Intercede (IGP) : Corp

Interim trading update

Key data

  • Share price (p) 33.0
  • Target price (p) 80.0
  • Market cap (£m) 16.7
  • Enterprise value (£m) 18.2

Intercede’s trading update to the interim period ending September 2019 includes revenue growth of approximately 5% (ie £4.4m) following a strong end to the half with orders received from new and existing customers (1H19: £4.2m). Encouraging cash generation is indicated by the £5.2m gross cash balance, implying net cash of c£0.4m vs March FY19 net debt of £1.5m, with all debt in the form of 8% December 2021 68.8p convertibles. Forecasts are unchanged, target 80p reiterated, and we look forward to interims, typically late November/early December.

Andrew Darley 020 7220 0547

Gooch & Housego (GHH) : Corp

Relief as year-end update signals trading in line

Key data

  • Target price (p) 1 250.0
  • Market cap (£m) 289.8
  • Enterprise value (£m) 307.1

The group’s year-end update flags trading is in line with previously downgraded expectations, with similar market trends as previously flagged. Industrial lasers for microelectronics remains subdued but no worse than expected. Encouragingly, the rest of the group has traded strongly – indeed, subsea fibre couplers has had a record period and production continues to ramp up, while A&D and Lifesciences both traded well. With only slight changes to the detail of forecasts, we maintain our adjusted PBT and EPS forecasts. We think this announcement will provide investors with a sense of relief, although current market circumstances are unlikely to result in significant expansion of multiples. We maintain our 1250p price target.

David Buxton 020 7220 0542

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