US$)

Company descriptionEllomay Capital is a utility projectowner, operator and developerfocusing on alternative energy in Israeland developed Europe (Italy, Spainand the Netherlands).

Price performance% 1m 3m 12mActual (6.1) (14.8) (11.3)Relative* (9.0) (14.0) (21.3)* % Relative to local indexAnalystDario Carradori

Ellomay Capital (ELLO)

INVESTMENT SUMMARY

Ellomay Capital’s renewable assets portfolio delivered significant growth at the operatinglevel over the course of 2017, with revenue, EBITDA and EBIT up 17%, 10% and 25%respectively (vs 2016). For 2018, we expect the company to reap the benefits ofinvestments made in 2017, with the recently acquired Israeli solar PV assets and thecommissioning of two new Dutch waste-to-energy (WTE) plants driving 91% y-o-y EBITDAgrowth and a positive net income contribution after two years of losses. Several newprojects under development could generate additional medium-term growth, in particular thefinancial close of Talasol, a large solar PV plant project in Spain (potentially by Q318).

INDUSTRY OUTLOOK

We expect sustained renewable infrastructure growth in Europe driven by renewable costreductions, regulation and the need to retire ageing thermal plants. Structural growth willcontinue in our view, despite the prospect of a gradual increase in interest rates.


2016 11.6 6.8 (0.1) (2.00) N/A N/A

2017 13.6 7.5 (6.3) (57.00) N/A 15175.2

2018e 22.4 14.3 4.5 32.08 20.7 9695.5

2019e 23.3 14.9 5.4 38.63 17.2 30777.4

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 it also supplies specialistand acute care software.

Price performance% 1m 3m 12mActual 7.6 25.6 (2.0)Relative* 3.3 13.0 (5.0)* % Relative to local indexAnalystKatherine Thompson

EMIS Group (EMIS)

INVESTMENT SUMMARY

EMIS Group’s recent restructuring enabled it to report FY17 adjusted profits in line withforecasts, despite revenues below our expectations. The immediate focus is onstrengthening the core business, both in the wake of the recent customer support issue, butalso to ensure it can maintain its market-leading position in the UK primary care market.Management is working on detailed plans for growth, which it expects to share later thisyear. At its AGM in May, management confirmed that trading is in line with the board'sexpectations.

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. Thehosted EMIS Web solution enables EMIS to sell its products to a wider NHS audience. Thisfits well with the government's strategy to promote greater interoperability between NHSdepartments.


2016 158.7 52.3 39.2 49.4 18.6 13.2

2017 160.4 49.2 35.2 43.1 21.3 11.8

2018e 165.7 50.6 36.7 45.0 20.4 14.4

2019e 171.6 52.5 39.8 48.7 18.8 10.9


Sector: Media



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 10.2 (1.8) 20.7Relative* 6.2 (5.8) 16.6* % Relative to local indexAnalystBridie Barrett

Entertainment One (ETO)

INVESTMENT SUMMARY

FY18 EBITDA increased 11% with growth coming from the higher-margin Family & Brandsand Television divisions, offset by fewer titles released in Film. In FY19 we forecast anotherstrong year from Peppa Pig and PJ Masks, which we believe could overtake Peppa Pig by2021. We expect a more stable performance from Film and the production pipeline lookssolid with a healthy mix of new and renewed content. More than two-thirds of film andtelevision content is now generated from own productions, where eOne has a greaterdegree of control and more limited financial exposure, key subsidiaries are under fullownership and Family has an expanding portfolio of global properties. We think the 20%discount to peers is unjustified, with a SOTP valuation pointing to 352-377p.

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 15.4 3.8

2017 1082.7 160.2 129.9 20.0 14.9 3.0

2018e 1044.5 177.3 144.4 21.9 13.6 2.8

2019e 1208.6 193.4 154.9 23.6 12.6 2.4

Sector: Mining

Price: C$0.48Market cap: C$84mMarket TSX


Company descriptionEntrée Resources has a carried JVinterest in certain integral parts of theOyu Tolgoi copper-gold project inMongolia. The first of the JV’s depositsto be developed as part of the overallOyu Tolgoi mine plan (managed by RioTinto) is the first lift of the HNE deposit,due to enter sustained production in2027.Price performance% 1m 3m 12mActual 2.1 (11.1) (23.8)Relative* (0.1) (14.3) (26.7)* % Relative to local indexAnalystTom Hayes

Entree Resources (ETG)

INVESTMENT SUMMARY

In its Q118 results (announced 8 May 2018) ETG reported the outcome of its updatedTechnical Report (upon which we base our initiation report and valuation of ETG’s shares),as well as the notification of board appointments and progress at the Oyu Tolgoi (OT) mine(as reported by Turquoise Hill). By all indications, progress remains on track at OT for firstore extraction in mid-2020, followed by sustainable production in 2021. Mr Mark Bailey wasappointed to ETG’s board as non-executive chairman (replacing the retired Lord Howard ofLympne).

INDUSTRY OUTLOOK

ETG stated its net loss for the first quarter was C$0.7m with cash at hand of C$6.6m.Corporate costs for FY18 are estimated at C$1.2-1.5m (including Mongolian sitemanagement, marketing and compliance costs).


2016 0.0 (4.6) (4.7) (2.4) N/A N/A

2017 0.0 (2.5) (2.7) (1.5) N/A N/A

2018e 0.0 (0.9) (0.7) (0.4) N/A N/A

2019e 0.0 (1.2) (1.0) (0.6) N/A N/A


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 (3.8) 3.4 (31.8)Relative* (8.1) (8.7) (34.8)* % Relative to local indexAnalystToby Thorrington

Epwin Group (EPWN)

INVESTMENT SUMMARY

A short AGM update statement (22 May) echoed previous comments regarding marketconditions and (unchanged) FY18 expectations. This suggests that the underlying tradingenvironment is broadly stable and actions being taken to improve operational efficiency areproceeding to plan. Management appears to be navigating mixed market conditionsreasonably well – including selective price increases - while progressing with internalinitiatives and operational efficiency is a key focus for Epwin this year. Share priceperformance will be driven by delivery against these expectations and/or any indication ofmore robust market conditions, in our view. Ahead of such a catalyst, the prospectivedividend yield is a clear incentive to invest.

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.


2016 293.2 33.3 24.3 14.7 5.6 3.8

2017 298.3 30.3 20.5 12.4 6.6 5.9

2018e 282.6 27.8 18.1 10.3 7.9 4.8

2019e 285.8 28.9 19.1 10.9 7.5 4.2

Sector: Technology

Price: €75.50Market cap: €108mMarket Scale


Company descriptionEQS Group is a leading technologyprovider for digital IR, corporatecommunications and compliance, withmore than 8,000 clients worldwideusing its products and services tosecurely, efficiently and simultaneouslyfulfil complex national and internationalinformation obligations to the globalinvestment community.Price performance% 1m 3m 12mActual 0.7 3.4 40.2Relative* (1.5) 0.0 37.4* % Relative to local indexAnalystFiona Orford-Williams

EQS Group (EQS)

INVESTMENT SUMMARY

EQS’s Q118 report shows performance in line with expectations, with 13% top-line growthand higher investment pushing the group into an EBITDA loss. All is on track for a Q418launch of the new COCKPIT web-based product platform and our forecasts for FY18e,FY19e and FY20e are unchanged. New KPIs and segmental reporting highlight a strongrecurring revenue base and will clarify the growth dynamics of customer numbers andassociated revenues. EQS’s markets remain attractive, with corporate obligations becomemore numerous and complex, underpinning the rating.

INDUSTRY OUTLOOK

Gartner estimates the governance, risk and compliance segment at over $5bn, growing at aCAGR of over 13%. 2018 sees a number of tightened corporate compliance and disclosurerequirements, including EU PRIIP regulations for Key Information Documents, an updatedGerman corporate compliance code and the French SAPIN II anti-corruption regulation, aswell as MiFID II. These all increase corporate administrative loads and carry heavypenalties for non-compliance, providing a positive backdrop for sales.


2016 26.1 4.2 2.4 96.1 78.6 23.5

2017 30.4 2.3 0.8 16.4 460.4 53.5

2018e 36.5 1.6 (0.2) (6.5) N/A 61.9

2019e 43.5 4.2 2.4 93.1 81.1 26.3





Company descriptionERM Power is an energy retailer andtrader founded in 1980 and listed in2010. In Australia it operates anelectricity supply business (secondlargest retailer to C&I customers) andtwo gas-fired generation plants. Keyareas of growth are the US electricityretail market (entered in 2015) andenergy solutions.Price performance% 1m 3m 12mActual (9.1) (14.2) 26.6Relative* (10.2) (14.1) 20.0* % Relative to local indexAnalystDario Carradori

ERM Power (EPWX)

INVESTMENT SUMMARY

ERM Power's trading update confirmed its outlook for the Australian activities (in line orabove for 2018 and in line for 2019) but downgraded the outlook for its US activities (slightlylower volumes and significantly lower gross margins). Our initial calculations suggest thiscould have a potential A$4m and A$13m negative effect on our 2018-19e net incomeforecasts respectively; we place our forecasts under review. Although the trading update forthe US activities is disappointing, we see downside risks as limited for ERM Power as theUS business is independently financed. Our valuation of $2.6/share implies significantpotential upside even if we attribute no value to the US activities.

INDUSTRY OUTLOOK

While electricity supply activities in Australia remain very competitive with limited growthopportunities, ERM Power has experienced significant positive momentum which led to adouble upgrade to Australian medium-term profit guidance over the last 12 months. Theenergy market in Australia (and globally) is undergoing significant transformation as a resultof the energy transition, the emergence of new technology and the customers' demand forhigher energy efficiency and sustainable solutions. We expect the recently launched EnergySolutions business to take advantage of these changes.


2016 2691.0 71.0 23.0 7.6 20.3 3.1

2017 3127.0 78.0 15.0 (10.8) N/A 2.5

2018e 3406.0 89.0 15.0 4.4 35.0 4.0

2019e 3544.0 109.0 31.0 9.4 16.4 3.5

Sector: Technology

Price: 9.1pMarket cap: £83mMarket AIM, ASX


Company descriptioneServGlobal develops mobile softwaresolutions to support mobile financialservices, with a focus on emergingmarkets. It also has a 35.7% share inthe HomeSend cross-border paymentshub, alongside Mastercard and BICS.

Price performance% 1m 3m 12mActual 1.4 (9.2) 68.2Relative* 0.1 (11.3) 59.1* % Relative to local indexAnalystKatherine Thompson

eServGlobal (ESG)

INVESTMENT SUMMARY

eServGlobal enters FY18 with a reduced cost base and a fully funded balance sheet; weare forecasting the core business to be close to EBITDA break-even in FY18. With accessto Mastercard’s sales force and financial institution customer base, HomeSend has signedup a number of banks to use its cross-border payment platform. As these banks shiftvolumes onto the platform, this should drive strong growth in volumes and move the jointventure towards profitability.

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. Use of the HomeSend platform means that banks can bypass theircorrespondent banking relationships, reducing the cost and increasing the efficiency ofcross-border payments.

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

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

2017 12.2 (15.2) (27.5) (4.17) N/A N/A

2018e 19.0 (0.4) (7.2) (0.84) 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.

Price performance% 1m 3m 12mActual 3.1 9.6 15.4Relative* 2.4 5.8 11.3* % Relative to local indexAnalystKatherine Thompson

Esker (ALESK)

INVESTMENT SUMMARY

Esker reported Q118 revenues of €20.4m, +16% y-o-y, and +10% in constant currency (€/$rate was 1.23 in Q118 vs 1.07 a year ago). The implementation of contracts signed in 2017combined with growth from existing customers drove revenue growth in the quarter. Thevalue of contracts signed in Q1 was 22% higher than a year ago. Net cash at the end of Q1was €11.4m. Management confirmed it continues to expect double-digit organic revenuegrowth in FY18.

INDUSTRY OUTLOOK

Esker's DPA software operates across five areas: document delivery, accounts payable,accounts receivable, procurement and sales order processing. Competitors are different foreach business process and consist of business process outsourcers and specialist DPAsoftware companies. Customers move to using DPA software to reduce paper-related costsand errors in processing, to speed up the cash conversion cycle, to improve processvisibility within the enterprise and to improve customer service.


2016 66.0 14.9 9.9 122.0 46.8 19.7

2017 76.1 16.4 10.7 129.0 44.3 17.5

2018e 83.9 18.6 12.5 155.0 36.8 17.2

2019e 92.0 21.5 15.2 185.0 30.9 15.1

Sector: Media



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 0.8 8.7 8.0Relative* (4.0) 2.4 8.7* % Relative to local indexAnalystFiona Orford-Williams

Euromoney Institutional Investor (ERM)

INVESTMENT SUMMARY

Euromoney’s H118 results show that all the KPIs are moving broadly in the right direction,with revenues ahead by 3%, adjusted PBT up 6% and reduced net debt. The picture shownby the moving parts is more complex, with income streams from asset managementremaining under pressure but good growth from Pricing, Data and Market Intelligence and astrong performance in Events. The completion of the GMID disposal since the period endhas bolstered the balance sheet by a further net £103m, giving plenty of scope for thepursuit of further acquisitions to support growth. FD Colin Jones is set to retire on 15 June,ahead of the arrival of Wendy Pallott.

INDUSTRY OUTLOOK

Management’s internal view was that the weakness in Asset Management related to theimpact of MiFID II. It is now regarded as a longer-term structural problem around overallindustry costs and the value obtained from spending on research. Our numbers are basedon the assumption that there is no immediate recovery in underlying customers’ markets.Banking, finance and commodity markets are continuing to build in confidence.


2016 403.1 104.3 102.5 66.6 19.6 15.9

2017 428.4 110.3 106.5 76.4 17.1 12.4

2018e 405.0 109.4 103.5 72.8 17.9 13.3

2019e 410.0 110.3 105.0 74.6 17.5 12.8





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 (3.6) (9.9) (35.3)Relative* (2.8) (8.6) (33.3)* % 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 production has now started. We continue to expect EverSweet to belaunched during 2018, and a royalty stream will start to accrue to Evolva. Evolva also hasprojects for resveratrol, nootkatone, valencene (all on the market). We expect moreCargill-style partnerships as Evolva focuses on an asset-light strategy.

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)

2016 9.6 (34.0) (35.9) (6.8) N/A N/A

2017 6.8 (37.6) (40.9) (7.0) N/A N/A

2018e 8.8 (35.2) (35.6) (4.0) N/A N/A

2019e 22.4 (28.0) (28.4) (3.2) 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 0.0 (7.2) (30.6)Relative* 8.8 (4.3) (32.4)* % Relative to local indexAnalystKatherine Thompson

Expert System (EXSY)

INVESTMENT SUMMARY

Expert System saw an uptick in demand towards the end of FY17, resulting in revenues andEBITDA ahead of our forecasts. The company has revised its outlook for FY18/19,expecting double-digit sales growth and EBITDA margin expansion; we have revised up ourFY18 forecasts to reflect this. The company expects to burn cash in FY18 before turningcash-flow positive in FY19. Evidence of sustained customer demand combined with goodcost and cash control will be key to share price upside.

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.


2016 25.1 (2.2) (6.1) (22.0) N/A 15.2

2017 27.8 1.7 (5.4) (18.3) N/A N/A

2018e 30.5 4.0 (1.8) (4.5) N/A 14.7

2019e 34.8 7.0 1.0 2.4 51.3 6.6


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 (10.6) 7.9 15.6Relative* (17.7) (1.6) 9.9* % Relative to local indexAnalystPaul Hickman

Findel (FDL)

INVESTMENT SUMMARY

At FY18 pre-close, management guided PBT at the top end of market expectations, onstrong growth in customer numbers and sales at Express Gifts trading as Studio; strongercollections and recoveries by the credit business; and good progress on the turnaround atFindel Education. Studio is increasing its transition to an online model, with 72% of ordersonline in Q318, significantly higher than 65% for Q317. Core FY18 net debt was c £74m,down c £7m from the previous year. We upgraded our FY18e PBT by 2%.

INDUSTRY OUTLOOK

In the three months to April 2018, UK retail sales (excluding fuel) increased by 1.3% y-o-yby volume, reversing previous declines and 3.5% by value against a flat result in March,probably reflecting better weather. Online sales rose by an average 11.7% over the samethree months, representing a tailwind for Studio. The consumer is under pressure and valueoffers should benefit on a relative basis. The squeeze on schools' budgets continues torestrain the education supply sector.


2016 410.6 41.8 24.8 23.0 10.1 22.6

2017 457.0 40.8 22.2 20.4 11.4 16.4

2018e 477.4 47.2 26.5 25.4 9.2 21.5

2019e 505.6 51.9 28.5 27.3 8.5 7.2

Sector: Pcare & household prd



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

Price performance% 1m 3m 12mActual 3.6 32.8 60.9Relative* 2.2 27.6 55.6* % Relative to local indexAnalystPaul Hickman

Focusrite (TUNE)

INVESTMENT SUMMARY

Focusrite delivered an outstanding first half with substantial growth on all metrics, across allterritories and in both product brand groups. Constant currency revenue growth of 26% wasdouble that of FY17 although, after an unprecedented pre-Christmas period, the shape oftrading may be becoming more seasonal. EBITDA grew by 30.0% y-o-y and operating profitby 36.3%. Net cash has grown since year end by £5.6m to £19.7m. We again upgraded ourFY18e PBT 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 50% share of themass interface market, c 10% of the semi-professional Thunderbolt market and 2% of thecommercial market, with Novation, maker of the Launchpad, also ranking highly in itsmarkets.

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

2016 54.3 10.2 7.7 11.8 40.0 N/A

2017 66.1 13.1 9.5 14.8 31.9 N/A

2018e 75.4 15.1 10.8 16.3 28.9 N/A

2019e 80.0 15.7 11.5 17.0 27.7 N/A


Sector: Technology

Price: NIS2.04Market cap: NIS224mMarket NASDAQ, 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. FRSX also has astake in rail ADAS specialist, RailVision.

Price performance% 1m 3m 12mActual (29.3) (39.2) (39.7)Relative* (27.9) (36.1) (43.7)* % Relative to local indexAnalystAnna Bossong

Foresight Autonomous Holdings (FRSX)

INVESTMENT SUMMARY

Foresight (FRSX) is engaged in the design, development and commercialisation ofstereo/quad-camera automotive vision systems and V2X cellular-based solutions for theauto industry. In Q118 the group launched its QuadSight demo vision system at CES andalso its mobile phone-based Eye-Net solution, with real-time collision alerts to pedestriansand drivers. It expects to have a prototype of QuadSight by mid-2018 which we expect tolead to pilot trials in H218. FRSX’s 32.6%-owned Rail Vision, a rail collision warningspecialist, is also achieving very encouraging results in tests of its rail ADAS solution withmajor rail operators. Recent fatalities in the autonomous vehicle sector have led to us topush back revenue forecasts 12 months. Group cash holdings totalled $21.8m at YE17.

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.


2016 0.0 (3.3) (3.4) (4.98) N/A N/A

2017 0.0 (6.4) (5.3) (5.59) N/A N/A

2018e 0.0 (10.9) (13.3) (12.08) N/A N/A

2019e 2.6 (13.1) (11.6) (10.56) N/A N/A

Sector: Media



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

Price performance% 1m 3m 12mActual 19.9 29.7 100.4Relative* 15.0 23.3 91.5* % Relative to local indexAnalystFiona Orford-Williams

Future (FUTR)

INVESTMENT SUMMARY

Future delivered strong H118 figures, with management confident of meeting full yearexpectations. We have updated our forecasts to include the two recently completedtransactions, Newbay Media in the US and four specialist titles acquired from Haymarket inthe UK. Management’s ambitious growth strategy is playing out as envisaged, withdiversifying revenue streams and broadening market reach based on good-quality contentand data. The US opportunity is particularly attractive. Good momentum underpins thevaluation, with some further possible upside.

INDUSTRY OUTLOOK

As Future migrates its content to digital it becomes inherently more profitable, unlike manyother media companies. By buying print assets at modest valuations, it can leverage thebrands and content by adding them to its existing proprietary platform. With its data-centricapproach, it is in a strong position to drive digital revenues and also to add and grow itse-commerce opportunities. Further high margin revenues can be generated reusing contentacross channels. A growing events portfolio further increases brand engagement and bringsattractive working capital characteristics.


2016 59.0 5.2 2.3 9.2 55.0 N/A

2017 84.4 11.0 8.3 21.0 24.1 N/A

2018e 110.0 18.0 14.4 22.9 22.1 N/A

2019e 124.5 21.3 17.4 26.0 19.5 N/A





Company descriptionGame Digital is the leadingomni-channel specialist retailer ofvideo games in the UK and Spain, with304 stores in the UK, 268 stores inSpain and over 30% market share.

Price performance% 1m 3m 12mActual (10.3) 20.0 (24.4)Relative* (4.0) 4.1 (26.4)* % Relative to local indexAnalystPaul Hickman

Game Digital (GMD)

INVESTMENT SUMMARY

Game Digital is executing a major strategy change, moving to gaming experiences whilereducing dependence on the traditional product-related cycle. Under a February 2018collaboration agreement with Sports Direct it plans to roll out its BELONG gaming arenaconcept to c 100 arenas in three years. At interim, EBITDA was down 9% on mix issues,although the strong market augurs well for future periods. We reduced our FY18e EBITDAfrom £12.3m to £10.8m, mainly due to the delay to the BELONG roll-out on re-specificationof the concept ahead of the collaboration agreement.

INDUSTRY OUTLOOK

The UK and Spanish console markets (hardware, software, accessories and console digital)are worth c US$2.2bn and US$1.2bn, respectively. The traditional cycle that has peakedevery six years since 2000 seems to be moving to shorter intervals. This could signalstructural changes analogous to the mobile and PC markets. In addition, the global esportsmarket, currently US$0.7bn, is forecast to grow to US$1.5bn by 2020.

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

2016 821.9 26.4 14.8 8.0 4.1 1.3

2017 782.9 8.0 (4.3) (3.8) N/A 18.7

2018e 821.0 10.8 (1.4) (0.6) N/A 6.3

2019e 840.8 15.1 0.8 0.4 82.5 2.9

Sector: Technology



Company descriptionGBG is a specialist in identity dataintelligence. Its products/services allowcustomers to better understand andverify their clients and employees, andare used across a range of fraud, riskmanagement, compliance and clientonboarding services. Based in the UK,it operates in 17 countries, generating30% of revenues internationally. Price performance% 1m 3m 12mActual 5.2 23.5 32.2Relative* (1.8) 22.2 27.9* % Relative to local indexAnalystBridie Barrett

GB Group (GBG)

INVESTMENT SUMMARY

GBG's FY18 trading update showed both revenues and EBITA coming in ahead of ourforecasts. It expects FY18 revenues of £119.7m, up 37% y-o-y and 2% ahead of ourforecast and EBITA of c £26m, 12% ahead of our forecast. Underlying revenue growth of15% implies a pick-up from 12% in H1 to 17% in H2. Mix effects and the recognition of a£3.5m perpetual licence sale within ID Scan in H1 meant at 21.8% the operating marginwas ahead of management’s targeted trend margin of 20%. Year-end net cash of £13.4mwas considerably better than forecast (£2.9m net debt). This excellent momentumunderpins our 12% organic revenue growth forecast in FY19 and the strong balance sheetprovides additional support to the group’s buy-and-build strategy. Full year results will bereported on 5 June.

INDUSTRY OUTLOOK

Globalisation and the growth in internet trading have also resulted in the need for highercompliance standards in light of the rising scope and financial impact of cybercrime. This, inturn, is driving the demand for more complex and comprehensive solutions for theverification of personal data.

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

2016 73.4 14.8 13.2 8.2 64.0 48.1

2017 87.5 18.7 16.5 9.9 53.0 42.4

2018e 119.7 28.0 25.4 13.2 39.8 28.2

2019e 133.4 29.3 26.5 13.5 38.9 29.7


Sector: Property

Price: €9.60Market cap: €1272mMarket AIM


Company descriptionGlobalworth Real Estate Investmentsis incorporated in Guernsey. It is a realestate investment company targetingopportunities in south-east Europe andCEE, and currently focused onRomania and Poland (throughsubsidiary GPRE).

Price performance% 1m 3m 12mActual 3.8 6.7 28.9Relative* (0.4) 0.6 24.6* % Relative to local indexAnalystMartyn King

Globalworth Real Estate Investments (GWI)

INVESTMENT SUMMARY

GWI has continued to execute on its growth plans in recent weeks, finalising the €35.8macquisition of a recently completed high-quality office property in Wroclav, Poland, thesubject of an existing forward purchase agreement, and agreeing terms on the €139mcorporate acquisition of a business park in Krakow. At year-end 2017, the investmentportfolio was valued at €1.8bn (63% Romania/37% Poland), with contracted rental incomeof c €116m and commercial standing portfolio occupancy of 93.3% (93.7% at end-February2018 or 96.1% including tenant options). EPRA NAV per share was €8.84 (FY16: €8.57).Whereas the balance sheet reflected the acquisition of a 71.7% controlling stake inGlobalworth Poland (formerly GPRE) late in the year, the p&l impact (net operating incomeof €51.1m and normalised EBITDA of €41.2m) was minimal. GWI has guided to a 2018DPS of at least €0.54 (2017: €0.44).

INDUSTRY OUTLOOK

The Romanian and Polish economies continue to perform well, which should supportoccupier and investment demand for commercial property assets.


2016 43.6 36.3 7.9 13.3 72.2 14.1

2017 51.1 41.2 15.7 17.9 53.6 37.7



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 (5.0) (3.3) (21.3)Relative* 3.3 (0.3) (23.3)* % Relative to local indexAnalystBridie Barrett

GO internet (GO)

INVESTMENT SUMMARY

Go Internet recently announced two major initiatives to further extend its next-generationnetwork capacity in its existing regions of Marche and Emilia Romagna. Afrequency-sharing agreement with Linkem, which has also taken a 21% stake in teh groupfor €4m, to finance the build of a more powerful 5G network. In addition, GO plans to offer,in partnership with Enel Open Fibre, a 1Gbps fibre-to-the-home broadband service to 23cities in Emilia-Romagna and Marche. Together these initiatives would add considerablecapacity for growth. While the step-up in capital expenditure required for the network buildwould necessitate the refinancing of €3m of debt facilities, the proposed €4m capitalinjection by Linkem should enable gearing to remain comfortable; we forecast it peaking in2020 at 1.2x EBITDA.

INDUSTRY OUTLOOK

The Italian broadband market is relatively under-penetrated 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.


2016 6.4 3.0 0.5 34.0 3.9 N/A

2017 6.6 2.8 (0.2) (12.0) N/A N/A

2018e 7.5 3.0 (0.3) (28.0) N/A N/A

2019e 9.2 3.7 (0.1) (7.0) N/A N/A





Company descriptionWith nearly 1,900 shops, ninemanufacturing centres and 22,000employees, Greggs is a leading UK‘food-on-the-go’ retailer. It utilisesvertical integration to offerdifferentiated products at competitiveprices.

Price performance% 1m 3m 12mActual (12.0) (11.2) (1.9)Relative* (15.6) (23.9) (5.7)* % Relative to local indexAnalystPaul Hickman

Greggs (GRG)

INVESTMENT SUMMARY

Greggs’ strategy is to be the nation's favourite food-on-the-go retailer. H2 results improved,with higher revenue growth and operating margin than in H1. At the pre-tax level, theyshowed an expected turnaround. Gross margin has been held consistent with ingredientcost pressure mitigated by cost reductions. In the first eight weeks of 2018, managedlike-for-like sales grew 3.2%. We upgraded our FY18 forecast by 4.7% at the EBITDA leveland 5.7% at PBT. The focus for the strategy is now on the transformation of the supplychain.

INDUSTRY OUTLOOK

Greggs enjoys an expanding market. The Project Café2017UK report (Allegra World Coffeeportal) valued the UK coffee shop market in 2016 at £8.9bn, +12% y-o-y. Branded outlets(including Greggs) accounted for £3.7bn. Allegra estimates it could reach £16bn by 2025.The squeezed consumer is a potential concern, although arguably Greggs is well placed forthe value switch after widespread refurbishments extended customer options as it moves towiden its market.


2016 894.2 125.9 80.3 62.0 17.1 8.0

2017 960.0 135.7 81.8 64.5 16.4 7.9

2018e 1012.2 138.3 81.9 63.7 16.7 7.7

2019e 1083.6 146.1 83.8 65.9 16.1 7.3

Sector: Technology



Company descriptionGVC Holdings is a leading e-gamingoperator in both the B2C and B2Bmarkets. Following the acquisition ofLadbrokes Coral in 2018, it now has amarket-leading position in UK retailbetting. About 90% of revenues arederived from regulated and/or taxedmarkets.

Price performance% 1m 3m 12mActual 14.0 14.9 26.4Relative* 9.7 5.5 26.9* % Relative to local indexAnalystVictoria Pease

GVC Holdings (GVC)

INVESTMENT SUMMARY

By acquiring Ladbrokes Coral, GVC will become a FTSE 100 global gaming business, withpro forma FY18e revenues of £3.4bn. With strong brands, diversified revenues and asuperior technology, GVC is well positioned to benefit from increased scale and weanticipate the deal to be highly accretive, due to the £100m+ cost synergies. GVC isproviding FY17 pro forma figures on 25 May and following the recent announcement of a £2FOBT limit, our forecasts are under review.

INDUSTRY OUTLOOK

In the UK, the DCMS's consultation on the Triennial Review has now concluded, with thedecision to limit FOBT stakes to £2. GVC believes this will have an ultimate £120m impacton EBITDA. The proposal to increase remote gaming duty at the next budget would alsohave a negative effect on all online gaming operators.


2016 3094.3 555.6 284.2 N/A N/A N/A

2017 3257.5 651.8 434.2 N/A N/A N/A

2018e 3402.0 747.5 523.0 76.15 13.5 N/A

2019e 3413.6 743.4 504.6 73.29 14.0 N/A


Sector: Oil & gas

Price: €7.23Market cap: €2210mMarket Athens Stock Exchange


Company descriptionHellenic Petroleum operates threerefineries in Greece with a totalcapacity of 341kbd, and has sizeablemarketing (domestic and international)and petrochemicals divisions.


Hellenic Petroleum (ELPE)

INVESTMENT SUMMARY

We recently adjusted our forecasts to mark to market for Q118, while reflecting theanticipated positive margin impact of shipping regulatory changes in late 2019 and 2020.Longer term, European refining overcapacity remains a concern with capacity growthexceeding product demand growth – OPEC expects Europe to account for c 51% ofprojected global refinery closures in the period 2018–2020. ELPE remains well placed toweather the storm, given recent investments enhancing complexity and middle-distillateyield; however, competition from marginal refineries is likely to remain a drag onbenchmarks. Our updated blended P/E, EV/EBITDA and DCF valuation stands at€9.0/share, down from €9.3/share.

INDUSTRY OUTLOOK

European refining will likely face continued challenges in the coming years as demand fallsand refinery systems elsewhere (Asia/US) hold structural advantages. To offset this,changing regulations should put complex, middle distillate-orientated refineries such asELPE’s in a strong position.


2016 6680.0 731.0 361.0 0.82 881.7 2.6

2017 7995.0 833.0 502.0 1.20 602.5 4.8

2018e 7947.0 789.0 496.0 1.22 592.6 N/A

2019e 7944.0 748.0 459.0 1.13 639.8 5.0

Sector: Oil & gas



Company descriptionHurricane Energy is an E&P focusedon UKCS fractured basementexploration and development. It owns100% of its licences, including the523mmbbl (RPS 2P reserves plus 2Cresources) Lancaster oil discovery,West of Shetland.

Price performance% 1m 3m 12mActual 1.5 38.3 (10.0)Relative* (1.6) 29.4 (12.6)* % Relative to local indexAnalystSanjeev Bahl

Hurricane Energy (HUR)

INVESTMENT SUMMARY

Hurricane Energy is a UK-based E&P focused on hydrocarbon resources in naturallyfractured basement reservoirs. Hurricane's recent CPR highlighted 2P reserves + 2Cresources of 2.6bn boe across all assets. Management’s concept selection and contractingstrategy appears to be delivering the desired result and it has reiterated that the LancasterEPS remains on time and on budget with Xmas Trees recently installed on the two existingwells and the departure of the EPS buoy scheduled to arrive in the Shetland Isles by theend of June, allowing operations to take place as scheduled by the end of Q318. First-oilremains scheduled for H119. Our last published valuation stands at RENAV 78.4p/share,including a Lancaster EPS-only valuation of 32.7p/share based on a long-term (2022) oilprice assumption of $70/bbl Brent.

INDUSTRY OUTLOOK

Lancaster EPS development benefits from the recent recovery in Brent crude and isforecast to generate a point-forward IRR of c 40% based on our commodity priceassumptions.


2016 0.0 (6.5) 0.9 0.1 589.6 N/A

2017 0.0 (7.0) (7.0) (0.5) N/A N/A




Sector: Technology



Company descriptionIQE is the leading supplier of epitaxialcompound semiconductor wafersglobally. The principal applicationsinclude radio frequencysemiconductors, devices for opticalnetworks, vertical cavity lasers,infrared semiconductors, powerelectronics and CPV solar cells.

Price performance% 1m 3m 12mActual 11.1 (10.2) 67.4Relative* 7.7 (22.3) 63.1* % Relative to local indexAnalystAnne Margaret Crow

IQE (IQE)

INVESTMENT SUMMARY

Total revenues rose by 16% to £154.5m y-o-y during FY17. The 21% rise in wafer saleswas driven predominantly by volume ramp-up during H217 of VCSEL programmes whichwe infer relate to the iPhone X. Photonics revenues doubled, while wireless revenues wereflat. Adjusted PBT rose by 18% to £24.3m. The group moved from £39.5m net debt at endFY16 to £45.6m net cash at end FY17 following a Placing at 140p/share raising £95m(gross) to finance additional capacity and development work to support expected demand inphotonics. We note the potential for sustained growth over the next three to five years.

INDUSTRY OUTLOOK

Management estimates that existing volume programmes will deliver 35-60% growth inphotonics revenues during FY18 and that programmes under development are likely todeliver 40-60% CAGR for photonics revenues over the next three to five years. Theseinclude VCSELs for hand and body tracking, collision avoidance systems, datacommunications and industrial applications such as heating, indium phosphide wafers forhigh speed data networks and infrared sensitive wafers for healthcare applications.


2016 132.7 33.1 20.6 2.89 39.8 34.4

2017 154.5 38.4 24.3 3.36 34.3 26.7

2018e 174.9 47.9 32.8 3.63 31.7 22.6

2019e 203.8 59.0 42.3 4.63 24.9 17.7




Company descriptionJackpotjoy plc (JPJ) is a leading onlinegaming operator mainly focused onbingo-led gaming targeted towardsfemale audiences. Around 76% ofrevenues are generated in regulatedmarkets.

Price performance% 1m 3m 12mActual 8.4 10.1 49.6Relative* 2.1 4.0 44.5* % Relative to local indexAnalystVictoria Pease

Jackpotjoy plc (JPJ)

INVESTMENT SUMMARY

JPJ has a c 22% market share in the c £650-700m UK bingo-led market, with additionalgrowth in other markets, including Spain and Sweden. 2017 was a transformational year forJPJ, with a successful London listing followed by substantial improvements in the capitalstructure. Strong trading continued into 1Q18, with revenues up 13%, driven by internationalgrowth. After the final major earn-out payment in June 2018, we expect meaningfuldeleveraging.

INDUSTRY OUTLOOK

Regulus Partners estimates UK online bingo and slots market growth of 11% CAGRbetween 2014-2021. Last year's extension of the UK 15% gaming tax from net to grossrevenues impacts UK EBITDA margins by 3-4%. In addition, a potential 5% increase inremote gaming duty at the next budget would impact group EBITDA by c 9%.


2016 269.0 102.2 83.5 112.6 7.9 7.5

2017 304.7 108.6 78.2 103.9 8.5 6.4

2018e 334.5 113.6 93.7 120.4 7.4 6.3

2019e 358.7 116.5 102.0 128.1 6.9 6.2





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 2.6 (1.4) 10.4Relative* (2.4) (8.8) 6.8* % Relative to local indexAnalystGraeme Moyse

Jersey Electricity (JEL)

INVESTMENT SUMMARY

JEL's recent interim results indicated that it is well placed to meet our FY18 forecasts.Operating profit rose by 9.3%, to £10.4m (from £9.5m) mainly due to a strong performancefrom the dominant Energy business which increased operating profits from £7.7m to £8.7m.The rise in core business profitability was achieved thanks to a 2% increase in units sold,offset in part by higher energy purchase costs (due to foreign exchange movements). Netdebt fell further during H1 to £20.2m (£21.9m at 30 September 2017) helped by the higherprofits and reduced capex. The DPS was increased by 5%, in line with our FY18 forecasts.We believe that the outlook for H2 appears favourable and increased tariffs (+2% fromJune) and the seasonal reduction in receivables should contribute to the continueddownward trend in net debt. Our forecasts remain unchanged.

INDUSTRY OUTLOOK

Supplying secure, affordable and sustainable electricity, JEL is well positioned to withstandany changes to its regulatory regime.

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

2016 103.4 24.6 14.8 32.2 15.0 N/A

2017 102.3 25.5 13.5 34.6 14.0 6.3

2018e 104.1 26.4 13.6 34.8 13.9 5.9

2019e 107.5 26.7 13.8 35.3 13.7 5.6

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 0.8 13.9 4.5Relative* (3.4) 5.3 2.3* % Relative to local indexAnalystGraeme Moyse

John Laing Group (JLG)

INVESTMENT SUMMARY

JLG's FY17 results demonstrated further growth, with the NAV per share +10.5%, to 306p,and the DPS (incl. special), +30.2% to 10.61p (figures unadjusted for rights issue). FY17was characterised by high levels of activity as JLG disposed of investments worth £289mand entered into investment commitments of £383m. JLG guides to investmentcommitments and disposals of c £250m for FY18 and FY19 (before the rights issue) andrecently completed the sale of IEP Phase I. The pipeline of new investment opportunitiesstood at £2.15bn at the year end. Following the successful conclusion of the rights issue,JLG's share price has risen and now stands at a small premium to its NAV (adj.for rightsissue) of 281p/share. The prospects for investment in international infrastructure remainsstrong and we believe the outlook remains attractive.

INDUSTRY OUTLOOK

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


2016 260.8 203.2 192.1 51.9 5.5 8.4

2017 196.7 138.1 126.0 31.9 8.9 N/A

2018e 260.3 200.5 189.6 40.6 7.0 N/A

2019e 289.8 228.8 217.4 44.4 6.4 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.

Price performance% 1m 3m 12mActual (8.6) (20.8) (53.3)Relative* (14.0) (27.4) (55.0)* % Relative to local indexAnalystCharles Gibson

KEFI Minerals (KEFI)

INVESTMENT SUMMARY

KEFI has formally mandated the placing of US$160m of Luxembourg-listed infrastructurebonds to fund the gold processing plant etc at Tulu Kapi. Subject to completion of all duediligence, documentation and government approvals, drawdown and development isplanned for September. In the meantime, management reports that Ethiopia's transition to anew political leadership is progressing smoothly.

INDUSTRY OUTLOOK

Once developed, we calculate that Tulu Kapi is capable of generating free cash flow of c£38.6m a year and paying average (maximum potential) dividends of 2.10p/share for thefive years from 2024 to 2028, which we value at 6.38p/share (fully diluted at a 10% discountrate). However, this valuation increases to 13.02p in the event that KEFI is successfully ableto leverage its cash flow from the mine into other assets in the region. In the meantime, thestock is trading on a resource multiple of just US$7.64/oz - 25% below our estimate of theglobal average discovery cost of an equivalent resource.


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 (2.7) (2.9) (0.9) N/A N/A

2018e 0.0 (2.5) (2.8) (0.4) N/A N/A

Sector: Technology



Company descriptionKeywords Studios is now the largestand most diverse supplier ofoutsourced services to the gamesindustry. Through regular acquisitions,the company is building its scale,geographic footprint and deliverycapability.

Price performance% 1m 3m 12mActual 0.1 14.2 119.0Relative* 1.0 7.8 109.2* % Relative to local indexAnalystDan Ridsdale

Keywords Studios (KWS)

INVESTMENT SUMMARY

FY17 was a transformative year for Keywords with revenues growing by 57% and EPS by52%. Like-for-like revenue growth accelerated to 15.1% (we estimate 18% stripping outrecent acquisitions) highlighting the company’s strengthened position in the supply chain.With an expanded debt facility, we believe the company potentially has the acquisitionfirepower to more than double its EPS run rate exiting FY18, and see no obvious reasonwhy the cycle should not repeat in FY19. The shares price in further strong progress, butnothing is new there, and sustained execution should continue to drive strong returns.

INDUSTRY OUTLOOK

Growth is supported by a generally buoyant environment in the global games developmentindustry; market analyst Newzoo estimates the industry grew 10.7% in 2017 and will expandat an annual rate of 7.2% through to 2020. Industry consolidation is ongoing and there is acontinued trend to technical outsourcing as publishers seek to improve flexibility andefficiency. Both trends should benefit Keywords.


2016 96.6 16.9 14.9 20.3 100.1 66.2

2017 151.4 26.6 23.0 29.9 68.0 64.9

2018e 248.5 42.3 36.7 46.8 43.4 35.6

2019e 276.0 47.1 40.9 50.9 39.9 33.5





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 UKand Italy.

Price performance% 1m 3m 12mActual (11.2) (18.5) (2.2)Relative* (3.4) (16.0) (4.7)* % 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 updated business plan includes an industrial plan whichentails significant investment in the business over the next three years in order to boostcapacity in the higher margin products, and also structurally reduce costs in the longer term.The main catalyst in the shorter term will be the result of the 2018 fruit and vegetablecampaigns, which will become apparent with the Q2 results in September.

INDUSTRY OUTLOOK

La Doria's strategic objectives, published as part of its four-year plan, are broadlyunchanged: the priority is to expand the higher margin and less volatile parts of thebusiness to reduce the dependence on the more unpredictable ‘red line’. The economicbackdrop remains challenging.


2016 653.1 56.3 37.3 108.8 10.0 5.1

2017 669.1 60.1 39.7 98.1 11.1 8.5

2018e 689.2 59.2 42.2 99.3 11.0 6.5

2019e 709.8 64.5 45.5 107.1 10.2 7.2




Company descriptionLeclanché is a fully vertically integratedenergy storage solution provider. Itdelivers a wide range of energystorage solutions for homes, smalloffices, large industries and electricitygrids as well as hybridisation for masstransport systems such as bus fleetsand ferries.

Price performance% 1m 3m 12mActual 9.9 (14.0) (17.0)Relative* 10.8 (12.7) (14.4)* % Relative to local indexAnalystAnne Margaret Crow

Leclanché (LECN)

INVESTMENT SUMMARY

Revenues, excluding CHF3.5m grant income, primarily for a European ferry project, halvedyear-on-year during FY17 to CHF11.7m. Revenue growth would have been substantiallystronger if Leclanché had had sufficient funding to make faster progress on two largeongoing stationary energy storage projects in North America. EBIT widened, fromCHF34.5m to CHF36.1m, as the restructuring and cost-reduction exercises taken in lateFY16 and early FY17 were offset by higher consulting costs and commissions on financing.

INDUSTRY OUTLOOK

During December and January, Leclanché secured CHF74.0m additional investment fromits largest shareholder. Management estimates this is sufficient to fully finance the companythrough to Q219 but is seeking additional finance to take the company through to 2020,when it expects to be solidly EBITDA-positive. Importantly, the investment provides the cashto deliver on the pipeline of contracts already received for delivery during FY18, which total55MWh of capacity.These include a 33MWh battery storage plant in Cremzow, Germany, a4MWh project with NRStor in Canada, a 15MWh project with swb in Germany and a projectto develop and install a network of 34 fast-charging stations along the Trans-CanadaHighway.

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

2016 28.1 (27.4) (36.8) (85.0) N/A N/A

2017 11.7 (31.2) (37.9) (68.4) 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 2018.

Price performance% 1m 3m 12mActual (20.0) 83.9 23.1Relative* (20.9) 84.0 16.6* % 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. LCK raisedA$21.85m of new equity in 2017 with net proceeds being used to fund the company’spre-commercial ISG demonstration project. A new cornerstone investor has also beenadded to LCK’s shareholder register, China New Energy. Our RENAV of $0.26/sharereflects this source of funding.

INDUSTRY OUTLOOK

SA power prices have been volatile due to concentrated generator ownership, coal plantclosures, limited import capability and higher than national average dominance ofrenewables. SA was the hardest hit state when energy retailers increased pricing by up to20% in June 2017. The above-ground plant construction has been recently approved by theregulator.


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

2017 0.0 (6.2) (6.2) (1.9) N/A N/A

2018e 0.0 (6.2) (6.2) (1.5) N/A N/A

2019e 0.0 (6.2) (6.3) 0.2 80.0 66.5

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 2.6 (18.4) 220.8Relative* 1.4 (18.3) 203.9* % Relative to local indexAnalystTom Hayes

Lepidico (LPD)

INVESTMENT SUMMARY

Lepidico's disruptive (patent-pending) L-Max metallurgical technology recovers lithium fromoverlooked minerals such as lepidolite (a form of mica). The process uses readily availablechemicals and large-scale tests have demonstrated stable and continuous operation. Arecent PFS estimated C1 cash costs of lithium carbonate production at near zero net ofby-products for a 3,000tpa operation (Phase 1). Engineered design for such a plant has nowbeen completed and a 67-100% capacity expansion is being evaluated. A full feasibilitystudy is scheduled for Q318.

INDUSTRY OUTLOOK

Lepidico’s strategic imperative is now the development of the Phase 1 plant as well as thecompletion of a feasibility study on an industrial-scale operation. At steady-state, weestimate that the Phase 1 plant is capable of generating A$28.1m per annum, which wevalue at A$66.6m after capex. Conceptual estimates for a Phase 2 plant envisageproducing c 7x as much lithium carbonate for 3.4x as much capex to generate 8x as muchNPV.


2016 0.1 (0.5) (2.3) 0.0 N/A N/A

2017 0.1 (0.8) (5.4) 0.0 N/A N/A

2018e 0.0 (0.9) (3.4) 0.0 N/A N/A

2019e 0.0 (0.9) (5.4) 0.0 N/A N/A


Sector: Oil & gas

Price: A$0.43Market cap: A$223mMarket 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 7.4 (10.3) (35.1)Relative* 6.2 (10.3) (38.5)* % Relative to local indexAnalystSanjeev Bahl

Liquefied Natural Gas Limited (LNGL)

INVESTMENT SUMMARY

Liquefied Natural Gas’s (LNGL) Magnolia development is up to 30 months ahead of otherUS-based greenfield liquefaction plants in regulatory approvals, putting it in prime positionfor buyers/traders looking to take advantage of the expected rebalancing of the LNG marketin 2022-23. With low capex/opex/gas prices, the project has the potential to be verylucrative for partners selling to Europe/Asia. As a result, we now expect LNGL to sign tollingagreements and move towards FID in 2018, with first production in 2023. Our valuationstands at A$1.00/share (US$3.23/ADR). On a longer-term basis, this valuation should growas the project is de-risked by tolling agreements and moves towards first LNG.

INDUSTRY OUTLOOK

LNGL has few listed peers. Cheniere is much larger and already producing, while Tellurian(owner of the Driftwood LNG project) and Next Decade (IPO ongoing) are planning muchlarger projects, but are some way behind the Magnolia project on regulatory approvals.


2016 7.0 (101.0) (101.0) (0.2) N/A N/A

2017 1.0 (27.0) (27.0) (0.1) N/A N/A

2018e 0.0 (22.0) (20.0) 0.0 N/A N/A

2019e 0.0 (34.0) (34.0) (0.1) N/A N/A

Sector: Technology



Company descriptionLocation Sciences (previouslyProxama) has a suite of mobilelocation data and AI-powered audienceattribution products. Its first-party dataare ultra-precise and ‘always on’,providing a reliable picture of adevice’s movements.

Price performance% 1m 3m 12mActual 61.4 73.2 (50.3)Relative* 56.4 62.0 (51.8)* % Relative to local indexAnalystBridie Barrett

Location Sciences (LSAI)

INVESTMENT SUMMARY

In its May trading update, Location Sciences indicated that it met its H1 revenue expectationover a month early with an influx of client wins for its online to offline and out-of-homeadvertising products. The new verification product is in beta with a number of clients and thegroup, which only launched its location sciences division in September 2017, hasannounced a number of partnerships in recent months - as Google's only certified LSPprovider outside the US and more recently, Havas. As H118 revenues are coming from alow base, we leave our full-year forecasts unchanged for now.

INDUSTRY OUTLOOK

Management considers the data being collected to be of unrivalled accuracy, enabling aprecise but anonymous picture of consumer habits to be built. While online ads to onlinestore conversion is established, Location Sciences can verify or predict a user’s real worldbehaviour making it valuable to a range of sectors; in particular for media or advertisingattribution – a potentially vast market.


2016 0.3 (2.5) (4.7) (0.32) N/A N/A

2017 0.5 (2.7) (4.4) (0.06) N/A N/A

2018e 0.6 (1.0) (1.4) (0.01) N/A N/A

2019e 2.3 0.3 (0.1) 0.0 N/A N/A


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 5.2 12.8 34.0Relative* 1.5 5.1 29.2* % Relative to local indexAnalystAndrew Mitchell

London Stock Exchange Group (LSE)

INVESTMENT SUMMARY

In April the LSE announced the appointment of ex-Goldman banker David Schwimmer as itsnew CEO. He has market infrastructure sector experience but, as a recruit from outside theindustry, there are no indicators of any changes in direction he may initiate. The subsequentQ118 trading update showed total income up 13% including +11% for Information Services(accounting for 39% of group), while Post Trade: LCH grew 20% and Capital Markets wasup 13% (all figures organic and on a constant currency basis).

INDUSTRY OUTLOOK

LSE remains on track to meet the targets set out in its June 2017 investor update. Theseinclude continued double-digit revenue growth for 2017-19 with sustainable margins atFTSE Russell, similar growth in OTC clearing revenue at LCH with margins for this businessset to approach 50% by 2019 (35.6% 2016). For the group, expense growth should be heldat 4% pa 2017-19, with cost savings of £50m by the end of the period contributing to anEBITDA margin of c 55% by 2019 (46.5% 2016).


2016 1657.0 771.0 623.0 124.7 36.4 N/A

2017 1955.0 915.0 750.0 148.7 30.6 N/A






Company descriptionLookers is a leading UK motor vehicleand specialist parts distributor. Itoperates 155 franchises, representing32 marques spread across the UK.

Price performance% 1m 3m 12mActual 7.6 21.7 (13.9)Relative* 4.5 9.6 (14.4)* % Relative to local indexAnalystAndy Chambers

Lookers (LOOK)

INVESTMENT SUMMARY

Following another record year of performance in FY17, Lookers has continued tooutperform in Q118. Market conditions remain challenging in new car sales, however theused car market remains buoyant and growth is visible in aftersales. Management ispursuing its strategy of focusing on the right brands in the right locations supported byappropriate levels of investment. We expect this to continue with a remaining proactivefocus on costs. Comparatives should ease as FY18 progresses.

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.


2016 4088.2 97.6 64.9 13.13 8.2 3.3

2017 4696.3 105.4 68.4 14.14 7.6 6.5

2018e 4743.9 103.8 67.7 13.71 7.8 3.5

2019e 4884.5 106.3 70.4 14.46 7.4 4.0


Sector: Basic industries



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 (3.1) (11.3) (38.4)Relative* (6.2) (16.5) (41.1)* % Relative to local indexAnalystToby Thorrington

Low & Bonar (LWB)

INVESTMENT SUMMARY

Recent AGM comments suggest that overall demand conditions appear to be stable againstprevious updates and Q1 revenues were ahead of the prior year. The largest two divisions(46% of FY17 revenue, 77% of EBIT before central costs) remain the better performers inthis regard, although product mix and input costs are both flagged as headwinds. Therewere short progress reports on performance improvement initiatives in Civil Engineering(now under a special projects team) and Coated Technical Textiles, which were consistentwith previous comments and reminded us they are not quick fixes. A new seniormanagement team is in place with a clear agenda to improve operational and financialperformance. FY18 is going to be a transition year with a stronger than usual H2 bias.

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)

2016 400.0 52.8 29.2 6.0 8.9 5.2

2017 446.5 55.8 30.7 6.3 8.5 5.5

2018e 417.0 55.1 30.1 6.4 8.4 3.0

2019e 429.5 58.4 32.4 6.9 7.8 3.2




Company descriptionMarshall Motor is the seventh largestUK motor retailer, operating 101franchises across 23 brands at 86locations. With a strong presence inthe east and south, it is one of six UKdealership groups to represent the topfive volume and premium brands.

Price performance% 1m 3m 12mActual 0.6 6.1 9.6Relative* (4.0) 2.8 6.0* % 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. MMH delivered FY17 results thatexceeded our earnings estimates despite the challenges of softer UK car markets that arepersisting into FY18. The dilutive disposal of the leasing activity leaves MMH effectivelyungeared and in a strong position to pursue its growth strategy.

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.


2016 1899.4 38.4 25.4 26.2 6.3 1.3

2017 2268.9 46.4 29.1 30.8 5.4 2.1

2018e 2283.9 38.8 23.5 24.1 6.9 3.6

2019e 2334.4 39.2 24.0 24.6 6.7 3.7


Sector: Property



Company descriptionMedicX Fund is a specialist REIT,listed on the premium segment of theLSE, investing in primary healthcareinfrastructure in the UK and theRepublic of Ireland.

Price performance% 1m 3m 12mActual 0.5 (3.6) (11.3)Relative* (5.3) (8.7) (14.6)* % Relative to local indexAnalystMartyn King

MedicX Fund (MXF)

INVESTMENT SUMMARY

H118 saw continued portfolio and rental growth, with costs well controlled. The positiveresults were accompanied by a new dividend policy which will rebalance total returns partlyaway from dividends paid and more towards capital growth. The decision to target a lower,fully covered DPS from FY19 does not reduce the NAV total return potential and is asensible adjustment reflecting sustained tightening in property yields. Near-term acquisitionopportunities of £174m, include a £64m portfolio of income-producing properties that MXFhopes to complete by 8 June. The issue of 44.88m new shares at close to NAV is beingconsidered as part consideration, conserving existing debt headroom. Our revised forecastsindicate a rebalanced, prospective fully covered dividend of 3.90p for FY19, an attractive5% yield on the current share price, while the shares trade at a c 10% P/NAV discount topeers.

INDUSTRY OUTLOOK

Healthcare planning, with broad political support, suggests strong underlying demand formodern healthcare properties in both the UK and the RoI. In addition to providinginvestment opportunities, this seems likely to support rental growth.


2016 34.3 N/A 28.2 3.4 23.5 N/A

2017 35.9 N/A 33.3 3.5 22.8 N/A

2018e 40.5 N/A 39.9 4.0 20.0 N/A

2019e 47.2 N/A 31.9 4.1 19.5 N/A


Price: €1.00Market cap: €54mMarket 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 OCTG pipe services and supply.

Price performance% 1m 3m 12mActual (9.1) (17.4) (20.0)Relative* (10.1) (13.6) (13.9)* % Relative to local indexAnalystAnnabel Hewson

Medserv (MDS)

INVESTMENT SUMMARY

Medserv’s strategy to expand its geographic reach and range of services is bearing fruit.FY17 was affected by lower than expected demand and project delays, but Q118 resultsshow strong progress and the order backlog underpins future revenue performance. Achange of management and key shareholders at an early stage to source a strategicpurchaser have also been announced. Overall, the market backdrop for Medserv continuesto improve and underpin forecasts.

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 2016 added onshore OCTG services to thehistorical integrated offshore services offered in Malta and Cyprus. As new territories arebrought on stream, the potential for substantial revenue growth for the 2018-2020 periodshould become more tangible.


2016 32.8 5.0 (1.3) (2.1) N/A 88.0

2017 28.8 3.7 (3.6) (5.6) N/A 29.8

2018e 36.0 6.5 (1.4) (1.4) N/A N/A

2019e 39.3 10.5 2.2 4.7 21.3 6.6


Sector: Consumer support services

Price: €4.32Market cap: €134mMarket Milan Stock Exchange


Company descriptionMondo TV is a global media groupfocused on the production, acquisitionand exploitation of animated children’stelevision series. It owns the rights to>1,500 TV episodes and films anddistributes across 75 markets. 83% ofrevenues are generated in Asia.

Price performance% 1m 3m 12mActual (1.5) (24.6) 3.0Relative* 7.2 (22.2) 0.4* % Relative to local indexAnalystBridie Barrett

Mondo TV (MTVI)

INVESTMENT SUMMARY

TThe 50% increase in net profit in FY17 was delivered to budget and forecasts. Wemaintain our forecast for a further 45% increase in EBITDA in FY18, underpinned byexisting relationships and returning brands. As Mondo scales up, new opportunities arepresenting themselves: a potential minority investment in a new theme park in Chinaprovides evidence of the group’s widening ambitions as its licensing business grows. Theweakness in the share price this year leaves the company at a 40-50% discount to slowergrowing 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.


2016 27.4 18.1 12.7 31.11 13.9 N/A

2017 32.0 25.0 15.4 43.03 10.0 N/A

2018e 47.0 36.2 21.6 48.75 8.9 N/A

2019e 58.7 45.0 29.0 60.58 7.1 N/A

Sector: Technology

Price: NIS0.00Market cap: NIS#mMarket 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 N/A N/A N/ARelative* N/A N/A N/A* % Relative to local indexAnalystAnne Margaret Crow

Nano Dimension (NNDM)

INVESTMENT SUMMARY

Nano Dimension commenced roll-out of its commercial-grade DragonFly Pro printers duringH217. Since then it has sold 10 printers, some of which have been purchased by resellersfor demonstration purposes. This is a key aspect of Nano Dimension’s programme toeducate potential customers about the novel applications for which the technology can beused. Noting that FY18 sales will be skewed to the second half, we leave our estimates andindicative valuation of US$4.16/ADS unchanged.

INDUSTRY OUTLOOK

Nano Dimension generated US$635k revenues during Q118 (US$118k in Q117, US$440kin Q417), primarily from printer sales. Operating losses widened by $0.2m y-o-y to $4.1m.Although management raised $13.8m in February through a public offer and over-allotmentoption at US$2.00/ADS, it notes the need to raise further funds to reach cash-breakeven.Management estimates that cash burn remains at c $1.3m/month.


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

2017 0.9 (14.1) (16.4) (144.60) N/A 0.0

2018e 6.0 (10.8) (12.3) (67.80) N/A 0.0

2019e 11.7 (7.4) (9.1) (47.30) N/A 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 (0.1) 11.9 14.7Relative* (1.2) 12.3 10.2* % Relative to local indexAnalystDan Ridsdale

Nanoco (NANO1)

INVESTMENT SUMMARY

Nanoco’s £1.8m milestone payment from its major US partnership confirms that the scaleup is on track for commercial production to start in January 2019. The company remains ona course to deliver a significant inflection in financial performance, starting in H2.Medium-term visibility remains limited, but with revenue opportunities across threeapplications: sensors, display and lighting, Nanoco’s credentials as a platform technologycompany are also strengthened.

INDUSTRY OUTLOOK

Research and Markets estimates the global image sensor market was worth $14.19bn in2017 and forecasts that it will grow at a 9.75% CAGR to reach $24.8bn by 2023. Progressin the display market has been sluggish, but we still believe the opportunity could besignificant if the company can convert some TV deals in the pipeline.


2016 0.5 (11.2) (12.3) (5.20) N/A N/A

2017 1.3 (9.4) (10.6) (4.46) N/A N/A

2018e 4.7 (5.5) (6.4) (2.29) N/A N/A


Sector: Financials



Company descriptionNumis has grown to become one ofthe UK's leading institutionalstockbrokers and corporate advisers. Itemploys c 255 staff in offices inLondon and New York and had 208corporate clients at end March 2018.

Price performance% 1m 3m 12mActual 1.4 14.9 54.2Relative* (1.5) 10.3 48.5* % Relative to local indexAnalystAndrew Mitchell

Numis Corporation (NUM)

INVESTMENT SUMMARY

Numis made good progress in H118. Overall revenues were up 42% compared with H117and just 5% below the particularly strong second half last year. Capital markets showed thestrongest advance from the prior year period at +94% closely followed by advisory, +86%.Equities revenues were virtually unchanged, reflecting a moderate reduction in trading profitand a slight increase in institutional income. The implementation of MiFID II in Numis’ssecond quarter has so far been navigated without obvious adverse impact. While costs didincrease significantly (+27%) reflecting both variable compensation and investment in newstaff, the operating margin increased and pre-tax profits rose 87% to £19.5m.

INDUSTRY OUTLOOK

Investment in people and platforms to support future growth and our expectation of lowerportfolio gains restrains our earnings estimates for the moment but healthy deal pipelines,continued growth in the corporate client base (208 companies end H118) and the strongbalance sheet are positive indicators for the future, subject to market fluctuations.


2016 112.3 30.0 32.5 22.4 18.0 N/A

2017 130.1 36.0 38.3 25.9 15.6 N/A

2018e 144.5 38.4 37.8 26.2 15.4 N/A

2019e 147.7 39.2 38.6 27.3 14.8 N/A


Sector: Media



Company descriptionOnTheMarket is an estateagent-backed company, whichoperates a synonymous propertyportal. It is the third-largest UKresidential property portal provider interms of traffic.

Price performance% 1m 3m 12mActual 30.9 10.3 N/ARelative* 26.8 3.3 N/A* % Relative to local indexAnalystFiona Orford-Williams

OnTheMarket (OTMP)

INVESTMENT SUMMARY

OnTheMarket has recruited over 3,000 new agent branches since listing on 9 February.This takes its total to over 8,500 - encouraging progress in its plan to build market share inthe UK online property portal space. Visitor traffic to the website has also picked upstrongly, with 13.7m visits in April (March: 12m) and over 1m alerts set up. The £30m raisedat listing is being invested in sales and IT, as well as funding a managed ramping-up ofmulti-channel marketing activity, including the major TV and poster campaign in May, inaddition to sustained heavy digital marketing. The group will return a loss for FY19 andFY20, with profits modelled from FY21 onwards. Backed by long-term agent contracts, OTMhas high levels of recurring income on a scalable platform.

INDUSTRY OUTLOOK

The UK online property market is dominated by two portal providers, Rightmove and ZPG,the former being the clear market leader. While they generate high traffic, prices charged toparticipating agencies have risen, with no respite in sight prior to OTM’s arrival. In a marketwhere the volume of transactions has been under pressure, achieving good visibility is evenmore important. Silver Lake's recent bid for ZPG highlights the value.

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

2016 17.9 (1.1) (3.1) (8.8) N/A N/A

2017 17.8 3.3 1.0 2.7 65.2 N/A

2018e 16.0 5.0 2.2 6.2 28.4 N/A

2019e 18.0 (19.7) (21.4) (35.3) N/A N/A

Sector: Mining

Price: 4.1pMarket cap: £5mMarket 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.

Price performance% 1m 3m 12mActual (13.7) (52.5) (70.7)Relative* (17.7) (58.4) (70.9)* % Relative to local indexAnalystTom Hayes

Orosur Mining (OMI)

INVESTMENT SUMMARY

OMI’s Q3 results were released on 16 April. The main takeaway is that the company hasnotified that it expects to produce between 27koz Au and 30koz Au in FY18 vs its previousguidance of 30koz. Operating cash cost guidance has been revised upwards fromUS$800-900/oz to US$900-1,000/oz. The main reason cited is that definition of a weakermineralised structure at San Gregorio underground at depth and to the east resulted in arevised and optimised mine plan, which caused certain deeper and marginal stope designsto be removed from the mine plan. The company has embarked on a strategic initiative toreduce costs, improve profitability and preserve cash.

INDUSTRY OUTLOOK

In terms of its Colombian exploration, drilling at APTA during the quarter has yielded veryfavourable results, including 4.89g/t au over 13.9m, 4.86g/t au over 25m, 9.42g/t Au over7m, 9.62g/t Au over 6m and 5.28g/t au over 12m. These drill holes extended the knownmineralisation at APTA. Further, drilling currently underway at the Charrascala targetappears promising. Colombian exploration is a key value driver for OMI’s shares.

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

2016 42.9 9.1 3.2 (1.2) N/A 0.8

2017 44.2 9.4 2.1 2.6 2.1 0.4

2018e 37.7 12.2 7.9 5.8 1.0 0.8

2019e 44.5 14.0 10.1 8.1 0.7 0.6


Sector: Technology



Company descriptionUK-based Osirium Technologiesdesigns and suppliessubscription-based cyber securitysoftware. It has four products:privileged access management (PAM),privileged task management (PTM),privileged session management (PSM)and privileged behaviour management(PBM).Price performance% 1m 3m 12mActual 14.3 7.5 62.9Relative* 9.1 0.8 57.5* % Relative to local indexAnalystKatherine Thompson

Osirium Technologies (OSI)

INVESTMENT SUMMARY

Osirium reported FY17 revenues 5% ahead of our forecasts at £0.65m. Lower operatingcosts resulted in an EBITDA loss of €1.61m, versus our €1.90m forecast. As expected,FY17 bookings increased to €0.88m, 123% higher than the previous 12 months. Osiriumsigned up 16 new customers in FY17, to end the year with 30 customers. The companyclosed the year with a cash position of £1.0m; post year-end the company placed 3.145mshares at 134p per share to raise gross proceeds of £4.2m. We are currently reviewing ourforecasts.

INDUSTRY OUTLOOK

The market for PAM software was worth $690m in 2015 and is forecast to grow to $2.27bnby 2020 (source: Gartner), with demand driven by regulation, the shift to the cloud andadoption spreading to smaller organisations. The complexity of established solutions meansfewer mid-market businesses use PAM software than enterprises, so this is a market ripefor development.

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

2016 0.5 (1.1) (1.7) (12.38) N/A N/A

2017 0.6 (1.6) (2.3) (18.12) N/A N/A

2018e 1.0 (1.8) (2.7) (21.69) N/A N/A

2019e 1.4 (1.6) (2.6) (21.02) N/A N/A

Sector: Financials

Price: US$26.27Market cap: US$302mMarket 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 (4.7) 10.4 14.2Relative* (7.6) 8.0 3.6* % Relative to local indexAnalystAndrew Mitchell

OTC Markets Group (OTCM)

INVESTMENT SUMMARY

First quarter gross revenues increased by 7% versus Q117, with the strongest growth(+10%) seen in the Corporate Services segment - contributors included the higher numberof OTCQB clients (+2.5%), pricing and accelerated revenue recognition relating to departingOTCQX clients (21 graduated to a national securities exchange vs 11). Market DataLicensing was 7% up, reflecting price increases and take-up of compliance data products;the number of professional data users was little changed. The group operating margin wasmaintained at 33% and pre-tax profits increased by 7%. After a sharply lower tax charge (of18% vs 28%), fully diluted EPS were up 19% to $0.31 while a maintained quarterly dividendof $0.14 was announced.

INDUSTRY OUTLOOK

OTC Markets Group (OTCM) continues to gain greater regulatory recognition for itspremium markets working with state regulators, while encouraging corporate transparencyand facilitating data availability. This does not feed directly to revenues but CorporateServices should see benefits over time. Market Data Licensing has also made progressproviding access to data on the 10,000-plus securities quoted on OTC Link ATS in variousforms to a wide range of users.


2016 50.9 18.5 16.9 92.4 28.4 13.6

2017 54.7 19.7 18.4 109.9 23.9 14.1

2018e 57.7 21.1 20.1 131.6 20.0 13.2

2019e 60.2 22.1 21.1 137.4 19.1 13.0


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 3.8 9.3 (3.4)Relative* (1.8) 4.1 (4.0)* % Relative to local indexAnalystMartyn King

Palace Capital (PCA)

INVESTMENT SUMMARY

Palace Capital will report results for the year to 31 March 2018 on 11 June, its first resultssince completing its move to the premium segment of the Official List of the LSE. In a recenttrading statement Palace indicated that adjusted PBT is likely to exceed marketexpectations for the year and management expects further progress from continuingsignificant asset management initiatives, also using its strong cash position, boosted bynon-core disposals, for further accretive acquisitions. We have left our FY18 forecastunchanged for now, pending details of the expected earnings beat. For FY19, our DPSgrowth forecast remains unchanged although we have slightly reduced our EPS. Thecompany recently announced a sizeable letting of 14,500 sq ft of refurbished space atMilton Keynes, but letting of refurbished space in Leeds and Manchester is taking longerthan we had assumed and is unlikely to materially benefit income before the end of FY19.

INDUSTRY OUTLOOK



2016 14.6 10.9 5.6 18.9 18.7 N/A

2017 14.3 9.3 6.7 22.2 15.9 N/A

2018e 16.1 11.2 8.2 19.8 17.8 N/A

2019e 18.6 13.8 10.1 18.7 18.9 N/A

Sector: Mining



Company descriptionPan African Resources has five majorprecious metals assets in South Africa:Barberton (target output 95koz Au pa),the Barberton Tailings RetreatmentProject (20koz), Evander (95koz), theEvander Tailings Retreatment Project(10koz) and Elikhulu (53koz).

Price performance% 1m 3m 12mActual (8.3) (1.1) (58.1)Relative* (12.2) (17.9) (60.1)* % Relative to local indexAnalystCharles Gibson

Pan African Resources (PAF)

INVESTMENT SUMMARY

PAF produced 85koz at a cash cost of US$1,099/oz in H118 to generate headline EPS of0.20p (vs 0.91p). Since then however, it has taken the decision to close the loss-makingunderground operation at Evander 8 shaft, with the result that H218 production will be c72koz and FY18 production 158koz - notwithstanding the fact that two cycling productionlevels have now been established at the high-grade MRC ore body at Fairview, which willaugment production there.

INDUSTRY OUTLOOK

The Elikhulu project is on track to commence production in early FY19, which will add c52koz pa to PAF's production profile and propel EPS towards c 2.48p/sh. Additionalnear-term opportunities include the Egoli project (46% IRR and ZAR1.74bn NPV), theFairview sub-vertical shaft project (adding 7-10koz to production pa) and the Royal Shebaproject (c 30koz pa). Our all-in valuation of PAF is 16.57p plus the value of c 20.1munderground Witwatersrand ounces, which could add a further 0.18-4.27p/sh, depending onmarket conditions.


2016 168.4 57.4 45.9 2.08 3.3 2.7

2017 167.8 32.4 19.4 1.22 5.7 3.6

2018e 149.4 16.0 0.2 0.03 230.0 21.4

2019e 131.0 50.3 28.8 0.92 7.5 3.1



Price: €56.60Market cap: €256mMarket 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 3.1 (24.4) (14.2)Relative* 0.8 (26.9) (16.0)* % Relative to local indexAnalystAndy Chambers

paragon (PGN)

INVESTMENT SUMMARY

Supported by a record Q1 performance, paragon has maintained guidance for strongprogress in FY18 with sales rising by 40% to around €175m and an adjusted EBIT marginmaintained at around 9%. The growth will be primarily driven by Electromobility (Voltabox),but there will also be strong development by the smaller Mechanics division with goodorganic progress in Electronics. Further growth is supported by increased organicinvestment and selective M&A opportunities.

INDUSTRY OUTLOOK

We believe the growth story of paragon is understood by the capital markets following thesuccessful issue of €50m bonds in June 2017 and the spin-off of its subsidiary, Voltabox, inOctober 2017 to raise gross proceeds of €152m. In order to generate further appreciation ofits share price, paragon needs not only to deliver on its €1.96bn lifetime order backlog, butalso to create further growth engines.


2016 102.8 16.1 5.8 84.43 67.0 N/A

2017 124.8 20.6 6.9 65.02 87.1 N/A

2018e 178.4 33.0 13.4 197.87 28.6 N/A

2019e 238.7 46.0 24.2 309.60 18.3 N/A

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

Park results for the year to 31 March 2018 will be published on 12 June. Our estimates areupdated for the recent trading statement signalling that due to the late start of significantcorporate order and some cost pressure related to senior management changes, earningsgrowth would be marginally lower than previous market expectations. Trading marginsappear stronger than we had forecast, which would continue a multi-year trend that hasbeen driven by product innovations and digital efficiencies, and the roll-out of key recentinitiatives (Evolve, Love2shop Worldwide, the Christmas savings mobile app) continued toprogress in H2. Senior management appointments have also progressed. New chiefexecutive officer, Ian O’Doherty, took over in February, and successor for group financedirector, Martin Stewart, has also been appointed. Tim Clancy will join Park and its board inAugust from Assurant Europe, the European subsidiary of Assurant, the US-listed globalinsurance provider, where he has been chief financial officer since February 2013.

INDUSTRY OUTLOOK

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


2016 302.5 12.4 11.9 5.2 15.0 12.0

2017 310.9 13.0 12.4 5.3 14.7 14.7

2018e 298.5 13.1 12.8 5.5 14.2 16.4

2019e 301.3 13.8 13.6 5.8 13.4 12.8


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 (0.4) 3.1 4.7Relative* (4.4) (2.4) 1.5* % Relative to local indexAnalystMartyn King

Picton Property Income (PCTN)

INVESTMENT SUMMARY

Picton will report earnings to 31 March 2018 on 5 June. The Q4 NAV has already beenreported, growing 2.1% to 90.4p (end-December 86.6p). Together with the 0.875p DPS paidin Q4 (128% covered by EPRA earnings), the quarterly NAV total return was 3.1%.Like-for-like revaluation gains of 1.4% resulted from asset management actions, marketrental growth and selective yield tightening. The gains were concentrated in office andindustrial assets while the underweight exposure to retail was beneficial. Occupancyincreased to 96% (end-December 95%) and lease agreements in the period were onaverage 4.5% above the December expected rental value. Net gearing declined to 26.7%(end-December 27.4%). A general supply and demand imbalance in regional office andindustrial property continues to support rent growth, while ERV is well ahead of the currentcontracted run rate and represents significant potential for income growth.

INDUSTRY OUTLOOK



2016 40.8 N/A 65.1 3.68 24.3 14.5

2017 47.9 N/A 43.2 3.81 23.5 13.3

2018e 43.2 N/A 57.3 4.11 21.8 15.1

2019e 44.5 N/A 33.6 4.29 20.9 14.2

Sector: Technology

Price: €4.90Market cap: €89mMarket AIM Italia


Company descriptionPiteco is Italy’s leading company in thedesign, development andimplementation of software fortreasury, finance and financial planningmanagement.

Price performance% 1m 3m 12mActual 0.8 1.2 (2.0)Relative* 9.7 4.4 (4.5)* % Relative to local indexAnalystRichard Jeans

Piteco (PITE)

INVESTMENT SUMMARY

At the AGM, the balance sheet, €0.15 dividend and the project for the admission to the mainmarket were approved. Piteco has subsequently formally submitted a request for moving itslisting to the MTA, with the shift expected to take place in Q3. As already reported, 30 newcontracts were signed in FY17, up from 26 in FY16. However, performance was held backby the lack of large-size projects, while Juniper suffered on translation. Recurring revenuesgrew 5% organically and 46% including Juniper and now represent 65% of the total. WithJuniper trading in line with targets and the treasury business expected to return to its growthtrend in FY18, we believe the shares are attractively priced on 12x our FY19e EPS.

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 software and ICT solutions market inItaly is valued at €6.3bn (Assinform 2016). A small slice of this (Piteco suggests c 5%)represents the market for treasury and financial planning software. IDC estimated theworldwide revenue for the risk and treasury applications market was $2.1bn in 2013, up4.3% y-o-y.


2016 14.1 5.6 5.0 24.4 20.1 16.1

2017 17.0 6.5 5.6 30.3 16.2 15.6

2018e 20.1 8.0 7.2 36.0 13.6 10.9

2019e 21.8 9.0 8.3 39.3 12.5 9.6


Sector: Technology

Price: US$14.25Market cap: US$117mMarket 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 (1.0) (7.5) 30.7Relative* (5.0) (16.8) 17.1* % Relative to local indexAnalystAnna Bossong

Pointer Telocation (PNTR)

INVESTMENT SUMMARY

Pointer Telocation (PNTR) has largely transformed itself into a proprietary technologycompany over the last 18 months. This has resulted in major contract wins in driverbehaviour systems (DBS), connected car (CC) and sensor-based IoT monitoring systems,which complement its core telematics business. The group is also working with MicrosoftIsrael to develop AI-enriched driver assessment tools. Cross-selling potential, prospects innew markets and geographies and high operating leverage gives PNTR strong earningsgrowth prospects. We value the group at EV/EBITDA multiple parity with the telematicssector, giving rise to a multiple valuation of $19.1/NIS68.3 per share which is supported byour $18.1/NIS64.6 DCF valuation.

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%,respectively, during this period.


2016 64.4 9.8 6.6 81.1 17.6 8.6

2017 78.2 13.9 10.4 116.0 12.3 11.3

2018e 83.6 14.4 10.4 113.3 12.6 10.8

2019e 94.0 16.6 12.4 133.4 10.7 9.2




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.

Price performance% 1m 3m 12mActual 5.3 1.6 (5.1)Relative* (0.8) (8.9) (8.9)* % Relative to local indexAnalystToby Thorrington

Polypipe (PLP)

INVESTMENT SUMMARY

A capital markets event (9 May) and an AGM update (23 May) have served to remind us ofgroup strategy and current trading conditions respectively. The former showcased the widermanagement team and reinforced the company’s above market growth credentials withinnovation/new product development and expansion into adjacent areas seen as keydrivers. With regard to trading, we believe ytd progress (to end of April) for both divisionswas affected by a period of adverse weather, although the underlying group revenue growthrate is thought to be c 5%. As before, Residential Systems has been the primary contributor,diluted somewhat by Commercial & Infrastructure Systems where demand pull throughremains subdued. Overall, management’s full year expectations are unchanged.

INDUSTRY OUTLOOK

Construction Products Association estimates currently project flat overall output from the UKconstruction sector in 2018. Behind these headline figures, infrastructure (major projects, water, road and rail) andprivate housebuilding are expected to be the positive drivers, against slower commercialand industrial.


2016 387.2 84.5 60.9 24.6 16.1 10.0

2017 411.7 88.3 65.7 26.9 14.7 9.0

2018e 433.0 92.9 70.1 28.7 13.8 8.4

2019e 443.5 96.4 73.6 30.1 13.2 N/A





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 7.4 9.3 45.5Relative* 1.6 3.4 40.7* % Relative to local indexAnalystRichard Finch

PPHE Hotel Group (PPH)

INVESTMENT SUMMARY

Despite further slowdown in London, its major market, the strength and diversity of PPHE’sportfolio has ensured a ‘solid’ Q118 and confidence that 2018 expectations can be met.Although Q1 regional performance is not disclosed, overall 1% RevPAR gain may reflect amarginal dip in the capital, as was the case for the market, which is creditable given ademanding comparative. Growth in Croatia and Germany was encouraging, if offset byrenovation in the Netherlands. Current projects are well in hand, while management looks toexploit flexibility after Waterloo’s sale and leaseback and Arena’s fund-raising. PPHE’srating underestimates its excess liquidity (£200m+ cash post-Hoxton purchase) and assetbacking (fair value c £20/share).

INDUSTRY OUTLOOK

Security and Brexit uncertainty are concerns, but the London hotel market has shownadmirable resilience and benefits from increased tourism owing to sterling weakness.Greater measurable worries are room supply, which is above its long-term trend, and risingoperating costs from the National Living Wage and imported inflation. GL, London's largesthotel owner/operator, continues to “maintain a cautious outlook”, while, per STR, marketRevPAR may be flat in 2018 (-1% in the year to date).


2016 272.5 94.1 34.2 69.9 17.7 6.6

2017 325.1 107.3 34.5 64.2 19.3 4.6

2018e 340.0 112.0 38.0 68.8 18.0 4.7

2019e 357.0 118.0 44.0 81.6 15.2 4.4

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.


Primary Health Properties (PHP)

INVESTMENT SUMMARY

With a successfully completed £115m (gross) equity raise behind it, PHP is well funded forcontinuing growth in its investment portfolio, targeting returns that are supportive theprogressive dividend policy, now in its 22nd year. The prospects for cash deployment lookpositive, with a c £151m pipeline of investment prospects, of which more than a third are ata highly advanced stage of negotiation. Reduced gearing leaves Primary Health Properties(PHP) well placed to seize additional opportunities that may arise. NHS commissioning ofprimary healthcare investment is finally showing signs of acceleration, and PHP's Republicof Ireland operation is becoming established, with a fourth asset recently added. Our DPSgrowth forecasts are unchanged, with modest adjustments to EPS and NAV.

INDUSTRY OUTLOOK

Healthcare planning, with broad political support, suggests strong underlying demand formodern healthcare properties in both the UK and the Republic of Ireland. In addition toproviding investment opportunities, this seems likely to support rental growth.


2016 67.0 59.0 27.0 4.8 23.4 11.0

2017 73.0 63.0 31.0 5.2 21.6 11.2

2018e 77.0 67.0 36.0 5.1 22.0 11.5

2019e 83.0 72.0 42.0 5.4 20.8 12.0





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.In FY17, 85% of revenues came fromits venues and 15% from its digitaloperations.

Price performance% 1m 3m 12mActual 0.1 (20.6) (21.3)Relative* (1.9) (26.8) (22.9)* % Relative to local indexAnalystVictoria Pease

Rank Group (RNK)

INVESTMENT SUMMARY

Rank Group aims to be the UK’s leading omni-channel gaming operator, with its MeccaBingo and Grosvenor Casino brands. The Q318 trading update showed 17% growth inDigital, but the core Venues (84% of revenues) disappointed, with Mecca down 2% andGrosvenor down 9% on a like-for-like basis. The shortfall was largely due to fewer customervisits, as well as a lower gross win margin from VIPs. The company expects the weakerconsumer environment to continue and has now guided to FY18 clean EBIT of £76-78m vsprevious consensus of £83m. Separately, a new CEO, John O'Reilly (formerly William Hilland Ladbrokes) has replaced Henry Birch.

INDUSTRY OUTLOOK

The DCMS's consultation on the triennial review has now concluded. The FOBT stakereduction does not affect Rank, although the potential rise in remote gaming duty at the nextBudget (from 15% to 20%) would affect all online gaming operators. Other cost pressuresinclude the National Living Wage.


2016 753.0 128.2 77.4 15.4 11.4 6.2

2017 755.1 128.8 79.3 16.2 10.8 5.9

2018e 754.0 120.0 73.9 14.7 11.9 5.9

2019e 774.8 125.0 78.0 15.7 11.1 5.5

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.


Raven Russia Ltd (RUS)

INVESTMENT SUMMARY

2017 underlying profit after tax of $56.8m (2016: $47.1m) positively surprised, with lower FXgains more than offset by a ($20m) realised gain on non-core legacy UK land holdings.Warehouse occupancy was at a similar level (81% vs 80%) and much of the negative rentreversion (to lower, rouble-denominated market rents) was offset by a part-year ($10m)contribution from acquisitions. RosLogistics continues to show good growth. Revaluationgains of $38.2m benefitted NAV per share (80c fully diluted or c 60p at year end), and a 3pfinal distribution (4p for the year vs 2.5p) by way of a tender offer buyback, reflectsmanagement confidence in the outlook as well as the land sale gains. The executive deputychairman has acquired 2.5m shares since the results, increasing his stake to 6.64%.

INDUSTRY OUTLOOK

The Russian economy grew for the first time in three years in 2017, by 1.5%, and Moody’ssuggests that strong public and external finances will shield it from the latest sanctions.Inflation has fallen sharply although recent FX weakness may delay further interest rateeasing. Occupier demand for warehouse space is outstripping new supply and agents areindicating a stabilisation of rents and expect vacancies to decline.


2016 195.3 N/A 62.3 6.81 9.1 3.0

2017 228.1 N/A 73.0 7.41 8.3 3.5

2018e 209.6 N/A 43.5 4.92 12.6 3.1

2019e 204.1 N/A 40.0 4.78 12.9 3.0


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 3.3 (4.9) 10.6Relative* 2.0 (10.9) 7.3* % Relative to local indexAnalystAndrew Mitchell

Record (REC)

INVESTMENT SUMMARY

Record is differentiated from conventional asset managers by its focus on currency marketswhere it benefits from its independent status and over 35 years of experience. Passivehedging services account for over 50% of revenues and its offering is increasingly bespoke.The Q418 trading update showed AUME up 7% to $62.2bn vs Q417 but -5% in £ terms.There was a net outflow of $1.6bn in the quarter which can be seen as normal businessfluctuation. Record flags an alternative fee structure offered in passive hedging recognisingits enhanced service offering. This could reduce passive hedging management fees by c.10% all else equal in FY19, but this excludes any benefit from performance fees that thecompany expects will more than match the reduction over time.

INDUSTRY OUTLOOK

Macro concerns over possible adverse tail events persist, so conditions remain favourablefor Record to market its services to potential clients. Work to broaden the product range,increase customisation and the enhanced passive hedging fee structure should be helpful.Following the April trading update we reduced our FY19 EPS estimate from 3.34p to 2.49pbut this excludes any potential performance fees under the new fee structure. FY18 resultsare due to be announced 15 June.


2016 21.2 7.2 7.0 2.54 17.9 18.0

2017 23.0 7.9 7.9 2.90 15.7 14.0

2018e 24.4 8.2 8.0 3.07 14.8 13.0

2019e 22.5 6.5 6.2 2.49 18.3 16.7

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.


Regional REIT (RGL)

INVESTMENT SUMMARY

RGL has declared an increased Q118 DPS of 1.85p (Q117: 1.80p), consistent with itsprogressive dividend policy. The yield remains among the highest in the sector, with a highlydiversified portfolio mitigating economic and sector-specific risks. The AGM statementreports a good pace of lettings year to date, which it says reinforces its confidence in theprospects for increasing occupancy and income. With a number of disposals amounting to c£18m, more than offsetting the £4.9m acquisition of a fully let office building, contracted rentroll at quarter end was £61.7m pa compared with £61.9m pa at end FY17. Thesubsequently agreed acquisition of a £35.2m portfolio is expected to add net income of£3.1m pa. Quarter-end occupancy was slightly up on end-FY17 (flat like-for-like) and LTVreduced to c 44% from 45%.

INDUSTRY OUTLOOK



2016 38.1 29.9 20.8 7.8 12.8 N/A

2017 45.8 36.4 21.1 8.6 11.6 N/A

2018e 56.4 44.0 31.5 8.4 11.8 N/A

2019e 58.2 45.4 34.3 9.2 10.8 N/A


Sector: Oil & gas

Price: ZAR10.00Market cap: ZAR822mMarket JSE

Share price graph (ZAR)

Company descriptionRenergen is an integrated alternativeand renewable energy business thatinvests in early stage alternativeenergy projects across Africa andemerging markets.

Price performance% 1m 3m 12mActual 0.1 11.2 0.0Relative* 1.2 14.1 (5.0)* % Relative to local indexAnalystIan McLelland

Renergen (RENJ)

INVESTMENT SUMMARY

Renergen holds the first, and currently only, onshore petroleum production right in SouthAfrica. It is already producing and selling gas and recently announced a GSA withAnheuser-Busch to supply CNG and then LNG to the growing domestic heavy duty truckmarket. LNG also unlocks the potential to extract and sell helium, adding material upside toeconomics (c 35% upside to NAV). With gross 2P reserves of 142 bcf of methane and c2.2% of additional helium (Renergen 90% WI), our core NAV on a fully diluted basis isZAR19.0/share. We estimate additional funding of c ZAR240m is required to becomeself-funding, in addition to a secured ZAR218m of term loan.

INDUSTRY OUTLOOK

Heavy duty LNG trucks is a rapidly evolving market globally. China has led the way withLNG trucks now accounting for 4% of more than six million heavy vehicles (categorised ashauling 40-49 tonnes of goods) on the country’s roads. Shell has recently reported that70,000 new LNG-fuelled trucks were added in China in 2017.

Y/E Feb Revenue EBITDA PBT EPS (fd) P/E P/CF(ZARm) (ZARm) (ZARm) (c) (x) (x)

2016 0.0 (17.9) (15.0) (0.3) N/A N/A

2017 1.7 (22.0) (21.7) (0.2) N/A N/A

2018e 2.9 (33.6) (34.9) (0.4) N/A N/A

2019e 23.8 (36.1) (37.2) (0.3) N/A N/A




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 7.0 (13.8) (14.8)Relative* (0.8) (22.2) (20.2)* % Relative to local indexAnalystToby Thorrington

Renewi (RWI)

INVESTMENT SUMMARY

FY18 results confirmed that the merger integration process is being well controlled and ontrack to deliver the originally flagged synergy benefits. PBT came in just over £1m betterthan we had anticipated and was double the prior year level while earnings (+30% y-o-y)and DPS (unchanged) were in line. Divisionally, Commercial and Monostreams bothdelivered good y-o-y growth versus prior year pro forma comparatives. Individual operatingcompanies all have their own opportunities and challenges and are positioned at the heartof the circular and sustainable economy model – as endorsed by new Green Frameworkfinance facilities. Our headline estimates are unchanged and Renewi has a clear path toachieving a good earnings uplift from current levels.

INDUSTRY OUTLOOK

The Dutch waste market, accounting for the largest single business within Renewi, hasreturned to growth as the economy has recovered, boosted in particular by strongerconstruction activity.


2017 779.2 81.6 26.0 3.7 21.1 15.0

2018 1565.7 156.9 52.1 4.9 15.9 4.9

2019e 1589.9 181.7 70.6 6.6 11.8 4.9

2020e 1622.2 201.3 86.7 8.2 9.5 3.5


Sector: Media



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 (22.7) (28.6) (42.9)Relative* (23.2) (31.1) (45.0)* % Relative to local indexAnalystFiona Orford-Williams

Reworld Media (ALREW)

INVESTMENT SUMMARY

Reworld Media is delivering on its strategy of digital transformation of well-establishedmedia brands, supplemented with the ad tech expertise of Tradedoubler (TD) (30% owned).FY17 figures showed good revenue and margin progress from the media brands, with TDstarting to recover post repositioning and restructuring. The group has further strengthenedits balance sheet through a €6m bond placement, which has partly contributed to TD'srecent €10.8m debt refinancing. Our FY18 numbers suggest a strong uplift in adjusted PBTdriven by the growing digital element in Branding and the continuing turnaround at TD. Therating is yet to reflect the improving quality of earnings or the scale of the opportunity.

INDUSTRY OUTLOOK

While the magazine market continues to retrench, the underlying demand for entertainingand informative content is undiminished. The value of this content has been thrown intorelief by the structural shifts in distribution to online channels. This, and the growing strengthof Facebook, Amazon, Netflix and Google, has prompted many questions over the powerbalance with brand owners, content owners and how to drive monetisation. Within themedia sector, this has led to a high rate of M&A as assets have changed hands at all scalelevels. It may expose opportunities for Reworld to build out the portfolio further.


2016 174.0 4.4 0.9 0.4 302.5 33.3

2017 185.6 7.5 3.6 9.6 12.6 N/A

2018e 182.5 11.3 6.2 13.7 8.8 6.7

2019e 190.5 15.7 10.6 24.0 5.0 5.1

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 46.6 71.0 79.3Relative* 44.2 59.3 73.4* % Relative to local indexAnalystSanjeev Bahl

Rockhopper Exploration (RKH)

INVESTMENT SUMMARY

Premier Oil (PMO) FY17 results highlighted progress made by the Sea Lion project operatorin securing vendor/debt financing, a key hurdle ahead of final investment decision (FID)expected by the end of 2018. We had previously heavily risked Sea Lion Phase 1; however,we believe deleveraging of PMO’s balance sheet, the materiality of Sea Lion in the contextof PMO’s development portfolio and progress made with regard to project financesignificantly increase our confidence in the project reaching FID. We risk Sea Lion Phase 1at a 40% chance of success (up from 20%), increasing our valuation from 44.2p/share to62.9p/share (+42%).

INDUSTRY OUTLOOK

Small and mid-cap E&Ps have struggled in recent years to secure funding to develop majorprojects. In response, the Sea Lion JV is considering export credit and vendor/contractorfinance as alternatives for field development. Contractor selection and finalising of letters ofintent to underpin the provision of vendor funding for US$400m is near completion.


2016 7.4 (15.2) (18.5) (1.34) N/A N/A

2017 10.4 (2.4) (7.1) 0.0 N/A 145.6

2018e 8.1 (0.4) (13.8) (3.11) N/A 80.3



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.At end FY18 it had over 54,000customers.

Price performance% 1m 3m 12mActual 7.7 20.1 34.4Relative* 5.3 14.2 30.0* % Relative to local indexAnalystAndrew Mitchell

S&U (SUS)

INVESTMENT SUMMARY

S&U’s AGM statement and trading update in May indicated that motor loan applications arerunning at record levels. Tighter credit criteria have meant a lower level of approvals (25%vs 29% previously) but receivables were nevertheless 21% ahead of the prior year level.Impairments have shown a further increase (from 24.6% of revenue at year end to 25.8%)but are expected to stabilise as tighter criteria progressively influence the loan book riskprofile. The Aspen property bridging pilot has continued to make good progress, increasingits loan book from £11m at end January to £14m with a decision on continuation due thisyear.

INDUSTRY OUTLOOK

While there is regulatory concern over the growth in consumer lending in general, includingthe overall motor finance market, S&U does not offer PCP contracts, which have been themain source of growth and concern in this area. The relatively low value of the motor loansit makes, typically used to purchase used cars for transport to work means it is serving asegment that is likely to be more stable than new car financing. Pressure on real wages hasprobably affected some borrowers but with unemployment subdued and higher credit scoresfor new loans the outlook for Advantage motor finance remains encouraging.

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

2017 60.5 27.1 25.2 169.1 16.1 N/A

2018 79.8 33.3 30.2 202.4 13.4 N/A

2019e 98.1 41.6 36.2 243.3 11.2 N/A

2020e 113.6 50.0 42.9 288.2 9.4 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 (0.6) 24.7 46.2Relative* (2.5) 16.1 41.3* % Relative to local indexAnalystRichard Jeans

SCISYS (SSY)

INVESTMENT SUMMARY

FY17 revenues jumped by 25%, including c 9% organic growth and c 5% at constant FX.The operating margin expanded by 90bp to 7.9%. The Space division generated 18%growth in both revenue and contribution. The outlook is encouraging with the order book41% ahead at a record £91.3m. In April, SCISYS announced a c £3.9m contract with Airbusfor developing the global navigation EGNOS V3 ground segment. We cautiously maintainedour profit forecasts, mainly due to the uncertainties relating to Brexit on the Space division,while our FY19 EPS eases on a higher tax rate. Management’s goal to achieve £60m inrevenues and double-digit margins within three to five years looks increasingly conservative,and we believe the stock looks attractive on c 14x our FY19e 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.


2016 45.7 4.0 3.0 9.2 17.6 13.6

2017 57.2 5.6 3.8 10.0 16.2 4.5

2018e 53.0 6.1 4.4 12.0 13.5 8.1

2019e 57.0 6.6 5.0 12.7 12.7 7.6


Sector: Oil & gas

Price: 62.0pMarket cap: £127mMarket AIM, TSX-V


Company descriptionSDX Energy is a North African onshoreplayer listed in Toronto and London. Ithas oil and gas production in Egypt,and gas production in Morocco. Alarge gas discovery was recently madeat South Disouq.

Price performance% 1m 3m 12mActual (6.4) 34.3 9.3Relative* (5.4) 21.2 2.1* % Relative to local indexAnalystSanjeev Bahl

SDX Energy (SDX)

INVESTMENT SUMMARY

SDX Energy has had a good run of drilling success in 2018 so far, with gas discoveries fromthe SAH-2 and Ibn Yunis-1 wells in Morocco and Egypt respectively. However, the latestwell drilled in Egypt, Kelvin-1X, was unsuccessful, and following the disappointing result, ourforecasts are under review. In our last valuation, Kelvin-1X contributed 2.3p/share to ourRENAV of 65.6p/share.

INDUSTRY OUTLOOK

SDX remains open to adding to its portfolio and sees Egypt as a natural market forconsolidation, given the large number of small players. Its acquisition of Circle Oil'sEgyptian and Moroccan assets in early 2017 show that it is able to negotiate and completetransactions efficiently.


2016 12.9 5.7 (26.7) (8.9) N/A N/A

2017 39.2 21.9 3.3 14.1 5.9 7.9

2018e 65.2 47.8 31.2 29.6 2.8 3.4


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 (7.3) 24.7 (18.9)Relative* (10.2) 15.1 (22.1)* % Relative to local indexAnalystAndrew Mitchell

Secure Trust Bank (STB)

INVESTMENT SUMMARY

STB's AGM update confirmed that trading since the end of FY17 has been in line withexpectations. Loan growth has been strong across the consumer and SME areas of thebook. A controlled approach is being taken in consumer mortgages with pricing expected toimprove following the ending of the Term Funding Scheme (TFS). Last year saw the loanbook repositioned away from higher risk lending and the benefits of this are evident in creditquality running in line with expectations. Funding costs are stable currently and the bank'snew deposit platform should help mitigate upward pressures that may arise as TFS fundingis replaced.

INDUSTRY OUTLOOK

Looking ahead, STB sees good potential for profitable growth in business, retail, motor andconsumer mortgage lending while retaining a cautious approach to credit risk. Following theperiod of adjustment in 2017 STB is well placed to generate attractive earnings growth.


2016 107.0 N/A 27.3 113.0 17.0 N/A

2017 129.5 N/A 27.0 116.4 16.5 N/A

2018e 160.5 N/A 37.0 160.7 11.9 N/A

2019e 181.4 N/A 47.0 202.5 9.5 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.

Price performance% 1m 3m 12mActual (0.6) 5.5 (7.7)Relative* (0.4) (0.1) (11.7)* % Relative to local indexAnalystToby Thorrington

Severfield (SFR)

INVESTMENT SUMMARY

Severfield’s closing FY18 update reiterated latest guidance and management confidence inattaining its FY20 PBT target of £26m. As previously noted, sector diversity is enabling thecompany to focus resources on relatively better areas and sustaining a stable UK orderbook position. We are assured that tendering activity remains high and win rates are stablewhich suggests that underlying market conditions are substantially unchanged. While theIndian order book has reduced (from £79m in November to £62m on 1 April) it remains wellabove historic levels. Our estimates are unchanged and FY18 results are scheduled for 20June.

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 3.8 20.7 9.4

2017 262.2 25.7 20.3 5.7 13.8 8.6

2018e 273.9 29.3 24.0 6.6 11.9 9.9

2019e 279.2 30.2 24.6 6.7 11.7 8.2

Sector: Financials



Company descriptionShare plc’s main subsidiary is TheShare Centre, which is a self-selectretail stockbroker that also offers shareservices for corporates andemployees.

Price performance% 1m 3m 12mActual (3.7) 4.0 5.1Relative* (8.1) (1.5) 1.6* % Relative to local indexAnalystAndrew Mitchell

Share plc (SHRE)

INVESTMENT SUMMARY

Share’s FY17 results continued the flow of encouraging news seen from previous updates.There was a strong increase in AUA and revenue (27% and 28% respectively) and a moveinto modest normalised pre-tax profits. The IT investment programme is well underway andis becoming more visible as App enhancements and website improvements come onstream. Underpinning this are projects to strengthen infrastructure on which client serviceand the business depends. Operational gearing has the potential to bring currently highprospective earnings multiples down rapidly.

INDUSTRY OUTLOOK

The current year has already seen a spike in volatility and weakness in equity markets.However, the economic background appears reasonably encouraging; markets have morethan recovered lost ground and investor sentiment has shown resilience. Morefundamentally, the work that the group has done to improve its customer offering, ITplatform and to expand its strategic partnerships should mean that it can grow to a moreprofitable scale through market cycles. Share is likely to issue a Q1 update around the endof May.


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

2017 18.7 (0.4) 0.4 0.27 96.3 N/A

2018e 20.1 0.7 0.9 0.52 50.0 N/A

2019e 20.8 0.9 1.0 0.57 45.6 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 3.6 0.0 12.9Relative* (1.1) (6.2) 9.1* % Relative to local indexAnalystAndrew Mitchell

Shore Capital Group (SGR)

INVESTMENT SUMMARY

SGR's FY17 results showed overall revenue up 6% and reported PBT of £4.6m, 24%ahead. Stripping out balance sheet impairments (which were down from £2.7m to £1.9m)adjusted PBT increased 27.5% to £5.1m. Capital Markets saw a small reduction in turnoverreflecting the mix of business in an active year which saw additions to its corporate clientbase. Costs in the division rose in preparation for MiFID II resulting in lower profits at £5.2mvs £6.8m. The Asset Management division performed very strongly with AUM up 5% to£865m, revenue up 24% and profits more than 50% ahead at £3m. In the Principal Financearea the loss was reduced both before and after asset impairments and the £0.8mcontribution from the supported living associate which crystallised a gain on the sale ofproperty investments. Adjusted EPS rose 53% to 20.5p and the full year dividend is doubledto 10p.

INDUSTRY OUTLOOK

The UK economy has been experiencing a more subdued phase but equity markets haverallied following earlier volatility and this, together with SGR’s own successful developmentof its franchise in corporate finance and growth in asset management, are positive factorsprospectively.


2016 39.4 6.3 2.4 5.8 49.1 7.5

2017 41.9 6.9 4.6 12.8 22.3 4.9



Sector: Technology

Price: NZ$0.31Market cap: NZ$19mMarket NZSX

Share price graph (NZ$)

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 (1.6) 17.3 6.9Relative* (4.6) 15.3 (4.6)* % Relative to local indexAnalystDan Ridsdale

SLI Systems (SLIZ)

INVESTMENT SUMMARY

SLI Systems delivered its maiden H1 period of profitability, driven by outstanding netrevenue retention and substantial cost savings. The company’s imminent shift to a moreindirect business model is likely to compress near-term margins and success is crucial tolonger-term prospects. Nevertheless, the depressed share price does not demand steepgrowth assumptions for investors to see a return.

INDUSTRY OUTLOOK

The global retail e-commerce market is estimated to be $4tn by 2021, up from $2trn in2015, indicating increasing demand for SLI’s product suite. SLI estimates its global marketopportunity at $2.2bn. The competitive landscape is crowded, however, with directcompetition, e-commerce platforms and in-house solutions in the competitive mix.

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

2016 35.7 1.1 0.7 (0.4) N/A 25.6

2017 32.0 (0.5) (0.8) (3.0) N/A N/A

2018e 33.5 2.7 2.4 2.8 11.1 10.0

2019e 34.5 2.0 1.7 1.7 18.2 25.3


Sector: Technology

Price: €33.85Market cap: €185mMarket FRA


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 2.4 (1.7) (19.4)Relative* 0.2 (5.0) (21.0)* % Relative to local indexAnalystRichard Jeans

SNP SE (SHF)

INVESTMENT SUMMARY

While Q1 revenue grew by 46%, the underlying growth was affected by customers deferringprojects, particularly around SAP S/4HANA. However, new orders were healthy, and thebook-to-bill ratio jumped to 1.3x. This included part of a $4.5m US contract and we expectFY18 to follow a similar path to FY17 with a stronger than normal H2. Meanwhile, SNPremains focused on bedding down acquisitions and the management team has beenrestructured to reflect the global nature of the business. The outlook remains positive,particularly on the M&A-driven side, with global M&A at record highs. Given the favourabledrivers the shares look attractive on c 22x our FY19e EPS.

INDUSTRY OUTLOOK

SNP helps businesses tailor and improve their ERP landscapes and its goal is to becomethe global standard for data transformations. Its proprietary software includes the onlyoff-the-shelf transformation product in SNP Transformation Backbone with SAP LandscapeTransformation Software (T-B), which automates the process of combining, upgrading orcarving out data from ERP systems. SNP continues to benefit from favourable structuralgrowth drivers, a partnership with SAP and an elevated profile in the wake of the landmarkHewlett-Packard deal of 2015.


2016 80.7 8.5 6.4 109.7 30.9 144.8

2017 122.3 3.3 0.2 (7.4) N/A N/A

2018e 151.2 10.9 6.2 74.3 45.6 18.3

2019e 165.3 18.3 12.9 160.1 21.1 10.6

Sector: Technology



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

Price performance% 1m 3m 12mActual 4.1 (0.3) 38.1Relative* (2.7) (7.5) 36.7* % Relative to local indexAnalystRichard Jeans

StatPro Group (SOG)

INVESTMENT SUMMARY

In a brief in-line AGM trading update, StatPro said that sales of StatPro Revolution haveprogressed well. The StatPro Revolution fixed income module will be launched, as planned,in early Q318. The group recently signed a major cloud conversion contract with a top 10global fund administrator. Such deals require significant commitment from the client and,once live, have the potential to be scaled up if the client takes additional licences to extendto its own client base. Given the ongoing busy M&A backdrop in financial software and thesignificant valuation disparity between StatPro and its US-listed financial software peers, wecontinue to see strong upside potential in the shares.

INDUSTRY OUTLOOK

StatPro's products are targeted at the global wealth management industry. The outlook forfund managers has been showing improvements. PwC estimated global AuM were $84.9tnin 2016, and expected to rise to $145.4tn in 2025 (6.2% CAGR). Asset managers have areputation for being slow to adopt digital technology, but StatPro believes this is nowchanging. It says that many clients are now transforming their technology and the middleoffice, where StatPro is strong, is part of this process. StatPro is the first cloud-basedanalytics platform targeting the sector and is therefore well-placed to address the market.


2016 37.5 5.1 2.7 3.3 54.4 15.7

2017 49.3 7.0 3.4 5.9 30.4 10.9

2018e 56.5 8.7 5.4 7.0 25.6 8.1

2019e 58.5 9.3 6.2 7.8 23.0 7.6





Company descriptionStride Gaming is a leading onlinegaming operator in the UK. It uses itsproprietary and purchased software toprovide online bingo and slot gaming.It was formed in 2012 and onlyoperates in regulated real moneygaming markets.

Price performance% 1m 3m 12mActual (24.8) (26.8) (30.8)Relative* (29.9) (31.4) (31.7)* % Relative to local indexAnalystVictoria Pease

Stride Gaming (STR)

INVESTMENT SUMMARY

Stride Gaming is a leading UK online gaming operator, achieving strong organic growth inthe UK. H118 adjusted revenues increased 14% to £44.9m, driven by 25% growth in theproprietary platform. However, the entire UK gaming sector has been stung by recentregulatory changes and, like other operators, Stride’s strategy is to diversify its UK-centricmodel into international markets. We have lowered our total FY18 and FY19 EBITDAforecasts by 16.6% and 28.7% to reflect increased costs associated with regulatorycompliance and international expansion.

INDUSTRY OUTLOOK

H2 Gambling Capital estimates that the UK bingo-led market generates approximately£800m in gross gaming revenue (or c £650m net gaming revenues). However, regulatoryburdens are increasing, with POCT on free bets (from 2017) and the prospect of a furtherrise in remote gaming duty at the next budget. Operators need to comply with othermeasures including social responsibility, source of funds, GDPR, AML etc.

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

2016 47.8 12.3 11.3 20.3 7.9 5.8

2017 89.9 20.2 18.9 25.8 6.2 7.6

2018e 91.4 16.0 14.2 14.3 11.3 8.3

2019e 103.1 16.4 14.1 16.6 9.7 8.3

Sector: Technology

Price: US$2.05Market cap: US$23mMarket NYSE


Company descriptionBased in Hong Kong, Takung ArtCompany provides a secure and easyway for art collectors and investors toacquire shared ownership in Asian andother fine art - including paintings,calligraphy, jewellery and preciousgems - and participate in the boominginternational art market without fear ofprice manipulation and forgery.Price performance% 1m 3m 12mActual 1.5 2.0 (70.3)Relative* (0.5) 1.7 (73.6)* % Relative to local indexAnalystFiona Orford-Williams

Takung Art (TKAT)

INVESTMENT SUMMARY

Takung Art’s Q118 results show it is making progress at reorienting its user base moretowards the retail market, which significantly increases its potential reach. There has alsobeen some success in the quarter in increasing the average listing values of the items listedon the trading platform and in diversifying the offering, with five new pieces of sportsmemorabilia listed in the period. The FY17 reconstruction makes direct comparison withQ117 figures of limited use. The share price is yet to reflect the scale or quality of thepotential opportunity.

INDUSTRY OUTLOOK

Based in Hong Kong, the business is effectively transacted in mainland China. The NYSEAmerican listing adds credibility and reflects the broader global ambitions. Meanwhile, thereis a very large market to address within the existing remit, with a proven and growingappetite for; art; shared ownership; trading; and collectibles, especially in relation toglobally-recognised sporting icons. Takung has put together an IT platform for tradingfractionalised ownerships (comparable to units in a mutual fund), which enables investors tobuy and sell units on a matched-bargain basis.


2016 19.1 9.8 9.5 65.53 3.1 N/A

2017 12.9 (0.3) (1.1) (14.72) N/A N/A

2018e 18.9 1.7 1.2 7.69 26.7 N/A

2019e 23.3 4.8 4.4 29.26 7.0 N/A


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) 1.4 (6.5)Relative* (3.7) (5.3) (9.3)* % Relative to local indexAnalystMartyn King

Target Healthcare REIT (THRL)

INVESTMENT SUMMARY

EPRA NAV per share at 31 March (Q318) was 105.0p (end-December 104.4p), and NAVtotal return, including DPS paid, was 2.1% in the period. The portfolio value reached c£341m, comprising 53 assets (four under development), with a rent roll of £23.6m. The netinitial yield was 6.58% and the weighted average unexpired lease term was 28.7 years. ADPS of 1.6125p has been declared for Q3, an annualised 6.45p or a c 6% yield on theshare price. EPRA EPS in the period was 1.39p but our forecasts look for the dividend to becovered in FY20, as expected investments during FY18 and FY19 make a full contributionto earnings. Progress has already been made in deployment of the proceeds of the recent£94m equity capital raise, with agreements reached to acquire and fund the development oftwo new care homes at a cost of £15.6m. The managers expect significant furtheracquisition activity in coming months.

INDUSTRY OUTLOOK

The UK population over the age of 85 is expected to increase by 140% from 2014 to 2039,which, combined with a current shortage of high-quality care homes, suggests a stronginvestment demand in years to come.


2016 16.9 N/A 8.1 5.25 20.8 N/A

2017 23.6 N/A 12.2 5.23 20.8 N/A

2018e 29.1 N/A 15.9 5.92 18.4 N/A

2019e 36.3 N/A 20.8 6.40 17.0 N/A

Sector: Technology

Price: SEK10.40Market cap: SEK104mMarket 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 0.4 (2.4) N/ARelative* 0.1 (3.5) 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 Orange. Most recently, TerraNet won a contract todevelop LTE-based active safety applications for autonomous vehicles. Successfulexecution across any one of these applications should drive strong growth, but as thecompany’s products are still very early stage, investment is high risk. Net cash wasSEK45.9m at the end Q118.

INDUSTRY OUTLOOK

TerraNet’s management has created a number of prospective and unique use cases for itstechnologies across a wide number of industries. TerraNet's Wi-Fi Aware and other wirelesssolutions also tap into fast-growing demand for IoT and V2V communication solutions, aswell as the rapidly developing area of mHealth.

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

2016 2.7 (25.0) (37.6) (333.71) N/A N/A

2017 5.6 (57.1) (58.7) (286.35) N/A N/A

2018e 21.7 (68.2) (72.2) (300.55) N/A N/A

2019e 74.8 (32.1) (37.9) (157.69) N/A N/A


Sector: Technology

Price: €0.20Market cap: €7mMarket NASDAQ OMX First North


Company descriptionThe Marketing Group is building aglobal full-service marketing network.Each company within the groupprovides specialist marketing servicesbrought together, within communitiesof practice, to form an internationalnetwork that can address a globalmarket.

Price performance% 1m 3m 12mActual 4.2 (31.0) (63.0)Relative* 3.9 (31.9) (62.5)* % Relative to local indexAnalystFiona Orford-Williams

The Marketing Group (TMG)

INVESTMENT SUMMARY

The Marketing Group’s Q118 update showed the group delivering sales broadly in line andEBITDA a little ahead of expectations through good cost control. This discipline shouldstand TMG in good stead as it builds its business both within the existing agencies and inpotential further acquisitions. Our forecasts were unchanged on the update. With theTRUTH blockchain-enabled media agency continuing to garner high levels of industryinterest, the scale of the discount of the rating to the peer group is looking increasinglyanomalous.

INDUSTRY OUTLOOK

The current disorder and limited organic growth in the large holding companies ishighlighting how the power balance is shifting between brand owners and marcommssuppliers. Smaller agencies that can focus on finding practical and creative solutions to theissues that the client wants to address, rather than present their agencies’ capabilities, areincreasingly in a position to make the roster and work in a more integrated manner.


2016 8.6 1.6 1.5 7.81 2.6 11.1

2017 22.9 1.5 1.2 3.43 5.8 7.5

2018e 24.8 1.5 1.3 2.74 7.3 9.9

2019e 26.6 2.1 1.9 4.39 4.6 3.9

Sector: Financials



Company descriptionTown Centre Securities (TCS) is a UKReal Estate Investment Trust (REIT)operating across the UK, but with aregional focus, primarily in Leeds,Manchester, Scotland and (mainlysuburban) London. It also has a carparking operation (CitiPark). Theinvestment portfolio is intensivelymanaged for income and capitalgrowth.Price performance% 1m 3m 12mActual 0.0 3.9 0.0Relative* (3.1) (2.8) (2.9)* % Relative to local indexAnalystMartyn King

Town Centre Securities (TOWN)

INVESTMENT SUMMARY

TCS is a family run UK REIT with strong income focus and a 57-year record of increased ormaintained DPS, intensively managing assets and recycling capital to drive returns. Itoperates across the UK, but with a regional focus, primarily in Leeds, Manchester, Scotlandand (mainly suburban) London, with a complementary and growing car parking business.Contracts for the acquisition of an office building with car park, for £9m, complementary toits existing mix-use assets within Manchester’s Piccadilly Basin regeneration area wererecently exchanged. Not yet included in our forecasts, the acquisition is expected to add£675kpa to gross income with potential for office refurbishment and car park development.This enhances a substantial existing pipeline of continuing development opportunities, forwhich management is exploring funding opportunities, with the potential to add materially toour forecast earnings and NAV over time.

INDUSTRY OUTLOOK



2016 18.6 13.7 6.6 12.4 23.5 11.4

2017 19.4 13.8 7.0 13.2 22.0 8.5

2018e 19.7 13.7 6.9 13.1 22.2 10.9

2019e 20.0 13.7 7.3 13.7 21.2 10.5





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 8.1 16.2 5.7Relative* 7.0 10.1 2.6* % Relative to local indexAnalystSara Welford

Treatt (TET)

INVESTMENT SUMMARY

Treatt has transformed itself from a commodity-based ingredients company into a supplierof value-added ingredients and ingredient solutions. The previous strategy was deliveredthree years ahead of target, following a stellar FY17, and the new strategy introduced lastSeptember builds on the strong momentum in the business, which has seen fiveconsecutive years of earnings above company expectations. There will be a full siterelocation for the UK business over the next three years or so, and expansion of the US siteby the end of this year.

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 and tea flavours, and sugar reduction are coreareas of focus, with the latter undergoing a structural growth trend.


2016 88.0 11.6 9.6 14.3 33.6 23.1

2017 109.6 16.3 14.0 20.4 23.6 53.6

2018e 109.3 16.4 14.6 19.6 24.5 11.4

2019e 114.8 18.9 15.9 21.1 22.8 16.1




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.

Price performance% 1m 3m 12mActual (6.7) (2.3) 16.5Relative* (12.3) (6.2) 12.8* % Relative to local indexAnalystAndy Chambers

Trifast (TRI)

INVESTMENT SUMMARY

All territories delivered organic revenue growth in FY18, and with the exception of the US,all contributed increased profitability. A strong order pipeline at the year-end serves tounderpin confidence in further organic progression. The balance sheet continues to berobust as disciplined working capital management has allowed maintenance of strong cashconversion despite the high levels of investment. Allowing for the £8.5m initial acquisitioncost of PTS, the company retains adequate resources to pursue both organic and M&Ainvestments, including an anticipated project to upgrade IT infrastructure. The company willprovide full detail with its results on 12 June 2018.

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 25.2 18.5

2017 186.5 22.9 20.5 12.82 19.7 13.0

2018e 196.9 24.0 21.8 13.50 18.7 19.5

2019e 209.7 25.4 23.0 14.18 17.8 16.3


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 (7.5) (16.0) (18.2)Relative* (10.6) (21.5) (21.2)* % Relative to local indexAnalystAndrew Mitchell

Tungsten Corporation (TUNG)

INVESTMENT SUMMARY

Tungsten Corporation is well on the way to rebuilding its core e-invoicing networkinfrastructure and has refocused marketing, raised prices and relaunched the TungstenNetwork Finance (TNF) business with new products appropriate to its segmented marketopportunities. In January, Tungsten reported that invoice outstandings at TNF reached anew high of £54.5m at end-December vs £17.5m at end-April. Earlier, in December, theH118 results showed 10% revenue growth, costs held stable despite investment in updatingIT and a 21% reduction in the EBITDA loss. The valuation is likely to benefit as Tungstenmakes further progress towards profitability and positive cash flows.

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.EBITDA break-even is expected for the final four months of the financial year. Expectationsof FY18 revenue growth of at least 15%, a gross margin of 90% and adjusted operatingexpenses of less than £40m remain in place. Tungsten is set to issue a pre-close tradingupdate on 4 June and FY18 results 23 July.

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: €11.10Market cap: €144mMarket Borsa Italiana STAR


Company descriptionTXT e-solutions operates through TXTNext, which provides IT, consultingand R&D services to aerospace,aviation, banking and financecustomers.

Price performance% 1m 3m 12mActual (11.8) 9.3 (7.4)Relative* (4.0) 12.7 (9.8)* % Relative to local indexAnalystKatherine Thompson

TXT e-solutions (TXT)

INVESTMENT SUMMARY

TXT reported year-on-year revenue and EBITDA growth in Q118, with a particular boost tosoftware licence sales. We have revised our forecasts to reflect higher R&D and commercialcosts in Q1, as well as higher than forecast gross margins. This results in a 10.2% increasein our FY18 normalised EPS forecast, and a 5.6% cut to our FY19 forecast. The change inthe largest shareholder has prompted changes to the board, and is likely to mark the start ofa series of acquisitions to accelerate the growth of the TXT Next business.

INDUSTRY OUTLOOK

TXT Next is a beneficiary of the trend to outsource elements of IT and engineering, whichgives the customer greater flexibility on cost and better access to specialist skills. Its mainfocus is on the aerospace and aviation market, where the rapid pace of innovation,combined with increasing regulation, drives growth in R&D. It also serves the Italian bankingmarket, where the emergence of fintech companies is driving innovation, and regulation isincreasing the need for software quality assurance.


2016 33.1 4.3 4.0 27.1 41.0 12.2

2017 35.9 3.5 3.0 18.6 59.7 1091.3

2018e 39.1 4.1 3.0 18.5 60.0 31.3

2019e 41.9 4.6 3.5 21.6 51.4 31.0





Company descriptionUltra Electronics is a global aerospaceand defence electronics company, withoperations across three divisions:Aerospace & Infrastructure (26% of2017 sales); Communications &Security (31%); and Maritime & Land(43%).

Price performance% 1m 3m 12mActual 17.4 2.1 (24.8)Relative* 11.1 5.8 (25.8)* % Relative to local indexAnalystAndy Chambers

Ultra Electronics (ULE)

INVESTMENT SUMMARY

The Q118 trading update indicted no change to management expectations. The companystill expects to make modest progress on a constant currency basis, although it will face FXheadwinds. Encouragingly, despite the adverse exchange rate movement the order backlogat the end of the quarter stood at £933m, some 2% higher than at the start of FY18. Anincreased weighting to the second half of cash and earnings performance is still expected.Growth is accelerating modestly and the appointment as CEO of Simon Pryce, formerly ofBBA Aviation, is a further positive.

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. Ultra stands to benefit from its diversified end-markets and order bookvisibility.


2016 785.8 148.0 120.1 134.6 12.1 9.7

2017 775.4 133.8 110.0 116.7 13.9 11.9

2018e 743.6 127.2 100.4 106.1 15.3 11.8

2019e 767.1 131.8 103.1 115.9 14.0 9.1

Sector: Financials

Price: €9.92Market cap: €277mMarket Xetra


Company descriptionUmweltBank is a specialised lenderwith total assets of €3.5bn, providingfinancing of renewable energy projects(solar, wind, hydro and biomass), aswell as loans for new construction orrenovation of sustainable residential,community and commercial realestate.

Price performance% 1m 3m 12mActual 3.8 (1.3) (18.8)Relative* 1.5 (4.6) (20.5)* % Relative to local indexAnalystMilosz Papst

Umweltbank (UBK)

INVESTMENT SUMMARY

UmweltBank (UBK) is a play on Germany’s ongoing transition towards a low-carbon,resource-efficient economy. The bank’s long-term asset and earnings growth shouldcontinue to be driven by regulatory and public support of green construction and renewableenergy (RE) projects. In this context, UBK intends to raise new subordinated debt tostrengthen its capital base. UBK is one of the most profitable listed banks in theGerman-speaking region due to its low cost base and high credit quality. UBK’s sharestrade at a P/BV 2018e of 1.2x, which looks low relative to its above-average ROE (weexpect 11.5% in FY18).

INDUSTRY OUTLOOK

UBK’s focus on financing sustainable projects should continue to facilitate the bank’s growthin the long term, with Germany’s ambitious target to generate more than 80% of electricityfrom RE sources by 2050 (vs 36% in 2017). In the short term however, the recentlyintroduced auction system aimed at encouraging more competition and cost effectivenesshas led to some market uncertainty. The trend towards sustainability is also reshaping theGerman real estate industry, leading to considerable increase in green building investments.


2015 56.9 N/A 48.2 123.1 8.1 N/A

2016 59.5 N/A 46.0 116.1 8.5 N/A

2017e 55.1 N/A 40.3 99.4 10.0 N/A

2018e 53.2 N/A 37.0 90.0 11.0 N/A


Sector: Oil & gas

Price: C$44.30Market cap: C$6676mMarket TSX


Company descriptionVermilion Energy is an internationalE&P with assets in Europe, NorthAmerican and Australia. Managementexpects FY18 production to average86-90kboed and 2P reserves stand at298.5mmboe (FY17 prior to Spartanacquisition).

Price performance% 1m 3m 12mActual 1.8 4.8 2.6Relative* (0.4) 1.1 (1.2)* % Relative to local indexAnalystSanjeev Bahl

Vermilion Energy (VET)

INVESTMENT SUMMARY

Vermilion Energy is an international E&P with assets in Europe, North America andAustralia. Its defensive qualities include asset and commodity diversification, low financialleverage, high margins and low finding and development (F&D) costs. Management hasdistributed a consistent and growing dividend yield to shareholders since 2003. In April2018, Vermilion announced the acquisition of Spartan Energy in an all share deal and totalconsideration of C$1.4bn adding 23kboed of production. The addition of Spartan has drivena valuation upgrade of 11.6% to our composite NAV of C$53.8/share based on a number ofapproaches including P/CF, EV/EBIDAX, Gordon’s growth model and SOTP.

INDUSTRY OUTLOOK

Vermilion’s operations are in OECD countries and predominantly onshore; political,operational and subsurface risk is well spread. Vermilion benefits from realisations based ona number of regional commodity prices including Brent, WTI crude and Henry Hub, TTF,NBP and AECO gas.

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

2016 829.0 362.0 (223.0) (210.4) N/A 10.1

2017 1024.0 673.0 124.0 86.0 51.5 9.0

2018e 1448.0 866.0 144.0 87.7 50.5 7.6

2019e 1842.0 1089.0 206.0 82.8 53.5 6.4

Sector: Mining



Company descriptionVolt Resources is a graphitedevelopment company. Its main assetis the currently 100%-owned Bunyugraphite project located in Tanzania.

Price performance% 1m 3m 12mActual (14.3) (14.3) (9.1)Relative* (15.3) (14.2) (13.9)* % Relative to local indexAnalystTom Hayes

Volt Resources (VRC)

INVESTMENT SUMMARY

Volt’s quarterly report (dated 30 April 2018) provides few surprises, with all critical path workprogrammes and project financing requirements still in a state of progress. Unfortunately,delays getting core samples out of Tanzania has caused Volt’s management to push outdeadlines for the estimation of resources and reserves, the calculation of productionschedules and also revenue projections. With the much-awaited Stage 1 Bunyu feasibilitystudy (FS) now due by the end of June, as well as financing and project approvals, the nextfew months will be critical for the company to demonstrate its ability to get Bunyu firmly intothe next stage of its development.

INDUSTRY OUTLOOK

Based on data points and inputs given in our May 2018 update note, we consider that apurely illustrative value for Bunyu Phase 1 could be worth 7.90 cents on an FY19 basisusing a 10% discount rate to reflect general equity risk. This does not assume any build outof Phase 2, or reflect the potentially accretive value project expansion would bring. We lookto the release of Volt’s new FS to provide precise costing and the exact scope for BunyuPhase 1 development, which will allow us to update our base case valuation.


2016 0.0 (3.4) (3.3) (0.4) N/A N/A

2017 0.0 (3.3) (2.4) (0.3) N/A N/A




Sector: Pcare & household prd



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 0.9 (18.4) (45.0)Relative* (4.2) (22.7) (46.8)* % Relative to local indexAnalystToby Thorrington

Walker Greenbank (WGB)

INVESTMENT SUMMARY

FY18 ended on a weaker UK trading note but Walker Greenbank still delivered good overallgrowth from the enlarged business and demonstrated manufacturing stability after previousdisruption. At the group level, adjusted PBT (excluding LTIP charges and non-trading items)rose by +20.2% to £12.5m in FY18 and, in the event, was slightly better than our reducedyear-end estimates. On the same basis, fully diluted EPS increased by 11.7%, whilefull-year DPS was 21.1% higher than the prior year. Net debt was unchanged at £5.3m atthe year end and equivalent to just 0.3x reported FY18 EBITDA. We consider an increasingemphasis on international markets and developing complementary revenue streams to be alogical strategy without waiting for returning confidence among UK consumers.

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 businesses able todifferentiate themselves from competition by consistently offering innovative andhigh-quality design and products.

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

2017 92.4 13.4 10.4 12.9 9.1 5.9

2018 108.8 15.9 12.5 14.4 8.2 11.8

2019e 111.0 16.2 12.8 14.4 8.2 6.5

2020e 114.4 16.8 13.3 15.0 7.8 6.4

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 6.8 35.7 103.0Relative* 10.6 27.0 101.3* % Relative to local indexAnalystDan Ridsdale

WANdisco (WAND)

INVESTMENT SUMMARY

WANdisco’s co-sell agreement with Microsoft is possibly the company’s most importantpartnership to date, strengthening WANdisco's already enviable platform to capitalise on therapid growth in cloud and hybrid cloud computing. Agreements with IBM, Alibaba,Dell/Virtustream and now Microsoft give a clear indication of the capability and uniquenessof Fusion. Near- and long-term prospects are reinforced as is the potential for WANdisco togrow into and exceed the current rating.

INDUSTRY OUTLOOK

Market developments now appear to be strongly in WANdisco's favour, with the rapid shiftof data to the cloud growth and with distributed data becoming the basis for new, high-valueapplications. A Wikibon survey found that over 50% of businesses have significant concernsover cloud data lock-in – a problem that WANdisco is able to help mitigate.


2016 11.4 (7.5) (16.4) (46.9) N/A N/A

2017 19.6 (0.6) (7.8) (18.6) N/A 789.1

2018e 24.6 (0.5) (8.0) (18.2) N/A 129.5

2019e 31.4 1.0 (6.8) (15.3) N/A 70.4


Sector: Mining

Price: C$27.76Market cap: C$12292mMarket 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.

Price performance% 1m 3m 12mActual 1.4 13.4 (1.3)Relative* (0.8) 9.3 (5.0)* % Relative to local indexAnalystCharles Gibson

Wheaton Precious Metals (WPM)

INVESTMENT SUMMARY

WPM's silver streams outperformed our expectations in Q118 while its gold streamsperformed closely in line. However, after demonstrating the traditional ‘flush through’ effectin Q417, sales of silver and gold in Q118 reverted to close to their long-term trends, with an(albeit temporary) 14.6% under-sale of silver and a 12.2% under-sale of gold relative toproduction. Nevertheless, adjusted net earnings were within 10% of our prior expectationsand our forecasts for FY18 remain effectively unchanged.

INDUSTRY OUTLOOK

Assuming no material purchases of additional streams, we forecast a value for WPM ofUS$35.07/sh (C$44.78/sh) in FY20. In the meantime, it is trading on near-term financialratios that are cheaper than its royalty/streaming peers in 100% of valuation measuresconsidered and the miners themselves in 40% of the same measures, despite beingassociated with materially less risk. WPM is also working on six to eight deals, which couldclose in the next 12 months, each in the US$100-600m range.


2016 891.6 602.7 269.8 62.0 34.8 15.3

2017 843.2 564.7 277.4 63.0 34.2 16.9

2018e 826.5 548.9 281.1 63.0 34.2 17.1

2019e 961.9 658.4 400.8 91.0 23.7 14.5




Company descriptionWindar Photonics is aCopenhagen-based developer andmanufacturer of an innovative,low-cost light detection and ranging(LiDAR) system. Approaching winddirection and speed is measuredahead of a wind turbine, allowingappropriate yaw alignment.

Price performance% 1m 3m 12mActual (2.5) 16.8 27.5Relative* (8.8) 9.5 23.2* % Relative to local indexAnalystAnne Margaret Crow

Windar Photonics (WPHO)

INVESTMENT SUMMARY

FY17 revenues rose by 85% year-on-year to €2.2m. This strong revenue growth wasprimarily driven by demand from IPPs. Growth was particularly strong in China. The costbase realignment resulted in a €0.8m reduction in operating costs to €2.2m and contributedto a halving in EBITDA losses to €1.2m. In July 2017, Windar completed a subscriptionraising £1.25m (gross) at 82p/share, resulting in Windar having cash holdings of €1.1m(excluding restricted cash) at the end of December 2017. Noting arrangements with theDanish Export Credit Agency and a factoring agency to reduce working capitalrequirements, we calculate that this is sufficient to take Windar through to a sustainablecash-generative situation.

INDUSTRY OUTLOOK

Management notes that trading is significantly ahead of the comparative period last yearand in line with management expectations. Significantly, ongoing OEM integration projectsare at a record level going into FY18 and management expects that Windar's LiDARtechnology will be awarded one or more design-in contracts in the near future.


2016 1.2 (2.4) (3.0) (7.6) N/A N/A

2017 2.2 (1.2) (2.1) (5.0) N/A N/A

2018e 5.6 0.7 0.2 0.4 277.7 N/A

2019e 25.3 8.8 8.3 15.6 7.1 13.0





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 9.9 12.7 (54.1)Relative* 4.8 1.8 (56.5)* % Relative to local indexAnalystToby Thorrington

WYG (WYG)

INVESTMENT SUMMARY

A more settled trading period saw WYG end FY18 in line with market estimates. UKConsultancy Services activity has been fairly stable while Polish office trading hasstabilised. International Development major project funding programmes have seen nomajor variations compared to H1. The end February group order book of £162m is slightlybelow the end H117 level (£170m) but above the £145m reported at the end of FY17 withclosing y-o-y positions understood to be up in both divisions. Year-end net debt is said to inline with market estimates; we project this to be £7m. Management continues to work onimproving organisational efficiency and structure including exiting unprofitable business. Welowered the rate of expected progress beyond the current year – in line with guidance –pending more detailed information with FY18 results, which are scheduled for 5 June.

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 in identified sector lines and in internationalmarkets is an established strategy. Market diversity offers both challenges andopportunities, requiring proactive and reactive approaches to business development.


2016 133.5 9.0 7.0 10.6 4.2 N/A

2017 151.8 10.6 8.2 11.9 3.7 9.3

2018e 154.0 5.2 2.8 3.8 11.7 29.7

2019e 159.0 6.0 3.5 4.2 10.6 10.1

Sector: Technology



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 (2.5) 10.5 30.8Relative* (8.3) 1.4 26.8* % Relative to local indexAnalystKatherine Thompson

XP Power (XPP)

INVESTMENT SUMMARY

With the acquisition of Glassman High Voltage, XP continues in its quest to expand itsproduct portfolio to include high-voltage and high-power products. The acquisition shouldhelp XP to further penetrate key accounts, as well as adding new customers. XP is paying£31.8m in cash, funded by extending the company’s credit facility, and expects the deal tobe earnings enhancing in FY18. We have increased our FY18 and FY19 normalised EPSforecasts by 3.6% and 6.1% respectively. We forecast a net debt/EBITDA ratio of 0.8x atend FY18, well below the company’s 2.0x ceiling.

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, with semi fab suppliers showing strong growth.


2016 129.8 33.0 28.6 115.33 30.0 N/A

2017 166.8 41.7 36.1 147.00 23.5 N/A

2018e 193.9 48.5 41.7 177.18 19.5 N/A

2019e 209.4 53.1 45.6 193.70 17.9 N/A


Sector: Media



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 11.5 27.7 70.9Relative* 6.8 21.6 65.3* % Relative to local indexAnalystFiona Orford-Williams

YouGov (YOU)

INVESTMENT SUMMARY

YouGov’s strategy to focus on its scalable products and services is paying backhandsomely in revenue growth and margin improvement. Margin is being further boosted bythe reorientation of custom business to greater use of data already held in the Cube, thegroup’s multi-dimensional database. The group had £21m of net cash at end January, forcontinuing investment in panel, applications and new markets. It also supports aprogressive dividend and allows for bolt-on acquisitions, such as the purchase of theremaining 80% in SMG (for 4.25x EBITDA over three years). SMG specialises in sportsresearch (to be incorporated into forecasts on completion).

INDUSTRY OUTLOOK

Global MR continues to go through an extended period of change, fuelled by vast quantitiesof data leading to a proliferation of tools to manipulate it. This has brought in influential newplayers to the market, some from the technology angle, but also global consultancy andtech sector majors, and from in-house teams at client companies. The GDPR is now liveand alters the system of consumer consent. YouGov has a permissioned model in whichpanellists give explicit consent to how their data will be used. This provides a competitiveadvantage, including over tech companies such as Facebook and Google.


2016 88.2 11.7 13.3 8.5 51.5 32.1

2017 107.0 15.7 16.4 10.5 41.7 24.4

2018e 116.5 18.7 19.4 13.1 33.4 25.9

2019e 126.0 21.1 21.8 14.1 31.0 20.8



Edison dividend list

Company name FY0 period end Currency DPSFY0 DPSFY1 DPSFY2

4imprint Group 2017/12 USD 58.1 63.5 78.0 Acacia Mining 2016/12 USD 10.4 1.4 1.9 APQ Global 2017/12 GBP 0.5 6.0 N/A Avon Rubber 2017/09 GBP 12.3 16.0 20.8 Borussia Dortmund 2017/06 EUR 6.0 6.0 6.0 Caledonia Mining 2017/12 USD 31.4 27.6 221.9 Carclo 2017/03 GBP 0.0 0.0 3.9 Carr's Group 2017/08 GBP 4.0 4.3 4.5 Cenkos Securities 2017/12 GBP 9.0 Centrale del Latte d'Italia 2017/12 EUR 0.0 4.3 4.3 China Aviation Oil (Singapore) 2017/12 USD 3.4 3.7 4.0 China Water Affairs Group 2017/03 HKD 20.0 19.6 21.7 Circle Property 2017/03 GBP 5.0 5.3 5.5 Cohort 2017/04 GBP 7.1 8.2 9.0 CREALOGIX Group 2017/06 CHF 50.0 100.0 150.0 Custodian REIT 2017/03 GBP 6.4 6.5 6.6 DeA Capital 2017/12 EUR 0.1 discoverIE Group 2017/03 GBP 8.5 9.0 9.5 Ebiquity 2017/12 GBP 0.7 0.8 0.8 Eddie Stobart Logistics 2016/11 GBP 0.0 5.4 6.3 Ellomay Capital 2017/12 EUR 0.0 10.6 12.8 Entertainment One 2017/03 GBP 1.3 1.4 1.5 Epwin Group 2017/12 GBP 6.7 5.3 5.5 EQS Group 2017/12 EUR 0.0 0.0 20.0 Esker 2017/12 EUR 33.0 36.0 39.0 Euromoney Institutional Investor 2017/09 GBP 30.6 30.6 31.5 Focusrite 2017/08 GBP 2.7 3.0 3.3 Future 2017/09 GBP 0.0 1.0 2.0 Game Digital 2017/07 GBP 1.0 0.0 0.0 GB Group 2017/03 GBP 2.4 2.5 2.8 Globalworth Real Estate Investments 2017/12 EUR 44.0 Greggs 2017/12 GBP 32.3 31.8 32.9 GVC Holdings 2017/12 GBP NM 30.0 32.0 Jackpotjoy 2017/12 GBP 0.0 0.0 40.0 Jersey Electricity 2017/09 GBP 14.2 14.9 15.7 John Laing Group 2017/12 GBP 11.0 10.0 11.0 La Doria 2017/12 EUR 23.0 24.0 25.0 London Stock Exchange Group 2017/12 GBP 51.6 Lookers 2017/12 GBP 3.9 4.1 4.3 Low & Bonar 2017/11 GBP 3.1 3.3 3.5 Marshall Motor Holding 2017/12 GBP 6.4 6.9 7.1 Medserv 2017/12 EUR 0.0 2.0 2.0 Norcros 2017/03 GBP 7.2 7.8 8.4 Numis Corporation 2017/09 GBP 12.0 12.0 12.0 OTC Markets Group 2017/12 USD 116.0 119.0 124.0 Palace Capital 2017/03 GBP 18.5 19.0 19.5 Pan African Resources 2017/06 GBP 0.5 0.0 0.4 paragon 2017/12 EUR 25.0 25.0 25.0


Park Group 2017/03 GBP 2.9 3.1 3.2 Picton Property Income 2017/03 GBP 3.3 3.4 3.5 Piteco 2017/12 EUR 15.0 17.5 20.0 Polypipe 2017/12 GBP 11.1 12.9 13.3 PPHE Hotel Group 2017/12 GBP 24.0 26.0 28.0 Primary Health Properties 2017/12 GBP 5.3 5.4 5.5 QinetiQ Group 2017/03 GBP 6.0 6.4 6.8 Rank Group 2017/06 GBP 7.3 7.8 8.4 Raven Russia 2017/12 USD 4.0 3.0 3.0 Record 2017/03 GBP 2.0 2.3 2.4 Regional REIT 2017/12 GBP 7.9 8.1 8.3 Renewi 2018/03 GBP 3.1 3.1 3.5 S&U 2018/01 GBP 105.0 120.4 143.2 SCISYS 2017/12 GBP 2.2 2.4 2.6 Secure Trust Bank 2017/12 GBP 79.0 83.0 90.0 Severfield 2017/03 GBP 2.3 2.7 2.8 Share plc 2017/12 GBP 0.4 0.6 0.7 Shore Capital Group 2017/12 GBP 10.0 SNP Schneider-Neureither & Partner 2017/12 EUR 0.0 30.0 40.0 StatPro Group 2017/12 GBP 2.9 2.9 2.9 Stobart Group 2017/02 GBP 13.5 18.0 18.0 Stride Gaming 2017/08 GBP 2.7 3.0 3.5 Target Healthcare REIT 2017/06 GBP 6.3 6.5 6.6 Treatt 2017/09 GBP 4.8 5.0 5.6 Trifast 2017/03 GBP 3.5 3.7 3.8 TXT e-solutions 2017/12 EUR 100.0 16.0 17.0 Tyman 2017/12 GBP 11.3 13.8 Ultra Electronics Holdings 2017/12 GBP 49.6 52.0 54.6 Vermilion Energy 2017/12 CAD 258.0 271.5 276.0 Walker Greenbank 2018/01 GBP 4.4 4.6 4.9 Wheaton Precious Metals 2017/12 USD 33.0 36.0 42.0 WYG 2017/03 GBP 1.8 1.8 1.9 XP Power 2017/12 GBP 78.0 82.0 85.0 YouGov 2017/07 GBP 2.0 2.3 2.5


Company Sector Most recent note Date published

1Spatial Software & comp services Update 31/05/18 32Red Travel & leisure Update 13/03/17 7digital Group Media Update 09/02/18 4imprint Group Media Update 08/05/18 Aberdeen New Dawn Investment Trust Investment trusts Investment company review 23/07/15 Aberdeen New Thai Investment Trust Investment companies Investment company review 21/05/18 Aberdeen UK Tracker Trust Investment companies Investment company review 31/07/15 Acorn Income Fund Investment companies Investment company review 03/10/17 AFH Financial Group Financials Update 26/01/16 African Petroleum Corporation Oil & gas Update 18/03/16 AJ Lucas Group Oil & gas Initiation 09/04/18 Alabama Graphite Metals & mining Update 15/03/18 Alkane Resources Metals & mining Update 04/05/18 Amur Minerals Metals & mining Outlook 16/04/18 appScatter Software & comp services Flash 12/04/18 APQ Global Financial services Update 29/01/18 Arbuthnot Banking Group Financials Update 16/08/16 Ariana Resources Metals & mining Update 02/03/16 Atlantis Japan Growth Fund Investment companies Initiation 08/02/18 Augean Industrial support services Update 21/03/18 Auriant Mining Metals & mining Initiation 06/03/18 Avanti Communications Group Fixed satellite services Update 15/12/17 Avesco Group Media Update 03/10/16 Avon Rubber Aerospace & defence Outlook 02/05/18 Banca Sistema Financials Update 16/05/18 BB Biotech Investment companies Investment company review 23/11/17 BioPharma Credit Investment companies Initiation 17/05/18 Biotech Growth Trust (The) Investment companies Investment company review 22/02/18 BlackRock Emerging Europe Investment companies Initiation 29/01/18 BlackRock Greater Europe Inv. Trust Investment companies Investment company review 11/04/18 BlackRock Latin American Inv. Trust Investment companies Investment company review 15/02/18 Blancco Technology Group Software & comp services Update 23/03/18 Boku Software & comp services Update 11/04/18 Borussia Dortmund Travel & leisure Outlook 10/04/18 Brady Technology Update 27/03/18 Brunner Investment Trust Investment companies Investment company review 27/09/17 Caledonia Mining Metals & mining Update 12/01/18 Canadian General Investments Investment companies Investment company review 25/04/18 Canadian Overseas Petroleum Limited Oil & gas Flash 19/12/16 Carbios Alternative energy Update 31/10/17 Carclo Technology Update 22/01/18 Carr’s Group Food & drink Update 16/04/18 Cenkos Securities Financials Update 06/10/17 Centrale del Latte d’Italia Food & drink Outlook 16/05/18 China Aviation Oil (Singapore) Industrial support services Update 29/03/18 China Water Affairs Group Utilities Update 24/01/18 Circle Property Real estate Update 18/05/18 City Natural Resources Investment companies Investment company review 22/01/15 Cohort Aerospace & Defence Update 30/04/18 Cooks Global Foods Food & drink Update 02/08/17 CREALOGIX Group Software & comp services Update 17/05/18 Custodian REIT Property Update 22/02/18 CVC Credit Partners European Opps Investment companies Investment company review 19/03/18 DeA Capital Investment companies Update 26/03/18 Deinove Alternative energy Update 23/10/17 DEMIRE Property Update 17/01/18



Deutsche Beteiligungs Investment companies Investment company review 25/05/18 discoverIE Group Electronics & electrical equipment Update 24/04/18 Diverse Income Trust (The) Investment companies Investment company review 09/04/18 Dunedin Enterprise Investment Trust Investment companies Investment company review 05/10/15 Ebiquity Media Update 21/03/18 Eckoh Technology Flash 21/01/16 Eddie Stobart Logistics Industrial support services Update 01/09/17 Edinburgh Worldwide Investment Trust Investment companies Initiation 13/10/14 Egdon Resources Oil & gas Outlook 30/04/18 Elk Petroleum Oil & gas Update 13/11/17 Ellomay Capital Alternative energy Update 16/04/18 EMIS Group Software & comp services Flash 28/03/18 Entertainment One Media Update 22/05/18 Entrée Resources Metals & mining Update 26/04/18 Epwin Group Industrials Update 30/05/18 EQS Group Media Update 24/05/18 ERM Power Utilities Flash 29/05/18 eServGlobal Technology Outlook 22/05/18 Esker Technology Update 10/04/18 Euromoney Institutional Investor Media Update 18/05/18 European Assets Trust Investment companies Investment company review 07/02/18 European Investment Trust (The) Investment companies Investment company review 07/12/17 Evolva Food & beverages Update 22/03/18 Expert System Technology Update 11/04/18 F&C Managed Portfolio Trust Investment companies Investment company review 21/05/18 Fair Value REIT Property Update 16/05/16 Fidelity China Special Situations Investment companies Investment company review 15/09/17 Fidelity European Values Investment companies Investment company review 03/04/18 Findel Retail Update 18/04/18 Finsbury Growth & Income Trust Investment companies Investment company review 10/05/18 Focusrite Consumer support services Update 24/04/18 Foreign & Colonial Investment Trust Investment companies Investment company review 19/03/18 Foresight Autonomous Holdings Technology Update 17/04/18 Fusionex International Technology Update 04/04/17 Future Media Update 17/05/18 G3 Group Industrial support services Update 08/05/17 Game Digital Retail Update 27/03/18 GB Group Technology Flash 18/04/18 GCP Student Living Real estate investment trusts Initiation 31/05/18 Globalworth Real Estate Investments Property Update 06/12/16 Green Dragon Gas Oil & gas Flash 20/09/17 GO internet Technology Outlook 08/05/18 Green Dragon Gas Oil & gas Flash 31/10/17 Greggs Food & drink Update 10/05/18 GVC Holdings Travel & leisure Update 20/04/18 Hansa Trust Investment companies Investment company review 01/05/18 HarbourVest Global Private Equity Investment companies Investment company review 16/03/18 HBM Healthcare Investments Investment companies Investment company review 14/02/18 Heliad Equity Partners Investment companies Initiation 12/06/17 Hellenic Petroleum Oil & gas Update 17/04/18 Henderson Alternative Strategies Trust Investment trusts Investment company review 16/02/18 Henderson Far East Income Investment companies Investment company review 16/01/18 Henderson Global Trust Investment companies Investment company review 31/03/16 Henderson International Income Trust Investment trusts Investment company review 30/11/17 HSBC Financials Update 13/08/15 Hurricane Energy Oil & gas Flash 10/04/18



Imperial Innovations Financials Update 27/09/16 International Biotechnology Trust Investment companies Investment company review 10/05/16 Invesco Asia Trust Investment companies Investment company review 23/03/18 IQE Tech hardware & equipment Update 29/03/18 Is Private Equity Investment companies Outlook 16/03/18 IS Solutions Technology Outlook 09/03/16 Jackpotjoy plc Travel & leisure Update 15/05/18 Jersey Electricity Industrials Outlook 05/03/18 John Laing Group Investment companies Update 23/03/18 JPMorgan European Smaller Comps T t

Investment trusts Investment company review 04/12/17 JPMorgan Global Convertibles Inc Fund Investment companies Investment company review 28/07/17 JPMorgan Global Growth & Income Investment companies Investment company review 06/05/18 JPMorgan Private Equity Investment companies Investment company review 28/04/15 Jupiter Green Investment Trust Investment trusts Investment company review 02/05/18 Jupiter Primadona Growth Trust Investment companies Initiation 03/06/15 Jupiter UK Growth Investment Trust Investment trusts Investment company review 14/05/18 Jupiter US Smaller Companies Investment trusts Investment company review 17/05/18 KEFI Minerals Mining Outlook 08/05/18 Keywords Studios Software & comp services Flash 31/05/18 La Doria Food & drink Outlook 29/05/18 Lazard World Trust Fund Investment companies Investment company review 14/09/17 Leclanché Alternative energy Flash 05/03/18 Leigh Creek Energy Oil & gas Update 10/05/18 Lepidico Metals & mining Update 13/10/17 Liquefied Natural Gas Ltd Oil & gas Outlook 13/02/18 Location Sciences Media & technology Initiation 19/03/18 Lookers General retailers Update 04/04/18 London Stock Exchange Group Financials Update 19/10/15 Low & Bonar Basic industries Update 17/04/18 Lowland Investment Company Investment companies Investment company review 25/10/17 LSL Property Services Property Update 01/09/16 Marlborough Wine Estates Group Food & drink Update 03/05/18 Marshall Motor Holdings Automotive retailers Update 14/03/18 Martin Currie Asia Unconstrained Trust Investment companies Investment company review 23/11/17 Martin Currie Global Portfolio Trust Investment companies Investment company review 14/12/17 MedicX Fund Property Update 30/05/18 Medserv Industrial support services Update 14/05/18 Merchants Trust (The) Investment companies Investment company review 22/05/18 Middlefield Canadian Income Investment companies Initiation 04/10/16 migme Software & comp services Update 07/09/16 Mineral Commodities Mining Update 24/06/16 Mitula Group Media Update 13/02/17 Mondo TV Media Update 17/05/18 Nanoco Group Tech hardware & equipment Flash 08/05/18 Nano Dimension Technology Update 29/05/18 National Grid Industrials Outlook 28/04/17 NetDimensions Technology Update 11/11/16 Norcros Construction & materials Update 02/01/18 Numis Corporation Financial services Update 17/05/18 Ocean Wilsons Holdings Investment companies Update 11/10/17 Oceania Natural Consumer support services Update 05/12/17 OnTheMarket Media Initiation 09/02/15 Orosur Mining Metals & mining Update 26/01/18 Osirium Technologies Software & comp services Flash 09/01/18 OTC Markets Group Financial services Update 29/05/18 Pacific Assets Trust Investment companies Investment company review 30/07/15



Palace Capital Real estate Outlook 21/05/18 Pan African Resources Metals & mining Update 16/05/18 paragon General industrials Update 09/04/18 Park Group Financial services Update 21/05/18 Paysafe Group Technology Update 11/08/17 Picton Property Income Property Update 26/01/18 Piteco Software & comp services Update 21/03/18 Pointer Telocation Tech hardware & equipment Update 29/05/18 Polypipe Construction & materials Update 20/04/18 PowerHouse Energy Group Alternative energy Outlook 12/02/18 Powerflute Basic industries Update 08/04/16 PPHE Hotel Group Travel & leisure Flash 04/05/18 Primary Health Properties Property Update 14/05/18 Princess Private Equity Holding Investment companies Initiation 06/04/18 Prodware Technology Update 26/05/16 PSI Technology Update 10/11/16 Qatar Investment Fund Investment companies Investment company review 23/02/17 QEX Logistics General industrials Update 29/05/18 QinetiQ Group Aerospace & defence Flash 12/02/18 Rank Group Travel & leisure Update 06/04/18 Raven Russia Property Update 12/03/18 Record Financials Update 25/04/18 Regional REIT Real estate Flash 21/05/18 Renergen Oil & gas Initiation 13/03/18 Renewi Industrial support services Update 30/05/18 Reworld Media Media Outlook 20/03/18 Rex Bionics Technology Update 06/01/16 RNTS Media Media Update 02/06/17 Rockhopper Exploration Oil & gas Update 19/03/18 Rubicon Construction & materials Update 09/04/15 S&U Financials Outlook 12/04/18 Schroder AsiaPacific Fund Investment companies Investment company review 11/08/17 Schroder Global Real Estate Securities Investment trusts Initiation 22/06/15 SCISYS Technology Update 05/04/18 Scottish Oriental Smaller Cos Trust Investment companies Investment company review 10/01/18 SDX Energy Oil & gas Flash 20/04/18 Secure Income REIT Financials Initiation 19/09/16 Secure Trust Bank Financials Update 12/04/18 Securities Trust of Scotland Investment companies Investment company review 28/02/18 Seneca Global Income & Growth Trust Investment companies Investment company review 01/03/18 Severfield Construction & materials Update 13/04/18 Share plc Financials Update 27/03/18 Shore Capital Group Financials Update 11/04/17 SLI Systems Technology Outlook 13/03/18 Snakk Media Media Update 05/02/18 SNP Schneider-Neureither & Partner Technology Update 04/05/18 Standard Life Equity Income Trust Investment companies Investment company review 17/01/18 Standard Life Private Equity Trust Investment companies Investment company review 07/02/18 Standard Life Inv. Property Income Trust Investment companies Investment company review 07/12/17 Standard Life UK Smaller Cos Trust Investment companies Investment company review 28/03/18 StatPro Group Technology Update 24/05/18 Stobart Group Support services Update 26/01/18 Stride Gaming Technology Update 23/05/18 STV Group Media Update 26/08/16 Takung Art Retail Update 22/05/18 Target Healthcare REIT Property Update 16/03/18



Templeton Emerging Markets Inv Trust Investment companies Investment company review 08/11/17 Tenon Building materials Outlook 03/12/15 TerraNet Software & comp services Update 04/04/18 Tetragon Financial Group Investment companies Investment company review 10/05/18 The Bankers Investment Trust Investment trusts Investment company review 29/05/18 The Law Debenture Corporation Investment trusts Investment company review 26/09/17 The Marketing Group Media Update 03/05/18 The North American Income Trust Investment trusts Investment company review 11/10/16 The Scottish Investment trust Investment trusts Investment company review 19/03/18 Thin Film Electronics Technology Flash 19/10/17 Touchstone Exploration Oil & gas Update 23/01/15 Tourism Holdings Travel & leisure Update 05/09/16 Town Centre Securities Real estate Initiation 17/04/18 TR European Growth Trust Investment trusts Investment company review 28/11/17 TransContainer General industrials Update 06/12/17 Treatt Basic industries Outlook 15/05/18 Trifast Engineering Update 20/04/18 Tungsten Corporation e-invoicer & invoice financier Update 24/07/17 TXT e-solutions Technology Update 16/05/18 Tyman Construction & materials Update 23/11/17 UK Commercial Property Trust Investment trusts Investment company review 28/02/18 Ultra Electronics Aerospace & defence Flash 27/04/18 Umweltbank Financials Initiation 16/05/18 Utilico Emerging Markets Investment companies Investment company review 26/02/18 Utilitywise Industrial support services Update 02/08/17 Vermilion Energy Oil & gas Update 09/05/18 Victoria Gold Metals & mining Update 20/09/16 Vietnam Enterprise Investments Investment companies Investment company review 20/12/17 VinaCapital Vietnam Opportunity Fund Investment companies Investment company review 15/12/16 Volt Resources Metals & mining Update 08/05/18 Walker Greenbank General industrials Update 13/04/18 WANdisco Technology Update 12/03/18 Wheaton Precious Metals Metals & mining Update 18/05/18 Windar Photonics Alternative Energy Update 31/05/18 Witan Investment Trust Investment companies Investment company review 21/05/18 Witan Pacific Investment Trust Investment companies Investment company review 01/05/18 Worldwide Healthcare Trust Investment companies Investment company review 26/03/18 WYG Industrial support services Update 06/04/18 XP Power Electronic & electrical equipment Update 10/05/18 YouGov Media Update 28/03/18 YPB Group Industrial support services Update 10/06/16

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