well up from the start now 59 points better|
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
7 December 2016
Kodal Minerals Plc
('Kodal' or 'the Company')
High-Grade Rock Chip Samples Returned at Malian Lithium Projects
Kodal Minerals, the mineral exploration and development company focussed on West Africa, is pleased to announce high grade rock chip results from the first dispatch of samples from the reconnaissance rock chip sampling at its lithium interests in Southern Mali.
· First rock-chip assay results confirm high-grade lithium mineralisation at the Bougouni lithium project ("Bougouni").
· Assay results up to 2.04% Li2O returned for sampling at the Sogola pegmatite vein located within Bougouni.
· New areas of high-grade lithium mineralisation identified within Bougouni with assay results up 1.9% Li2O and 1.65% Li2O.
· An additional 44 rock-chip samples are pending analysis from the ongoing geological reconnaissance at Bougouni.
· Reverse Circulation ("RC") drilling continuing at Bougouni with programme expected to be completed in mid-December 2016.
· RC drilling targeting the Bougouni's Sogola, Ngoualana and Kola veins initially, with further geological exploration to develop the new high-grade targets for drilling.
· Initial results from the Diendio lithium project ("Diendio") confirm presence of lithium mineralisation, maximum result of 0.03% Li2O returned from limited sampling.
Bernard Aylward, CEO of Kodal Minerals, said: "These initial rock-chip results confirm the presence of high-grade lithium mineralisation at Bougouni and reinforced our confidence in the prospectivity and potential strategic value of this asset. Kodal has acquired a significant landholding in this region and our exploration activity is continuing to highlight multiple targets and areas of high-grade lithium mineralisation.
Exploration is continuing at Bougouni with the first RC drilling programme underway targeting three of our high-grade pegmatite veins. This drilling is expected to be completed in mid-December 2016 and will provide vital information on the depth and continuity of the pegmatite bodies as well as provide reliable samples for analysis of the grade of the mineralisation.
Kodal will continue to rapidly explore and advance both Bougouni and the newly acquired Diendio, with on-going geological mapping, sampling and additional drilling planned."|
|Stockwatch: A tuck-away with takeover potential - By Edmond Jackson | Tue, 6th December 2016
Stockwatch: A tuck-away with takeover potential packaging Brexit uncertainty PE Can Macfarlane (MACF) defy any economic slowdown? At 58p the FTSE Fledgling shares in this protective packaging group have fallen from a spring-time high of 69p, weighed down by fears the business cycle is maturing and Brexit disruption will fester.
The forward price/earnings (PE) multiple is currently about 10 times, a rating which the stock hasn't seen for four years as it's trended higher. The five-year chart is a similar, if less dramatic, trend to what we've seen with Lavendon (LVD), where a cyclical soared from 2012 before running into consolidation and decline - albeit without the operational gearing of plant hire.
Macfarlane provides bespoke packaging for the electronics, aerospace and medical sectors, and is the UK market leader for distributing consumable products by way of industry logistics, mail order and internet retail.
Mind, the history of UK-listed packaging groups tends to involve proclaiming "specialist" qualities to contend a better PE rating, but they still tend to get hit by recession.
Macfarlane has, however, grown its sales element to internet retailers by three percentage points to 22% in the last year or so, which should mitigate cyclicality as online sales continue to grow.
In recent weeks the stock has bumped along a 52p support level then blipped up on seemingly bullish interims: "Momentum achieved in the first half of 2016 has strengthened in the second half of the year with improving organic growth and the continuing benefit of acquisitions."
Macfarlane qualifies for a classic growth stock value criterion thanks to consistent earnings growthIt comes across as fresh news, although Arden Partners, the company's broker, had already published ambitious forecasts on 28 July for 25% earnings growth this year. The board has merely reiterated this, rather than raising expectations anew.
Moreover, full-year expectations assume they will benefit from the festive period in the fourth quarter thanks to its e-commerce exposure.
This update doesn't add anything to the bottom line, although it bolsters the story with "strengthening momentum" versus Brexit uncertainties conspiring for modest pricing.
Value, but take care
The table shows Macfarlane qualifying for this classic growth stock value criterion as a virtue of consistent earnings growth. Ideally you are looking for a value below 1.0 for the forward PE multiple divided by the projected earnings growth rate - the PEG ratio.
Macfarlane, therefore, looks attractive, although a contrarian would say it's time to worry when cyclicals become perceived as growth stocks, the UK having enjoyed a record-long upturn since 2009 amid monetary stimulus.
PEG is a snapshot measure, but it can be useful for businesses with strong market positionsSome exception can, however, be made for Macfarlane enhancing its organic growth capably with acquisitions.
Not to pin valuation on the PEG ratio, it mainly underlines how cautious sentiment has reduced the PE just when a boost is expected for earnings per share.
While it's quite a snapshot measure, it can still be useful when the business in question has strong market positions, this being the kind of stock that's more likely to recover or get taken over. Its chief risk is becoming a value-trap if recession follows.
The 2016 interims need some clarification in terms of revenue growth, which seemed quite weak at 3.7% when including acquisitions made during the period: Colton Packaging Teesside and Edward McNeil in Glasgow.
There was a performance split, with packaging distribution sales 5.5% ahead or 0.5% organically, while manufacturing sales were 9.0% lower after a decision not to follow price competition in labels.
It didn't undermine profitability, but is a reminder of challenges in this sector. The interim gross margin slipped 0.1% and reflects competition at 29.2%, while the table shows a medium-term recovery in the operating margin from a 2012 drop.
It's the kind of business that needs to acquire to get investors' attentionA lowly 4.3% operating margin last year also explains the modest long-term PE multiple, reflecting a business with less freedom to price.
Commensurately, though, a £79 million market cap values Macfarlane only at about 0.4 times annual sales.
So it's the kind of business that needs to acquire to get investors' attention, albeit sporting a track record and forecasts that imply this strategy is being executed well.
Interim pre-tax profit advanced 8.1% to £2.0 million and the July acquisition of Nelsons for Packaging is expected to make a "strong contribution" during the second half.
Altogether, these acquisitions help explain the 2016 earnings boost, the broker forecast coming two days after the Nelsons announcement.
Four directors fill their boots
After the end-August interims, the chairman, finance director and two non-executive directors made purchases of 20,000 to 25,000 shares each, totalling £57,249, a marker for belief in value. Despite their cautioning with the results, Brexit uncertainties will persist.
There hasn't been institutional selling apart from a unit fund holder going sub-5% at end-September which could be redemptions-related.
The listed packaging sector's history shows big and small companies taken outOtherwise, institutions such as Hargreave Hale - for discretionary clients - and Miton Group (MGR) added to their holdings after the interims, like the directors.
Miton's 12% stake would be difficult to sell in a downturn unless at a hefty discount, implying Macfarlane's long-term potential is judged as offsetting risks with the UK economy, which represents 97% of revenues.
The specialist character of Macfarlane's markets and its competitive strengths for online retail imply long-term takeover potential. Fund managers like Miton will know the listed packaging sector's history shows big and small companies taken out - for example Field Group and Rexam.
After all, "you have to be in it to win it", especially in a downturn.
Balance sheet issues
As a result of its acquisitions policy, Macfarlane had £38.7 million goodwill/intangibles at end-June, the table showing slightly negative net tangible assets persisting.
Acquisitions have also pushed up debt by £5.0 million to £16.9 million (June to June), if well within its £25.0 million facilities.
A July share placing at 58p raised £5.6 million with 7.9% dilution to help finance the purchase of Nelsons, and debt is expected to reduce by end-2016 amid strong final quarter cash inflows.
Balance sheet issues are insufficient to cause worry, considering robust cash flow Mind the recent increase in borrowings means £55.2 million of current liabilities tipped above £52.1 million current assets at end-June.
Also, the group is running a £12.6 million pension fund deficit amid lower bond yields, making £1.4 million deficit reduction contributions in the first half, although other investments have mitigated the impact from bonds.
So there are a few balance sheet issues arising, albeit not enough to cause worry, considering robust cash flow (see table below).
Who knows to what extent the UK economy may suffer, but Macfarlane offers good credentials as a tuck-away.
For more information see the website.
Macfarlane Group - financial summary Broker estimates
year ended 31 Dec 2011 2012 2013 2014 2015 2016 2017
Turnover (£ million) 145 142 144 154 169
IFRS3 pre-tax profit (£m) 3.9 5.5 4.7 5.6 6.8
Normalised pre-tax profit (£m) 3.9 4.7 4.7 5.6 6.8 8.9 10.4
Operating margin (%) 5.3 3.6 3.6 3.9 4.3
IFRS3 earnings/share (p) 3.0 3.4 3.0 3.8 4.4
Normalised earnings/share (p) 3.0 2.7 3.0 3.8 4.4 5.5 6.1
Earnings per share growth (%) 80.8 -10.9 12.3 24.8 16.2 24.9 10.6
Price/earnings multiple (x) 13.1 10.5 9.5
Price/earnings-to-growth (x) 0.8 0.4 0.9
Annual average historic P/E (x) 6.5 11.1 13.1 11.2 13.4
Cash flow/share (p) 2.0 3.0 3.0 2.4 4.3
Capex/share (p) 1.0 0.7 0.7 0.4 0.4
Dividends per share (p) 1.6 1.6 1.6 1.6 1.7 2.0 2.1
Yield (%) 2.9 3.4 3.7
Covered by earnings (x) 2.0 1.7 2.0 2.4 2.6 2.8 2.9
Net tangible assets per share (p) -2.0 -1.5 0.9 -3.1 -2.2|
finishing 35 points better|
|Oil price very volatile and ended down for the day
Intraday Oil price futures - WTI light sweet ----------------------------------------- BRENT crude -------------|
|How the UPS are performing during last month|
|How the UPS are performing today|
opening lower now 17 points on the red|
|CTAG 9.875p +2p +25.40%
Keeps moving higher since yesterday's news as volume is well above normal|
|FCRM 49.50p -1.75p
The Company has continued to improve its performance and strengthen its balance sheet. Trading performance this year to date is strong and prospects for the rest of the year look positive. The Company started paying dividends in 2014/15 with a modest final dividend and the Board's aim was to be able to increase dividends progressively to a stage where a formal dividend policy could be adopted. The Company's performance last year enabled the payment of significantly increased dividends for 2015/16. Today, the Board is announcing a formal dividend policy which it will apply to the current year 2016/17.
· Profit before tax of £3.1 million (2015: £1.6 million)
· EBITDA of £3.5 million (2015: £2.0 million)
· Revenue up by 0.6% to £17.2 million (2015: £17.1 million)
· Gross margin increased by 7.9%
· Net cash inflows from operations of £3.8 million, after the addition of £1.1 million in pipeline assets
· Cash of £12.5 million at September 2016 (2015: £5.6 million)
· Revolving credit facility of £4.0 million remains undrawn
· Basic earnings per share of 1.6p (2015: 1.0p).
Dividend policy and interim dividend
· The Board is of the view that the Company has reached a level of financial performance that enables it to adopt a formal dividend policy. The business is now achieving solid profits, generating cash and business prospects are positive. The Company has cash reserves, no debt and unused borrowing facilities. As a result, the Board considers that a dividend cover of around two, based on underlying, sustainable profit, is appropriate going forward. Furthermore, it is expected that the split of dividends between the interim and final dividends will be approximately one third / two thirds
· In line with the above stated dividend policy, the Board is today declaring an interim dividend of 0.6p per share for the 2016/17 financial year (2016: 0.3p per share) payable on 27 January 2017 to members on the register on 30 December 2016. Shares will be marked ex-dividend on 29 December 2016.
· Secured a £4.0 million project to install a new gas pipeline to a food manufacturing plant
· Won and delivered an array of new gas, electricity and multi-utility contracts
· Order book at 30 September 2016 increased by £2.6 million (+12%) to £24.4 million, compared to 31 March 2016
· Recurring gas pipeline transportation income grown to an annualised £1.5 million
· Further operational efficiencies implemented, helping to increase the gross margin
· Full Meter Asset Manager (MAM) accreditation gained to adopt, run and operate all classes of meters
· Decision made to obtain independent distribution network operator (IDNO) licence to enable ownership of electrical assets
· New IT infrastructure project delivered on time and within budget, saving £0.2 million per annum over next five years.|
|Liberum note today:
"Bellway remains a top pick in the sector as we find the valuation compelling. We believe that volume growth should be sustained, protecting profits if prices do fall a little as expected. The valuation is also compelling given the expected resilience of its return on equity.
We maintain our Buy on Berkeley in spite of the general caution around London, as the company has secured significant forward sales to protect prices and volumes, and has successfully added value to sites. By moving out of central London into more affordable parts of the city and the South East, place-making should succeed in generating value. Further, we believe the dividend is very secure, given the strength of forward orders and long landbank. With some of our earlier caution having proved unwarranted, and following strong interim results, we have upgraded our 2017E EPS estimate by 11 %.
Gleeson’s unique business model gives it industry leading margins and excellent growth prospects with limited competition. It also has the advantage of selling in housing markets that have yet to see any meaningful house price inflation. Valuation may be constrained by the sector, but growth is in its hands. Our 630p target price is based on a sum-of-the-parts analysis.
We like Persimmon for its high dividend at low risk, and are confident that the company will achieve the payments pledged because of management's incentive scheme. Additionally, its long landbank means it could cut land spending entirely to boost cash flows, and the strategic landbank may continue to boost margins too. Northern areas have much better affordability than the south, which may mean better pricing in a weaker environment.
We downgrade Barratt to Sell as its lower margins make it more exposed to downside risk, and its relatively short landbank and high land creditors mean that it has less scope to reduce cash outflows in support of the dividend than others in the sector.
While Bovis now looks very cheap, we have continued to resist the temptation to become more positive on the shares, as its margin profile makes its earnings most geared to downside risk. The business has suffered hiccups in better markets. We are also concerned that as the slowest builder, it may be most at risk from any “sticks” the government could bring out in its Housing White Paper in January.
We keep Redrow at Hold in spite of strong trading, as we believe that risk aversion among investors may now limit appetite for investing in a housebuilder with a degree (even though comfortable) of debt. We also think the portfolio concentration in London is a potential risk. We are perhaps still too cautious in leaving Taylor Wimpey as a HOLD, especially given the high level of dividend expected. For now however, we limit our choice among the "returners" to Persimmon.|
|Goldman downgrades Tullow Oil to 'sell' from 'neutral'
Tullow Oil shares fell on Tuesday as Goldman Sachs downgraded the stock to 'sell' from 'neutral' and cut the target price to 221.8p from 247.2p.
"Since the November 30 announcement of OPEC production cuts, the stock has rallied about 20%, in line with the front month of Brent, and we think it is now trading above the fundamentals of our long-term oil price assumption (US$60 per barrel)," Goldman said.
Goldman said it raises a note of caution on the reservoir performance of the Tweneboa, Enyenra, Ntomme (TEN) fields offshore Ghana. In a 9 November trading update, Tullow said production ramp-up at TEN was hurt by issues with water injection systems. The annualised gross production for TEN in 2016 is now expected to be 15,000 barrels of oil per day.
Goldman said while Tullow's management have done an "impressive job of steering the company through a very difficult year", the disappointment of the TEN project could offset the Jubilee's recent outperformance.
Based on the increase in the estimated net debt, owing to TEN expenditure and lower-than-expected Jubilee revenues, Goldman lowered its target price. Tullow expects to exit the year with net debt at about $4.9bn.
However, if oil prices rise further, Goldman sees Tullow's shares continuing to outperform. The bank also believes the balance sheet is unlikely to be a "major cause of concern" for the company.|
88E 2.075p ( 2.05/2.10p)
Plenty of buying as it has marked down from the start. Positive level 2 of 3 v 1. The last RNS last week was bullish. Oil price risee during last week is not being reflected on the share price yet.
----------------- Intraday ------------------------------------------ 2 months ------------------------------- 1 year -------------------
Imaginatik (IMTK), up 14.29% to 2p, said its H1 after-tax losses fell to £0.26m from £0.41m, despite adverse currency movements. The group said approximately half of the loss was attributable to adverse forex movements arising as a result of the strong US dollar.
Real Good Food (RGD), down 12% to 33p, has widened its H1 pretax loss to £949,000, from a year-ago loss of £216,000. Revenue was £49.95m, from £46.66m. Higher distribution costs, administrative expenses and significant costs were factors.
Dialight (DIA), up 8.87% to 761p, said it continues to make good progress implementing its strategy to fundamentally improve the group's operating model and thus position itself for long-term, sustainable growth.
Victrex (VCT), up 7.11% to 1829.5p, said its FY pretax profit has slipped 6% to £100.3m, from £106.4m. Dividend per share was 46.82p, unchanged. Revenue was lower at £252.3m, from £263.5m.
Ultra Electronics (ULE), down 3.29% to 1941p, said its FY trading performance remains in line with expectations. "There continues to be an improvement in organic trading performance year-on-year and recent acquisitions are performing well," it said.
Image Scan (IGE), up 3.92% to 6.63p, swung back into profit in the year to the end of September - its its first profit since FY2012. 600 Group (SIXH), down 3.9% to 9.25p, has seen its H1 pretax profit slip lower to £1.4m, from £1.6m. Revenue was £23.2m, from £23.3m.
RWS Holdings (RWS), up 3.82% to 312.5p, has lifted its FY pretax profit to £25.1m, from £20.7m. Revenue was £121.99m, from £95.22m. Final dividend was 4.45p a share, from 3.85p, taking the total up 15% to 5.6p, from 4.88p.
Thomas Cook Group (TCG), up 1.45% to 87.2p, said it will take full control of its UK retail store network, following notification by The Co-operative Group of the decision to exercise its option over its stake in their Joint Venture.
Other stocks in the news included Tissue Regenix (TRX), Hummingbird (HUM), Dewhurst (DWHT), Iomart (IOM), TLA Worldwide (TLA), Berkeley Energia (BKY), Vianet (VNET), Better Capital (BCAP), OMG (OMG), Hilton Food (HFG), MySQUAR (MYSQ) and Consort Medical (CSRT).|
FTSE opens mildly negative on house builders, miners
London stocks got off to a mildly negative start as falls among UK house builders, miners and financials weighed on proceedings.
The market is assessing a Supreme Court case relating to royal prerogative and Brexit, along with Italy's referendum on constitutional reform.
Barratt Developments (BDEV) fell 2.71% to 460.85p, while Persimmon (PSN) eased 2.05% to 1669p and Taylor Wimpey (TW.) dropped 1.48% to 149.35p. Among miners, Anglo American (AAL) faded 2.11% to 1216.75p, while Glencore (GLEN) dropped 1.47% to 285.98p.
BHP Billiton (BLT), down 2% to 1312.75p, submitted the winning bid to acquire a 60% participating interest in and operatorship of blocks AE-0092 and AE-0093 containing the Trion discovery located offshore Mexico.
Soon after the open, FTSE 100 was down 13.32 points, or 0.2%, to 6733.51, while FTSE 250 was down 48.91, or 0.28%, to 17,412.9. At 8.38am, WTI crude was down 1.1% to $51.22/bbl and Brent was down 0.96% to $54.41/bbl. Gold was down 0.25% to $1173.5/oz.
Meantime, among the roughly 73 blue-chip losers were financials after Provident Financial (PFG), down 1.3% to 2814p, and Direct Line (DLG), down 1.21% to 347.15p. Other sectors notably lower included pharmaceuticals, oil and several supermarkets.
To the limited upside, the story was utilities and banks. HSBC (HSBA) rose 2.7% to 643.6p, while SSE (SSE) rose 1.6% to 1493.5p. Several commercial property stocks figured northbound after Land Securities (LAND), up 1.45% to 962.75p.
Ashtead Group (AHT), up 0.94% to 1554.5p, reports a a strong first half results with underlying operating profits up 9% at £474.4m. On a statutory basis, revenues were up 8% at £1,551.7m and pre-tax profits rose by 9% to £413.3m.
Wolseley (WOS), down 1.05% to 4637p, reports in an interim management statement that its total Q1 revenue rose 22.9% to £4.4m, from £3.6m. Its trading profit in the period rose 21.2% to £303,000, from £250,000.
Plus500 (PLUS), down 33.81% to 338.25p, has been notified that JP Morgan Asset Management Holdings, and its controlled undertakings, have a total relevant interest in 6.9m shares, or 6.02% of the issued share capital.
Imagination Technologies (IMG), up 21.2% to 266.63p, has appointed Peter Hill CBE Non-executive Chairman with effect from 1 February 2017. It said the business is on track and restructuring nears completion.
Independent Resources (IRG), down 16.22% to 0.08p, has raised up to £766,596 of new finance by the placing of up to 958.2m new shares at 0.08p each. This included Brandon Hill Capital agreeing to subscribe for 333.2m of the placing shares in full and final settlement of £266,596 of indebtedness.|
Amryt Pharma (AMYT.L, 18.5p) – Speculative Buy
Amryt Pharma plc, the clinical stage specialty pharmaceutical company focused on best in class treatments for orphan diseases, yesterday announced that it has secured an agreement with Aegerion Pharmaceuticals, Inc. ('Aegerion'), the NASDAQ-listed biopharmaceutical company, for the exclusive rights to sell Aegerion's drug, LOJUXTA (lomitapide), across the European Economic Area, Middle East and North Africa, Turkey and Israel. Under the Licence Agreement, Amryt will make royalty payments to Aegerion, paid quarterly, based on a percentage of sales, and once-off commercial milestone payments, subject to achieving certain sales targets. The Licence Agreement has an initial term until 1 January 2024, and upon expiry, Amryt has option to extend the Agreement for a further 5 years with the right to extend in further 5 year periods, subject to certain conditions. Amryt will also take on the ongoing regulatory and post-marketing obligations and commitments in support of LOJUXTA. LOJUXTA was approved in the EU since 2013 for the treatment for Homozygous Familial Hypercholesterolemia ('HoFH'), a very rare life-threatening genetic disorder that impairs the body's ability to remove LDL cholesterol ("bad" cholesterol) from the blood. This typically results in extremely high blood LDL cholesterol levels leading to aggressive and premature narrowing and blocking of arterial blood vessels manifesting as cardiovascular disease. If left untreated, heart attacks, strokes or sudden death may occur in childhood or early adulthood (mean life expectancy of 18 years, while with current treatment options including statin drugs, PCSK9 inhibitors and apheresis (a blood filtration technique similar to dialysis), life expectancy increase to average 45-48 years but there are not adequate to control LDL cholesterol levels in some patients, particularly those with the most severe genetic mutations. Amryt's CEO, Joe Wiley commented "We are delighted to announce this landmark licensing deal. It transforms Amryt into a fully-fledged commercial orphan pharma company and comes only eight months after Amryt's IPO in April. This agreement is tremendously exciting and underlines our clear focus on building our portfolio of medicines to treat rare and orphan diseases, where there is large unmet medical need. We look forward providing a further update in due course".
Our view: Another significant announcement from Amryt, following last Friday's €20m Facility Agreement reached with the European Investment Bank. Yesterday's Licence Agreement will add to the Group's growing portfolio of orphan products and has effectively transformed Amryt into fully-integrated sustainable, commercial pharmaceutical Group. Management said LOJUXTA is expected to be immediately cash generative and its ongoing regulatory and post-marketing commitments will all be funded from the own cashflow, rather than at Group level given that it requires relatively limited additional commercial, medical and regulatory infrastructure. Royalties on net sales are "not single digit but not substantial" said Rory Nealon (CFO/COO) during analyst meeting, while noting EBITDA margin to be expected should be around 20% of revenue, although "much higher than 40%" at the gross level. HoFH is a very rare, genetic disorder which starts in utero and causes premature cardiovascular disease. Historically, HoFH was estimated to occur in about 1 in 1 million people worldwide, but more recent studies suggest it may affect up to 1 in 300,000 people. The total market for LOJUXTA for HoFH indication is estimated at €50m and in Q3 2016, Aegerion generated US$22m in net product sales of lomitapide, of which, 15% was from prescriptions written outside of the US. Of this, 30% comes from Brazil and 70% was from the territories now being licensed to Amryt. With currently available treatment showing limited efficacy for some patients in controlling their LDL cholesterol levels, there is significant potential for the LOJUXTA to become a mainstay treatment for patients, having showed a 40-50% reduction in LDL cholesterol at 26 weeks after dosage during Phase 3 clinical trial, following which it remained stable at 126 weeks. The Licence Agreement for LOJUXTA will be cash generative from the day one and has significantly de-risked the Group. With Amryt's impressive Board of Directors, we believe the Group is proceeding in its plan to replicating Shire Pharmaceutical's original model. Following the €20m Facility Agreement from EIB announced on Friday, the Group is fully funded, and yesterday's announcement marks the start of a new stream of announcements going forward. The Phase III clinical trial for Episalvan in Epidermolysis Bullosa is expected to commence in Q1 FY2017 and we look forward to further updates in due course. We are excited by the Group's recent progress and reiterate our Speculative Buy rating on the shares.|
|UPS BMR 5.75p the RNS we have been waiting for. Revenues and profit 2017-2018 ramping up to 2020. 2020 onwards revenues around $100m pa on forecast prices and they are not far off the current price. Must be the pick of AIM.|
opening lower now 18 points on the red|