M.P. Evans (MPE) : Corp

AGM update: good start to the year

Key data

  • Share price (p) 686.0
  • Target price (p) 1 000.0
  • Market cap (£m) 376.5
  • Enterprise value (£m) 359.6

MPE has released an AGM trading statement covering the first five months of the financial year (to end May 2019). The statement highlights a solid start to the year with 5% y-o-y growth in FFB harvest and 2% y-o-y growth in CPO equivalent volumes. It must be remembered that the comparative period is extremely challenging as the first five months of 2018 saw FFB harvest up 27% as the plantations enjoyed a strong bounce back from an El Nino event. The harvest YTD is consistent with our full year forecasts, and we expect the usual seasonal weighted to H2. Once again, the disappointment remains the lack of momentum behind the CPO price recovery. No change to forecasts or price target.

Raymond Greaves

020 7220 0553

rgreaves@finncap.com

Velocity Composites (VEL) : Corp

Update on EIS/VCT qualifying strategic investments

Key data

  • Share price (p) 20.5
  • Target price (p) 50.0
  • Market cap (£m) 7.3
  • Enterprise value (£m) 3.5

The update points to the company making promising and rapid progress over recent months. In particular, the 12 June announcement of a collaboration agreement with Wesco Aircraft Holdings provides an opportunity to develop a new hub in the US market. A smaller but likewise significant investment is also planned for a new site in Europe and additionally has committed investment to its R&D centre in Burnley. These projects are expected to complete in the next 12 months. As such, in combination with investments of £3.2m already made and new commitments announced, the group now expects to deploy its £5.0m of EIS/VCT funding within the time frame necessary for tax purposes. This investment commitment will be met from existing cash resources, including a small level of cash flow generated from trading.

David Buxton

020 7220 0542

dbuxton@finncap.com

Alumasc (ALU) : Corp

Year-end trading update

Key data

  • Share price (p) 103.0
  • Target price (p) 122.0
  • Market cap (£m) 36.7
  • Enterprise value (£m) 56.9

The year-end trading update highlights that the majority of the group continues to trade well, outperforming the somewhat challenging UK construction markets. Levolux, however, has seen a weaker H2 than previously expected due to customer project delays. As such, adjusted PBT for the year is expected to be below expectations and a restructuring programme to deliver an additional £1.0m cost savings is underway. We are consequently reducing FY 2019 EPS by 12% to 12.2p. We also cut the PT to 122p, although we highlight the 7% yield attractions.

David Buxton

020 7220 0542

dbuxton@finncap.com

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