Filtronic (FTC) : Corp

CEO leaves with immediate effect

Key data

  • Share price (p) 8.5
  • Target price (p) 10.5
  • Market cap (£m) 17.8
  • Enterprise value (£m) 15.4

In a short announcement, Rob Smith has resigned with immediate effect after five years with the company. Chairman Reg Gott will become Executive Chairman whilst a search for a new CEO commences. Rob feels that after guiding the company through a difficult period, settling the warranty claim and wrestling with the future of the Telecom Antennas Operation (never a dull moment in his words), now is the time for him to look for fresh opportunities and to hand over to someone else to take the company forward. His departure is in the midst of both the capacity expansion at Sedgefield and the antenna business sale process, but there is a strong Board and management team and we have confidence in Reg Gott and the FD, Michael Tyerman, to take the business forward in the near term.

Lorne Daniel 020 7220 0545 ldaniel@finncap.com

President Energy (PPC) : Corp

Group update

Key data

  • Share price (p) 4.0
  • Target price (p) U/R
  • Market cap (£m) 45.1
  • Enterprise value (£m) 66.8

The impending start of gas deliveries through President’s growing Rio Negro gas infrastructure, alongside the recovery of production in Louisiana, leaves President on track to hit its 2019 production guidance and provides a springboard to deliver further material growth in 2020. With Argentine elections behind us, investors will be watching to see whether the new President removes the temporary oil price controls when they are due to end in mid-November.

Jonathan Wright 020 7220 0543 jwright@finncap.com

Xeros (XSG) : Corp

Saving the world’s water, one XOrb at a time

Key data

  • Share price (p) 1.2
  • Target price (p) 4.0
  • Market cap (£m) 9.2
  • Enterprise value (£m) 3.7

Xeros has developed a polymer-based technology that has been proven to save vast quantities of water in water intensive industries such as garment processing and manufacturing, commercial & domestic laundry. Given that the bulk of these industries are in highly water stressed regions such as India and China, the scope for commercial success is clear. With £130m invested to date, BASF as a supplier and some of Asia’s largest washing machine makers either taking licences or in discussions, Xeros appears to be at the inflection point. We initiate coverage with a price target of 4p/share.

Raymond Greaves 020 7220 0553 rgreaves@finncap.com

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