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Q3 trading in line with expectations

Key data

  • Share price (p) 50.0
  • Target price (p) 120.0
  • Market cap (£m) 34.4
  • Enterprise value (£m) 30.9

Altitude’s Q3 trading update demonstrates that focus on the US is paying off. US 9-month revenue of $4.6m was in line with management expectations, as the group continues to realise the benefits of the January acquisition of AIM Smarter (previously AI Mastermind), as it drives engagement on both sides of the market place, transaction flow, and revenue. Group revenue of £8.1m for the 9-month period demonstrates 53% growth YoY (£5.3m), and an increase of £2.7m since interims, in line with unchanged forecasts of £15.1m for the 15 months to March 2020. We reiterate our 12-month target price (120p), and look forward to further detail in a Q4 trading update to December 2019, expected in March 2020.

Andrew Darley 020 7220 0547

Robinson (RBN) : Corp

FY2019 assisted by weak resin prices

Key data

  • Share price (p) 74.5
  • Target price (p) 130.0
  • Market cap (£m) 12.4
  • Enterprise value (£m) 16.5

RBN has issued a trading update for the year ending 31 December 2019. The statement anticipates FY2019E revenues of £35m, +7% y-o-y – slightly behind our forecasts – but expects adjusted PBT to be ahead of our expectations thanks to falling input costs (resin) benefitting the gross margin. Our sum of the parts derived share price target does not change materially but we upgrade our FY2019E gross profit forecast by 4.6%, with operational gearing magnifying this to a 20% upgrade to FY2019E adjusted PBT.

Raymond Greaves 020 7220 0553

Belvoir Group (BLV) : Corp

Building market share

Key data

  • Share price (p) 121.5
  • Target price (p) 194.0
  • Market cap (£m) 42.4
  • Enterprise value (£m) 51.9

Belvoir has agreed to acquire Lovelles, an independent, predominantly franchised estate agency, for £2m in cash. Lovelles generated operating profit of £0.5m in the year to March 2019; hence, the business is being acquired for only 4x historic profits. It is a good geographic and cultural fit and there are a number of opportunities for Belvoir to quickly add value. We have upgraded our FY 2020 EPS by 7% and our target price from 190p to 194p, and we reiterate our view that Belvoir’s franchise model maximises entrepreneurial potential, flexibility and cash flow while minimising risk ? positive characteristics that are not factored into the FY 2020E PER of 8.5x and 6.3% dividend yield.

Guy Hewett 020 7220 0549

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