Sunrise Resources (LON:SRES) – SPECULATIVE BUY*: Bay State update
Market Cap: £1.7m; Current Price: 0.25p
High grade silver in all holes
- Sunrise Resources encountered high grade silver in all three holes from its maiden drill programme at the Bay State Silver Project. Results included; 1,460g/t Ag over 0.2m from 164.13m (15SRDD002), 566g/t Ag over 0.5m from 70.71m and 394g/t Ag from 88.7m (15SRDD001) and 503g/t Ag over 1.4m from 185.32m (15SRDD003).
- High grades also intersected outside of the known vein system indicating the potential for additional greenfield discoveries. Follow up drilling now warranted. Permits are already in place for the follow up holes to allow rapid progression of the drill programme.
NORTHLAND CAPITAL PARTNERS VIEW: Positive high grade silver intercepts from the maiden drill programme by Sunrise Resources at the Bay State Silver Project. Only three holes have been completed of the seventeen that have been permitted and to get such high grade results so early on in the programme is a significant achievement. While some of the intercepts appear narrow, these vein systems often pinch and swell along strike and down dip, so much more drilling is required to get a full picture of the potential of the project. Importantly, the grades are high and the vein has been largely intercepted where the Company expected to find it.
Tavistock Investments (LON:TAVI) – CORP: Update
Market Cap: £15.1m; Current Price: 5.2p
Good progress in integration of Standard Financial Group
- Since the acquisition of Standard Financial Group in February, Tavistock has conducted a risk appraisal of all members of Financial Ltd’s (FL) advisory network and has transferred the significant majority over to a new network, Tavistock Financial Ltd Tavistock has also disposed of Investments Ltd’s (IL) subscale investment management business and transferred all FL and IL support staff to TFL. This has reduced operating costs by £1m p.a. and TFL trades profitably.
- Tavistock now has a national network of 270 self-employed financial advisers and can off the services of its investment management business, Tavistock Wealth, to their underlying clients. The final step of the integration is to close down the three entities and these entities have been placed into liquidation.
Castleton Technology (LON:CTP): Trading update
Market Cap: £50.2m; Current Price: 3.3p
H1 trading in line
- H1 trading comfortably in line with market expectations with adj. EBITDA of £1.7m on revenue of £8.5m including 16% organic growth on a 12 month basis. Recurring revenue has grown as a proportion of 55% in H1.
- Customer base of more than 450 (49 added since acquisition) and four resellers signed up in the Netherlands with the first customer live in October. Recently entered a partnership with a leading supplier of software to the public sector and social housing marketplace.
- Integration of acquisitions progressing on track with the Keylogic and Montal businesses merged into Castleton Managed Services as of 1st October and the four acquired software businesses (Documotive, Opus Information Technology, Brixx Solutions and Impact Applications) expected to merge in H2.
- Interims expected in early December
NORTHLAND CAPITAL PARTNERS VIEW: The provision of software and IT services to the public and not for profit sectors is fragmented and the Castleton model has been buy-and-build with a view to upselling software and services into the base. Progress to date has been good with organic revenue growth, customer wins and a streamlining of the businesses acquired – integration plus the disposal of non-core activities. The management team is well backed and hence should be able to make further complementary acquisitions. Shares are trading on 15.6x consensus FY16 EPS.