15th Jul 2021. 8.57am

Regency View:


Regency View:


Anglo Asian produce ‘solid performance’ in second quarter

Anglo Asian Mining (AAZ) released an upbeat set of Q2 production numbers with output increasing to 16,740 gold equivalent ounces compared to 15,431 in the first quarter.

Cash generation was strong, with $13.7 million generated, and the Azerbaijani miner remains on track to achieve its production guidance for the full year of 48,000 ounces to 54,000 ounces of gold and 2,500 tonnes to 2,800 tonnes of copper.

Anglo Asian CEO, Reza Vaziri commented:

“The Company continues to work hard on the top-priority exploration of the new Zafar deposit, which has already demonstrated significant copper-gold drill hole intersections with encouraging copper, zinc and gold grades. We look forward to releasing the maiden JORC resource for the project by the end of this month or early August.”

AAZ Daily Candle Chart

AAZ Daily Candle Chart

Sureserve announce 8-year contract worth £36m

Compliance and energy services group Sureserve (SUR) announced that two of its wholly owned subsidiaries (K&T Heating Services Ltd and Aaron Services Ltd) have successfully secured a long-term Gas Servicing, Repair, Installation and Electrical Testing Contract with a new client, PA Housing.

The Contract term is capped at 8 years, commencing on 1st August 2021, and is expected to generate a combined sales revenue of £36 million over the entirety of the Contract term.

PA Housing are a large provider of social housing who own and manage more than 23,000 homes across the Midlands, London and South East.

We’ve been very pleased with how Sureserve has performed since our entry last September and with plenty of momentum on and off the price chart, we’re happy to hold them.

SUR Daily Candle Chart

SUR Daily Candle Chart

Craneware says positive sales momentum continued into H2

Craneware (CRW) released an upbeat trading statement this week in which it said the momentum experienced in the first half of the year continued into the second half.

The U.S. healthcare-focused financial software firm expects to report “an increase in New Sales of approximately 40% to over $42m (FY20: $30.4m)”.

Total Revenue and adjusted earnings for the year is expected to have “increased by greater than 5% and 6% respectively (FY20: Revenue $71.5m: adj. EBITDA $25.2m)”.

The Group’s impressive customer retention rate has remained above 90% and this is “building the foundation for a return to double-digit organic growth in the future” read the update.

Craneware CEO, Keith Neilson commented:

“Our expanded opportunity and positive sales momentum provide us with considerable excitement and confidence as we work with the Sentry team to transform the business of U.S. healthcare.”

CRW Daily Candle Chart

CRW Daily Candle Chart

Pan-African gold production higher than revised production guidance

Pan-African Resources (PAF) release their Operational Results for year ended 30 June 2021 this week…

The South-African gold producer said it achieved a 12.3% increase in gold production to 201,608oz, compared with 179,457oz in the prior year. And gold production was also 3.4% higher than the revised production guidance of approximately 195,000oz released in May 2021.

Pan African CEO Cobus Loots commented:

“We have now largely achieved the de-gearing of our balance sheet, and current debt levels are very manageable, enabling the Group to fund all its capital requirements from internally generated cashflows and existing facilities.”

Much like Anglo Asian, the performance of Pan-African’s share price has been held back by the underlying gold price. However, with inflationary concerns coming back to the table this week, we may see a resurgence from gold.

PAF Daily Candle Chart

PAF Daily Candle Chart

Cohort wins significant Italian Navy contract

Defence tech group Cohort (CHRT) announced that its wholly owned subsidiary ELAC SONAR GmbH (“ELAC”) has received an order valued at over €49m from Leonardo S.p.A., a leader in the design and supply of systems for naval defence and maritime and coastal surveillance.

ELAC will provide sonar systems for two new U212 Near Future Submarines (NFS) being supplied by Fincantieri for the Italian Navy.  The contract also includes delivery of special test and training tools and associated technical services.

Work on the contract will commence immediately and will complete in 2030, it also includes options for two more U212 NFS submarines.

Cohorts share price has been a slow and stable mover for us since entering last year, they add sector diversity and yield, and we’re happy to continue to hold them within our AIM Investor portfolio.

CHRT Daily Candle Chart

CHRT Daily Candle Chart

Restore to resume dividend

In a trading update, released last week, Restore (RST) said it intended to “reinstate its progressive dividend and pay an interim dividend payment for FY21”.

The data management group also said that “trading continued to strengthen through the first half, with second quarter performance ahead of the Board’s previous expectations”.

Underlying cash generation in the first half continued to be strong, with net debt anticipated to be in line with expectations at the half year.

Increasing activity levels, the accretion from acquisitions made in 2021 and further new business wins were all sited as reasons for Restore’s strong performance, and this has been welcomed by the market…

The shares have broken through resistance and a retest of the January highs looks likely.

RST Daily Candle Chart

RST Daily Candle Chart

Somero raises guidance

In a trading update, released last week, Somero (SOM) said it was “raising guidance due to stronger than anticipated trading in the US to end H1”.

The U.S.-focused cement leveller has been a big beneficiary of the sharp economic recovery on the other side of the pond.

And the company is also enjoying President Joe Biden’s infrastructure stimulus packages designed to kick-start the U.S. economy.

Somero now expects FY 2021 annual revenues to be approximately $110.0m, adjusted earnings to be $35m, and year end net cash to exceed $33.

“H1 2021 trading in the US reflected strong contributions from products across the portfolio but with particularly good performance in the boomed screed category, driven by the demand for new warehousing required to keep pace with growth in e-commerce operations” read the update.

The shares have performed very well since our entry earlier this year and prices continue to carve out a bullish series of steepening trendlines.

SOM Daily Candle Chart

SOM Daily Candle Chart

Mpac’s impressive order book underpins strong financials

In a recent bullish trading update revealed that Mpac’s (MPAC) strong momentum from H2 2020 has continued into H1 2021…

The robotics and AI expert said order intake in H1 2021 across all regions was “significantly above” H1 2020. And more importantly, Mpac’s order book going into the second half of 2021 is “above the opening order book of £55.5m, providing enhanced coverage over H2 forecast revenue”

CEO Tony Steels commented:

“I am pleased to report a strong start to 2021 across all regions.  The outlook is positive based on trends in new prospects and customer investment discussions, and we enter the second half of 2021 with both a strong order book and a developing prospect pipeline and we remain confident that we can leverage the One Mpac operating model to deliver sustainable profitability”.

The market enjoyed Mpac’s uptrend and the share have burst through their descending retracement line this week.

MPAC Daily Candle Chart

MPAC Daily Candle Chart

Science Group off to a strong start after bullish update

Science Group (SAG) posted an unscheduled trading update on Monday in which it reiterated its strong start to the year.

“All three divisions of the Group had a good start to the year” read the update…

“The Board now anticipates that, for the 6 months to 30 June 2021, the Group will report revenue in excess of £40 million and adjusted operating profit (“AOP”) in excess of £7 million.”

This is ahead of the upgraded expectations and an AOP increase of over 40% relative to the prior year, despite significant currency exchange headwinds.

It’s very early days for our Science Group position, but this trading update has helped get the position off to a strong start.

SAG Daily Candle Chart

SAG Daily Candle Chart


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