12th Aug 2021. 8.54am

Regency View:


Regency View:


Restore fend off bid speculation

Restore (RST) have been subject to a hostile approach from services and software group Marlowe.

Marlowe announced an unsolicited approach in July regarding a possible 530p-a-share offer – valuing Restore at £743m.

Restore were quick to bat away the approach and issued a firm statement from the board. This has subsequently been followed by a statement from Marlowe signalling that it does not intend to make a formal bid as it does not believe a deal can be reached on financial terms that would be in the best interests of its shareholders.

Restore non-executive chairman, Martin Towers responded with the following:

“We have made significant strategic progress in 2021, alongside a sustained recovery from the impact of the pandemic, becoming a larger, stronger and growing business”.

“We were delighted to have received such strong support from our shareholders through this process and are committed to generating sustainable long-term value for them and all of our stakeholders, through the continued delivery of our strategy.”

RST Daily Candle Chart

RST Daily Candle Chart

Keywords Studios sees strong jump in H1 profit

A ‘buoyant’ video games market has driven profits higher at Keywords Studios (KWS)

The gaming services provider said it expected adjusted profit for the first half of the year to jump 80% to €40m as game developers continue ramp up new content in a bid to keep gamers engaged following increases in both numbers of gamers and gameplay during the pandemic.

“The Group’s cash balance, strong cash generation and the €100m available under its undrawn committed revolving credit facility, leave the Group well placed to pursue it organic and acquisition growth strategy, whilst also returning to a progressive dividend policy in 2021” read the trading statement.

Jon Hauck, Joint Interim CEO of Keywords Studios commented:

“Looking forward, we expect strong demand to continue across most service lines underpinning our confidence of delivering a performance that is at least in line with market expectations for the year, albeit with growth rates and margins expected to moderate against stronger H2 2020 comparatives, and as some costs return with the easing of restrictions.”

KWS Daily Candle Chart

KWS Daily Candle Chart

Cohort secures MOD contract wins

Defence tech firm Cohort (CHRT) announced last week that its subsidiary, Marlborough Communications has been awarded three new contracts with the UK MOD with a combined value of approximately £3.75 million.

The contracts are further orders for hearing protection, including the tactical hearing protection system for the dismounted close combat user. 

Andy Thomis, Cohort CEO commented:

“Together with other recent contract wins across the Group, these contracts further strengthen our order book and enhance the visibility of our revenues in this financial year.”

The shares continue to trade within a long-term range, and having bounced from support, we expect the shares to rally into the 679p highs (see chart below).

CHRT Daily Candle Chart

CHRT Daily Candle Chart

Boohoo opens up criticised supply chain to customer viewing

Boohoo (BOO) announced last week that it would give customers the opportunity to look behind the scenes of its UK suppliers’ factories, as it seeks to improve its image after negative publicity over its supply chain failings.

The online retailer said it would select a group of interested customers for an ‘all access’ day in Leicester next month, so they can see fabric weavers and printers, pattern cutters and machinists in action.

“We are committed to transparency and this initiative is another demonstration of this” said Boohoo CEO John Lyttle.

The move comes after Boohoo accepted all the recommendations of an independent review that found major failings in its supply chain.

Whilst the shares have under-performed this year, Boohoo are currently trading at the bottom of a long-term wedge and we’re happy to continue to hold them in our portfolio.

BOO Daily Candle Chart

BOO Daily Candle Chart

Quixant expects to report double-digit revenue growth

Casino tech group Quixant (QXT) recently released an upbeat trading statement in which it said it expects to report “double-digit revenue growth compared to the same period last year”

Profits are expected to be “comfortably in line with management expectations for the period” – driven by strong demand across both Gaming and Densitron businesses.

Quixant did caution that component shortages and input stock price inflation continue to present headwinds which they have been actively trying to manage through elevated stock holding and customer price increases.

The increased stock requirement and a dividend payment has reduced Quixant’s net cash position from $17.4m (Dec 2020) to $15.1m (June 2021).

CEO Jon Jayal commented:

“We are delighted by the healthy level of demand experienced in the first half of the year, resulting in revenue growth for both our Densitron and Gaming businesses. This provides us with confidence that the recovery is well underway in the Gaming market and that our strategic positioning of the Densitron business is delivering results.”

QXT Daily Candle Chart

QXT Daily Candle Chart

Ixico to return to double-digit growth in 2022

The latest addition to our AIM Investor portfolio, Ixico (IXI) released a bullish trading update on Friday in which it said it “we anticipate returning to a double-digit revenue growth trajectory as our 2022 financial year progresses”.

The neurological clinical trials specialist expects to report revenues of £8.7m in the year to end September 2021 and underlying profits of £1.2m, compared to revenues of £9.5mln and underlying profits of £1.3mln in 2020.

CEO Giulio Cerroni, commented:

“As clinical trials delayed due to the COVID-19 crisis are initiated and by ensuring commercial execution of our growing pipeline, we anticipate returning to a double-digit revenue growth trajectory as our 2022 financial year progresses…

Consequently, we will continue to focus on our clients’ needs, and invest appropriately to deliver the medium- and long-term market growth opportunities that are available to us.”

It’s very early days for our position in Ixico, but it’s always nice to enter on the back of positive news flow and the shares have already started moving in the right direction.

IXI Daily Candle Chart

IXI Daily Candle Chart