ValiRx plc (LON:VAL) – CORP: Change of adviser
Market Cap: £18m; Current Price: 59.5p
Appoints Northland Capital Partners as sole Broker
- ValiRx has appointed Northland Capital Partners as its sole Broker.
NORTHLAND CAPITAL PARTNERS VIEW: ValiRx is a biopharmaceutical company that is developing technologies and products in oncology therapeutics and diagnostics. The Company aims to maximise investor returns by adding value at the earliest stage of drug and technology development where value increases are at the largest. It also looks to reduce its risk exposure by rigorous clinical and commercial due diligence. The Company has a seasoned management team with extensive experience in developing medical life science companies.
Ferrex (LON:FRX) – CORP: FY14 results
Market Cap: £7.1m; Current Price: 0.65p
LBT reduces YoY
- LBT decreased in FY14 to £0.66m from £0.75m in FY13.
- Net debt of £0.26m in FY14 compared with net cash of £0.54m in FY13.
NORTHLAND CAPITAL PARTNERS VIEW: Ferrex has now finalised its accelerated Definitive Feasibility Study for its 85% owned Nayega Manganese Project, located in Togo. The details of this will be published following a review by a third party and issue of the mining permit. Ferrex is currently in discussions with several parties regarding the development funding for the project. Once these boxes are ticked the Company will look to rapidly develop the Nayega Manganese Project.
Connemara Mining Company (LON:CON) – CORP: FY14 results
Market Cap: £0.9m; Current Price: 1.6p
LBT reduced YoY
- LBT of €0.31m in FY14 remained largely level with €0.35m in FY13.
- Net debt of €0.07 in FY14 compares to €0.12m in FY13.
- Connemara expects joint venture partner Teck to have a limited budget for the Oldcastle Block in 2015.
- On the Wicklow/Wexford gold licences joint venture partner Hendrick is expected to commence drilling but this is dependent on funding.
- Connemara will develop a work programme for its 100% owned Rapla licence and plans a second phase to the soil sampling programme recently completed (28/05/15) at the Inishowen licences.
NORTHLAND CAPITAL PARTNERS VIEW: In a difficult market for junior explorers Connemara has kept its overheads low and acquired new projects at a low cost. The Company currently has the funds necessary for its current planned activities for 2015.
Alternative Networks (LON:AN.) – Interims & CEO change
Market Cap: £257m; Current Price: 531p
Interims: on track for FY, CEO announces September departure, COO steps up
- Revenue +17% to £74.0m (organic +7%), adj. EBITDA +24% to £10.3m, adj. PBT +16% to £8.3m, adj. dil. EPS +6% to 12.7p and interim DPS +12% to 5.5p – reiterates guidance of FY dividend growth of no less than 10% and longer term target of 15% . FY on track.
- Cash conversion of adj. EBITDA 93% (FY14: 86%) and net debt at £30.1m (FY14: £29.3m) with capex of £2.4m on the new London office and £4.6m in dividend payments. H2 has seen the £3.8m proceeds from the sale of its former London office. Targeting <£20m debt by the end of FY.
- Mobile and Advanced Solutions +9% on an underlying basis and +13% on a pro forma basis with the businesses acquired in January 2014 (Intercept IT and Control Circle) have been fully integrated. These have enabled a broader product offering and created cross-selling opportunities. Average monthly spend by large customers has increased 12% and the proportion of customers taking five or more products has increased to 18% from 16%.
- 11% increase in Mobile subscriptions with low churn and increased average data spend per user. Mobile now accounts for 30% of total revenue. Fixed Voice revenue has continued to decline (down 10% to £14.4m) in line with market dynamics, regulatory price reductions and lower call volumes to mobiles.
- Edward Spurrier, CEO, will step down as CEO and as a director on 30th September and will be replaced by Mark Quartermaine, the current COO and previously an NED.
NORTHLAND CAPITAL PARTNERS VIEW: Solid set on interims with further growth in the Advanced Solutions and Mobile businesses offset by the ongoing decline in the Fixed Voice division. The average spend per customer and associated product tie ratio KPIs are encouraging. Control Circle saw a decline in revenue as the company moved away from lower margin hardware sales but also a hiatus in spending from a couple of clients. With that spend resuming in H2, one would anticipate a return to growth. The announcement of the CEO’s departure in September may unsettle some but there is an orderly handover process and the James Murray, executive chairman, co-founder and largest shareholder, remains in place. Shares have recovered following a dip at the end of Q1 and are trading on 16.6x FY15 and 15.2x FY16.