26th Aug 2021. 8.58am

Regency View:


Regency View:


Anglo Asian Mining give upbeat exploration update

Anglo Asian Mining (AAZ) released their H1 2021 Geological Exploration Activities report on Tuesday – highlighting significant exploration progress.

The Azerbaijan copper and gold producer said exploration is “progressing well and on schedule”.

Exploration highlights included:

Extensive drilling at the Zafar polymetallic deposit (“Zafar Deposit”) – 35 core drill holes completed with a total length of 16,319 metres.

Maiden Mineral Resource for the Zafar Deposit published 16 August 2021 with 8.47 million tonnes of mineralisation with average grades of 0.60 per cent. copper, 0.47 per cent. zinc and 0.30 grammes per tonne of gold. And in-situ Mineral Resource of 51,000 tonnes of copper, 82,000 ounces of gold and 40,000 tonnes of zinc.

Considerable drilling undertaken in the Gedabek and Gadir underground mines, which are now connected and form one continuous tunnel system.

Commenting on the update, Anglo Asian Vice-President, Stephen Westhead said:

“In terms of outlook, exploration is progressing well and on schedule, with ongoing work at Gadir and Gedabek and drilling set to continue over the Avshancli and Gilar areas, which are being explored with a view to supplementing the ore feed to the processing plant, ahead of the start of mining of the new Zafar resource.”

AAZ Daily Candle Chart

AAZ Daily Candle Chart

Next Fifteen expect full-year earnings ahead of management expectations

Next Fifteen Communications (NFC) have been a real standout performer in our AIM Investor portfolio this year.

The shares have carved out a powerful long-term uptrend – fuelled by a series of market-beating trading updates, the latest of which came yesterday with the release of their Q2 trading statement…

Revenues for the six months to 31 July 2021 jumped 31% in total, with organic revenue growth of 23% with “strong performances across all segments and geographies”.

Margin performance in H1 was “attractive” and NFC anticipate investments in H2 in productization and some cost normalisation as Covid impact recedes.

Whilst organic growth is expected to moderate in the second half of the year, NFC said they anticipate results for the year ending 31 January 2022 to be ahead of management expectations.

The company continued to maintain a healthy balance sheet with net cash as at 31 July 2021 of £5m.

NFC Daily Candle Chart

NFC Daily Candle Chart

Sureserve win 10-year contract extension worth £140m

The good news keeps coming for compliance and energy services group Sureserve (SUR)

This week they successfully retained a long-term Gas Servicing, Repair and Installation Contract with their long-standing existing client, The Guinness Partnership.

The Contract term is a minimum of 5 years and capped at 10 years, commencing on 1st September 2021, and is expected to generate a combined sales revenue of £140 million over the full 10-year term.

Pat Coleman – Sure Maintenance – Managing Director, said:

Everyone at Sure Maintenance is delighted to be able to continue working with such a strong and valued client. Working with The Guinness Partnership so far has been a rewarding journey for our team and we are pleased to be able to continue servicing The Guinness Partnership’s customers, local people and the local communities for the next 10 years.

On the price chart, Sureserve have carved out a strong uptrend and with such positivity surrounding the stock, we expect this trend to continue.

SUR Daily Candle Chart

SUR Daily Candle Chart

Tracsis benefits from lockdown lifting

Transport data specialist Tracsis (TRCS) expect to post annual revenue close to £50m thanks to the lifting of COVID-19 restrictions.

In a trading update, released yesterday, Tracsis said a recovery in activity levels in their Traffic Data and Events business units had driven a strong start to the year.

The Group expects to report an adjusted EBITDA margin in excess of 25% (2020: 21.8%) which includes the positive impact of cost reduction actions taken in response to the pandemic.

Cash balances at the end of July were £25.4m (2020: £17.9m) with no Covid deferrals due to be paid – “this once again reflects strong cash generation within the Group and provides a strong platform for continued investment in future organic and acquisitive growth opportunities” read the upbeat statement.

The shares are currently up more than 70% year-to-date and we will be watching price action closely for signs of exhaustion.

TRCS Daily Candle Chart

TRCS Daily Candle Chart

IG Design starts year well despite cost headwinds

IG Design (IGR) released a solid trading update this week…

The gifting and stationary group said it had “started the year well” with like-for-like revenue in four months to July 31 up 25% year-on-year and up 10% on pro-forma basis from two years earlier.

“These results are driven by growth across both the Americas and International divisions reflecting the ongoing success of the Group’s ‘Working with the Winners’ strategy” read the statement.

The positivity was tempered by a note relating to “challenging cost headwinds”, particularly related to freight.

However, IG Design have worked to mitigate the cost pressures and management expect full-year earnings be in-line with expectations thanks to a strong orderbook.

IGR Daily Candle Chart

IGR Daily Candle Chart

Robinson slip to H1 pre-tax loss

In June we reported that packaging group Robinson (RBN) were being hit by rising resin prices and shipping container shortages.

This has fed through into Robinson’s Interim Results, released last week…

Gross margin decreased to 16.7% from 23.6% in 2020, operating profit before amortisation of intangible assets reduced to £0.1m (2020: £1.6m) and Robinson’s loss before tax was £0.6m (2020: profit of £1.1m).

On the resin issue, Robinson announced that it has successfully secured resin supply – allowing “continued operations in a very tight market”.

Alan Raleigh, Chairman, commented:

“Resin prices have now stabilised and shown the first signs of a reduction in July, however, we are not expecting a significant reduction before the end of the year. We are also experiencing price inflation in other areas including secondary packaging and transport which will continue to impact on the second half of the year…”

“We expect full year operating profit before amortisation of intangible assets to be in the region of £2.0m (2020: £2.7m).”

RBN Daily Candle Chart

RBN Daily Candle Chart

Tremor report record results

Tremor International (TRMR) reported record results for the three and six months ended June 30.

The Tel-Aviv smart TV advertising group said “programmatic revenue surged 196% in Q2 driven by 280% growth in CTV, representing strong organic growth”.

Tremor CEO, Ofer Druker commented:

“This impressive revenue growth, which we believe is one of the highest across our peer group, affirms our continued investment in product innovation and business development…”

“I am equally proud that the entirety of the growth we achieved in the first half of 2021 was organic and as a result of increased client spending on programmatic advertising.”

Tremor’s balance sheet continued to strengthen with cash and equivalents of $275.5m and zero debt as of June 30, 2021.

Whilst the shares have broadly consolidated sideways since our entry in April, Tremor’s share price remains locked in a long-term uptrend. And with these record results in place, we would expect this sideways consolidation to resolve in a breakout to new highs.

TRMR Daily Candle Chart

TRMR Daily Candle Chart


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