Member Info for jange

Resource and reserves The Vatukoula gold mine hosts a NI 43-101 compliant reserve of 790,000oz, equivalent to approximately eight years of production at the proposed 100,000oz/year production rate. The total resource at the project contains 4.2Moz of gold, thus offering significant potential for the expansion of the minable reserves via an infill drilling programme.

Vatukoula (VGM) was down 64% in 2012, reflecting operational and geological complications at its mine in Fiji, where high costs have pushed the miner to operating losses. The ongoing investment programme is aimed at returning the company to profit, assuming successful mine optimisation and ramp-up to 100,000oz/year production in 2014 against FY12 production of 52,616oz. Regenerating Vatukoula The mine is currently operating at a rate of 52,616oz/year (FY12), an average ROM grade of 4.24g/t and average cash cost of US$1627/oz. The company is re-configuring its operation with a view to re-establishing the historic production rate of 100,000oz/year by 2014. All mine infrastructure is in place, with the operation of a four-shaft system, use of the Smith and Phillip Shafts for ore hoisting, the Cayzer Shaft for personnel and materials and a decline providing access for the mine fleet. Much of the capital cost incurred as part of the redevelopment results from the change in mining method to footwall drives.

OMG has successfully extended its expertise in imaging technology to new markets. This has driven strong profits growth, with more to come as work is delivered against major contracts for the highways and defence businesses and sales of Autographer, the world’s first intelligent wearable camera, commence.

Securities Trust of Scotland (STS) is a global growth and income trust that pays quarterly dividends and currently offers a 3.6% yield. Since a change in investment mandate in July 2011, STS invests in high-yield global (previously UK only) equities. During the last 12 months STS has outperformed its benchmark index, the MSCI World High Dividend Yield Index, by 3.5% and 0.2% in terms of price and NAV total return respectively. The fee structure was also simplified with a view to keeping the TER below 1.0%. The manager, Alan Porter, believes that whilst existing uncertainties persist global equity markets are likely to be range bound and the focus remains on stocks with medium growth prospects (the manager defines this as 3-7% three-year forecast dividend growth), strong balance sheets, decent cash flows and dividend growth

Final results were ahead of expectations, boosted by the Olympics but with solid 9% underlying revenue growth. Despite the ‘odd year’ effect and a quiet Q1, FY13 trading will benefit from the significant FY12 investment in rental assets and our estimates are broadly unchanged. The December court verdict denying Disney’s appeal was excellent news (a successful outcome is worth 140p per Avesco share), although the appeals process is more protracted than we originally hoped. Even excluding the incremental value of an eventual Disney windfall, the share rating remains undemanding (EV/EBITDA of 2.6x), and is underpinned by an NAV of 152p.

XP expects to report slightly weaker FY12 revenues than we were expecting, as customers continue to take a cautious approach to ordering. The transfer of outsourced manufacturing to in-house facilities is on track, driving the gross margin recovery in H2. We have reduced our FY12 and FY13 forecasts to reflect a more cautious start to the year, although we continue to forecast +20% operating margins and reduction of debt. Upside from this point depends on a sustained uptick in bookings, particularly from the technology sector

RPC’s H1 results in November continued to show the benefits of actions taken over the last year, but also saw a more restrained view of prospects manifesting itself through a less expansionary capex programme and a new ‘Fitter for the Future’ targeted business improvement plan. We have reduced earnings estimates modestly, but RPC remains solidly positioned with manageable net debt and good cash credentials that will enable it to take advantage of attractive opportunities as they arise to sustain a ROCE approaching 20%.

We value Skyepharma using a DCF-based model so near-term changes tend to have a proportionally larger impact. As a result of the lower income forecast our previous equity value of £116m, or 250p per share, falls to £94m, or 204p per share.

SkyePharma has successfully restructured its finances such that repayments are now better matched to expected cash inflows (notably royalties and production margin on flutiform). With the pressing balance sheet issues resolved, SkyePharma’s prospects hinge on commercial factors. We have reviewed the outlook for the remainder of the licensed products in view of the harsher pricing climate affecting the historic portfolio................... with the financing charges being the cause of major shifts that result in negative PBT, net income and EPS. For FY12e and FY13e, we are reducing our revenues from £54.4m and £65.0m to £54.0m and £58.1m respectively, but PBT falls from £6.3m and £9.7m to -£2.1m and -£2.0m. Net income drops similarly, with EPS swinging from 20.4p and 19.3p to -8.1p and -6.2p.

flutiform’s launch in the EU is now rightly the focus of investor attention. It is the fourth ICS/LABA combination to reach the European market for asthma and Mundipharma (SkyePharma’s marketing partner) has to position it carefully in what is an increasingly competitive market. Our peak sales forecast remains unchanged at £165.5m in 2017 (representing around 4% share). However, our phasing has been altered to reflect the uncertainties in this crowded and increasingly complex segment. Our model will be reviewed fully once in-market sales data is available.

In a busy 2012, Skypharma has restructured the convertible bonds so that the debt repayments better match cash inflows and five products (including flutiform) have been approved in various markets. The consequent risk reduction means the investment case is now based on the extent of flutiform’s success. The company has detailed the finance charges expected and we have reviewed our forecasts to reflect these, also taking the opportunity to review our revenue expectations. As a result, our NPV model suggests the equity is now worth 204p a share (previously 250p).

Bulls of Aberdeen Asset Management (ADN) have had it all their own way since the summer, with a near 30% share price rise towards £3.80, as well as a recovery in the stock market despite fiscal Cliff concerns. Adding to the cheer, at the end of November the company announced its commitment to a progressive dividend policy, while at the same time announcing a 15% rise in full-year underlying profits. On this basis, and in the wake of the flying start for equities at the start of 2013, backing Europe's second-largest fund manager going into and in the immediate aftermath of its IMS is almost a no brainer.

The intense volatility that has started to accompany trading updates at luxury goods giant Burberry (BRBY) has resulted from uncertainly over prospects for the key China market and whether the threat of an economic slowdown here might hurt profitability. So far the near 30% share price recovery from October support around £10 suggests that the market is counting on a soft landing in China rather than a hard one. Indeed, this alone implies ongoing uncertainty over Burberry's prospects in 2013, and given the three-month rebound in the stock, something quite special would have to materialise to deliver much further upside.

Associated British Foods (ABF), the food ingredients producer and owner of discount clothing retail phenomenon, Primark reports interims on Thursday. At the start of December the group reported surging sales at Primark, and on this basis one would be relatively optimistic for a strong Christmas trading result for the diversified group. Perhaps the only real issue is whether after a stellar performance for the shares during the autumn peaking out near 1600p, a period of consolidation is necessary after so much good news has been factored in.

But it was blue blooded retailer Marks & Spencer (MKS) that saw its shares take the biggest hit, after it rushed out poor Christmas sales figures on Wednesday night ahead of the scheduled Thursday announcement. With a boardroom split seemingly on the cards, M&S shares plummeted as general merchandise sales fell 3.8% and food sales missed forecasts growing just 0.3%.

Managed services data centre operator Iomart (IOM) is perfectly placed to exploit the shift in data to the cloud and growth in IT outsourcing in general. One key strategic growth theme is big data, a term that encapsulates the exponential increase in transactions and information being pinged across the internet, all of which need to be safely stored, managed and analysed. Organic growth in hosting is running at close to 20% and the Scottish firm continues to supplement this impressive progress with strategic bolt-on acquisitions. Around 95% of £42.6 million consensus revenue forecast for the full year to end March 2013 is already pre-booked and clients tend to be sticky, thanks to the high costs associated with a switch in suppliers. Broker Canaccord predicts revenues will hit £49.4 million next year to end March 2014 and rise a further 10% to £54.3 million by March 2015, implying earnings per share (EPS) of 10.1p and 12.0p respectively. That equates to a price/earnings (PE) multiple of 19.9, falling to 16.8, barely above the software sector average 15.9. With return on sales of close on 67%, value still to be extracted from acquisitions last year, plus impressive visibility and cash generation, EPS to March 2015 could reach 14.0p and justify a premium rating. Matching the 22 times rating attributed by the market to peer Telecity (TCY) could see the shares sailing past the 300p mark within a year.

A specialist document and workflow management software supplier, IDOX (IDOX) provides large public sector organisations with the tools to manage information, documents and business processes, as well as helping connect councils with their citizens via the web. A focus on local government efficiency underpins the £188 million cap's prospects but its cleverly managed expansion into commercial markets should provide additional upside, as the London-based firm carves out growth opportunities in the engineering, oil and gas, utilities and even pharmaceuticals industries. Full-year figures for the 12-month period to end October (12 December) showed a 16% increase in public sector sales to £30.2 million, 52% of total revenue compared to 68% in 2011. In the commercial sector, the engineering information management and information solutions arms grew revenues by 31% and 59% to £17.8 million and £7.5 million respectively, partly thanks to acquisitions. Broker finnCap predicts 3.9p of earnings per share (EPS) this year rising to 4.5p in the year to October 2014, but these forecasts could look conservative. Some 57% of revenues are recurring and adding a strong pipeline of new business to this should lead to double-digit organic growth. That makes the current year price/earnings (PE) multiple of 13.6 look good value for a long-term growth play.

Patient investment in its market presence, gathering profit momentum and a strong balance sheet all mean Ffastfill (FFA) is well positioned to capitalise upon any recovery at its investment banking customer base. One of the £70 million cap's key selling points is its ability to offer a complete back-to-front office solution that can be rolled out across an organisation's global network. In the half year to end September (19 November) the company demonstrated strong progress with its three strategic pushes, namely expansion of its product range, extension of its territorial reach and growth in its software-as-a-service (SaaS) pipeline. This last initiative alone builds reliability into future revenue streams and improves visibility, a point demanded by many investors seeking quality growth companies. The order book accounts for around 90% of this year's £23.6 million revenues. Organic sales during the interim period grew 14%, including a 21% SaaS revenue advance. With £2 million of net cash on the balance sheet, more acquisitions to add extra value are possible. Earnings per share (EPS) this year of 0.7p could easily hit 1.0p in the 12 months to March 2014, and assuming a fairly typical sector-wide price/earnings (PE) multiple of 20 for Ffastfill, that could spark a share price surge to 20p for 40%-plus upside.

Notes to Editors - Good Energy Group plc is listed on the AIM market of the London Stock Exchange. For more information please visit: www.goodenergygroup.co.uk - Good Energy sources all its electricity from renewable generators. To compare the fuel mix of other suppliers please visit: www.electricityinfo.org/suppliers.php - Good Energy supplies over 30,000 homes and businesses across the UK - Good Energy also supports a pioneering community of more than 40,000 renewable generators that use wind, small-scale hydro, solar power and sustainable biomass to generate heat and power - In 2008, Good Energy added a Gas product to its range. It now has over 6,700 gas customers - Good Energy has recently won a number of awards, including: o Good Energy has come top in the latest Which? customer satisfaction survey for energy suppliers in 2010 and 2012 o Juliet Davenport won PLUS markets CEO of the Year in 2009, 2010 and 2012 and Good Energy won the 2012 PLUS markets Investor Communication of the Year o Juliet Davenport named CEO of the Year and overall winner at People and Environment Business Awards 2012

"We're very excited that this latest site will be part of our new Local Tariff, and we look forward to engaging with the local community during the final development and construction process. We are particularly keen to seek their views on how the site might act as a vehicle for local investment in the area." For further information, please contact: Good Energy Group plc Juliet Davenport OBE, Chief Executive 01249 766795 N+1 Singer (Nominated Adviser & Broker) Andrew Craig, Ben Wright 020 7496 3000. Kreab Gavin Anderson (Financial PR Advisers) Ken Cronin, Andrew Jones 0207 074 1800. RWE Npower Renewables Limited Rebecca Somers